Mutual Funds

A Systematic Approach to Your Goals

Mutual Funds have now become a popular investment asset for investors – who don’t have the time or the heart to deal with day to day volatility of the stock markets. Mutual Funds also provide a host of other benefits over and above direct investing.

What are the benefits of Mutual Funds over other Traditional Investments?

PROPERTIES MUTUAL FUNDS OTHER TRADITIONAL PRODUCTS SUCH
AS : Fixed Deposits, Endowment Plans,
PPF, NSC etc.
Higher Returns! Mutual Funds are known to have given higher
returns than any other traditional investment
plans – such as FDs and Insurance Policies
Due to risk averse nature of these
products – they will rarely give better
than market returns
Management Very professional management which is
accountable and evaluated
Though professionally managed,
but not and measured regularly
like MFs – hence returns are lower
Lock In Periods No Lock in period in Fixed income
schemes
Most FDs, Insurance policies have
lock-in periods.
Hybrid Structures These are the only products
through which we can invest
in hybrid products such
as combination of Equity and
Debt in the most tax efficient manner.
Though hybrid options are
available they are not as well
defined as Mutual Funds.
Easy to Track All your mutual funds can be
found at one place and be
transacted with ease
Traditional investments involve
lot of paper work, individual
monitoring and poor systems integration
to track regularly
Low Initial Investments Mutual Funds investment can
start from as low as
Rs. 500 per month.
Traditional investment plans
require relatively higher
minimum investment.

What is a Mutual Fund?

A Mutual Fund is an investment product where money from different investors is pooled and invested into Stocks, Debentures, Government Securities to generate returns as per the need of the customers. A mutual fund is a Trust with a sponsor.

How many types of Mutual Funds are there?

There are 4 types of MFs based on the nature of schemes:

  • Equity Funds : These funds primarily Invest significant part of their corpus into Equity holdings. Types of Equity Funds include Diversified Equity Funds, Large-Cap Funds, Mid-Cap Funds, & Small-Cap Funds, Sector specific funds & Tax Saving Funds (ELSS).

  • Debt Funds: They invest in debt papers issued by government authorities, private companies, banks & financial institutions. They ensure low risk & stable returns. Types of Debt Funds include Gilt Funds, Income Funds, MIPs, Liquid Funds, Short Term Plans, Gold Funds & Gold ETFs.

  • Hybrid Funds : They are a mix of equity & debt funds aimed at providing investors with the best of both the worlds.

  • Commodity Funds : In India, these funds invest into Gold metal via Gold ETF & Gold Funds. Performance of these funds depends on performance of Gold Metal traded in the commodity markets.

What is SIP?

Current volatile times are exceptionally ideal for investors to use the mutual funds route to achieve their short & long term investment goals. Investing in mutual funds especially through the SIP (systematic investment planning) route is prudent as they ensure a disciplined approach to ensure that your financial goals are achieved.

Which Mutual Funds Schemes should I select?

Our flagship product ‘MF Rankings’ will help you select a set of strong diversified mutual fund schemes having established fund managers with a proven track record of consistent returns. MF Rankings are derived from intensive calculations on various mutual fund scheme parameters to identify the best schemes for long term investments. MF Rankings will help you select a set of 5-6 schemes across equity & debt. Our investment philosophy would be to stay invested in equity schemes when we expect a strong bull run & invest in debt funds or sit on cash when market conditions locally/globally might seem unstable i.e. rebalance the holdings.

Paper Less Mutual Funds:

Mutual Fund transactions have become very easy through the Dematerialized mode. The treatment of Mutual Fund units is the same as that of shares and units are delivered to your DP.

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