We are in business of helping an individual to take the right investment decision in line with his financial goal. We strongly believe that investment is not an activity but an on-going process.
Funds pooled in by a large number of investors are what makes up a Mutual Fund. This money is then managed by a professional Fund Manager, who uses his investment management skills to invest it in various financial instruments. As an investor you own units, which basically represent the portion of the fund that you hold, based on the amount invested by you. Therefore, an investor can also be known as a unit holder. The increase in value of the investments along with other incomes earned from it is then passed on to the investors / unit holders in proportion with the number of units owned after deducting applicable expenses, load and taxes.
The primary advantage of funds is the professional management of your money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments.
Diversifying your investments will help you lower your risk. By spreading out your money across different types of investments, investing in multiple companies and investing in more than one sector, when you look to invest, always consider a wide range of options. Equity Mutual Funds invest in shares of various companies whereas Debt Funds invest in government securities, NCD, CDs, CPs bonds and other fixed income securities. Thus as an investor, you will be able to have a diversified investment basket.
Mutual fund buys and sells large amounts of securities at a time, henceit’s transaction costs are lower. As per prevalent tax laws, under provisions of Section 10 (23D) of the Act, any income received by the Mutual Fund is exempt from tax; which simply means that funds don’t pay any tax on the gains obtained from selling securities that they buy on behalf of their investors.
Liquidity is all about having access to the money you’ve invested at your convenience.Open ended Mutual fund gives you the advantage of getting your money when you need it the most.
There are various types of Mutual Funds that invest in various schemes, from money market instruments to equities, thus catering to people who’d like to invest for duration ranging from a day to years. Minimum amounts of investment range from as low as Rs. 500, with no upper limit. In the case of open ended funds, daily investment and withdrawal is possible. Invested funds can be received within 1 to 5 working days. There is no maintenance charge on portfolios
In the case of Mutual Funds, your money is handed over to a professional, whose entire job is to keep track of markets and look out for the best opportunities for you. Mutual Funds publish a monthly fact sheet which basically lists out all the important facts you need to know about the scheme you’ve invested in.
These facts are:
Your portfolio of holdings, that shows details of the companies and the amount invested in each company and the rating of the company’s issuance in case the instrument is a debt instrument.
Past returns, dividends and performance ratios. In addition, the NAV is published on AMFI and on each of the fund company websites on a daily basis, ensuring that you’re always in the loop about your investments. Types of Funds
As the name suggests, A Debt Mutual Fund works on borrowing. So what are the conditions that are usually laid down when one borrows?
1. Reasonable assurance that the principal investment will be returned
2. The interest that will be generated based on the rate of interest (also known as the coupon rate).
3. Tenure or the time over which the principal will be returned. Companies, state governments and even the central government all require money to run their operations. They offer various debt based instruments like T-Bills, Debentures, G-Securities etc., and Mutual Funds buy the debt that is issued by them Debt Funds help bring stability to your investment portfolio since they are lower in risk as compared to Equity Funds, yet riskier than Liquid Funds and their aim itself is to generate steady returns while preserving your capital. These would typically invest in government securities, NCD, CDs, CPs bonds and other fixed income securities as well as lend money to large organization’s or Corporates, in return of a fixed interest rate.
As the name Suggests, Equity funds invests in shares of companies When you invest in equity, you are considered as an owner of the particular company that you’ve invested in, to the extent of your investment. So naturally, like any owner, your profit is linked with the performance of the company. The higher the profits of the company, the better is the share price and hence the better your gains Like with any high risk action, Equity Funds also carry the potential to deliver high returns. And to help counter this risk, Mutual Funds are invested in multiple companies that usually don’t belong to one or correlated sectors. This is known as diversifying. In the long run, one needs to be guarded against inflation and in the short run, market fluctuations. Equity, though volatile, has proved to be a better bet against inflation, provided one has a long term investment.
These funds offer tax benefits to investors under the Income Tax Act, 2961. Opportunities provided under this scheme are in the form of tax rebates under section 80 C of the Income Tax Act, 1961. They are best suited for long investors seeking tax rebate and looking for long term growth
Hybrid Funds are those which have a combination of asset classes such as debt and equity in their portfolio. they invest in a blend of debt, money market instruments and equity. Depending on the mix of equity and debt, there could be various types of Hybrid Funds as well.
Liquid Mutual Funds have the least risk factor and may give you returns that are slightly higher than a savings account. These funds invest in faster maturing debt securities, therefore making them less risky.
We are in business of helping an individual to take the right investment decision in line with his financial goal. We strongly believe that investment is not an activity but an on-going process.
© Copyright 2021 - I-nest Distributor | Designed & Developed by
