MUTUAL FUNDS

Birla Mutual Funds

Shape Your Financial Goals with Expert Fund Managers. Aim to Gain Capital Appreciation. 

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TATA Mutual Fund

Tata Mutual Fund: Get the Latest Information on Tata Mutual Fund Schemes, Returns.

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ICICI Prudential Mutual Fund

Choose From Variety of SIP Schemes & Aim to Gain Capital Appreciation. Invest Online! Expert FundManagers.

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Quantum Mutual Fund

Quantum Mutual Fund: Get the Latest Information on Quantum Mutual Fund Schemes, Returns.

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UTI Mutual Fund

UTI Mutual Fund is one of the leading mutual fund investment companies in India. Apply Now

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Kotak Mutual Fund

Kotak Asset Management offers best investment mutual funds such as Equity funds Debt Funds & SIP plans online. 

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MUTUAL FUNDS

As we all know that credit card is a type of payment card which is use to pay bill of trading and shopping. Facilities of credit card depend upon limit, offer and its type. In modern era credit cards are important and useful because it resolves plenty of transaction related issues and make online transaction secure and reliable. If card holders use this plastic currency smartly then it’s quite effective otherwise user may face some serious financial trap or trouble.

Before you start use of your credit card, user must be aware about all policies and condition of the particular card. Especially if you are new user of credit card you must ask from responsible bank or financial organization to avoid any issues in future. Credit card user must ask about transaction limits, fees, security features, Information about discount facility, transaction charges, ATM cash withdrawal limit and other useful information as per your need. In case of new policies always confirm it with card providing company. In short, it can be said that the card holder has to be aware about all policies to avoid any financial trap. Always keep monthly transaction records to make things transparent and reliable. After finalizing your choice, user may easily apply online for credit card.

ADVANTAGE OF MUTUAL FUNDS

Apart from above described credit card advantages responsible organization or bank offers some amazing offers and facility to customer. Some trending offers that customers are getting with their credit card are rewards points, bonus points; cash back offers, maximum discount on transactions, gifts on shopping, some customers may get opportunity in credit card renewable amount and many more.

Offers and facilities of credit cards depends upon types of credit card, some popular credit card categories are Business, Secured credit cards, Rewards, general purpose cards and several other that provides secure transaction facility and Some credit cards provider are associated with international payment gateways such as MasterCard, Visa, standard chartered and American Express.

Paying all due on time is the best way to earn and maintain a healthy credit history because in some case when card holder will apply for a loan and if credit history is not so good then the loan will not be approved easily. Just because of poor credit history respective bank may reject requests of the loan.

TYPES OF MUTUAL FUNDS

Various types of Mutual Funds exist to cater to different needs of different people. Largely, they are of three types.

  1. Equity  Growth Funds
  • These invest predominantly in equities i.e. shares of companies
  • The primary objective is wealth creation or capital appreciation.
  • They have the potential to generate higher return and are best for long term investments.
  • Examples would be
    • “Large Cap” funds which invest predominantly in companies that run large established business
    • “Mid Cap” funds which invest in mid-sized companies.
    • “Small Cap” funds that invest in small sized companies
    • “Multi Cap” funds that invest in a mix of large, mid and small sized companies.
    • “Sector” funds that invest in companies that are related to one type of business. For e.g. Technology funds that invest only in technology companies
    • “Thematic” funds that invest in a common theme. For e.g. Infrastructure funds that invest in companies that will benefit from the growth in the infrastructure segment
    • Tax-Saving Funds
  1. Income or Bond or fixed income funds
  • These invest in Fixed Income Securities, like Government Securities or Bonds, Commercial Papers and Debentures, Bank Certificates of Deposits and Money Market instruments like Treasury Bills, Commercial Paper, etc.
  • These are relatively safer investments and are suitable for Income Generation.
  • Examples would be Liquid, Short Term, Floating Rate, Corporate Debt, Dynamic Bond, Gilt Funds, etc.
  1. Hybrid Funds
  • These invest in both Equities and Fixed Income, thus offering the best of both, Growth Potential as well as Income Generation.
  • Examples would be Aggressive Balanced Funds, Conservative Balanced Funds, Pension Plans, Child Plans and Monthly Income Plans, etc.

BENEFITS OF MUTUAL FUNDS

Many of us dread the thought of managing our own investments. With a professional fund management company, people are put in charge of various functions based on their education, experience and skills.

As an investor, you can either manage your finances yourself, or hire a professional firm. You opt for the latter when:

  1. You do not know how to do the job best – many of us hire someone to file our income tax returns, or almost all of us get an architect to do our house.
  2. You do not have enough time or inclination. It’s like hiring drivers even though we know how to drive.
  3. When you are likely to save money by outsourcing the job instead of doing it yourself. Like going on a journey driving your own vehicle is far costlier than taking a train.
  4. You can spend your time for other activities of your choice / liking

Professional fund management is one of the best benefits of Mutual Funds. The infographic on the left highlights all the others. Given these benefits, there is no reason why one should look at any other investment avenue.

FEATURES OF MUTUAL FUND

 

 Portfolio Diversification/Risk Diversification

Most Mutual Funds invest in 50 to 100 different investments based on market capitalisation, sectors and many other demographics. *Only on a rare occasion do all stocks decline at the same time and in the same proportion. Hence, Mutual Funds offer a diversified investment portfolio even with a small amount of investment that would otherwise require big capital. Even with big capital, it is extremely difficult and time-consuming to purchase and manage a wide range of investments individually.

While investing in few shares or debentures directly is possible, the risk of potential loss is all on the investor. However, Mutual Funds reduce the risk of loss as the portfolio is largely diversified and the purchases are backed by research and experience of the fund house. Moreover, the loss is also shared with other investors in the same fund. This diversification of risk is one of the key benefits of a collective investment instrument like mutual funds.

* Only Sector funds invest across one industry making them less diversified and therefore more volatile.

 Professional Management

Mutual Fund schemes are managed by qualified experienced professionals who work towards the fund’s defined objective. These financial experts are accompanied by a specialized investment research team. The experts and their teams diligently and judiciously study companies, their products and performance. After thorough analysis, the best investment option most aptly suited to achieve the scheme’s objective is chosen. This continuous process adds value to your investment and helps obtain higher returns.

While, investors may differ in their investment needs based on their financial goals, currently, they have over 8000+ schemes to choose from to meet their goals. Therefore, mutual funds make the best way one can invest in Equities, Debt or Commodities (mainly Gold)

 Affordability

A mutual fund invests generally buy and sell various asset classes in large volumes allowing investors to benefit from lower trading costs. Investors can get exposure to such portfolios with an investment as modest as Rs.500/-* in mutual funds through a Systematic Investment Plan. Such portfolio would otherwise be extremely expensive to purchase and maintain for an investor investing directly in stock market.

*Subject to requirements of the Asset Management Company (AMC).

 Liquidity

With open ended funds, investors can redeem (encash) all or part of their investments at prevailing net asset value, at any point of time. Mutual Funds are more liquid than most investments in shares, deposits, and bonds. In addition, a standardised process enables quick and efficient redemption allowing investors to get cash in hand as soon as possible. For closed ended schemes, investors can redeem their investments at prevailing Net Asset Value, subject to exit load at specific intervals, if provided in the scheme. In certain schemes, where lock in period is mentioned, investor cannot redeem his investment until that period.

 Transparency

Mutual Funds are the most transparent form of investment. Investors receive detailed information and timely updates about the nature of investments made, fund manager’s investment strategy behind the investments, the exact amount invested in each type of security, etc. Moreover, the performance of a Mutual Fund is reviewed by various publications and rating agencies, making it easy for investors to compare one fund to another.

 Rupee-cost Averaging

Rupee cost averaging or SIP provides the investor a disciplined approach of investing specific amount at regular intervals regardless of the unit price of the investment. Therefore, the money invested fetches more units when the price is low and lesser when the price is high. Thus, allowing you to achieve a lower average cost per unit over time. The strategy helps smoothen out market ups and downs in the long run, while reducing the risk of investing in volatile markets.

 Regulations

All Mutual Funds are required to register with Securities Exchange Board of India (SEBI). With investor interest at the helm, SEBI has laid down strict regulations to safeguard investors against possible frauds. It is even mandatory for Mutual Fund distributors to register with Association of Mutual Funds in India (AMFI) and abide the norms laid by the Securities and Exchange Board of India (SEBI) and AMFI for the distributors.

 Choice of Investment

Mutual Funds are the only product category that caters to every one’s needs. You will always find a mutual fund that matches your time horizon – long, medium, or short; and your risk-taking ability – low, medium, high. All this irrelevant of how much you invest, be it a very small investment or a huge Lumpsum. Your adviser will help choose the right fund/s for you keeping in mind your profile.

 Minimizing Costs

Mutual Funds help investors to benefit from economies of scale as mutual funds pool money from vast number people with common interest and invest their money in the relevant asset class/classes. This helps the investors share the cost of management of their money.