Mutual Funds

  • Mutual funds
    What Is a Mutual Fund?
    A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other
    securities.
    Mutual funds give small or individual investors access to diversified, professionally managed portfolios
    at a low price.
    Mutual funds are divided into several kinds of categories, representing the kinds of securities they invest
    in, their investment objectives, and the type of returns they seek.
    Investors typically earn a return from a mutual fund in three ways:
    Income is earned from dividends on stocks and interest on bonds held in the fund’s portfolio. A fund
    pays out nearly all of the income it receives over the year to fund owners in the form of
    a distribution. Funds often give investors a choice either to receive a check for distributions or to
    reinvest the earnings and get more shares.
    If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also pass
    on these gains to investors in a distribution.
    If fund holdings increase in price but are not sold by the fund manager, the fund’s shares increase in
    price. You can then sell your mutual fund shares for a profit in the market.
    SIP, STP, and SWP
    All are systematic and strategic methods of Investing and withdrawal in Mutual Funds. Individuals can
    resort to each of the options depending on their requirements. In a nutshell, SIP means a systematic
    method of investing in Mutual Funds while STP means systematically transferring the money from one
    Mutual Fund scheme to another. Finally, SWP means withdrawal of funds or redemption of Mutual Fund
    units in a systematic manner. While the first two terms are related to investment, the third term
    discusses withdrawal.
    Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds wherein one can invest a
    fixed amount in a Mutual Fund scheme at regular intervals– say once a month or once a quarter, instead of
    making a lump-sum investment. The installment amount could be as little as INR 500 a month and is
    similar to a recurring deposit. It’s convenient as you can give your bank standing instructions to debit
    the amount every month.
    SIP PER MONTH 5000
    YEARS 25
    RETURNS 12%
    TOTAL INVESTMENT
    ₹58,98,480
    WEALTH GAINED
    ₹1,54,79,251
    MATURITY VALUE
    ₹2,13,77,731
    SIP PER MONTH 2000
    YEARS 30
    RETURNS 14% PER ANUM
    TOTAL INVESTMENT
    ₹39,43,152
    WEALTH GAINED
    ₹2,10,61,120
    MATURITY VALUE
    ₹2,50,04,272
    TYPES OF MUTUAL FUNDS
    Equity funds.
    Debt funds.
    Money market funds.
    Index funds.
    Balanced funds.
    Income funds.
    Fund of funds.
    Specialty funds.
    STEPS WE FOLLOW TO MUTUAL FUND INVESTORS
    ANALYSE THE CLIENT OBJECTIVE , RISK APPETTIE, GOAL AND TIME HORIZON
    SELECT THE RIGHT MUTUAL FUND SCHEME
    EXECUTION
    MONITORING
    REVIEW
    USER FRIENDLY APP TO ENABLE THE INVESTOR ON MANAGING PORTFOLIO ON THEIR OWN.