Mutual Funds


What is Mutual Fund ?

A Mutual Fund is a body corporate that pools the savings of a number of investors and invests the same in a variety of different financial instruments, or securities. The income earned through these investments and the capital appreciation realised by the scheme are shared by its unit holders in proportion to the number of units owned by them. Mutual funds can thus be considered as financial intermediaries in the investment business who collect funds from the public and invest on behalf of the investors. The losses and gains accrue to the investors only. The Investment objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Fund scheme. The investment objectives specify the class of securities a Mutual Fund can invest in. Mutual Funds invest in various asset classes like equity, bonds, debentures, commercial paper and government securities.

What is NAV?

NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities. NAV per unit is simply the net value of assets divided by the number of units outstanding. Buying and selling into funds is done on the basis of NAV-related prices

What are the different types of Mutual funds?

Equity Funds/ Growth Funds
Funds that invest in equity shares are called equity funds. They carry the principal objective of capital appreciation of the investment over the medium to long-term. The returns in such funds are volatile since they are directly linked to the stock markets. They are best suited for investors who are seeking capital appreciation. There are different types of equity funds such as Diversified funds, Sector specific funds and Index based funds.

Diversified funds
These funds invest in companies spread across sectors. These funds are generally meant for risk-taking investors who are not bullish about any particular sector.

Sector funds
These funds invest primarily in equity shares of companies in a particular business sector or industry. These funds are targeted at investors who are extremely bullish about a particular sector.

Index funds
These funds invest in the same pattern as popular market indices like S&P 500 and BSE Index. The value of the index fund varies in proportion to the benchmark index.

Tax Saving Funds
These funds offer tax benefits to investors under the Income Tax Act. Opportunities provided under this scheme are in the form of tax rebates U/s 88 as well saving in Capital Gains U/s 54EA and 54EB. They are best suited for investors seeking tax concessions.

Debt / Income Funds
These Funds invest predominantly in high-rated fixed-income-bearing instruments like bonds, debentures, government securities, commercial paper and other money market instruments. They are best suited for the medium to long-term investors who are averse to risk and seek capital preservation. They provide regular income and safety to the investor.

Liquid Funds / Money Market Funds
These funds invest in highly liquid money market instruments. The period of investment could be as short as a day. They provide easy liquidity. They have emerged as an alternative for savings and short-term fixed deposit accounts with comparatively higher returns. These funds are ideal for Corporates, institutional investors and business houses who invest their funds for very short periods.

Gilt Funds
These funds invest in Central and State Government securities. Since they are Government backed bonds they give a secured return and also ensure safety of the principal amount. They are best suited for the medium to long-term investors who are averse to risk.

Balanced Funds
These funds invest both in equity shares and fixed-income-bearing instruments (debt) in some proportion. They provide a steady return and reduce the volatility of the fund while providing some upside for capital appreciation. They are ideal for medium- to long-term investors willing to take moderate risks.

Hedge Funds
These funds adopt highly speculative trading strategies. They hedge risks in order to increase the value of the portfolio.

What are the factors that influence the performance of Mutual Funds?

The performances of Mutual funds are influenced by the performance of the stock market as well as the economy as a whole. Equity Funds are influenced to a large extent by the stock market. The stock market in turn is influenced by the performance of the companies as well as the economy as a whole. The performance of the sector funds depends to a large extent on the companies within that sector. Bond-funds are influenced by interest rates and credit quality. As interest rates rise, bond prices fall, and vice versa. Similarly, bond funds with higher credit ratings are less influenced by changes in the economy.

Benefits of investing in a mutual fund?

As an investor, you would like to get maximum returns on your investments, but you may not have the time to continuously study the stock market to keep track of them. You need a lot of time and knowledge to decide what to buy or when to sell. A lot of people take a chance and speculate, some get lucky, most don t. This is where mutual funds come in.

Mutual funds offer you the following advantages :

Professional management-

Qualified professionals manage your money, but they are not alone. They have a research team that continuously analyses the performance and prospects of companies. They also select suitable investments to achieve the objectives of the scheme. It is a continuous process that takes time and expertise which will add value to your investment. Fund managers are in a better position to manage your investments and get higher returns.


Diversification

The cliché, "do not put all your eggs in one basket" really applies to the concept of intelligent investing. Diversification lowers your risk of loss by spreading your money across various industries and geographic regions. It is a rare occasion when all stocks decline at the same time and in the same proportion. Sector funds spread your investment across only one industry so they are less diversified and therefore generally more volatile

More choice

Mutual funds offer a variety of schemes that will suit your needs over a lifetime. When you enter a new stage in your life, all you need to do is sit down with your financial advisor who will help you to rearrange your portfolio to suit your altered lifestyle.


Affordability

As a small investor, you may find that it is not possible to buy shares of larger corporations. Mutual funds generally buy and sell securities in large volumes which allow investors to benefit from lower trading costs. The smallest investor can get started on mutual funds because of the minimal investment requirements. You can invest with a minimum of Rs.500 in a Systematic Investment Plan on a regular basis.


Tax benefits

Investments held by investors for a period of 12 months or more in equity oriented funds are exempted for any capital gain tax . While gains on investments less than 1 year are taxed at 15% . In Debt funds , gains on investments less than 3 years are taxed as per tax slab. While for more than 3 years investments , gains  get the benefit of indexation & are taxed at 20%with indexation .


Liquidity

With open-end funds, you can redeem all or part of your investment any time you wish and receive the current value of the shares. Funds are more liquid than most investments in shares, deposits and bonds. Moreover, the process is standardised, making it quick and efficient so that you can get your cash in hand as soon as possible.


Rupee-cost averaging

With rupee-cost averaging, you invest a specific rupee amount at regular intervals regardless of the investments unit price. As a result, your money buys more units when the price is low and fewer units when the price is high, which can mean a lower average cost per unit over time. Rupee-cost averaging allows you to discipline yourself by investing every month or quarter rather than making sporadic investments.


Transparency

The performance of a mutual fund is reviewed by various publications and rating agencies, making it easy for investors to compare fund to another. As a unitholder, you are provided with regular updates, for example daily NAVs, as well as information on the funds holdings and the fund managers strategy.
Regulations. All mutual funds are required to register with SEBI (Securities Exchange Board of India). They are obliged to follow strict regulations designed to protect investors. All operations are also regularly monitored by the SEBI.

3 Reasons to stay invested for the long term

Wealth Creation

When you stay invested for the long term, you stand to benefit from the Power of Compounding. This means that the returns generated in the short term are reinvested, and further returns are generated over and above them. This enables your money to multiply at a faster pace.

Risk Reduction

Short term investors are susceptible to higher amount of risk than long-term investors as the markets tend to be more volatile in the short term as compared to the long term

Easy Approach to investing

Once the investment has been made in mutual funds with good growth potential, you do not need to track the market and make decisions on a second-by-second basis. Thus, long-term investing in Mutual Funds is ideal for you if you wish to make an investment and not worry about it!                         

Performance of Indian Equity markets over long term period


 

Remaining invested in Equities has on an average given 5 times growth over 10 years Based on an average of 10 year daily rolling returns, Equities have grown by 5.4 times ! Data Source: S&P BSE Sensex from Jan 01, 1990 until Dec 31, 2015. Past Performance may or may not be sustained in future.    

Mutual Fund Invest Online
Client Testimonial

  • Market News
  • IPO News
  • MF News

Taking Stock: Bulls push Nifty higher for 6th day; small  midcaps under pressure Positive global cues, including the first coronavirus vaccine getting registered in Russia, helped the sentiment in equity markets across the world.
Tue, 11 Aug 2020 16:53:46 +0530


Taking Stock: Profit booking at higher levels; pharma, defence stocks shine Top Nifty gainers included Tata Motors, MM, LT, and Cipla.
Mon, 10 Aug 2020 16:59:34 +0530


Taking Stock: Market closes flat! Nifty above 11,200; mid  small-caps shine The SP BSE Midcap index rose 1.4 percent and the SP BSE Smallcap index that was up 0.78 percent.
Fri, 07 Aug 2020 16:37:53 +0530


Taking Stock: RBI commentary helps bulls push Sensex higher; Nifty reclaims 11,200 Mild profit booking was seen in telecom (down 0.3 percent), capital goods (down 0.29 percent) and power (down 0.09 percent) stocks.
Thu, 06 Aug 2020 16:52:53 +0530


Taking Stock: Indices end mixed as Nifty holds 11,100; metals, auto shine Sectorally, the SP BSE Metal index rose 4 percent, followed by the Auto index gained 1.8 percent, and the SP BSE Consumer Discretionary was up 1.3 percent.
Wed, 05 Aug 2020 16:29:43 +0530


Taking Stock: Terrific Tuesday! Sensex rallies by over 700 points; Nifty above 11K Sectorally, the action was seen in energy, banks, consumer durables, healthcare, and oil gas stocks while mild profit-booking was visible in IT space.
Tue, 04 Aug 2020 16:36:17 +0530


Taking Stock: Manic Monday, Sensex plunges over 600 points; 5 factors that weighed on D-St The SP BSE Midcap index was down 0.31 percent, while the SP BSE Small-cap index closed with gains of more than a percent, outperforming the benchmarks.
Mon, 03 Aug 2020 16:42:52 +0530


Taking Stock: Market snaps longest winning streak since April; Nifty below 11,100 For the week, the SP BSE Sensex and Nifty50 fell around a percent each. The Nifty Bank was down about 4 percent.
Fri, 31 Jul 2020 16:53:28 +0530


Taking Stock: Profit booking on FO expiry day, Sensex falls over 300 points Infosys, Wipro, Sun Pharma, and Dr Reddy’s Laboratories were among top Nifty gainers.
Thu, 30 Jul 2020 16:33:30 +0530


Taking Stock: Bears back on D-St! Sensex down by over 400 points; Nifty holds 11,200 Sectorally, the SP BSE Healthcare index rose 2.1 percent, SP BSE Metal index was up 0.98 percent and the telecom index closed with gains of 0.69 percent.
Wed, 29 Jul 2020 17:14:25 +0530


Taking Stock: Fear of spike in bad loans leads to profit taking; Nifty holds 11,100 Sectorally, the SP BSE IT index rose 2.3 percent, SP BSE Metals index was up 0.4 percent and the SP BSE Energy index closed with gains of 0.38 percent.
Mon, 27 Jul 2020 17:08:44 +0530


Taking Stock: Over 4-month high! Sensex reclaims 38,000; Nifty back above 11,200 On the broader market front, the SP BSE Midcap index rose 0.98 percent while the SP BSE Smallcap index closed with gains of 0.61 percent.
Thu, 23 Jul 2020 16:56:25 +0530


Taking Stock: Nifty holds 11,100 as D-Street snaps 5-day winning streak; Axis Bank up 7% Sectorally, the action was seen in consumer durables, power, energy, banks, and telecom stocks while the selling pressure was seen in IT, Auto, capital goods, and realty stocks.
Wed, 22 Jul 2020 16:29:28 +0530


Taking Stock: COVID vaccine hopes fuel rally on D-Street; Sensex vaults 500 points Sectorally, the SP BSE Energy index rose 2.7 percent, SP BSE Oil Gas index was up 2.7 percent and the SP BSE Bankex closed with gains of 2.3 percent.
Tue, 21 Jul 2020 16:45:28 +0530


Taking Stock: Nifty climbs Mount 11K; Sensex rallies nearly 400 points Sectorally, action was seen in IT, telecom, finance, banks, and consumer durable stocks while selling pressure was visible in healthcare, power, capital goods, and utilities.
Mon, 20 Jul 2020 17:02:25 +0530


Mindspace Business Parks REIT zooms over 10% in debut trade The Rs 4,500-crore public issue of Mindspace Business Parks REIT was subscribed nearly 13 times late last month.
Fri, 07 Aug 2020 22:17:04 +0530


Mindspace REIT lists at 11% premium on issue price of Rs 275 This is the second REIT listing on the exchanges, after Embassy Office Parks REIT which was listed in March 2019 following fund raising of Rs 4,750 crore via IPO.
Fri, 07 Aug 2020 10:22:19 +0530


Mindspace Business Parks REIT to debut on August 7, issue price set at Rs 275 per share Sharad Mittal of Motilal Oswal Real Estate Fund feels from Mindspace, investors can earn a return of 11-12 percent of which 7-8 percent which accrues from rental yield is as stable as debt.
Thu, 06 Aug 2020 12:00:30 +0530


Mindspace Business Parks REIT IPO subscribed 13 times on final day Mindspace REIT public issue consists of a fresh issue of Rs 1,000 crore and an offer for sale of Rs 3,500 crore.
Wed, 29 Jul 2020 18:08:23 +0530


Mindspace Business Parks REIT IPO fully subscribed on second day The issue will close on July 29 and the bids can be made for minimum 200 units and in multiples of 200 units thereafter.
Tue, 28 Jul 2020 19:23:01 +0530


Mindspace Business Parks REIT IPO subscribed 38% on Day 1 From an investor standpoint, the REIT product is a must-have in any portfolio, said Sharad Mittal, CEO at Motilal Oswal Real Estate Fund.
Mon, 27 Jul 2020 19:37:07 +0530


IIFL Securities recommends subscribing to Mindspace Business Parks REIT IPO; here#39;s why IIFL Securities has recommended the issue for investors seeking returns similar to debt asset class.
Sun, 26 Jul 2020 15:56:10 +0530


Mindspace Business Parks REIT IPO opens on July 27; here are 10 things you should know Mindspace has so far raised Rs 2,643.74 crore from strategic and anchor investors, which is 58.74 percent of the total issue size of Rs 4,500 crore.
Sat, 25 Jul 2020 15:02:45 +0530


3 Point Analysis | Rossari Biotech#39;s stellar listing: What should investors do now? The stock opened with a premium of Rs 245, or 58 percent, on the BSE against its issue price of Rs 425 per share, and rose to Rs 710 intraday, i.e. 67.1 percent higher
Thu, 23 Jul 2020 21:20:14 +0530


Rossari Biotech debuts at Rs 670 with 58% premium over IPO price The listing premium was much higher than the grey market premium (of around Rs 160-180 per share) as well as analysts#39; expectations of Rs 130-175 per share.
Thu, 23 Jul 2020 10:03:35 +0530


Subscribe to Rossari Biotech: Ajcon Research Ajcon Research Rossari Biotech Started in CY03 as “Rossari Lab tech”, a partnership firm, Rossari was converted to Company in CY09 by Mr. Edward Menezes and Mr. Sunil Chari.
Fri, 17 Jul 2020 15:09:34 +0530


Yes Bank FPO subscribed 95% so far, QIB remains strong on final day The maximum bids received at lower end of price band of Rs 12-13 per share. In fact, the anchor book, through which the lender had received Rs 4,098 crore, was also subscribed at Rs 12 per share.
Fri, 17 Jul 2020 15:06:55 +0530


Rossari Biotech#39;s Rs 496-crore IPO subscribed 79 times so far on last day The public issue consists of a fresh issue of Rs 50 crore and an offer for sale of 1.05 crore equity shares by its promoters Edward Menezes and Sunil Chari.
Wed, 15 Jul 2020 11:58:45 +0530


Rossari Biotech IPO subscribed 3 times on Day 2 amid retail, QIB interest In past 3 years (FY17-FY20), company has delivered stupendous growth on revenue, EBITDA and net profit level, which grew at a CAGR of 42 percent, 57 percent and 60 percent respectively.
Tue, 14 Jul 2020 14:40:37 +0530


Subscribe to Rossari Biotech: Emkay Global Financial Emkay Global Financial Rossari Biotech is planning to raise ~Rs4.95bn through a mix of fresh issue (Rs500mn, 1.17mn shares) combined with Offer for Sale (OFS) route (~Rs4.45bn, 10.5mn shares), to the public.
Mon, 13 Jul 2020 18:07:11 +0530


What if the outflow from equity funds in July sustains? Investor disinterest in equity funds comes at a time when retail participation in stock markets has gone through the roof
Tue, 11 Aug 2020 08:44:40 +0530


MFs log Rs 1.24 lakh crore inflows in June quarter on strong interest in liquid, arbitrage funds This follows an outflow of over Rs 94,200 crore into mutual fund (MF) products in the preceding three months, according to data with Association of Mutual Funds on India (Amfi).
Mon, 27 Jul 2020 13:25:12 +0530


Why the sharp fall in equity inflows is not a cause for concern The low net equity inflows shouldn’t be read as fading interest either in equities or mutual funds but is explained by investor’s instinctive response to a dazzling rise in equities
Thu, 09 Jul 2020 10:42:53 +0530

© 2015 @ Jayasha Share Consultants
Design & Developed By: Redvisiontech.com