We have all the mutual fund schemes on offer by virtually all the Asset Management Companies (AMCs) in the country. As a client, you can access any scheme with us, either in physical mode or even in a demat /stock-exchange mode with Trading Account services.
To Assist Investors In Earning An Income Or Building Their Wealth By Participating In The Opportunities Available In Various Securities & Markets. The Money That Is Raised From Investors Ultimately Benefits Governments, Companies Or Other Entities, Directly Or Indirectly To Raise Money To Invest In Various Projects Or Pay For Various Expenses.
Advantages Of Mutual Funds:
- Professional Management
- Affordable Portfolio Management
- Economies Of Scale
- Liquidity
- Tax Deferral
- Tax Benefits
- Convenient Options
- Investment Comfort
- Regulatory Comfort
- Systematic Approach To Investment.
Mutual funds have become a very popular investment option in India and this trend still continues with new funds and schemes being introduced in the market regularly. Some of the key reasons why people invest in mutual funds are outlined below
Focused investments: All mutual funds feature schemes clearly specifying which assets are targeted for investments, allowing investors to direct savings to different asset classes in an organised and focused manner. It also gives investors access to certain securities otherwise unavailable to them e.g. foreign sectors or foreign securities which cannot be invested in by individuals.
SIP options: Systematic Investment Plans let individuals invest small amounts on a regular basis to avail benefits of rupee cost averaging. It’s an alternative to those who cannot invest lump sum amounts thereby appealing to investors across income levels. Mutual funds accept initial investments as low as Rs.500.
Flexibility through fund switching:
Many funds offer investors flexibility by letting investors switch between schemes or between funds to avail better returns
How to invest in mutual funds
Mutual funds are made easily accessible to investors. Applications can be made in the following ways.
Agents: These are professionals who are trained to reach out to customers to provide information on the various funds provided by a company. They help process applications and deal with related issues e.g. redemption, cancellation, transfer of units and other dealings with the company. Agent commissions, which normally range up to 6%, are added on to the purchase price of fund units.
Direct: Customers can invest directly by visiting the nearest office of the mutual fund company or by going online. Forms can be availed and submitted at the appropriate office or downloaded from the company website and submitted at the office.
Alternatively, applications can be processed online. Applying for Mutual Funds and Online transactions are becoming increasingly popular for many reasons, as mentioned below.
Convenience: Schemes can be applied from the comfort of one’s own office or home.
Easy comparison: Besides company websites, there are a number of online financial services providers which act as single-point portals for viewing and comparing funds and schemes from multiple companies.
Independence: All required information, including brochures and other material, is provided online for making informed, independent decisions.
LARGE CAP MUTUAL FUNDS
Large-cap funds are those funds which invest a larger proportion of their corpus in companies with large market capitalization. Trustworthy, reputable and strong are three adjectives that are often used to describe a large-cap company. These are the old and well-established players with a track record. Such companies typically have strong corporate-governance practices and have generated wealth for their investors slowly and steadily over the long term. These corporate houses are usually among the most highly followed and well-researched on the market. Mutual funds that invest a majority of their investible corpus in these companies are labelled as large-cap funds.
Being seasoned players, the underlying companies in the portfolio of large-cap funds may be considered as relatively steady compounders and regular dividend payers. On the risk-return spectrum, large-cap funds deliver steady returns with relatively lower risk, compared with mid- and small-cap funds. They are ideal for investors with lower risk appetite. So, adopt a long-term perspective, stay patient, and remain invested to reap good returns over the long term.
MID CAP MUTUAL FUNDS
Mid-caps are those that they lie between large-caps and small-caps in terms of company size. During a bull phase, mid-cap stocks may outperform their large-cap counterparts, as these companies seek to expand by looking out for suitable growth opportunities. Investors should, however, note that the underlying stocks are more volatile than their large-cap counterparts. Mutual funds that mainly invest in mid-cap entities are labelled mid-cap funds. Through prudent stock selection, diversification across sectors, and market timing, fund managers aim for better returns.
Mid-cap equity funds are advised for investors with a higher risk tolerance than large-cap investors. So, invest in these schemes if you seek higher capital appreciation, albeit with reasonably higher risk.
MULTI CAP MUTUAL FUNDS
These are diversified mutual funds which can invest in stocks across market capitalization. In other words, they are market capitalization agnostic. These funds resort to portfolio gyrations commensurate with the market
These funds invest in stocks across market capitalization. That is, their portfolio comprises of large-cap, midcap and small-cap stocks. They are relatively less risky compared to a pure mid-cap or a small-cap fund and are suitable for not-so-aggressive investors.
Multi-cap mutual funds are part of a financial approach that allows investors to diversify the types of caps in growth potential that are associated with different mutual funds. The multi-cap approach is an excellent way to create several layers of investments within the portfolio so that the components of the portfolio contain various levels of risk. Many investors consider the practice of carrying a mix of mutual funds a prudent way to maintain the overall integrity of an investment strategy.
