A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. The money collected is then invested in capital market instruments such as shares, debentures and other securities based on their objective. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by the investors.
Investing solutions enable individuals to realize their aspirations by making their money work for them.
Growing our hard-earned money should be simple and accessible to everybody, so that each of us is able to live the life we desire. With this objective, we ensure we gain an in-depth understanding of each individual's aspirations and ambitions so that we are able to recommend the right investment solution. We encourage people to link their investments to specific life goals so that they are able to realize these goals meticulously and with ease.
What are the advantages of mutual fund?
- Flexibility -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.
- Liquidity - In open-ended schemes, you have the option of withdrawing or redeeming your money at any point of time at the current NAV
- Diversification –Risk is lowered with Mutual Fund as they invest across different industries&stocks.
- 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
- Low Costs – The economy of scale result in low cost.
- 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.
- 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 fund's holdings and the fund manager's strategy.
What is Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a simple method of investing, used across the world as a means to accumulate wealth. It works the same way as a recurring deposit account. SIP involves investing a fixed sum of money in a specific investment scheme, on a regular basis, for a pre-determined number of periods.
What are the advantages of investing in SIP?
- Helps you to invest disposable funds each month.
- Gives you the benefits of rupee-cost averaging
- Relieves you of trying to time the market
- Helps you to reach your financial goals
How do I apply for SIP?
- Fill up a single SIP form, and a single application form.
- Draw post-dated cheques (minimum 5 cheques).
- Per cheque minimum SIP amount, there are many funds that have their minimum amount as low as can be as low as Rs 500/-
- Auto Debit Facility
Are there any minimum amount limits for subsequent purchase in same scheme?
Yes, there is a minimum amount limits for subsequent purchase in same scheme.