Equity & Mutual Funds

What is Mutual Funds?

Your money, our expertise

Mutual fund is managed by a Qualified Fund Manager.

It is a type of monetary vehicle that is made up of a pool of money collected from the investors and invested in bonds, money market, stocks, and other assets. MF's give small or individual investors entry to diversified, professionally managed portfolios at a lesser value.

The income that gets generated from this investment gets proportionally distributed amongst the investors after certain expenses are deducted by calculating a scheme's NAV (Net Asset Value).

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Why Invest in Mutual Funds?

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Expert Management

Mutual funds are managed by qualified people who have a lot of knowledge about the market and the economy. A lot of research is involved, and the fund manager uses his experience to purchase the right shares and invest in the right sector. The key role of the fund manager is to try to alter the portfolio and give maximum returns to the clients.

High Returns on Investment

Everyone wants high returns on their investment. In MF, you can make investments in wide range of industries and sectors. There are several scheme's available where one can see the past return of a fund and accordingly decide to invest.

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Easy Investing

With a monthly minimum amount of Rs. 500, one can start investing. The returns can be tracked in the app provided by the broker/agent. MF's can be purchased online or can also be purchased from professional agent's/brokers who can also guide them about their investment.

Tax Benefits

In the ELSS (Equity Linked Saving Scheme), Tax benefits are offered under section 80C of the Income Tax Act, 1961 up-to a maximum investment of 1,50,000 Rupees. Customer can choose to do a SIP or invest Lumpsum to avail tax benefit up-to 1,50,000 Rupees.

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Types of Mutual Funds

Open Ended Funds

In this type of fund, the customer can enter and exit whenever he wants. There is no lock-in period.

Close Ended Funds

These funds come with a fixed maturity date. One can invest in such funds only during the initial period which is known as New Fund Offer (NFO).

Equity and Debt Mutual Funds

EQUITY SCHEMES

Exposure in equity is very high in such schemes and they also carry high risk. It totally depends on your risk appetite whether you should invest in such schemes.

LIQUID FUNDS

These funds tend to invest in short term debt instruments. These funds give reasonable amount of returns to the investors & preferably is for the people who have very low risk appetite.

DEBT FUNDS

Majority of the funds here are invested in Debt instruments like Government securities, bonds etc. Again, these funds are for those having low risk appetite.

BALANCED FUNDS

These are the type of schemes that bifurcate their investments in equity and debt. This is suitable for investors seeking for moderate returns at a slightly lower risk.

HYBRID FUNDS

These funds are similar to that of balanced funds but equity exposure is slightly lesser than that of balanced funds. This type of fund suits retired people seeking for regular income at a low risk.

GILT FUNDS

These funds will invest only in the government securities.

Equity Market

Understanding some of the trading types in equity market

INTRADAY

In Intraday trading, the investor buys and sells the stocks on the same Trading day before the closing time. If you fail to settle your trade, your stock-broker may square-off your position or convert it into a Delivery trade.

SWING TRADING

Swing trading is a type of trading that tries to capture short- to medium-term gains in a stock with a horizon of few days to several weeks. Swing traders largely use technical analysis to look for trading opportunities.

LONG TERM BALANCE

In this type of investment, the investor usually purchases shares with a horizon of long term. This long term can be anything over 1 year. Majorly, fundamentals of the companies are analyzed before doing such type of investments.

FUTURES

Futures are derivative financial contracts that necessitate the parties to transact an asset at a fixed future date and price. The buyer must purchase or the seller must sell the underlying asset at the set price, irrespective of the current market price at the expiration date.

OPTIONS

Options are financial derivatives that give buyers the right, but not the compulsion, to buy or sell an underlying asset at an agreed-upon price and date. Call options and put options form the basis for a wide range of option strategies designed for hedging, income, or speculation.