What is Mutual Funds?

A mutual fund is an investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.

Why Mutual Fund?

Professional Management: Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.

Transparency in management (It is regulated by SEBI and AMFI) World's most regulated Mutual Fund industry is in India.

Diversification: By investing in a mutual fund, you indirectly own a portion of various assets, spreading risk.

Liquidity: You can buy or sell mutual fund units at any time

Why Invest in EQUITIES Through Mutual Funds?

Long Term Wealth Creation

Investing in stock markets could help you create wealth over the long term.

Become a Part-Owner

When you buy a stock of a company, you become a part owner and could make money as the company's profit increases.

Real Returns

Investing in equities could help you beat inflation as it generates positive real returns over the long term.

E.g. Let assume the rate of return on an investment is 12% and inflation is 4%

The real return in this case is 8% (12%-4%)

Whenever you think of making investment, three things should come on top of your mind-Risk Profiling, Products and Asset Allocation.

Risk Profiling

Knowing our Investor well is more important than choosing products first. Risk Profiling helps in doing that. By carefully answering a well-researched set of questionnaires, your risk appetite can be known. This may not remain constant forever with changing dynamics of micro and macro-economic factors. Hence, we always go back and re-assess after regular interval.

We Chose Regulated Products

There are many investment products available in the market. Our first check should always be that the product must be regulated by a Government appointed regulatory body. Next, you must consider the suitability. All products are good in their own context and with a certain section of investors. Whether the same suits you or not, depends on your risk

profile, investment horizon, liquidity needs and taxation aspect. Also, there are certain products which cater only to a particular section of society, e.g. resident individuals, senior citizens, girl child etc.

Asset Allocation

We should not put all eggs in one basket i.e. not all our money in one single investment product or category. Distributing our investments into various asset classes often saves us from big losses and is expected to generate a steady return. Asset allocation has to be re-aligned or re-allocated at regular intervals. There are investment products available which aim to inculcate this very principle of asset allocation in the way they are managed. We always customize asset allocation as per the requirement of investor.