Note:Top Funds are on basis of 1 Year Returns
Note:Top Funds are on basis of 1 Year Returns
Note:Top Funds are on basis of 1 Year Returns
When money from various investors is pooled together to be invested in company shares, bonds or stocks, a mutual fund is formed. A mutual fund is then managed to earn the highest possible returns by a professional fund manager.
A small fee is charged in return for managing the money by the mutual fund. The decision of investing in any mutual fund scheme is crucial and one must base this on the financial goal that they wish to achieve.
All mutual funds are registered with SEBI (Securities Exchange Board of India) which ensures a safe and secure mode of investment.
Mutual Funds can be categorized as below:
Equity funds offer schemes that allow investment of money collected by individual investors into shares of various companies. This way, when the share prices rise, the investors make a profit. The investors who have a high risk of appetite and can stay invested for a longer time duration.
Debt funds, first of all, are less at risk in comparison to equity funds. These funds invest in fixed income government securities such as bonds, treasury bills or reputed corporate deposits. These funds usually have schemes which are recommended for short-term investment.
Balanced funds are balanced. That is an obvious statement. As the name suggests, balanced funds or hybrid funds invest in both equity and fixed income funds to maintain a certain return rate and balance out the risks.
ELSS is an equity fund scheme but according to research, investors are majorly keen on investing in this. ELSS is a partially taxable scheme that generates higher returns and qualifies for tax exemptions under section 80C of the Indian Income Tax Act.
Mutual Funds are the most lucrative plan of investment with a vast number of schemes to invest in and in a very simple and easy form of investment. One can start investing in mutual funds with as low as Rs 500/- and enjoy benefits with great returns. Mutual funds are considered to offer unexpected returns at times, as high as 70% when invested for a long term.
That being said, there are several benefits of investing in mutual funds. The key benefits are as follows:
Mutual fund companies hire professionally skilled managers to manage the money pooled in a mutual fund scheme. This ensures that the investor's money is being managed by an expert at all times and that they do not have to fret over it. It is the fund manager's job to decide which company shares, bonds or stocks to invest the pooled money into or to hold the capital.
A mutual fund is an option for every kind of investor. Investors with specific earnings every month can start investing with as low as just Rs 500/- per month and investors who have a big chunk of money with them because of some property selling, or ancestral inheritance, can invest a lump sum and seek benefits as well as high returns.
As mentioned above, every investor can seek benefits. SIP refers to Systematic Investment Plan, and this is for the investors who do not wish to make a one-time investment. Through the schemes in SIP, an investor can make small and manageable investments as installments every month. You can start your SIP with IIFL today. Just keep your Aadhaar Card and Rs 500/- ready!
Every mutual fund has a different lock-in period. This could be one must or none at all. ELSS is one tax-friendly mutual fund scheme that has the shortest lock-in period of 3 years for good returns. However, this must be noted that holding period of your investment is directly proportional to the return you receive. The longer you stay invest (after the mandatory lock-in period), the higher will be your returns. Also, an investor can withdraw at any time when he or she has invested in an open-ended mutual fund.
Switching funds is usually done by fund managers or by an investor who has attained enough knowledge to make the switch. This is done to keep up with the market conditions. This information is usually provided by the asset manager of the fund who analyses and keeps an eye on the market conditions, closely. This ensures that the investment does not suffer during the market's volatility.
Most of the mutual funds have no time foundations unless the scheme specifies. For instance, ELSS is a tax saving scheme which has a lock-in period of 3 years minimum. Other investment schemes have flexible tenure depending on your financial goals.
Out of the many benefits, one of the most prominent is the fact that mutual funds are completely liquid. You can withdraw your invested money any time you want.
Mutual funds are the investment method that ensures tax-saving at the most. Many of the mutual fund schemes have proven to be very tax-efficient and have generated high returns in comparison to any other traditional form of investment. View recommendations by IIFL's expert team for tax-saving funds here.
In order to manage risk, mutual funds invest in various assets, shares, bonds, and different company sizes. So, this way when one underperforms, the other gains to compensate for the loss. The recommended number of entities to invest in is 5 as then it might become complicated to monitor the funds. The investment made in various schemes can also be goal-based, according to the kind of results that an investor expects. For instance, one can like fixed income after retirement or want to save tax, or just wish to save for a new car.
Whenever you choose to invest is the RIGHT time for you. However, it is highly advisable that you start investing as early as possible to seek the benefits at best.
Few factors that one must keep in mind before investing:
We would still like to repeat ourselves and suggest that investment must begin at an early stage in life when an individual feels that they are able to save any amount of time, it can be as low as Rs 500/-.
Here's an example displaying the power of compounding when three investors started investing at different stages with different amount every month and still the investor who invested the least amount of money every month reaped a more monetary benefit in comparison to the other two.
|Name||Age||Tenure||Amount Invested||Total Amount Invested||Rate Of Expected Interest||Amount At Maturity|
|Anil||25 year||30 year||7K/Month||18 Lacs||10%||1.6 Crores|
|Madhav||35 year||20 year||10K/Month||18 Lacs||10%||76.6 Lacs|
|Nitin||45 year||10 year||13K/Month||18 Lacs||10%||26.9 Lacs|
Mutual fund schemes are designed based on the specific financial goals for every investor. So, it is ideal for every kind of investor to invest in mutual funds and seek benefits.
For instance, you should invest in mutual funds if you are:
We may have skipped many reasons that one might want to make investments for. The point is, anyone who wishes to grow their wealth and earnings, should start investing!
Fund House: Mutual Fund companies in India
|Mutual Fund Name||No. of Schemes (Incl Options)||31-Mar-2022||31-Dec-2021||Net Chg|
|Aditya Birla Sun Life Mutual Fund||505||296389.62||299282.45||-2892.82|
|Axis Mutual Fund||318||260335.18||253905.85||6429.33|
|Baroda BNP Paribas Mutual Fund||179||21393.2||12769.29||8623.92|
|BOI AXA Mutual Fund||108||2749.93||2727.11||22.82|
|Canara Robeco Mutual Fund||102||47955.87||45049.4||2906.47|
|DSP Mutual Fund||274||107911.34||110613.6||-2702.27|
|Edelweiss Mutual Fund||195||88712.82||79285.4||9427.41|
|Franklin Templeton Mutual Fund||310||64123.41||66988.27||-2864.85|
|HDFC Mutual Fund||477||435536.83||450385.02||-14848.19|
|HSBC Mutual Fund||158||12789.17||12606.34||182.83|
|ICICI Prudential Mutual Fund||874||486424.05||483518.66||2905.39|
|IDBI Mutual Fund||104||4160.93||4472.4||-311.47|
|IDFC Mutual Fund||368||121229.83||125351.8||-4121.96|
|IIFCL Mutual Fund||2||624.55||618.27||6.28|
|IIFL Mutual Fund||26||4264.32||3749.87||514.45|
|IL&FS Mutual Fund||11||1338.15||1280.32||57.84|
|Indiabulls Mutual Fund||101||544.36||652.75||-108.39|
|Invesco Mutual Fund||215||43916.14||45154.77||-1238.63|
|ITI Mutual Fund||98||2718.17||2406.85||311.32|
|JM Financial Mutual Fund||135||2317.83||2020.23||297.6|
|Kotak Mahindra Mutual Fund||301||286413.95||286883.42||-469.47|
|L&T Mutual Fund||201||75591.56||79550.37||-3958.81|
|LIC Mutual Fund||146||17817.37||19354.02||-1536.65|
|Mahindra Manulife Mutual Fund||89||8804.64||7910.68||893.97|
|Mirae Asset Mutual Fund||129||102757.1||101218.09||1539.01|
|Motilal Oswal Mutual Fund||91||34947.52||35645.14||-697.63|
|Navi Mutual Fund||105||1039.38||929.6||109.78|
|Nippon India Mutual Fund||922||285196.41||282415.83||2780.58|
|NJ Mutual Fund||4||5247.05||3697.41||1549.64|
|PGIM India Mutual Fund||170||16492.13||14702.04||1790.09|
|PPFAS Mutual Fund||16||23113.6||21683.68||1429.92|
|Quant Mutual Fund||68||6505.79||4663.8||1841.98|
|Quantum Mutual Fund||30||1978.49||2051.54||-73.05|
|Samco Mutual Fund||2||366.63||0||0|
|SBI Mutual Fund||580||648198.57||628766.1||19432.47|
|Shriram Mutual Fund||16||220.34||227.05||-6.71|
|Sundaram Mutual Fund||346||43106.83||34362.09||8744.75|
|Tata Mutual Fund||344||86713.21||83554.38||3158.84|
|Taurus Mutual Fund||40||511.05||538.22||-27.18|
|Trust Mutual Fund||36||1217.91||1136.88||81.03|
|Union Mutual Fund||87||8147.19||8100.46||46.73|
|UTI Mutual Fund||770||223841.53||224671.04||-829.51|
|WhiteOak Capital Mutual Fund||32||104.57||138.99||-34.43|
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