Posts Tagged: ‘HDFC’

Mutual Fund Investments Improve Your Financial Goal

December 6, 2014 Posted by admin

Investing in mutual funds can be simply described as – the easiest way to become a ‘prince’ or a ‘pauper’. The mutual fund market is very volatile. People invest every day, some on a large-scale and others on a small-scale. It depends on how much return you expect and how much money you are willing to risk get that return. However, mutual funds are very popular among many as they can yield a higher rate of return than the interest rates provided by banks. Of course, how high also depends on the kind of mutual funds you invest in. For example, the top mutual funds in India like SBI, HDFC, etc. are known as large cap funds, and belong to the category known as ‘equity.’ These are capable of generating 20 to 30% interest on an investment. But of course there is a catch, equity investments are the most volatile and risky category of investments. Choosing to invest in them depends on your risk appetite.

The Indian market has progressed over the last 10 years, in terms of growth and size. At first people were reluctant to invest, as they were more used to depositing money in banks. But as inflation went up, people opened up to the idea of investing their money in it and other areas of interest. That, and the IT boom of the early 2000’s, opened up a whole new world to the growing populous of India.

What happened was people started using the internet. They learn about it, the potential of an investment and how they can benefit from it. They then started going on online to do research on the different investment options. They started buying shares and stocks of other companies, they started investing in the mutual funds of the biggest and most profitable companies. It was all available on the internet. Needless to say, it became their major source of knowledge, and guide, for investments. In fact, the credit for the current market size and market growth of other investment opportunities can even be attributed to the internet.

Finally, the future is as, or perhaps more, unpredictable and volatile than the market for investments. With the year on increase in inflation and population, the thought of investing in it may very well supersede the thought of saving money in the bank. After all that is said and done, investing in it is a very lucrative investment opportunity – in spite of the risks involved.

How Does Mutual Fund Work. A Simplified Version

September 8, 2014 Posted by admin

Instead of directly investing in stocks or fixed deposits you can use the mutual funds route to invest in them.
A mutual fund is an investment scheme launched by a company called Asset Management Company. Examples of asset management companies are ICICI Prudential Asset Management Company, SBI Funds Management Private Limited etc. There are about 45 asset management companies in India.

Asset management companies will have experts in their team. This team of experts will create a list of shares or bonds that are expected to do well. The list typically will have 15-20 shares/securities. This list is known as mutual fund scheme. Each mutual fund scheme will have a manager and he is called the fund manager. Example of fund managers is Prashant Jain and he manages the mutual fund scheme called HDFC top 200 and HDFC Equity Fund.

All you need to do is choose suitable schemes offered by the asset management companies, fill up a form and write a cheque. They then will invest your money proportionately in all the 15-20 shares/ securities specified in the mutual fund scheme. You will get a folio number (account number) and periodic statements.

You have no role to play in stock picking. The fund managers themselves will decide which stock they need to buy and how much they need to pick. At the end of every month they will publish the performance of the fund and provide the list of stocks they have invested in. This information is called as fact sheet.

For managing funds on your behalf they charge annual fund management fees The fund management fee varies from 1% to 2.5% every year. The management fee is directly charged from your investments. The management fees covers all the costs of the asset management company including salaries, office rent and maintenance, advertisement, distribution, servicing etc. They will charge fund management fees irrespective of whether the scheme makes money or not.

Whenever you want your money back fill up a form and you will get your money back within 4-5 days.

Now, you may want to know what will happen if the asset management company closes down? Ok, just remember the money which you give them actually goes to a trust and you are the unit holders of that trust. So even if the AMC closes down, the money is lying in the trust a/c and does not go in their pocket. In fact you can be rest assured that mutual funds are very well regulated by SEBI in India.

Mutual Fund – Investment Option

June 9, 2014 Posted by admin

Mutual funds are one of the best investment options for small investors. By investing in it, investors are able to diversify their investments and earn excellent returns. For those wanting to invest in top mutual funds, there are two ways of determining what constitutes a top fund. One way is to focus on fund houses that have very attractive investments. Some examples of popular fund houses with attractive investments are Birla Sun Life, HDFC, ICICI Prudential, Reliance and UTI Mutual Fund. Another way to determine top funds is by looking at fund houses that have the best rated funds in offering.

It is important to note that a fund house may be a top mutual fund with respect to gathering assets, but it may fall behind in terms of performance. It is also important to understand that investment decisions should be made on the basis of performance, rather than popularity. Other aspects to take into account when selecting mutual funds are the reputation of the fund house, the asset under management of the scheme, and the past performance of the scheme. Based on the investor’s risk profile and goal, the investment will be made in equity, debt and gold funds.

The demand for it is high because of the many benefits of investing in such investment vehicles. For starters, one benefit of it is professional expertise. Fund managers are extremely qualified and have lots of experience. They understand the economic and sector indicators and track the market closely. This places them in a good position to make investment decisions. Another benefit of it is asset allocation. Investors can allocate their money in various asset classes, based on their goals, horizon and risk appetite. It also have the benefit of risk diversification. Investors can diversify their risks across asset classes, industries and companies. This type of investments also have the advantage of liquidity. Such investments are highly liquid. This means fund units can be sold on any business day. The money gets credited to the investor’s account within one or two business days. Mutual funds are also affordable. They are perfect for investors who have a small amount to invest. This type of investment is also tax efficient. Dividend received from it is tax-free for investors. With all these benefits, it is easy to see why they are so popular.

Investment in it somewhat risky because it depend on market. So, please read the document carefully before investing in it.

Know More About Fidelity Mutual Funds

June 7, 2014 Posted by admin

With people becoming more informed about the stock market and varied ways of investments like shares, debentures etc, thereEUR(TM)s a steady growth in investments that are flowing into this domain.

Investing in mutual funds is also gaining popularity, especially with the small investors for whom it is cost effective and definitely the smart way to invest. These are investment strategies that allow you to pool your resources with others and buy securities, which you cannot really do so on your own. Additionally, you can diversify your investment without really having to invest huge amounts of money. Under these circumstances, it is hardly surprising that there are several offerings for you to choose from, including those like Fidelity mutual funds.

Being a global leader in the world of investment, Fidelity offers its investors a huge network of analysts and research departments who work for the benefit of the investors. They offer a wide variety of funds that are guaranteed to meet your investment needs. What makes Fidelity the true specialist in ensuring you invest right is not their wide array of investment options but their overall approach to managing funds, which includes a commitment to delivering long term returns through dedicated research and analysis.

Their research departments are well versed with helping you find the best mutual fund that suits your needs. In fact, you can rest assured that if there is any hidden investment opportunity available to suit your investment needs, you will be aware of it through their research department.

Their wide array of fund options includes both domestic as well as a whole host of international funds. Additionally, they offer a wide range of investment options in stocks, commodities and even real estate, making it truly comprehensive for your needs.

What makes Fidelity mutual funds truly special is the fact that their funds are rated highly, often getting 4 or 5 stars from Morningstar, which is one of the leading and much respected independent experts on mutual funds.

Another factor that works in favor of investing in these funds as against simply investing in a HDFC mutual fund or the like is that you will truly get your money to work for you. All funds are free from redemption fees and have no loads, making it easy for you to make money and achieve your financial goals.

Finally, they offer free guidance to those who are unsure or unaware of the investment market. Thus even when you are a novice, you can use such services to ensure that your financial goals are achieved. They stay with you every step of the process making it really easy for you to choose and allocate your funds in the best possible way.

So, if you are looking at mutual funds in addition to the domestic ones like HDFC mutual fund, Fidelity is the perfect option for all the reasons mentioned above and more.