Mutual Fund Investments in India : MOSL

Mutual Funds

Why Mutual Funds?

Convenient way into the stock markets

Mutual funds are ideal for investors who want to invest in various kinds of schemes with different investment objectives but do not have sufficient time and expertise to pick winning stocks. Mutual funds give you the advantage of professional management, lower transaction costs, and diversification, liquidity and tax benefits

Key Benefits of investing in Mutual Funds :

  • Diversification
  • Professional management and well regulated
  • Disciplined investment approach
  • Low transaction costs
  • Liquidity
  • Tax benefits

Why invest with us?

  • Invest in 9,000+ schemes across 35 AMCs
  • Having wide distribution reach to all the T-15 & B-15 cities through our Branches | Franchisee | IFAs 
  • 31,000 plus running SIPs from our existing clients.
  • As a Mutual Fund Distributor we have built Mutual Fund AUM of Rs. 900 + Cr.
  • Invest in mutual fund schemes through Lump sum, Systematic Investment Plans (SIPs), Systematic Transfer Plan (STPs), Systematic Withdrawal Plan (SWPs) and New fund offers (NFO 's) across all the asset class - Equity, Debt, Balanced, Tax Saving funds
  • Cross Margin facility giving you an option to leverage your mutual fund units (for select funds only) for margin required to trade in equities, derivatives and currencies. This gives you the added advantage of trading for short term while staying invested in mutual funds for long term

Our Products

  • Invest in 9,000+ schemes across 35 AMC 's
  • Option to invest in Lump sum, Systematic Investment Plans (SIP 's) and New fund offers (NFO 's) across all segments - Equity, Debt, Balanced, Tax Saving funds
  • Systematic Transfer Plan (STP), Systematic Withdrawal Plan (SWP) options to help you manage your investments wisely
  • Cross Margin facility giving you an option to leverage your mutual fund units (for select funds only) for margin required to trade in equities, derivatives and currencies. This gives you the added advantage of trading for short term while staying invested in mutual funds for long term

Our Technology

  • Flexibility to invest online through a single login across all devices - Desktop, Mobile or Web.
  • Instant order placement and confirmation facility through our advanced trading platforms
  • Integrated access to Trade-Track-Review your portfolio through multiple platforms across all asset classes
  • Online Tracking tools with in-built portfolio restructuring recommendations based on risk profile with model portfolio 's, benchmark comparisons, research views and much more
  • Smart portfolio snapshots to help you monitor your investments online 24 X 7 and enable you to make faster decisions

Our Research

  • Award winning actionable research trusted by over 591 FIIs/DIIs and over 10,00,000 customers
  • Monthly Fact-sheets covering our analysis of various funds.
  • Single click access to 30,000+ research reports archive categorized by theme and frequency
  • Dedicated research teams to help you with worry-free investing
  • All of this available across all platforms - Desktop, Web, Mobile & Tablet

Our Advice

  • Advice across all fund segments - Equity, Debt, Hybrid and ELSS schemes
  • Dedicated Wealth Managers and advisory team to provide timely recommendations
  • Integrated view of our advice across all platforms - Desktop, Web, Mobile & Tablet, Smart Watch

More Reasons to invest with us/The Industry Edge

  • Convenience of applying for an account online in just 15 minutes
  • Dedicated customer service team with a 6 hour query resolution TAT
  • 30 years of wealth creation driven by our philosophy of 'Solid Research, Solid Advice '
  • Pan India coverage across 2,200+ locations in over 500+ cities
  •  Trusted by over 10,00,000 plus customers having Rs. 69,561 Cr. plus depository assets

 

Mutual Funds: What is Mutual Fund & Types of Mutual Funds in India

Mutual Funds: What is Mutual Fund & Types of Mutual Funds in India

 

Considering to invest in Mutual Funds? It is important that you understand the mutual fund types and their features. Mutual fund types can be classified based on the following characteristics.

  1. Based on Asset Class
    1. Equity Funds
    2. Debt Funds
    3. Money Market Funds
    4. Hybrid Funds
  2. Based on Structure
    1. Open-ended Funds
    2. Closed-ended Funds
    3. Interval Funds
  3. Based on Investment Goals
    1. Growth Funds
    2. Income Funds
    3. Liquid Funds
    4. Tax-Saving Funds
  4. Based on Risk
    1. Very Low-Risk Funds
    2. Low-Risk Funds
    3. Medium Risk Funds
    4. High-Risk Funds
  5. Specialized Mutual Funds

 

1. Mutual Fund Types Based on Asset Class

a. Equity Funds

Primarily investing in stocks, they also go by the name stock funds. They invest the money amassed from investors from diverse backgrounds into shares of different companies. The returns or losses are determined by how these shares perform (price-hikes or price-drops) in the stock market. As equity funds come with a quick growth, the risk of losing money is comparatively higher.

b. Debt Funds

Debt funds invest in fixed-income securities like bonds, securities and treasury bills – Fixed Maturity Plans (FMPs), Gilt Fund, Liquid Funds, Short Term Plans, Long Term Bonds and Monthly Income Plans among others – with fixed interest rate and maturity date. Go for it, only if you are a passive investor looking for a small but regular income (interest and capital appreciation) with minimal risks.

c. Money Market Funds

Just as some investors trade stocks in the stock market, some trade money in the money market, also known as capital market or cash market. It is usually run by the government, banks or corporations by issuing money market securities like bonds, T-bills, dated securities and certificate of deposits among others. The fund manager invests your money and disburses regular dividends to you in return. If you opt for a short-term plan (13 months max), the risk is relatively less.

d. Hybrid Funds

As the name implies, Hybrid Funds (also go by the name Balanced Funds) is an optimum mix of bonds and stocks, thereby bridging the gap between equity funds and debt funds. The ratio can be variable or fixed. In short, it takes the best of two mutual funds by distributing, say, 60% of assets in stocks and the rest in bonds or vice versa. This is suitable for investors willing to take more risks for ‘debt plus returns’ benefit rather than sticking to lower but steady income schemes.

 

2. Mutual Fund Types Based On Structure

Mutual funds can be categorized based on different attributes (like risk profile, asset class etc.). Structural classification – open-ended funds, close-ended funds, and interval funds – is broad in nature and the difference depends on how flexible is the purchase and sales of individual mutual fund units.

a. Open-Ended Funds

These funds don’t have any constraints in a time period or number of units – an investor can trade funds at their convenience and exit when they like at the current NAV (Net Asset Value). This is why its unit capital changes constantly with new entries and exits. An open-ended fund may also decide to stop taking in new investors if they do not want to (or cannot manage large funds).

b. Closed-Ended Funds

Here, the unit capital to invest is fixed beforehand, and hence they cannot sell a more than a pre-agreed number of units. Some funds also come with an NFO period, wherein there is a deadline to buy units. It has a specific maturity tenure and fund managers are open to any fund size, however large. SEBI mandates investors to be given either repurchase option or listing on stock exchanges to exit the scheme.

c. Interval Funds

This has traits of both open-ended and closed-ended funds. Interval funds can be purchased or exited only at specific intervals (decided by the fund house) and are closed the rest of the time. No transactions will be permitted for at least 2 years. This is suitable for those who want to save a lump sum for an immediate goal (3-12 months).

 

3. Mutual Fund Types Based on Investment Goals

a. Growth Funds

Growth funds usually put a huge portion in shares and growth sectors, suitable for investors (mostly Millennials) who have a surplus of idle money to be distributed in riskier plans (albeit with possibly high returns) or are positive about the scheme. 

b. Income Funds

This belongs to the family of debt mutual funds that distribute their money in a mix of bonds, certificate of deposits and securities among others. Helmed by skilled fund managers who keep the portfolio in tandem with the rate fluctuations without compromising on the portfolio’s creditworthiness, Income Funds have historically earned investors better returns than deposits and are best suited for risk-averse individuals from a 2-3 years perspective. 

 

 

 

c. Liquid Funds

Like Income Funds, this too belongs to the debt fund category as they invest in debt instruments and money market with a tenure of up to 91 days. The maximum sum allowed to invest is Rs 10 lakhs. One feature that differentiates Liquid Funds from other debt funds is how the Net Asset Value is calculated – NAV of liquid funds are calculated for 365 days (including Sundays) while for others, only business days are calculated.

d. Tax-Saving Funds

ELSS or Equity Linked Saving Scheme is gaining popularity as it serves investors the double benefit of building wealth as well as save on taxes – all in the lowest lock-in period of only 3 years. Investing predominantly in equity (and related products), it has been known to earn you non-taxed returns from 14-16%. This is best-suited for long-term and salaried investors.

e. Aggressive Growth Funds

Slightly on the riskier side when choosing where to invest in, Aggressive Growth Fund is designed to make steep monetary gains. Though susceptible to market volatility, you may choose one as per the beta (the tool to gauge the fund’s movement in comparison with the market). Example, if the market shows a beta of 1, an aggressive growth fund will reflect a higher beta, say, 1.10 or above.

f. Capital Protection Funds

If protecting your principal is your priority, Capital Protection Funds can serve the purpose while earning relatively smaller returns (12% at best). The fund manager invests a portion of your money in bonds or CDs and the rest in equities. You will not incur any loss. However, you need a least 3 years (closed-ended) to safeguard your money and the returns are taxable.

g. Fixed Maturity Funds

Investors choose as the FY ends to take advantage of triple indexation, thereby bringing down tax burden. If uncomfortable with the debt market trends and related risks, Fixed Maturity Plans (FMP) – investing in bonds, securities, money market etc. – present a great opportunity. As a close-ended plan, FMP functions on a fixed maturity period, which could range from 1 month to 5 years (like FDs). The Fund Manager makes sure to put the money in an investment with the same tenure, to reap accrual interest at the time of FMP maturity.

h. Pension Funds

Putting away a portion of your income in a chosen Pension Fund to accrue over a long period to secure you and your family’s financial future after retiring from regular employment – it can take care of most contingencies (like a medical emergency or children’s wedding). Relying solely on savings to get through your golden years is not recommended as savings (no matter how big) get used up. EPF is an example, but there are many lucrative schemes offered by banks, insurance firms etc.