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Tax forms an important component to factor in when you are screening mutual funds to invest. These financial vehicles are considered to be more tax-friendly compared to fixed deposits with banks. Mutual funds also provide investors with higher returns than bank deposits and hence have become the go-to investment product for a large number of investors globally. To understand the taxation in mutual funds, we first need to understand the income streams in this vehicle. Sources of inflow to investors in mutual funds are capital gains and dividends. Dividends: The tax on the dividend is paid by the Asset management company or the fund house in the form of Dividend Distribution Tax (DDT) before it reaches the hands of the investor. Capital Gains: The difference in the value of the units of the mutual fund at purchase and at sale/redemption. This is taxable based on the type of mutual fund and the duration or holding period. Holding period: The classification of the holding period is defined as follows based on the type of the mutual fund. Fund TypeShort-term Capital GainsLong-term Capital GainsEquity Up to 12 months>12 monthsDebt FundsUp to 36 months>36 monthsBalanced fundsUp to 12 months>12 months Equity funds The taxation in taxable Equity funds and balanced funds(with equity exposure of >65%) could be explained using the following examples: Consider that you had purchased units of ABC Equity fund for Rs 1 lakh in the year 2020-21 (post-April 2020). If the NAV of the fund had increased over the period of time, the value of your investments would also increase.  Invested amount100000Final Value of the amount150000Capital Gains50000Tax Rate15%Tax Payable7500 Equity STCG: If the investor claims redemption in less than 1 year of investment, it would fall under the Short-term Capital Gains (STCG) category. The tax rate would be 15% on the gains earned by the investor. Invested amount100000200000Final Value of the amount150000400000Capital Gains50000200000Tax Rate10%Tax Payable010000 Equity LTCG: If the investor holds the investment for more than a year, (say April 2020 – May 2021), the gains would be taxed at long-term capital gains (LTCG) tax of 10%. There is however an additional clause in LTCG, which states that gains less than Rs 1 lakh are exempted from tax. As shown in the table, an investor whose capital gains were Rs 50,000 need not pay any tax. Similarly, an investor who has earned 2 lakhs for his investment would pay tax on the additional 1 lakh only = 10%* 1,00,000 = Rs 10,000. Tax-saving equity funds Equity Linked Saving Scheme (ELSS) investments are deductible under Section 80C of the Income Tax Act 1961. Here, the investor can claim a tax deduction for an amount <Rs 1.5 lakhs. If the investor has no other deduction such as PF, Insurance, etc, and if the investor’s tax bracket is 20%, he would be eligible for Rs 30,000 as tax savings. However, ELSS comes in with a lock-in period of 3 years, where the investor cannot withdraw or claim for redemption. After 3 years, on redemption, the capital gains are taxed at 10% (exempted for Rs 1 lakh), similar to the above example of Equity LTCG. Debt Funds: The taxation of Debt funds and hybrid or balanced funds (with an equity exposure of <65%) can be explained with the examples as follows:  STCG for Debt FundLTCG for Debt FundDebt FundsUp to 36 months>36 monthsTax RateIncome Tax slab rate20% with Indexation STCG: If the investor holds the investment for less than 3 years (say April 2020 – Feb 2023), and considers the Income-tax slab of the investor to be 20%. For the above example of capital gains of Rs 50,000, the investor would be paying 20 %*50,000 = Rs 10,000 as tax. LTCG: This comes with the benefit of Indexation, where the price of the purchase or initial investment is adjusted for inflation using the Cost Inflation Index (CII). For example, an investment of Rs 100 was made in the year 2016-17, and wants to sell the investments or redeem them in the year 2019-2020. Consider that the value of the investment has increased to Rs 170, hence providing a capital gain of Rs 70 to the investor. CII 2016-17264CII 2019-20289Cost of Purchase or Investment Amount100New Cost is Adjusted for inflation                           109.47  However, this price is adjusted for inflation as follows - New Cost of Purchase = CII of Year of Investment (here, 2016-17) CII of the year of redemption (here, 2019-20) X Amount invested. Hence, as the cost increases, the Capital gains reduce, tax payable also reduces. In the above example, Capital Gains = 170 -109.46 = 60.53. Tax payable = 20%*60.53 = Rs 12.11 (instead of 20%*70 = 14). NOTE: The indexation is applicable only for Non-equity-oriented schemes with a long-term holding period. Taxation SIP vs. Lumpsum SIPs allow investors to invest small amounts periodically into the fund. During redemption, these units are claimed on a first-in-first-out basis.  Consider a SIP investment of 1 year where you invested Rs 500 per month. Consider that you purchased 10 units in the first month. If the SIP is redeemed after 13 months, the first month is considered a long-term holding, and capital gains of the month are taxed at 10% (considering the capital gain exemption of Rs 1 lakh). The remaining SIP amounts from the second month are categorized as short-term and capital gains are taxed at 15%. Comparison of SIP vs. Lumpsum SIP vs Lumpsum13 monthsLumpsum (the entire amount of capital gains considered for LTCG)SIP (first-month capital gains are considered for LTCG)Monthly Amount                                  -   5000Invested amount6000060000Tax exempted amount for LTCG600005000 In a nutshell Fund TypeParametersShort-term Capital GainsLong-term Capital GainsEquity and Balanced funds (>65% in Equity)Holding PeriodUp to 12 months>12 monthsTax Rate15%10% (For amount > Rs 1 lakh)Debt Funds and Balanced funds (<65% in Equity)Holding PeriodUp to 36 months>36 monthsTax RateIncome Tax slab rate20% after Indexation FAQs How much amount is taxed in mutual funds? If the investor claims redemption in less than 1 year of investment, it would fall under the Short-term Capital Gains (STCG) category. The tax rate would be 15% on the gains earned by the investor. If the investor holds the investment for more than a year, (say April 2020 – May 2021), the gains would be taxed at long-term capital gains (LTCG) tax of 10%. Is SIP in mutual fund taxable? Yes, SIP in mutual fund are taxable. The tax amount differs based on the duration and returns generated. Which mutual funds are tax free? Profits from sale of ELSS fund units are considered long-term capital gains have tax exemption. Consult an expert advisor to get the right plan TALK TO AN EXPERT

Invesco PowerShares (previously PowerShares Capital Management) is a Chicago-based investment management firm that oversees exchange-traded funds (ETFs).   Since 2006, the company has been a subsidiary of Invesco, which markets the PowerShares product. PowerShares funds were founded in 2002 and use quantitative indices as a benchmark.  There are more than 200 PowerShares ETFs available right now. The PowerShares QQQ (Nasdaq: QQQ) is designed to imitate the NASDAQ-100 Index. The PowerShares QQQ is one of the most popular stocks on Wall Street.   PowerShares ETFs also invest in commodities, diverse stocks, and small and microcap firms. Through an ETF, the PowerShares DB Commodity Index Tracking Fund, or DBC, established with Deutsche Bank, individual investors can participate in things. The PowerShares DB Oil Fund (DBO) covers the crude oil index.  Invesco was the first company to launch an intelligent beta ETF in the market. It is one of the top 4 ETF providers in the United States.   The company has over $ 288 billion in assets under management in ETFs. The exchange-traded funds also come with various strategy options to choose from.   Different types of ETF strategies employed by the company are  Factor investing   Fixed-income factor investing  Equal weight investing   Quest for income Access commodities   Low volatility   Momentum solutions  Fundamental investing   Pure EBeta suite   Pure style   Conquer Currencies   Bulletshares ETFs  BulletShares ETF products are created on basis of the basic concept of bond laddering. Bond laddering is the practice of accumulating bonds with varying maturities in the same portfolio.   The goal is to diversify and spread risk along the interest rate curve to protect against erratic rate movements. There will not be a long lock-in period in any bond if the maturity dates are staggered. This method is used by risk-averse investors who choose income overgrowth.  It is a fixed-income ETF. The firm also provides a variety of innovative ETFs.  Source: Pexels The six-step method is used to create these ETFs.  Step 1:  Start with an innovation - The foundation of these products is the NASDAQ-100 and NASDAQ NextGen 100 indexes, which provide access to innovative companies.   Step 2: Exclude non-ESG activities, like companies whose business activities are incompatible with ESG principles, such as controversial weapons or tobacco products.   Step 3: Remove controversial companies - Each company must have a rank of four or lower on a 5-point controversy scale (lower is better).   Step 4: Screened for risk - Each company must be ranked lower than 40 on a 100-point ESG risk rating score (lower is better).   Step 5: Company weights are adjusted are to be tilted toward companies with more attractive ESG scores and lastly, innovation with ESG criteria. The result is two new indexes that our products track, the NASDAQ-100 ESG Index and NASDAQ NextGen 100 ESG Index  Examples of such innovation ETFs are US EQUITY Invesco ESG NASDAQ 100 ETF and US EQUITY Invesco ESG NASDAQ NextGen 100 ETF.  Along with such innovative ETFs, the company also provides ETFs that track blockchain companies and bitcoin cryptocurrency.   Invesco Alerian Galaxy Crypto Economic ETF and Invesco Alerian Galaxy Blockchain users and Decentralized Commerce ETF are the company's funds. Invesco Alerian Galaxy Crypto Economic ETF targets the crypto economy's critical segments—miners, enabling technologies, buyers and crypto trusts, and exchange-traded products (ETPs).   Decentralized Commerce ETF and Invesco Alerian Galaxy Blockchain Users have access to the same vital segments as the Invesco Alerian Galaxy Crypto Economy ETF (SATO) but add exposure to companies that use blockchain technology.  Along with ETFs, the company also offers several different financial products to meet clients' requirements. Invesco offers a broad range of mutual funds that can be actively managed or passively managed.   They can also provide exposure to domestic and international markets. Fixed-income mutual funds are also on offer, which can customize the client's portfolio.   The company offers four different asset class type mutual funds Alternatives  Balanced  Equity and   Fixed income.   The corporation also allows access to the Muni market, i.e., the bonds issued by municipal bodies through the static income strategy.   Some mutual funds are Invesco DB Agriculture Fund, Invesco DB Base Metals Fund, Invesco DB Energy Fund, etc. FAQs What are the Invesco PowerShares? Invesco PowerShares (previously PowerShares Capital Management) is a Chicago-based investment management firm that oversees exchange-traded funds (ETFs).   Since 2006, the company has been a subsidiary of Invesco, which markets the PowerShares product. PowerShares funds were founded in 2002 and use quantitative indices as a benchmark. What do PowerShares ETFs invest in? PowerShares ETFs invest in commodities, diverse stocks, and small and microcap firms. Is Invesco the same as PowerShares? PowerShares is now called Invesco ETFs, after Invesco's merger. What is Powershare ETF popular for? Invesco PowerShares is a Chicago-based investment management firm that oversees exchange-traded funds (ETFs). PowerShares funds were founded in 2002. It is a fairly valued index and one of the most famous international stocks. Consult an expert advisor to get the right plan TALK TO AN EXPERT

ICICI Prudential Mutual Fund is the second-largest asset management company in India. With over Rs 3 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMF offers products across asset classes.   Let us talk about the flagship product – ICICI Prudential India Opportunities Fund ICICI Prudential India Opportunities Fund  Investment objective   To generate long-term capital appreciation by investing in opportunities presented by special situations such as corporate restructuring. Government policy and/or regulatory changes, companies going through temporary unique challenges, and other similar instances. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved  Investment process   The Scheme’s style of investing is a bottom-up stock-picking style because the core of its investment strategy is identifying companies in special situations which require rigorous 360-degree stock research. The scheme would endeavor to take concentrated exposure to high-conviction stocks. Portfolio composition  The equity exposure is majorly in large-cap stocks at 69% and major sectoral exposure is to Pharmaceuticals & Biotechnology and Banks. The top 5 sectors hold nearly 51% of the portfolio.  Note: Data as of 30th Nov 2022. The bar graph shows the top 5 sector weightage of the fund’s portfolio. Source: ICICI Pru Top 5 Holdings Name Sector Weightage % Oil & Natural Gas Corporation Ltd. Petroleum Refineries 7.88 Bharti Airtel Ltd. Telecom Services 6.81 Sun Pharmaceuticals Industries Ltd. Pharmaceuticals 6.67 NTPC Ltd. Energy Conglomerate 6.58 State Bank of India Ltd. Bank 4.95 Note: Data as of 30th Nov 2022. Source: ICICI Pru Performance over 3 years  If you would have invested 10,000 at the inception of ICICI Prudential India Opportunities Fund, it would be now valued at Rs 20,370. This fund has outperformed the benchmark in all time horizons. Note: Performance of the fund since launch; Inception Date – Jan 15, 2019. Source: icicipruamc.com The ICICI Prudential India Opportunities Fund has given consistent returns and has outperformed the benchmark over the period of 3 years generating a CAGR (Compounded Annual Growth Rate) of 19.90%. Fund manager  Mr. Sankaran Naren is a fund manager and CIO at ICICI Prudential, where he manages Indian equity portfolios. He has worked with various financial services companies, including Refco Sify Securities India and HDFC Securities. Mr. Sankaren has an MBA from the Indian Institute of Management, Kolkata.  Mr. Roshan Chutkey: With an overall experience of 12 years, he has been associated with JP Morgan Chase, Citibank, and Kuwait Financial Centre. He holds an engineering degree from IIT Madras, MBA from IIM Lucknow, and holds a Masters in Finance degree from London Business School.  Who should invest?  For investors  Who has an appetite for volatility?  Looking to benefit from taking concentrated stock bets.  Why invest?  This scheme benefits from investment opportunities provided by special situations such as corporate restructuring, Government policy and/or regulatory changes, etc.  Any investor ready to have this risk appetite can invest.  Horizon  One should look at investing for a minimum of 5 years or more  Investment through a Systematic Investment Plan (SIP) may help in tackling the volatility of the broader equity market.  Conclusion  The ICICI Prudential India Opportunities Fund is good for investors who want to generate long-term capital appreciation by having a very high-risk appetite. This scheme can help investors with an appetite for volatility with good portfolio returns  

ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings and investments and creating long-term for investors through a range of simple and relevant investment solutions. Let us talk about the flagship product – ICICI Prudential Focused Equity Fund ICICI Prudential Focused Equity Fund Investment objective To generate capital appreciation through investments in equity & equity-related instrument securities of up to 30 companies across market capitalization i.e. focus on multi-cap. Investment process The fund follows a growth style of investing which consists of growth stocks of large and mid-cap companies. The Scheme will aim to hold optimum exposure to large and mid-cap stocks depending on the fund manager's view on market valuations. The portfolio construction involves investing in high-conviction quality stocks. The Scheme will remain sector-agnostic and will maintain an overweight stance on select high-conviction themes/sectors that are expected to outperform in the current economic cycle. The scheme would use a combination of bottom-up research for stock selection. follows a bottom-up approach for identifying stocks that have robust business financials, above-average profitability, and sustained competitive advantages. While the large-cap stocks represent established enterprises selected from the Top 100 stocks by market capitalization, the mid- and small-caps represent business entities with higher growth potential. The allocation will be decided on a tactical basis rather than any predetermined ratio. Portfolio composition The portfolio holds the major exposure in large-cap stocks at 82% and sectorally major exposure is to financial services that account for over 31% of the portfolio. The top 5 sectors hold more than 69% of the portfolio. Note: Data as of 30th Nov 2022.Source: Value Research Top 5 holdings NameSectorWeightage %ICICI BankFinancial8.58HDFC BankFinancial5.77Sun PharmaceuticalHealthcare5.25State Bank of IndiaFinancial5.10Axis BankFinancial4.77Note: Data as of 30th Nov 2022.Source: Value Research Performance over 13 years If you had invested 10 lakhs at the inception of the fund, it would be now valued at Rs 43.19 lakhs. Note Performance of the fund since launch; Inception Date – May 28, 2009, till Dec 12, 2022.Source: Moneycontrol The fund has given consistent returns and has outperformed the benchmark over the period of 13 years by generating a CAGR (Compounded Annual Growth Rate) of 13.13%. INVEST NOW Fund Manager Sankaran Naren He has been associated with ICICI Prudential AMC since August 2022. Prior to joining ICICI Prudential AMC, he worked with Refco Sify Securities India Pvt Ltd., HDFC Securities Ltd., and Yoha Securities. Vaibhav Dusad He has been associated with ICICI Prudential AMC since August 2022. Prior to joining ICICI Prudential AMC, he worked with Morgan Stanley, HSBC Global Banking and Markets, CRISIL, Zinnov Management Consulting, and Citi Bank Singapore. Who should invest? Investors looking to Hold a concentrated portfolio of around 30 quality stocks Build core equity portfolio for long-term wealth creation with steady growth Why invest? ICICI is a renowned name in the finance industry with a proven track record Strong stock selection approach with a bottom-up approach Horizon One should look at investing for a minimum of 5 years or more A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility. Conclusion The fund has delivered consistent returns over 13 years with a proven track record and has delivered 13.13% CAGR consistently. Thus, suitable for investors who want a focused portfolio of quality stocks along with market leaders. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. And gradually they entered the mutual fund industry.  DSP AMC was incorporated in 1996, and it is one of India’s leading AMC in India. DSP AMCs offer a wide range of products to meet the requirements of every investor in the best way by offering mutual funds. DSP AMC has schemes across debt, equity, hybrid, international funds, and ETFs (Exchange Traded Funds). It holds 25 years of Honest Asset Management. For over two decades DSP has helped its investors to make responsible money decisions based on two pillars i.e., honesty and integrity. DSP Equity Opportunities Fund  Investment objective An open-ended growth scheme, seeking to generate long-term capital appreciation, from a portfolio that is substantially constituted of equity securities and equity-related securities of large and mid-cap companies. Investment process The DSP Equity Opportunities Fund follows a growth style of investing which consists of growth stocks of large-, mid, and small-cap companies. The investment philosophy of the fund is to buy quality businesses from every sector to provide diversification.  The portfolio construction involves investing majorly in large & mid-cap companies. The fund core portfolio is based on long-term themes, core equity portfolio. The fund uses top-down sector analysis and bottom-up sub-sector stock analysis. Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 56% and sectorally major exposure is to financial services that account for almost one-third of the portfolio. The top 5 sectors hold nearly 66.66% of the portfolio. Note: Data as of 30th Nov 2022. Source: Value Research  CONSULT FUND MANAGER Top 5 holdings Name Sector Weightage % ICICI Bank Financial 7.37 HDFC Bank Financial 6.56 Infosys Technology 5.13 Axis Bank Financial 3.72 State Bank of India Financial 2.72 Note: Data as of 30th Nov 2022. Source: Value Research https://www.youtube.com/shorts/GTMkN4F0HoM Performance over 22 years  If you had invested 10 lakhs at the inception of the DSP Equity Opportunities Fund, it would be now valued at Rs 3.64 crore.  Note Performance of the fund since launch; Inception Date – May 16, 2000, till Dec 12, 2022. Source: Money control  The fund has given consistent returns and has outperformed the benchmark over the period of 22 years by generating a CAGR (Compounded Annual Growth Rate) of 17.40%.  INVEST NOW Fund manager  Rohit Singhania: Prior to joining DSP Mutual Fund, he worked with HDFC Securities Ltd. and IL&FS Investment Limited.  Kaushal Maroo has recently joined the AMC in Dec 2022.  Who should invest?  Investors looking to  Hold a focused portfolio of large & mid-cap companies  Invest in market leaders of large & mid-cap companies  Why invest?  To beat the impact of rising prices over the long-term  Offers the chance to grow your wealth by owning high growth-potential companies at fair prices  Horizon  One should look at investing for a minimum of 5 -7 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility  Conclusion  The DSP Equity Opportunities Fund has a well-diversified portfolio of 68 stocks that have delivered consistent returns over 22 years with a proven track record of a 17.40% CAGR consistently. The fund is suitable for investors who have the patience & mental resilience to remain invested for a decade or more. DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. And gradually they entered the mutual fund industry. DSP AMC was incorporated in 1996, and it is one of India’s leading AMC in India. DSP AMCs offer a wide range of products to meet the requirement of every investor in the best way by offering mutual funds. DSP AMC has schemes across debt, equity, hybrid, international funds, and ETFs (Exchange Traded Funds). It holds 25 years of Honest Asset Management. For over two decades DSP has helped its investors to take responsible money decisions based on two pillars i.e., honesty & Integrity. About DSP Focus Fund Investment objective The portfolio will consist of multi-cap companies by market capitalization. The Scheme will hold equity and equity-related securities including equity derivatives, of up to 30 companies. The Scheme may also invest in debt and money market securities, for defensive considerations and/or for managing liquidity requirements. Investment process The fund follows a growth style of investing which consists of growth stocks of large and mid-cap companies. The investment philosophy of the fund is to buy quality businesses from every sector to provide diversification. The portfolio construction involves investing majorly in large & mid-cap companies. The fund core portfolio is based on long-term themes, core equity portfolio. The fund uses different valuation models to identify the stocks from every sector. Portfolio composition The portfolio holds the major exposure in large-cap stocks at 59% and sectorally major exposure is to financial services that account for almost 23% of the portfolio. The top 5 sectors hold nearly 65% of the portfolio. Note: Data as of 30th Nov 2022.Source: Value Research Top 5 holdings NameSectorWeightage %ICICI BankFinancial10.53InfosysTechnology6.40CiplaHealthcare5.56Bajaj FinanceFinancial5.51Eicher MotorsAutomobile4.87Note: Data as of 30th Nov 2022.Source: Value Research Performance over 22 years If you would have invested 10 lakhs at the inception of the fund, it would be now valued at Rs 34.18 lakhs. Note: Performance of the fund since launch; Inception Date – Jun 10, 2010, till Dec 14, 2022.Source: Moneycontrol The fund has given consistent returns and has outperformed the benchmark over the period of 12 years generating a CAGR (Compounded Annual Growth Rate) of 10.32%. Fund Manager Vinit Sambre Prior to joining DSP Mutual Fund, he has associated with DSP Merill Lynch Ltd.(Nov’05 to Jun’07, IL & FS Investsmart Ltd. (Dec’02 to Oct 05), Unit Trust of India Investment Advisory Services Ltd. (Jun’00 to Dec’02), Kisan Ratilal Choksey Shares and Securities Pvt. Ltd. (Mar’99 to May 00) and Credit Rating Information Service of India Ltd. (Apr’98 to Feb’99). Who should invest? Investors looking to Hold a focused portfolio of multi-cap companies across sectors Have the patience & mental resilience to remain invested for a decade or more Why invest? To beat the impact of rising prices over the long-term Offers the potential to grow your wealth by investing in a relatively concentrated portfolio of quality companies with strong valuations Horizon One should look at investing for a minimum of 5 - 7 years or more A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility Conclusion The fund has invested in almost every sector to provide sectoral diversification to the portfolio and the fund has delivered consistent returns over 12 years with a proven track record with a 10.32% CAGR consistently. The fund is suitable for investors who have the patience & mental resilience to remain invested for a decade or more DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only.

What is concentration risk in Equity funds? Let us explain! Have you heard of the saying “putting all your eggs in one basket”? It means that you are dedicating a large number of your efforts and financial or other resources to one thing and hoping for its great success. Similarly, in your investment portfolio, your eggs are your savings - the money bags and the sectors or themes or instruments are the baskets. When you put all your eggs in a particular sector, and if the market crashes down due to unforeseen market conditions, all your eggs go bad (in short – you lose all your money bags). This is a concentration risk. When you have invested a lot in a sector, most of your expected returns depend solely on that particular sector’s performance. The possibility of your returns getting derailed due to high dependency on a small set of factors - this unique risk is called concentration risk. Why is this risk important? When we invest, we invest for our future, and our long-term goals – retirement, children’s education, wedding expenses, and more. Suppose, you invest in a mutual fund that is supposed to earn you a 15% return. However, if the mutual fund invests only in the infrastructure sector – this fund could be impacted by a multitude of macroeconomic factors such as interest rates, price of fuel, currency appreciation/depreciation, etc. In the time period of 2007-12, the infrastructure index gave an annualized return of -3% when compared to Nifty, which earned its investors a return of 7-8%. This is when diversification becomes important. Your portfolio should consist of sectors that complement one other. For instance, when oil and gas prices are on the rise, the energy sector is outperforming the market. However, the infrastructure sector which uses energy as input, or any sector which utilizes oil and gas as an input in their production would see an increase in costs – a decrease in stock price. Hence, these would move in opposite directions. If you had stocks from sectors that are moving in the opposite direction, you would either benefit from the net upside (Sector 1 increase + Sector 2 decrease), or you would limit your downside. Some sectors such as steel have long business cycles – they tend to have a longer slump (of greater than 10 years) due to macroeconomic conditions such as lower demand or higher supply, etc. If one invests in these sectors, there is a high risk of your portfolio underperforming the market. Consider a fund that invests in oil, steel, and other metals (they are also available as commodity indices). Oil and metals typically see simultaneous ups and downs in market cycles – this would mean higher risk and a higher impact on the portfolio of the fund. Marco-economic correlation Debt funds are impacted by a change in interest rates. When the RBI policy announces an increase in interest rates, the prices of the funds start to plummet if they have invested in long-term bonds (which are impacted the most). Similarly, there could be sectors that are impacted by interest rate movements or GDP movements. When there is a declaration of a decrease in interest rates by RBI’s monetary policy, NBFCs could gain from this move. The banking sector could be affected by this move due to a crunch in the interest margin i.e., profit for the bank – as the interest rates climb up, the profit margin increases and vice versa. However, this could also mean that the banks are able to borrow from the RBI at a cheaper rate. Large companies with stable cash flows will find cheaper debt financing options, and hence their stocks could also be on the rise. Hence, if one had only invested in the Banking and Financial sector (BFSI), one would see a drop in their portfolio. When there is an increase in interest rates and if one had invested in the Auto and Real estate sectors - despite having invested in two sectors, the impact would be negative. Beware of these correlations and invest in sectors that are least similar, so that your eggs cushion your portfolio during economic volatility. FAQs What causes concentration risk? Concentration risk is a result of uneven distribution of exposures (or loan) to its borrowers. How can you prevent concentration risk? You can prevent concentration risk by diversification across sectors, rebalancing your portfolio or by selling your certain investments. What is concentration risk? Concentration risk refers to anticipated loss in investments due to investing in multiple funds with the same or similar investment strategy. The loss cannot easily be remedied and hence, investors are advised to avoid it. What is concentration risk limited to equity funds? No, concentration risk is not limited to equity funds. It is also present in debt funds and it is important to understand the sectors and areas of investment of each fund to avoid this risk. Consult an expert advisor to get the right plan TALK TO AN EXPERT

IDBI Asset Management Limited handles substantial assets worth 3,935 crores and was established on January 25, 2010. It's existing mutual fund scheme offerings consist of 35 debts, 40 equity, and eight hybrid funds. IDBI Mutual Fund is an ancillary of the IDBI Bank and was incorporated under the Companies Act, of 1956. IDBI maintains a total asset worth in the range of Rs. 8949 cr distributed across several debts, equity, and LF (liquid funds) schemes. IDBI Mutual Fund is ancillary to IDBI Bank, a financial service provider that caters to clients looking for short-term and long-term investment opportunities. The IDBI Mutual Fund of IDBI, as envisioned by IDBI MF Trustee Company Ltd., is controlled by IDBI Asset Management Limited, with the fund house being funded by IDBI Bank. It employs more than 250 individuals across 15 branches spread throughout the country. The aim of IDBI Mutual Fund aims to enhance economic inclusion by encouraging investors to make sound investment decisions. It seeks to accomplish this through mutual funds, thus offering it the chance to witness capital markets' success. It contains a large number of funds with excellent CRISIL ratings. As a sponsor, IDBI isn't just one of India's biggest banks but also a significant contributor to its financial and industrial development. It has been a fixture in the financial sphere for more than 40 years. IDBI first started its operations as a development banking institution and a while later became a commercial bank. About IDBI mutual fund The incorporation of the Industrial Development Bank of India (IDBI) into the Government Company Act took place on 1 July 1964. The bank's main objective was to offer economic aid to the nation's weak industrial scene at the time. In its early years, IDBI was an ancillary of the Reserve Bank of India (RBI). However, it was eventually moved to the Government of India in 1976. The Government of India had to relinquish control of the bank after increasing pressure from economic circles. Currently, LIC owns a 51% majority stake in the bank. Thanks to the state's continued support over the years, IDBI has one of the biggest networks of ATM(s) and bank branches across the country. The bank has 1891 branches spread across all the nation's states and an international branch in Dubai. Hailed as a banking institution like no other, IDBI has aided the nation's financial sector's development, particularly in the pre-liberal era. It had a momentous role to play and caused a direct impact on the creation of several federal financial firms, including the Securities and Exchange Board of India (SEBI), National Securities Depository Limited (NSDL), Indian National Stock Exchange (NSEI), and Stock Holding Corporation of India Limited (SHCIL). IDBI Mutual Fund Name of the AMCIDBI Asset Management Company Ltd.Incorporation DateJanuary-25-2010SponsorsIDBI Bank Ltd.TrusteeIDBI MF Trustee Company Ltd.Trustees' NameMr. Rakesh Sharma - Chairman Mr. Jorty M. Chacko - Director Ms. Geeta P. Shetti - Independent Director Mr. A. V. Rammurty - Independent Director Mr. Arvind Kumar Jain - Independent DirectorMD/CEOMr Dilip Kumar MandalCIOMr V. BalasubramanianCompliance OfficerMr. Chandra BhushanInvestor Relations OfficerMr. S.V. DurgaprasadRegistrar and Transfer agentKevin Technologies Private Limited (Formerly known as Karvy Fintech Private Ltd) Unit: IDBI Asset Management Company Ltd. Karvy Selenium Tower B, Plot No 31 & 32 Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad – 500 032 Contact Person: Mr. S. V. Durga PrasadTelephone: 022-6644 2800 Email: contactus@idbimutual.co.inth Toll-free Number1800-419-4324Email Addresscontactus@idbimutual.co.inRegistered AddressIDBI Asset Management Company Ltd. 5th floor, Mafatlal Centre, Nariman Point Mumbai - 400021 10 top-performing IDBI mutual fund schemes IDBI has mutual funds in almost all categories permitted by the Securities and Exchange Board of India or SEBI. Here is a list of the ten best-performing IDBI mutual fund schemes in India. 1. IDBI Liquid fund IDBI Liquid Fund is an open-ended liquid scheme with a NAV of 2200.2867. Its objective is to offer investors an alternative to bank accounts/deposits. It was launched on 09th July 2010 and has delivered average annual returns of 7.32% since its inception. The fund considers CRISIL Liquid TRI as its benchmark. Key information Minimum InvestmentINR 5000 and in multiples of INR 1 thereafterMinimum Additional InvestmentINR 1000 and in multiples of INR 1 thereafterMinimum SIP InvestmentINR 500/month (12 months) INR 1000/month (6 months) INR 1500/quarter (4 quarters)Minimum WithdrawalINR 1000 and in multiples of INR 1 thereafter for a minimum period of 6 monthsExit Load0.0070% if redeemed within 1 day since the date of allotment with a 0.0005% depreciation for each following day until day 6; nil for redemption from day 7 onwardsReturn Since Inception7.32%AssetsINR 1,114 Cr (as of 31st March 2021)Expense Ratio0.17% 2. IDBI Nifty Index Fund IDBI Nifty Index Fund is an open-ended scheme replicating/tracking the Nifty Next 50 Index and has a NAV of 26.1412. Its objective is to invest only in every stock that comprises the Nifty Next 50 Index in the same weights as these stocks to recreate the performance of the TRI of the Nifty Next 50 Index. It was launched on 25th June 2010 and has delivered average annual returns of 9.27% since its inception. The fund considers NIFTY 50 TRI as its benchmark. Key information Minimum InvestmentINR 5000 and in multiples of INR 1 thereafterMinimum Additional InvestmentINR 1000 and in multiples of INR 1 thereafterMinimum SIP InvestmentINR 500/month (12 months) INR 1000/month (6 months) INR 1500/quarter (4 quarters)Minimum WithdrawalINR 1000Exit LoadNilReturn Since Inception9.28%AssetsINR 264 Cr (as of 31st March 2021)Expense Ratio1.03% 3. IDBI Flexi Cap Fund IDBI Flexi Cap Fund is an open-ended scheme equity scheme investing across small-cap, mid-cap, and large-cap stocks and has a NAV of 26.48. Its objective is to offer investors the option for capital appreciation in the long term through investment in a diversified portfolio of equity and equity-related instruments. It was launched on 28th March 2014 and has delivered average annual returns of 14.77% since its inception. The fund considers S&P BSE 500 Index-TRI as its benchmark. Key information Minimum InvestmentINR 5000 and in multiples of INR 1 thereafterMinimum Additional InvestmentINR 1000 and in multiples of INR 1 thereafterMinimum SIP InvestmentINR 500/month (12 months) INR 1000/month (6 months) INR 1500/quarter (4 quarters)Minimum WithdrawalINR 1000Exit Load1% for redemption within 365 daysReturn Since Inception14.77%AssetsINR 315 Cr (as of 31st March 2021)Expense Ratio1.03% 4. IDBI Equity Savings Fund IDBI Diversified Equity Fund is an open-ended equity scheme investing in arbitrage, equity, and debt and has a NAV of 19.2113. Its objective is regular income generation by investing in the money market and debt instruments through the usage of arbitrage and other derivative strategies. It was launched on 07th March 2011 and has delivered average annual returns of 6.66% since its inception. The fund's benchmark is divided as 40% of the CRISIL Liquid Fund Index + 30% CRISIL Short Term Bond Fund Index + 30% of the Nifty 50 Index- TRI. Key information Minimum InvestmentINR 5000 and in multiples of INR 1 thereafterMinimum Additional InvestmentINR 1000 and in multiples of INR 1 thereafterMinimum SIP InvestmentINR 500/month (12 months) INR 1000/month (6 months) INR 1500/quarter (4 quarters)Minimum WithdrawalINR 1000Exit Load1% for redemption within 365 daysReturn Since Inception6.66%AssetsINR 11 Cr (as of 31st March 2021)Expense Ratio2.13% 5. IDBI Small Cap Fund IDBI Small Cap Fund is an open-ended fund equity scheme predominantly investing in small-cap stocks and has a NAV of 12.53. Its objective is to offer investors opportunities to invest money for the long-term (3-4 years at least) who are looking for high returns. It was launched on 21st June 2017 and has delivered average annual returns of 6.06% since its inception. The fund considers NIFTY Smallcap 250 TRI as its benchmark. Key information Minimum InvestmentINR 5000 and in multiples of INR 1 thereafterMinimum Additional InvestmentINR 1000 and in multiples of INR 1 thereafterMinimum SIP InvestmentINR 500/month (12 months) INR 1000/month (6 months) INR 1500/quarter (4 quarters)Minimum WithdrawalINR 1000Exit Load1% for redemption within 365 daysReturn Since Inception6.06%AssetsINR 11 Cr (as of 31st March 2021)Expense Ratio2.50% 6. IDBI Ultra Short-Term Fund IDBI Ultra Short Term Fund is an open-ended, ultra-short-term debt scheme and has a NAV of 2171.2407. Its objective is to offer investors regular income for their investments by investing in the money market and debt instruments. It was launched on 03rd September 2010 and has delivered average annual returns of 7.56% since its inception. The fund considers CRISIL Ultra ST Debt TRI as its benchmark. Key information Minimum InvestmentINR 5000 and in multiples of INR 1 thereafterMinimum Additional InvestmentINR 1000 and in multiples of INR 1 thereafterMinimum SIP InvestmentINR 500/month (12 months) INR 1000/month (6 months) INR 1500/quarter (4 quarters)Minimum WithdrawalINR 1000Exit LoadNilReturn Since Inception7.56%AssetsINR 335 Cr (as of 31st March 2021)Expense Ratio0.60% 7. IDBI Banking & Financial Services Fund IDBI Banking & Financial Services Fund is an open-ended equity scheme that invests in the financial and banking services sector. It has a NAV of 11.47 and its objective is to offer investors maximum growth opportunities and attain long-term capital appreciation by investing in equity and equity-related instruments of organizations engaged in the banking and financial services sector. It was launched on 04th June 2018 and has delivered average annual returns of 4.89% since its inception. The fund considers NIFTY Financial Services TRI as its benchmark. Key information Minimum InvestmentINR 5000 and in multiples of INR 1 thereafterMinimum Additional InvestmentINR 1000 and in multiples of INR 1 thereafterMinimum SIP InvestmentINR 500/month (12 months) INR 1000/month (6 months) INR 1500/quarter (4 quarters)Minimum WithdrawalINR 1000Exit Load1% for redemption within 365 daysReturn Since Inception4.89%AssetsINR 335 Cr (as of 31st March 2021)Expense Ratio2.49% 8. IDBI India Top 100 Fund IDBI India Top 100 Fund is an open-ended equity scheme that invests in large-cap stocks and has a NAV of 30.95. Its objective is to offer investors opportunities for capital appreciation in the long term through investment in equity and equity-related instruments. It was launched on 15th May 2012 and has delivered average annual returns of 13.48% since its inception. The fund considers NIFTY 100 TRI as its benchmark. Key information Minimum InvestmentINR 5000 and in multiples of INR 1 thereafterMinimum Additional InvestmentINR 1000 and in multiples of INR 1 thereafterMinimum SIP InvestmentINR 500/month (12 months) INR 1000/month (6 months) INR 1500/quarter (4 quarters)Minimum WithdrawalINR 1000Exit Load1% for redemption within 365 daysReturn Since Inception13.48%AssetsINR 427 Cr (as of 31st March 2021)Expense Ratio2.53% 9. IDBI Focused 30 Equity Fund IDBI Focused 30 Equity Fund is an open-ended equity scheme that invests in a maximum of 30 predominantly large-cap stocks and has a NAV of 12.11. Its objective is to offer capital appreciation in the long term through investment in a concentrated portfolio of large-cap-focused equity and equity-related instruments. It was launched on 17th May 2017 and has delivered average annual returns of 5.75% since its inception. The fund considers NIFTY 100 TRI as its benchmark. Key information Minimum InvestmentINR 5000 and in multiples of INR 1 thereafterMinimum Additional InvestmentINR 1000 and in multiples of INR 1 thereafterMinimum SIP InvestmentINR 500/month (12 months) INR 1000/month (6 months) INR 1500/quarter (4 quarters)Minimum WithdrawalINR 1000Exit Load1% for redemption within 365 daysReturn Since Inception5.75%AssetsINR 136 Cr (as on 31st March 2021)Expense Ratio2.47% 10. IDBI Midcap Fund IDBI Midcap Fund is open-ended equity that invests in predominantly mid-cap stocks and has a NAV of 14. Its objective is to offer investors opportunities for capital appreciation in the long term through investment in equity and equity-related instruments of mid-cap companies. It was launched on 25th January 2017 and has delivered average annual returns of 8.27% since its inception. The fund considers NIFTY Midcap 100 TRI as its benchmark. Key information Minimum InvestmentINR 5000 and in multiples of INR 1 thereafterMinimum Additional InvestmentINR 1000 and in multiples of INR 1 thereafterMinimum SIP InvestmentINR 500/month (12 months) INR 1000/month (6 months) INR 1500/quarter (4 quarters)Minimum WithdrawalINR 1000Exit Load1% for redemption within 365 daysReturn Since Inception8.27%AssetsINR 188 Cr (as of 31st March 2021)Expense Ratio2.59% How can you invest in IDBI Mutual Fund via EduFund? Investing in IDBI mutual funds via Edufund is a fairly straightforward procedure. Step 1 - Download and install the EduFund app from Apple's App Store or Google's Play Store and set up an account. Step 2 -  Choose a Scheme. Peruse the huge spectrum of IDBI mutual fund instruments and select the best scheme to meet your financial objectives. The app's built-in recommendation algorithm determines and proposes the scheme that will best meet your financial objectives. Step 3 - Observe and Follow Your Transaction(s). The amount of money and assets you have put in will be displayed in your EduFund online account within 96 hours. You can also monitor and follow the IDBI mutual fund NAV, existing account balance, and other details through the app. Additionally, you may also buy, reclaim, or swap IDBI mutual fund units. Step 4 - Talk to a wealth advisor. You can reach out to a mutual fund expert to share your financial objectives and goals to gain tailored advice. EduFund uses top-class authentication and encryption technologies to ensure bank-like secured transactions and safeguard your investments. Top 4 best-performing Fund managers at IDBI Mutual Fund IDBI MF has a dedicated squad of fund managers who possess a strong mix of knowledge and experience in their chosen fields to uncover opportunities and coordinate portfolio management to maximize fund returns. 1. Raju Sharma Mr. Sharma is currently successfully handling the fixed income section of the financial institution, such as the IDBI Hybrid Equity Fund (Debt Portion) and IDBI Liquid Fund. He possesses over 25 years of strong industry experience in treasury, financial services, and debt capital markets. Prior to working for IDBI fund house, he had been associated with prestigious banking institutions such as Indiabulls MF, Tata Mutual Fund, and JM Morgan Stanley. 2. Uma Venkatraman With more than 15 years of industry experience in the sphere of financial services, Mrs. Venkatraman specializes in the equity segment. Before becoming selected as the fund manager, she directed IDBI's research function. Prior to joining IDBI Mutual Fund, she was associated with numerous reputable financial institutions such as ASK Raymond James, B&K Securities, ASK Raymond James, Morgan Keegan, and UTI Mutual Fund. 3. Bhupesh Kalyani Mr. Kalyani possesses a wealth of work experience amounting to around 16 years, with a major emphasis on managing and handling fixed-income funds. He is responsible for managing the IDBI Short-Term Bond Fund, IDBI Ultra Short-Term Fund, & IDBI Credit Risk Fund. Prior to his appointment as the fund manager, he was associated with TATA MF, LIC MF, and Star Union Dai-ichi Life Insurance Co. Ltd. 4. Ashish Mishra Mr. Mishra has a rich work experience of 13 years in the industry. He presently manages funds such as IDBI Focused 30 Equity Fund, IDBI Diversified Equity Fund, IDBI Gold Exchange Traded Fund, IDBI Midcap Fund, and IDBI Gold Fund. Prior to entering IDBI MF as the Fund Manager, he was associated with reputable institutions such as Union Bank of India (Treasury) and ING Investment Management India Pvt. Ltd 5. Ms. Ayushi Sethia Ms. Ayushi Sethia is the commissioned Co-Fund Manager for three of IDBI's mutual fund schemes. She presently supervises the IDBI Long Term Value Fund, IDBI Equity Advantage Fund, IDBI Banking, and Financial Services Fund. In total, she is responsible for handling Rs. 923 crore assets. Ms. Sethia is a student at the University of Jadavpur, having completed her Bachelor of Science degree with a specialization in Mathematics. She graduated from ISB with an MBA in Finance and Strategy. IDBI appointed her in May 2018. Prior to joining IDBI Asset Management Ltd., she used to hold the position of a junior research analyst at Quant One Technologies Pvt. Ltd. Why should you invest in IDBI Mutual Fund? IDBI Asset Management Limited maintains Rs. 3935 crores worth of assets. IDBI MF has been identified as one of the top-performing financial products and investment schemes presently accessible on the Indian financial market. Its primary products, such as debt, equity, gold, and hybrid funds, provide yearly returns as high as 13.2% against the invested amount. Its present mutual fund scheme offerings consist of 40 equity, 35 debt, and eight hybrid funds. Irrespective of whatever your investment objective might be, you can acquire an IDBI mutual fund scheme to meet those financial goals. You can also avail the seasoned and accomplished fund managers at the IDBI mutual fund to make a stock market or secondary market investment easier for you. Select EduFund for investing in IDBI Mutual fund EduFund makes it easy and convenient to put money in the IDBI Mutual Fund. EduFund's knowledgeable advisors will provide you with tailored solutions to all your economic objectives. You get the following benefits with EduFund: Tailored research-based financial plan: EduFund's advanced fund tracker algorithm analyses more than 1 lakh data points and 400 financial contexts to identify the best mutual fund scheme for you. Customer-friendly consultants help you create a financial plan: EduFund's consultants are equipped to deal with all types of consumer queries. They give you as long as you need to fix all your problems to create a solid financial plan. Invest less, earn more: Apart from providing services pertinent to the best Indian mutual funds, EduFund also provides you with the facility to put money in US Dollar ETF(s) and international mutual funds. Utilize free tools: EduFund enables providing several free tools for its clients, such as the SIP calculator, college savings calculator, and more. Zero technical expertise required: Investing in a mutual fund becomes easy for you with EduFund. You don't need to possess financial know-how to identify the best mutual fund because EduFund does it for you. Value-added benefits: You stand to gain numerous value-added perks, such as free consultations, zero commission, and no hidden charges. Secure transactions: EduFund is RIA-registered and uses top-class 128-SSL security to enable safe transactions. FAQs What is the best IDBI mutual fund? Top-rated IDBI mutual funds: IDBI Liquid fund IDBI Nifty Index Fund IDBI Flexi Cap Fund IDBI Equity Savings Fund IDBI Small Cap Fund Are IDBI mutual funds good?   IDBI Mutual Fund is ancillary to IDBI Bank, a financial service provider that caters to clients looking for short-term and long-term investment opportunities. It has been a fixture in the financial sphere for more than 40 years. IDBI first started its operations as a development banking institution, and a while later became a commercial bank. Its primary products, such as debt, equity, gold, and hybrid funds, provide yearly returns as high as 13.2% against the invested amount. Its present mutual fund scheme offerings consist of 40 equity, 35 debt, and eight hybrid funds. Please talk to a financial expert before considering investing in this fund.   Can I withdraw the mutual fund anytime?   You can withdraw your mutual fund investment anytime unless it’s Equity Linked Saving Scheme (ELSS) which has a lock-in period of 3 years. But investors should keep in mind if there is any exit load applicable on investments which is the charge deducted by AMCs to discourage investors from withdrawing the money prematurely.     Can I sell mutual funds anytime?   You can sell your mutual fund holdings anytime, but early redemption charges may apply based on the mutual fund you own. A few mutual fund companies have an exit load to restrict investors from selling their holdings before the minimum holding period.    

ICICI is a leading Asset Management Company (AMC) in the country focused on bridging the gap between savings and investments and creating long-term for investors through a range of simple and relevant investment solutions.   Let us talk about the flagship product – ICICI Prudential Large and Mid Fund. About ICICI Prudential Large & Mid Fund  Investment objective To generate capital appreciation through investments in equity & equity-related instrument of large-cap & mid-cap companies.  Investment process   The ICICI Prudential Large & Mid Fund follows a blended style of investing which consists of growth and value stocks of large and mid-cap companies. The Scheme will aim to hold optimum exposure to large and mid-cap stocks depending on the fund manager's view on market valuations.   The portfolio construction involves investing in high-conviction quality stocks. The Scheme will remain sector agnostic and would use a combination of top-down and bottom-up research for stock selection. A top-down approach will be based on macroeconomic conditions, and underlying trends while a bottom-up approach shall be followed for selecting stocks with growth and value prospects, low leverage levels, good corporate governance, robust financials, and good cash flow management.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 56% and sectorally major exposure is to financial services that account for almost 29% of the portfolio. The top 5 sectors hold nearly 67% of the portfolio. Note: Data as of 31st Nov 2022. Source: Value Research Top 5 holdings Name Sector Weightage % HDFC Bank Financial 8.06 Bharti Airtel Communication 5.63 ICICI Bank Financial 5.09 Infosys Technology 3.36 NTPC Energy 3.34 Note: Data as of 31st Nov 2022. Source: Value Research  Performance over 28 years  If you would have invested 10 lakhs at the inception of the fund, it would be now valued at Rs 5.87 crore. Note: Performance of the fund since launch; Inception Date – Jul 09, 1998, till Dec 09, 2022. Source: Moneycontrol The ICICI Prudential Large & Mid Fund has given consistent returns and has outperformed the benchmark over the period of 24 years by generating a CAGR (Compounded Annual Growth Rate) of 18.22%. Fund manager  Ihab Dalwai is the Fund Manager for ICICI Prudential Large & Mid Fund and has been associated with ICICI Prudential AMC since April 2011.  Who should invest?  Investors looking to  Hold a portfolio of majorly large-cap and mid-cap companies  Build core equity portfolio for long-term wealth creation with steady growth  Why invest?  ICICI is a renowned name in the finance industry with a proven track record  Strong stock selection approach with the top-down and bottom-up approach  Horizon  One should look at investing for a minimum of 5 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility  Conclusion  The ICICI Prudential Large & Mid Fund has delivered consistent returns over 24 years with a proven track record and has delivered 18.22% CAGR consistently. Thus, suitable for investors who want a focused portfolio of large-cap & mid-cap companies.

Ever wondered why is education in India so expensive? What is the driving force behind the growing prices in the field of education? In India, primary school education alone costs ₹1.25 lakh to ₹ 1.75 lakh yearly. Education is one of the few areas of the Indian development program experienced tremendous success. The gender enrollment gap has decreased up to secondary education, while enrollment in schools and higher education has increased dramatically. But the findings of the 75th round of the NSSO survey on "Household Social Consumption of Education in India," which was conducted from July 2017 to June 2018, are quite unsettling. The growth of education has generally resulted in a rising household financial load, making education further than the second level almost unattainable for the majority of working people, and even schooling has costs for families that can be very significant. Why are households required to pay such high costs when a sizable portion of enrollment is in public institutions, which ought to be far more open to everyone? The Right to Education Act of 2009 mandated that schooling up to the age of 14 would be free and necessary, and the spirit of that legislation plainly called for the state to cover the costs of primary learning. Additionally, there are other expenses related to education, such as textbooks, uniforms, and transportation, which increase the financial strain on families. And very few pupils received any help in this regard. It is remarkable that higher secondary education costs are particularly expensive for private, unaided institutions almost as high as post-graduate costs. In essence, this implies that not only the poor but now even members of the middle class are virtually shut out of postsecondary education. Naturally, gender differences continue to widen after these stages as families become less willing to spend as much money on the education of girls. The statistics are ominous. In metropolitan locations, it would cost close to 40% of a casual laborer's salary to educate two children (assuming 20 days of work per month, which may be an overestimate). Rural wage earners have smaller proportions, primarily because they are essentially barred from pursuing higher education for their offspring. The poll reveals that just a small percentage of households made an attempt at it, and less than 0.5 percent of households with casual employees in remote areas had anyone enrolled in graduate school. Average monthly costs for students in rural homes with casual labor went from 335 for secondary school to 576 for higher education to more than 12,220 for diplomas and certifications. It is important to keep in mind that the actual fees make up just a small portion of the overall costs associated with schooling. 43% of all educational costs in rural areas versus 57% in urban areas were covered by institution fees, which include not only tuition but also examination fees, "development" fees, and other charges. Particularly in rural places, a sizable portion of the budget is spent on books and other materials, and transportation expenses are high everywhere. Interestingly, private tuition fees continue to be substantial, indicating that despite the relatively high charges, the quality of the learning given by institutions is insufficient to satisfy the expectations of students. This implies that the recent increase in enrollment has come at a significant cost to families, particularly those who are less wealthy, who might have had to trade their few possessions or incur debt in order to provide for their children's education. Given the dire status of the employment market, these hopes for improvement through education are becoming more and more dangerous. Unfair accessibility and high personal expenditures associated with educating more young people could very well have a domino effect on society; immediate legislative change is required for both employment circumstances and educational access. The education sector is unfairly affected by inflation. Pushing the costs of education higher than any other sector in the market. The only way to ensure your child has access to a good education and ample opportunities is to start saving when they are young. Consult an expert advisor to get the right plan TALK TO AN EXPERT

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMC offers products across asset classes.   Let us talk about the flagship product – UTI Healthcare Fund. What is UTI Healthcare Fund? Investment objective The UTI Healthcare Fund seeks to generate long-term capital appreciation for investors by investing in equity and related securities of multi-cap companies which are involved in Health care activities.  Investment process   The UTI Healthcare Fund uses the tactical approach which takes a high risk and has the potential to deliver high returns. Source: utimf.com  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 44% and sectorally major exposure is to healthcare which accounts for roughly 98% of the portfolio. Note: Data as of 30th Nov 2022. Source: Value Research  Top 5 holdings Name Sector Weightage % Sun Pharmaceutical Healthcare 13.02 Cipla Healthcare 9.34 Dr. Reddy’s Laboratories Healthcare 7.27 Apollo Hospitals Enterprise Healthcare 5.83 Aurobindo Pharma Healthcare 4.33 Note: Data as of 30th Nov 2022. Source: Value Research  Performance since launch  If you would have invested 10 lakhs on 30 July 2005, it would be now valued at Rs 83.42 lakhs. Note: Performance of the fund, Date – July 30, 2005, to December 7, 2022. Source: moneycontrol  The UTI Healthcare Fund has given consistent returns with an annualized return of 12.99%.  https://www.youtube.com/shorts/FcWVk38QxXY Fund manager  The fund is ably managed by Kamal Gada and V Srivatsa. Kamal, prior to joining UTI Mutual Fund, worked with BPCL as Senior Accounts Officer and has been managing the fund since May 2022. Srivatsa, prior to joining UTI Mutual Fund, worked with Ford, Rhodes Parks & Co., and has been managing the fund since Mar 2007.   Who should invest?  Investors looking to  Own market leaders in the Healthcare sector  Hold a concentrated portfolio  Why invest?  It has a highly concentrated portfolio that invests in the defensive sector of the economy.  Fundamentally strong healthcare companies of all market-cap.  Horizon  One should look at investing for a minimum of 5 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility  Conclusion  The UTI Healthcare Fund has delivered good returns over the period. One should have a longer horizon before investing in the fund as it is a sectoral fund.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

UTI is one of the pioneers of the Indian Mutual Fund Industry. With over Rs 2.4 Lakh crore, the AMC is one of the most trusted names in the mutual fund space. The AMC offers products across asset classes.   Let us talk about the flagship product – UTI Banking & Financial Services Fund  UTI Banking & Financial Services Fund  Investment objective The UTI Banking & Financial Services Fund seeks to generate long-term capital appreciation for investors by investing in equity and related securities of multi-cap companies that are involved in Banking and Financial Services activities.  Investment process   The UTI Banking & Financial Services Fund uses the tactical approach which takes a high risk and has the potential to deliver high returns.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 84% and sectorally major exposure is to banking and financial services that account for roughly 90% of the portfolio. Note: Data as of 30th Nov 2022. Source: Value Research  Top 5 holdings Name Sector Weightage % ICICI Bank Financial Services 18.51 HDFC Bank Financial Services 18.32 Axis Bank Financial Services 9.80 State Bank of India Financial Services 9.55 HDFC Financial Services 6.16 Note: Data as of 30th Nov 2022. Source: Value Research  Performance since launch  If you had invested 10 lakhs on 1 Aug 2005, it would be now valued at Rs 83.88 lakhs.  Note: Performance of the fund, Date – August 01, 2005, to December 7, 2005. Source: moneycontrol  The UTI Banking & Financial Services Fund has given consistent returns with an annualized return of 13.03%.  Fund manager  The fund is ably managed by Amit Kumar Premchandani and Preethi RS. Amit has over 11 years of experience and has been managing the fund since June 2014. Preethi joined in May 2022 and is a new entrant in this fund management.  Who should invest?  Investors looking to  Own market leaders in Banking & Financial Services sector  Hold a concentrated portfolio  Why Invest?  It has a highly concentrated portfolio that invests in the ever-green sector of the economy.  Fundamentally strong financial services companies of all market-cap.  Horizon  One should look at investing for a minimum of 5 years or more  A systematic investment Plan (SIP) is an ideal way to take exposure as it helps tackle market volatility. Conclusion  The fund has delivered good returns over the period. One should have a longer horizon before investing in the fund as it is a sectoral fund.  DisclaimerThis is not recommendation advice. All information in this blog is for educational purposes only. 

What is a mutual fund? Mutual funds are investment vehicles that pool money from multiple investors and invest them into equity, debt, other related instruments, and asset classes after thorough research and analysis. Each mutual fund portfolio is managed by a fund manager who has a great deal of experience in the industry. Their decisions are substantiated and are taken after following the thorough research done by the AMC's research analysts. As individual investors, we do not have enough time to perform such research to make a well-informed choice on “Where to invest to gain maximum returns?” or “Where to invest in the long-term?” We may also not have enough capital to make a diversified portfolio to sustain the blows of market fluctuations. Mutual funds provide a one-stop solution for both issues. Why should one invest in mutual funds? a) Money managed by experts The fund manager and his army of research analysts are experts in the field of investing. They make informed choices with respect to every penny and always aim to provide the promised objective to their pool of investors. b) Liquidity Redemption requests are handled with great ease in fund houses. The investor can also buy/sell his units in the secondary market (in an open-ended fund) for redemption (withdrawal) of the units. c) Diversification Despite having low ticket sizes for investment, an investor can receive returns that mimic or beat the market performance. He/she can own a portfolio that is diversified across market capitalization or across sectors or different companies to sustain the blows of volatility. d) Lower cost The funds charge a small % of the NAV or your gains from the fund as a management fee which is also known as the expense ratio. These are also regulated by SEBI and have an upper limit to ensure that the funds do not overcharge the investors. e) Fund switch options One can invest in a debt fund and have the plan to have a systematic transfer into equity or vice versa to match the risk appetite, financial goals, and other factors. f) Tax saving with equity linked savings scheme (ELSS) Mutual funds also allow you to save some part of your income and claim it for tax deduction under 80C. Rupee Cost Averaging: Investing in Mutual funds through SIPs averages the cost of purchase/unit. Regulation: Funds are highly regulated and are designed to ensure retail investor protection. Ways you can invest in mutual funds If you are a new investor, you will need to complete your Know Your Customer (KYC) compliances through distributors, online platforms, or mutual fund houses (KRA – KYC Registration Agencies) – SEBI registered intermediaries. This is a one-time mandated process by SEBI to prevent fraudulent transactions. 1. Through an agent An investor may contact an agent who would direct the investor to invest in different mutual funds based on risk appetite, investment horizon, goals, and other factors. There is no commission that is to be paid to the agent. The fee is paid by the fund house and is deducted from the expense ratio paid by the investor to the AMC. Login credentials are given by each fund house which enables the investor to receive real-time data on fund performance. 2. Asset Management Company (AMC) One can directly invest in the fund house through this route. However, the investor needs to perform some amount of research before choosing the fund and the fund house. He/she can walk into one of the fund houses for offline registration, post which, all the transactions can be performed online through their website. If an investor wants to invest in 5 different funds, each from a different fund house, he/she will have to visit 5 different offices. 3. Demat account The investor can directly invest in various funds of different AMCs, corporate bonds, government securities, ETFs, etc through one account. These can be managed from one single location – your Demat Account. However, one needs to pay an additional brokerage charge annually for maintaining the account in addition to the expense ratio (which is to be paid to the AMC). 4. Fintech investment platform These platforms are third-party mutual fund aggregators which aid the investor in investing the corpus after a detailed analysis of their risk profile, goals, investment horizons, and more and suggest the best funds to suit their requirements. They also offer the convenience of managing the investor’s portfolio through their user-friendly sites. Some of the popular firms are Groww, EduFund, Scripbox, FundsIndia, etc. 5. Stock exchanges One can invest through NSE or BSE, hence eliminating all the intermediaries/brokers. However, the investor needs to perform a thorough analysis before investing in any fund and ensure that the objectives of the fund match his/her financial goals, risk appetite, and other requirements. To go through this route, one needs to complete an online registration with NSE or BSE (a one-time process). 6. Registrar and Transfer Agents (RTAs) One needs to complete the application form and submit a bank draft or cheque at the branch office of the RTA post where one can visit any of the RTAs to start investing. Some of the popular RTAs are CAMS and Karvy. This route enables the investor to choose across multiple fund houses (instead of a single fund house – in the AMC route). 7. Mutual fund utilities It is a shared service platform that hosts all the fund houses (owned by several AMCs in the country) and is used for fund transactions. Investors can use this facility online or offline. 8. Investor service centers These are physical offices across the country belonging to RTAs or fund houses. They assist the investor with respect to all the steps in the investment journey – investment to redemption. FAQs What is a Mutual Fund? Mutual funds are investment vehicles that pool money from multiple investors and invest them into equity, debt, other related instruments, and asset classes after thorough research and analysis. Why Should One Invest In Mutual Funds? Mutual funds is the best way to enter the investment market. It helps you invest in multiple companies and the investment strategy is managed by experts. What are the ways to invest in mutual funds? There are many ways to invest in mutual funds: You can invest through an agent, directly with the AMC, through a Demat account, or through a third-party financial investment platform depending upon your goals and ambitions. Conclusion As an investor, you can use any of the above ways to invest in the mutual fund of your choice and enjoy the wealth generation that comes with compounding. You can start your investment journey by downloading the EduFund app and signing up. You can get started immediately and pay zero commissions.