This website including the ‘[EduFund]’ platform is owned, operated and maintained by Helena Edtech Private Limited, a company incorporated under the laws of India. The platform and the services thereunder are provided on an "as is" basis. Use of the service and the platform is at your own risk. Company makes no warranty that the use of the service and the platform will be continuous, uninterrupted, bug-free, error-free, virus-free, free of defects, free of technical problems, nor that it will meet all of your needs. To the extent permitted by applicable law, Company expressly disclaims all other warranties, conditions, results, guarantees, or representations with respect to the service and the platform, whether express or implied, including, but not limited to, the implied warranties of merchantability, merchantable or satisfactory quality, fitness for a particular purpose, non-infringement of third party rights, or arising from the course of performance, course of dealing, or usage of trade.
Investment in securities market are subject to market risks, read all the related documents carefully before investing. The valuation of securities may increase or decrease depending on the factors affecting the securities market.
EduFund and the EduFund App are the brand and product of Helena Edtech Private Limited
“An affiliate of the Company, i.e. Samyama Advisors Private Limited, is registered with the Securities and Exchange Board of India (SEBI) as an investment adviser under the SEBI (Investment Advisers) Regulations, 2013 bearing the registration number [INA000015321]. Samyama Advisors Private Limited may provide investment advice to the clients through the Company's platform.”
Registered Address: 30, Omkar House, Near Swastik Char Rasta, Navrangpura, Ahmedabad Gujarat, India – 380009
Transaction Platform Partner : BSE Star MF (with Member code-51573). CIN No: U67100GJ2020PTC112589. RIA Number: INA000015321 GST No: 24AAFCH2122L1ZU
Please scan QR code to download the EduFund app
What are mutual funds? Benefits of investing in mutual funds?
Let us start from the very basics and understand what mutual funds are. After that, we’ll discuss how to invest in them and discuss the advantages and disadvantages of investing in mutual funds.
What is a Mutual Fund?
A mutual fund is a financial trust that collects funds from investors and invests them into different instruments like stocks, bonds, and other money market instruments.
Fund managers manage mutual funds – they make investment decisions on behalf of the people who have trusted them with their money.
Mutual Funds are of different types, like equity mutual funds, debt mutual funds, and hybrid mutual funds depending upon the investment proportion in debt and equity.
These different types of mutual funds vary in their risk and return potential. Mutual Funds are one of the most popular investment options today.
What are the pros of investing in Mutual Funds in India?
Advanced portfolio management
When you purchase a mutual fund, you must pay a small fee as a part of your expense ratio. That fee is used to engage professional portfolio managers to buy and sell stocks, bonds, and other securities on your behalf – it is a tiny fee for professional assistance in managing your investment portfolio, which goes a long way in creating market-beating turns.
Liquidity
An advantage of investing in mutual funds is the ability to redeem the units when you require them. Mutual funds, unlike fixed deposits, allow for flexible withdrawals.
However, issues such as pre-exit penalty and exit load must be taken into account before deciding to exit your position in a mutual fund.
Convenience and fair pricing
Mutual funds are simple to purchase and comprehend. They usually have modest minimum investment values and are only traded once a day at the closing net asset value – thus removing day-to-day price fluctuations and different arbitrage opportunities used by day traders.
Diversification
An investment’s Maybe. The value may or may not decrease or increase in tandem. When one investment’s value rises, another’s valued may fall. As a result, the risk that the portfolio’s overall performance would be erratic is low.
Diversification lowers the risk of putting together a portfolio, lowering the risks for investors. As mutual funds consist of a variety of assets, the interests of investors are protected even if there is a downfall in the value of other securities so purchased.
Accessibility
A big reason for the popularity of mutual funds is the easy accessibility from anywhere in the world.
An Asset Management Company (AMC) offers the funds and distributes them through different channels like brokerage firms, registrars, the AMCs themselves, online mutual fund investment platforms, and agents and banks.
This factor allows mutual funds to be available and easily accessible universally. Also, mutual funds are easy to buy and track performance and one-click investments.
Low lock-in period
Tax-saving mutual funds have the most down-locking periods of only three years, which is lower when compared to the maximum of five years for other tax saving options like FDs, ULIPs, and PPFs. Also, you will have the opportunity to stay invested even after completing the lock-in period.
Fits every financial goal: The best aspect of a mutual fund is that you can invest with as little as ₹500, and there is no upper limit for an investor.
Before investing in mutual funds, examining their income, expenses, risk-taking abilities, and specific investment goals is essential.
As a result, anyone from any walk of life is free to invest in mutual funds regardless of income.
Good tax-saving options
Mutual funds are one of the best ways to save on taxes. Under section 80C of the Income Tax Act, equity-linked saving scheme (ELSS) mutual funds are eligible for a tax exemption of up to 1.5 lacs per year.
In India, all other mutual funds are taxable according to the type of investment and the fund’s duration. For example, equity mutual funds and debt mutual funds are taxable at different rates.
Tax-saving mutual funds have the potential to out for performing other tax-saving products such as PPF, NPS, and tax-saving FDs in terms of returns.
These were some advantages of making investments in mutual funds.
Disadvantages of investing in mutual fund
Mutual funds do not promise set returns, so you should always be prepared for the unexpected such as a drop in the value of your mutual fund. In other words, mutual funds are subject to a wide range of price changes.
Fund managers oversee all forms of mutual funds. A team of analysts may assist the fund’s management in various circumstances. As a result, you have no influence over your money as an investor.
Your fund manager makes all significant decisions regarding your fund on your behalf. However, you can look into certain vital factors, including disclosure requirements, corpus, and overall investment strategy.
Diversification is a significant advantage of mutual funds. However, the problem arises when there is over-diversification.
Over diversification can raise funds’ running costs necessitate increased due diligence, and dilute the relative benefits of diversification.
A mutual fund’s value may fluctuate as market conditions change. In addition, there are fees associated with professional mutual fund management which are not present when purchasing stocks or securities directly from the market.
When buying a mutual fund, investors must pay an entry load. When investors wish to exit from a mutual fund, providers charge an exit fee.
The performance of a mutual fund does not give investors enough information about the degree of risk that the fund faces.
As a result, it is just one of the metrics used to assess the company’s performance, but it is far from being comprehensive.
How to invest in a Mutual Fund via the Edufund App?
Step 1: Log in to the Edufund website or the Edufund app.
Step 2: Complete your KYC and move ahead to create your investment account.
Step 3: Choose the option of mutual fund investments.
Step 4: Analyse your risk profile on the app by answering your household income and expense, the number of dependents you have, the highest level of maturity you have in terms of investments, your period of investment, and similar questions.
Step 5: After answering the above questions, you will know what type of investor you are and the degree of risk you might be willing to take.
The Edufund website or the Edufund app will suggest some mutual funds you might want to invest in, with a recommended SIP value.
Step 6: Choose the fund and start investing.
Consult an expert advisor to get the right plan for you