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Mutual funds for long-term investment

Mutual funds for long-term investment

A long-term investment strategy is very important for your portfolio and for long-term wealth generation. Long-term mutual fund schemes can assist in achieving all of your higher life goals, such as retirement, marriage, children's education, house buying, globe travel, etc.  Let's learn more about long-term investing, who and how one should plan to accomplish long-term goals, and the best mutual funds to invest in for a long-term plan.  What is a long-term investment?   Long-term plans typically include an investment time span of more than five years. There are several goals behind an investment when someone wishes to make long-term investments. The goal can be to build long-term wealth so that the individual can feel safe in the future. Achieving important life goals is possible, as is just doubling your money through profitable investments. The equity mutual fund is the long-term strategy that is most recommended.  Why Equity funds are best for the long term?   Equity funds primarily invest in company stocks and shares. It is also one of the best methods to have a piece of a business without really launching one. These funds are, nevertheless, very dangerous in the near term. The sensitivity of equity markets to macroeconomic indicators and other variables includes, but is not limited to, inflation, interest rates, currency exchange rates, tax rates, and bank policies. The performance of the companies and, consequently, the stock prices are impacted by any change or imbalance in these. For this reason, it is always advised to maintain an equity fund investment for a minimum of five years and a maximum of ten years. Additionally, only individuals who are prepared to assume a high amount of risk in their investment should use these funds.  Equity funds have a history of providing solid returns over time. Most blue chip firms offer dividends to stockholders, which are a reliable source of income. These businesses typically distribute dividends on a regular basis despite the fluctuating market. Usually, they are paid every three months. A diverse portfolio can offer investors a year-round stream of dividend income.  Investors who intend to make long-term investments might do so in the equities of several economic sectors. Therefore, even if the value of one stock declines, the others may enable investors to recover their losses. Low cost, flexibility, diversification, convenience, liquidity, and expert money management are some other advantages of investing in stocks. Best mutual funds for long-term investment Following are the Best equity funds for long-term investment plans  Large-cap funds   These funds invest money in the stocks of large-sized companies. Large-cap stocks are commonly referred to as blue-chip stocks. These funds invest in those firms that have the potential to show year-on-year steady growth and high profits, which in turn also offers stability over time.   Large-cap stocks give steady returns over a long period of time. As these funds invest in well-established companies they are usually considered to be the safest investments compared to mid & small-cap funds. Investors with a moderate to high-risk appetite can prefer investing in large-cap funds.  Mid & Small Cap Funds   Money Market Funds These funds make investments in the equity of big businesses. Blue chip stocks are a typical term for large-cap stocks. These funds make investments in businesses that have the potential to produce large earnings and consistent growth year after year, which provides stability over time. Long-term, consistent gains are provided by large-cap equities. In comparison to mid- and small-cap funds, these funds are typically thought to be the safest investments because they invest in well-established companies. Those who are comfortable taking on moderate to high levels of risk may enjoy investing in large-cap funds.  Diversified funds or Multi-cap cunds   These funds invest across all the market cap large, mid & small cap funds. They typically invest anywhere between 40-60% in large-cap stocks, 10-40% in mid-cap stocks, and about 10% in small-cap stocks. Since these funds are a combination of all the caps, they master balancing the portfolio. Historically, Diversified Funds have come as a winner in most market conditions. Due to their diversified nature, these funds have the potential to survive the tough market phase. Investors with a moderate to high level of risk appetite can ideally invest in these funds  Sector Funds   Of all the equities funds, these are the riskiest. Therefore, a potential investor should only choose sector funds if they have the capacity to take a high level of risk. Sector-specific funds are offered here. They invest in certain industries like banking, finance, pharmaceuticals, and infrastructure. An investor may choose to invest in these funds if they believe a specific industry can experience rapid growth or has the potential to produce positive returns in the near future.  Conclusion  For the long-term, the equity class is the most preferred to save and invest in as the equity mutual funds have delivered consistent and the highest returns compared to other asset classes. Consult an expert advisor to get the right plan TALK TO AN EXPERT Abhilash Anand - Equity Research Analyst Provides financial insights on publicly-traded companies and/or sectors to facilitate investment decisions.
How much does it cost to study Law in the UK

How much does it cost to study Law in the UK

Are you planning to study law in the UK? Do you know how much it costs to study law in the UK?  The best and most prominent law schools in the world are located in the UK, and more than 1,676 law programs are available to help applicants develop the knowledge and confidence they need in this area of study.   The top 10 law schools in the UK are also among the top 50 law schools worldwide, according to the QS World University Rankings 2021. This is compelling evidence of the UK's renowned educational system at top universities offering top-notch instruction to their students. Let's examine the benefits of pursuing an LLB in the UK, one of the most well-liked study-abroad destinations worldwide! Why study law in the UK?  Considering that LLB in the UK is an undergraduate degree, it has fewer requirements than a law degree in other nations. Students must merely apply to a university of their choice and enroll in a legal program, such as an LLB. Most programs last between three and four years to complete. A degree from a renowned UK university is also a fantastic approach to start your career in this industry. The following are some of the main advantages of studying LLB in the UK: You will be exposed to a legal system that is always changing and growing while studying LLB in the UK.  Students will learn about both the rules that apply to the entire United Kingdom as well as those that are particular to Scotland, Northern Ireland, England, and Wales while studying in a country where common law originated.  International recognition exists for British common law. The common law of the UK underpins the legal systems of more than one-third of the world.  The United Kingdom is home to hundreds of multinational law firms, including some of the biggest in the world.  Studying LLB in the UK is a great way to improve your English language abilities. Through real-world and academic contexts like group projects and case studies, you can enhance your academic English.  The UK offers one of the quickest routes to becoming a lawyer when compared to studying law in countries like the US and Canada. A 3-year LBB program is typical, followed by a 1-year Legal Practice Course. Following that, students might submit an application for a training job with a law firm. This portion of your training typically lasts two years.  To apply for an LLB program in the UK, you do not need to take the LSAT exam.  An undergraduate degree is required to enroll in the two-year Senior Status LLB program.  In order to gain experience, you can work as a part-time employee in one of the many renowned law companies in the UK while you are enrolled in school.  Students might benefit from an international and multicultural university experience.   Students will get internationally recognized qualifications after they graduate. Top LLB Law Schools in the UK  University of Oxford  University of Cambridge  London School of Economics & Political Science  University College London  University of Edinburgh  Queen Mary University of London  Durham University  University of Manchester  University of Nottingham  University of Warwick  Costs to study LAW in the UK The majority of the expense for Indian students to study LLB in the UK is made up of tuition fees. According to the university, the program's reputation and demand, the location of the university, and other factors, tuition for this course may easily range from £40,000 to £75,000 (about INR 53 lakhs to INR 75 lakhs), with the upper limit going as high as £109,000 (around INR 1 crore). One must consider the cost of living in addition to the cost of education in the UK. In the UK, the cost of living is typically determined by the city in which you live. CALCULATE EDUCATION COST FAQs How much does a law degree cost in the UK? The price range can be as high as £13,600(Rs. 1377039.44) (for a full-time program in London in 2022-23) but can be much lower elsewhere. Your living expenses are in addition to these fees. Expect to spend up to £17,950 (Rs. 1817489.56) for a full-time LPC course in London in 2022–2023; however, costs outside of London start at £13,2 (Rs. 1336538.28). Is law school cheaper in the UK?  An LL. M. program in the UK won't likely be regarded as "affordable" by many students. Costs may add up, particularly for international students who often pay higher tuition than students from the UK and the EU How many years does it take to study law in the UK?  If pursued full-time, a legal degree in the UK normally lasts three years. Naturally, there are various alternatives to this. For students who are willing to put in extra time studying, the University of Law also offers a two-year accelerated Law LLB (Bachelor of Laws) degree
DSP Natural Resources and New Energy Fund

DSP Natural Resources and New Energy Fund

DSP Group is a 150+ years old financial entity, started back in the 1860s with its stock broking business. 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 Natural Resources and New Energy Fund  DSP Natural Resources and New Energy FundInvestment objective The primary investment objective of the Scheme is to seek to generate capital appreciation and provide long-term growth opportunities by investing in equity and equity-related securities of companies domiciled in India whose predominant economic activity is in the: (a) discovery, development, production, or distribution of natural resources, viz., energy, mining, etc (b) alternative energy and energy technology sectors, with emphasis given to renewable energy, automotive and on-site power generation, energy storage, and enabling energy technologies.  The Scheme will also invest a certain portion of its corpus in the equity and equity-related securities of companies domiciled overseas, which are principally engaged in the discovery, development, production, or distribution of natural resources and alternative energy and/or the units/shares of:  BlackRock Global Funds - Sustainable Energy Fund  BlackRock Global Funds - World Energy Fund and similar other overseas mutual fund schemes.  The secondary objective is to generate consistent returns by investing in debt and money market securities. Investment process   The DSP Natural Resources and New Energy Fund follows a value style of investing which consists of value stocks of majorly large-cap companies. The investment philosophy of the fund is to buy value stocks of companies involved in the commodity business and energy-based business.  Portfolio construction involves investing majorly in large-cap companies. The fund core portfolio is based on long-term themes, core equity portfolio.  Portfolio composition  The portfolio holds the major exposure in large-cap stocks at 73% and the fund is a sectorial fund that focused on the materials and energy sector. Both sectors together consist of more than 72% of the portfolio. Note: Data as of 30th Nov 2022. Source: Value Research  Top 5 holdings Name Sector Weightage % Black Rock Global Funds – New Energy Fund Financial (Foreign Fund) 14.71 Jindal Steel & Power Metals & Mining 9.88 Hindalco Metals & Mining 8.71 Tata Steel Metals & Mining 8.25 Reliance Energy 7.47 Note: Data as of 30th Nov 2022. Source: Value Research  Performance over 22 years  If you would have invested 10 lakhs at the inception of DSP Natural Resources and New Energy Fund, it would be now valued at Rs 56.95 lakhs. Note: Performance of the fund since launch; Inception Date – Apr 25, 2008, till Dec 16, 2022. Source: Money Control  The DSP Natural Resources and New Energy Fund has given consistent returns and has outperformed the benchmark over the period of 14 years by generating a CAGR (Compounded Annual Growth Rate) of 12.61%.  Fund Manager  Rohit Singhania: Prior to joining DSP Mutual Fund, he worked with HDFC Securities Ltd. and IL&FS Investment Limited.  Who should invest?  Investors looking to  Hold a focused portfolio of companies involved in the metals, mining & energy sector  Tactically allocate 10-15% of your overall portfolio to very high-risk opportunities.  Why invest?  Aim to grow your money by investing in companies from the commodities, energy and renewable energy sectors.  Favorable sector dynamics- As the world develops, the focus on energy companies to become more efficient to grow & an increase in the adoption of renewable energy means companies in this space could do well.  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 Natural Resources and New Energy Fund has delivered good returns over the period with a CAGR of more than 12.61%. One should have a longer horizon before investing in the DSP Natural Resources and New Energy Fund as it is a sectoral fund. The fund is suitable for investors who have the patience & mental resilience to remain invested for a decade or more Abhilash Anand - Equity Research AnalystProvides financial insights on publicly-traded companies and/or sectors to facilitate investment decisions.
Demystifying Taxation in Mutual Funds

Demystifying Taxation in Mutual Funds

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
What are the Invesco PowerShares?

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.  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
ETF
ICICI Prudential India Opportunities Fund: Invest in High-Performing Funds

ICICI Prudential India Opportunities Fund: Invest in High-Performing Funds

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  
Guide to calculating education costs for parents

Guide to calculating education costs for parents

Parents want the best for their children, especially a good education. The rising inflation rate makes it difficult for parents to determine the amount they need to save for their child’s education. Understanding the actual education costs with the help of a college cost calculator is important so that parents can become aware of the potential expenses. It surely becomes easy to plan, start early investments, and build a future education corpus. Here’s a guide to calculating education costs for parents! This blog will help parents to get an estimate of future expenses and plan accordingly.  What is an education cost calculator? An education cost calculator is a tool that helps the user to know about future education expenses effectively. It is easy to use and gives the best estimates so that parents can make necessary changes in their plans to suit their requirements.  The education calculator considers future value, inflation, number of years a person has to save and then calculates the amount. The objective of using an education calculator is to make the process easy and smooth. Once the calculator gives out the estimated amount, parents can take the help of financial experts to create a roadmap for achieving financial goals.  What will be the Cost of Education after 20 years? Read More Steps to Calculate Education Costs  Education inflation is at an all-time high, and it has led to a rapid rise in education costs. Parents need to factor in several metrics to get the nearest estimate of potential costs.  1. Calculate the current cost Determine the cost of education based on current market value. Suppose you want to send your child to the UK, then calculate the current amount you need to send your child abroad.  If you want to send your child to a reputed college in your home country, then calculate the total cost needed for that degree course in terms of the current fee structure and associated costs. It is now easy to visit the sites of reputed universities and learn about their fee structure and associated costs to get a general idea of the amount required for studying a specific course.  Parents can take the help of education counselors like the ones at Edufund to calculate the current amount needed for higher studies.  2. Determine the number of years Parents wanting to know about the education costs down the line need to determine how many years they have to save to create an education fund.  Is your child still young, or will they be ready in a few years to join the high school? Suppose the child is now 6 years old and they will need the money for higher education when they are 17 years old. The parents then have a maximum of 17 – 6 = 11 years in hand.  How many years approximately a parent has is important as the number of years affects the amount you can build. If a parent has a smaller number of years, then he needs to save a higher amount which might prove difficult for a middle-class family.  3. Consider the rate of inflation The amount you have calculated based on the current scenario will not be feasible down the line. Suppose your child enters college after ten years then the amount needed at that time will not be the same. You can consider the overall inflation rate or use available breakdowns.  It is vital to factor in the inflation rate to determine the costs that will go up in the future for correct estimates.  Factors responsible for Education Inflation in India? Read More 4. Consider the expected investment return Be realistic while determining the expected investment returns. Remember, when you have a clearer picture, it becomes easy to take the necessary steps that will take you closer to your desired goals.   5. Consider the education calculator Parents should consider an education calculator to give them the nearest evaluation of the amount parents should save to meet future education costs. The use of an education calculator will ultimately prove beneficial in making effective plans for the future. Once the parents have all the necessary information, then simply key in the details as per the instructions. The education calculator is an important guide to calculating education costs for parents as it will provide the probable future education cost and the monthly savings that need to be undertaken to build that amount.  Edufund’s college cost calculator is a comprehensive education calculator that can calculate the potential education expenses and give the nearest amount needed to meet your child’s education costs. It will also provide the parents with an estimate of the monthly savings that need to be undertaken to achieve goals. Conclusion The guide to calculating education costs for parents gives easy access to the required know-how and helps in making informed decisions. An education calculator like the one at Edufund helps to meet the educational needs of a child successfully. It is a blessing in disguise because besides providing estimates and extensive information, it helps to save the cost estimates and alter them to suit individual needs.
ICICI Prudential Focused Equity Fund. Who should invest?

ICICI Prudential Focused Equity Fund. Who should invest?

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 Equity Opportunities Fund. Who should invest?

DSP Equity Opportunities Fund. Who should invest?

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 Focus Fund. Who should invest?

DSP Focus Fund. Who should invest?

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?

What is concentration risk in equity funds?

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 Mutual Fund: Invest in High-Performing Funds

IDBI Mutual Fund: Invest in High-Performing Funds

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.    
What are managed funds? Advantage of managed funds?

What are managed funds? Advantage of managed funds?

Managed funds have proved advantageous to investors because it helps to achieve the desired investment goals in a hassle-free manner. It is impossible for individuals to have an in-depth knowledge of the market, and as a result, the chance of making mistakes and suffering loss is high.  Managed funds under a reputable company will, in most cases, lead to potential growth and result in high yields. It is the fund manager who is ultimately responsible for spreading the total money collected across different sectors and investments. What are Managed Funds? Managed funds are referred to as investment vehicles or a portfolio of investments managed by a fund manager on behalf of the investors who have pooled their money and contributed towards the funds. The fund manager makes the decision to invest in different sectors or asset classes based on the fund’s objectives and due diligence, makes strategies, considers the risk profile, tracks the investments, and makes viable decisions to garner maximum benefits.   Investors can buy managed funds directly from a management company, for example, Edufund, which gives potential investors a chance to choose the best possible fund that will meet their personal needs or via share markets.  Edufund has capable and experienced financial experts, who with the help of the available resources, make efficient investment decisions. Advantages of managed funds 1. Professional management Managed funds are handled by qualified professionals who are experts in this field. Their knowledge and understanding prove a boon for investors who want to invest but do not want to do the work involved in the process. The fund managers have extensive contacts and tools that give them access to important information that is used in making timely and informed decisions. Professional management by fund managers is a blessing in disguise as it gives the investors privy to sectors in which they have no experience.  Edufund helps investors choose the best possible managed fund that will suit their requirements. The consultants are just a call away to address investor concerns and guide them to the best-managed funds.  2. Spread investments  Managed funds help to spread the investors’ money across a wide range of sectors or asset classes. The individual investor does not have the necessary tools for due diligence across the whole market. The fund manager has an expert team at his disposal to make viable decisions that will prove fruitful in the long run. 3. Beginners guide New investors do not have the understanding to get started with a bang. The advantage of Managed funds is that they can act as a beginner’s guide and help new investors test the waters and start investing at minimum risk 4. Access to markets and strategies The advantage of Managed funds is that they offer investors access to markets and well-crafted strategies that would not have been available for private or new investors in normal circumstances. 5. Meet the personal requirements of individual investors As there is a wide range of managed funds, it is possible to meet the personal requirements of individual investors easily. Managed funds provide solutions to nearly every individual investor, whether they are looking for low-risk/high-risk investments or stable/high-growth opportunities.  6. Income Opportunities The benefit of managed funds is that they provide income opportunities to the investors who take advantage of the manager’s knowledge to increase their gains. 7. Does not require expert investors Managed funds do not need investors to have an in-depth knowledge of the market. Instead, it is the experience and expertise of the manager that matters in handling investments, as they are the ones to make decisions on behalf of the investors. 8. Viable decisions  The advantage of investing in managed funds is that the fund manager does not make random decisions. Instead, they look at the fund’s objectives and choose investments based on the set rules. The fund manager is paid for their efforts in choosing and administering the managed funds effectively. 9. Managing risks All the investment opportunities carry risk because there are very few investments in the world that will offer good returns without any risk factor. The advantage of managed funds is that the fund manager is ready with their strategies to handle the risk factor. With the help of available tools, they divide the asset class in such a manner that the risk is divided, and at the end of the day, the managed fund can balance out any negative impacts and ultimately offer higher returns. TALK TO AN EXPERT
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