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How to Invest In Mutual Funds?

<br>Mutual funds have become one of the most popular investment options for retail investors in India. As of the end of May 2020, the total assets under management (AUM) of the mutual fund industry stood at Rs 24 lakh Crores. * 50% of these assets are from retail investors and HNIs. There are Rs 3.2 crore SIP accounts and the average monthly SIP inflow is over Rs 8bn as of May 20, according to AMFI. With increasing investor awareness, the popularity of mutual funds will grow even more, but mutual funds still comprise a smaller percentage of household savings. We will

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How to Invest In Mutual Funds?

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  1. How to Invest In Mutual Funds?

  2. Mutual funds have become one of the most popular investment options for retail investors in India. As of the end of May 2020, the total assets under management (AUM) of the mutual fund industry stood at Rs 24 lakh Crores. * 50% of these assets are from retail investors and HNIs. There are Rs 3.2 crore SIP accounts and the average monthly SIP inflow is over Rs 8bn as of May 20, according to AMFI. With increasing investor awareness, the popularity of mutual funds will grow even more, but mutual funds still comprise a smaller percentage of household savings. We will explain how to invest in mutual funds and its benefits.

  3. How do mutual funds work? • Mutual funds work on the basis of the pooling of money from a large number of investors. The fund house mobilizes investors' money and invests in various financial securities such as stocks, bonds, etc. The securities are selected in accordance with the investment objective of the fund. For example, if the investment objective of the fund is capital appreciation, the fund will invest primarily in stocks. However, if the objective is to generate income, the fund will invest in money market or bonds. Mutual fund schemes are managed by professional fund managers whose goal is to ensure investment objectives are met.

  4. Why should you invest in mutual funds? • Before discovering how to invest in mutual funds, you should know why invest in mutual funds.

  5. Risk diversification: • Mutual funds offer risk diversification when investing in a portfolio of stocks or bonds in many sectors or issuers. A diversified portfolio reduces the risks associated with a single stock or bonds. • Professional management: • Mutual funds are managed by professional fund managers whose goal is to ensure that the investment objectives of the scheme are met. Fund managers are assisted by a research team that helps select stocks and manage the plan's portfolio.

  6. Range of solutions: • Mutual funds offer a wide range of solutions for various investment needs and risk appetites. Investing in equity funds can be to meet long-term goals like retirement, children's higher education, marriage, etc., while investing in debt funds can be if you want regular income or have investment needs shorter. Hybrid mutual funds combine equity and debt for investors with diverse risk appetites • Investment modes: • You can invest in a lump sum or through Systematic Investment Plans (SIP) or Systematic Transfer Plan (STP) depending on your financial situation and specific needs.

  7. Fiscal benefits: • Mutual Funds Service online are tax efficient investment solutions. In stock funds, short-term capital gains (held for less than 12 months) are taxed at 15% and long-term capital gains (held for more than 12 months) are exempt from tax up to 1 lakh of rupees in a tax year and taxed at 10%. thereafter (excess of Rs 1 lakh of capital gains). In non-capital funds, short-term capital gains (held for less than 36 months) are taxed at your income tax rate and long-term capital gains (held for more than 36 months) they are taxed at 20% after allowing for indexing benefits. • Tax refund: • To take advantage of the Section 80C tax benefit, you can invest in ELSS mutual funds.

  8. Liquidity: • Variable capital mutual fund financial statements are one of the most liquid investments after bank deposits and much more liquid than investments such as life insurance plans, infrastructure bonds, postal plans, etc. Investors can redeem their units in variable capital funds generally on T + 3 (transaction + 3 days) basis. Liquid, overnight, short duration and ultrashort funds can generally be redeemed on day T + 1.

  9. CAMS is a technology driven financial infrastructure and services provider to Mutual Funds and other financial institutions for over two decades. As the market leading Registrar and Transfer Agency to the Indian Mutual Fund industry, CAMS serves ~70% of the average assets under management – as of August 2021. We also provide technology enabled service solutions to Alternative Investment Funds and Insurance Companies. Besides serving as a B2B service partner, CAMS also serves customers through a variety of touch points such as pan-India network of service centres, white label call centre, online, mobile app and chatbot. • Website - https://www.camsonline.com/ About Us

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