Mutual Funds

Tax savings mutual funds like ELSS are similar to any other mutual fund scheme with an added advantage of saving tax. These fund help investors (Individual and HUF) save taxes under section 80C of the Income Tax Act, 1961. Investing in ELSS qualifies for a tax deduction of up to Rs.

Advantages of Tax Saving Mutual Fund

• Tax Saving
• Short lock –in period
• Can provide long term returns
• Inculcate the habit of saving
• Higher returns

A flexi cap fund is a type of mutual fund that is not restricted to investing in companies with a predetermined market capitalization. This type of fund structure will be indicated in the fund’s prospectus .A Flexi cap fund can provide the fund manager with greater investment choices and diversification possibilities.

Benefits:

• Fund managers to invest freely across the market capitalization
• Well- diversified equity strategy with a flexible ‘go anywhere’ approach
• Ability to harness opportunities across the market spectrum market cap, sector, or style agnostic
• Aims to capitalize on investment opportunities across the market spectrum
• Balances the risk and return aspects pretty well due to diversified portfolio

Focused Equity Funds are Equity Mutual Funds that invest at least 65% of their total assets in Equities and Equity- related instruments and can have a maximum of 30 stocks in their portfolio. They can invest across market capitalizations, sectors and industries.

Advantages of Focused Equity Funds

• Better researched investment
• Higher returns
• Negates limitation of mutual fund

Debt funds are mutual funds that invest the investors’ money in fixed-interest generating securities, including government and corporate bonds, debentures, and other money market instruments. Debt is one of the most prominent markets that investors can place their funds to multiply their wealth. Returns 5-7% p.a.

Four benefits of investing in debt mutual funds

• Stable returns: Debt funds are more likely to give a stable rate of return without dependence on market sentiments.
• Hedge against volatility: Debt funds can offer you a good hedge against the volatility of the equity market.
• High liquidity
• Indexation

Blue chip mutual funds are a type of equity of equity funds that primarily invest in equity and equity related securities of large cap companies that can be distinguished by adjectives such as large and well-established, renowned and prestigious.

Advantages of Blue Chip Fund
It helps you invest in financially sound companies with a track records of performance. You may
include Blue chip funds in your core portfolio for stability against volatile stock markets. You may invest in Blue Chip funds to build wealth over some time.

Retirement funds, also known as pension funds, are investment options that allow an individual to save a certain portion of their income for their retirement. These funds offer a regular source of finance after one retires; a retiree receives annuity on their investment until their demise.

A Systematic Investment Plan (SIP) is an investment tool which allows the investor to invest a fixed amount at regular intervals in a Mutual Fund scheme. SIP works by investing a fixed amount at a defined frequency. With this an investor does not need to time the market and can invest in a hassle-free manner.