Mutual Funds

“Common Investor neither have skills or expertise nor have the capital and time to directly invest and also track his investments in capital & bond markets. Mutual funds is one of best investment instruments available to common man for long term wealth creation. Investing in a Mutual fund offers an excellent opportunity for diversifying risk as well as Investment portfolio”. One could have Proper Asset Allocation through Investments in to various categories of Mutual Funds schemes.“

What is Mutual Fund?

Mutual fund is where money of different investors with common objective is pooled in with an aim of investing in various securities. With mutual funds you may invest in multiple instruments like stocks, bonds, money market securities, gold (in ETF through gold Fund) or by combining these instruments to invest your funds in diverse areas. To help investors attain their financial goals, these schemes are handled and maintained professionally.

Benefits of Investing

  • Professional Management of money
  • Diversification to your portfolio
  • No Entry Loads
  • Highly Liquid in nature
  • Well regulated
  • Low cost of investment due to economies of scale
  • SIP Investing Plan

Mutual fund is where money of different investors with common objective is pooled in with an aim of investing in various securities. With mutual funds you may invest in multiple instruments like stocks, bonds, money market securities, gold (in ETF through gold Fund) or by combining these instruments to invest your funds in diverse areas. To help investors attain their financial goals, these schemes are handled and maintained professionally.

Advantages of Investing in an SIP

  • Disciplined approach for investing.
  • SIP can be started with small amount of INR 500 or INR 1000.
  • Through SIP, you cannot go wrong with the timing of investments due to continuity of investments over a period of time.
  • Road map to save for big events in life like child’s education, child’s marriage, buying a house step by step..
  • The thumb rule of compounding serves as effective tool for wealth creation by reaping cumulative returns over the years
  • The principle of rupee-cost enables you to lower the average cost of investment.

Advantages of Investing in an SIP

Equity Funds

Equity funds mean to typically invest your money in stocks of companies. These aim at yielding comparatively higher return. Equity fund has moderate to high degree of risk. This type of fund is ideal for investors who have long term investment goals. There are different categories as here under:
  • Large Cap Funds
  • Multi Cap Funds
  • Mid-Cap & Small Cap Funds
  • Sector Specific Funds
  • Tax Savings Funds (ELSS)
The gains from Equity fund are not taxed after one year. One could invest in to ELSS /Tax Saving Fund to get exemption U/S 80 c of IT act.
Disclaimer | “Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing.”
Debt Funds invest in long-term borrowing of the government or corporate issuers at fixed rates of interest. Funds in this earn returns from interest payments which are received from bonds or gilts and the fluctuations in the market price of their holdings. Debt funds are suitable for investors who look for low risk rate. There are different categories in debt funds and these include Income Funds, Monthly Income Plan, Gilt Funds, Dynamic Bond Fund, Credit opportunities Fund, Short term & Ultra Short term and Liquid Funds etc.
With hybrid funds, you invest in both equity as well as debt markets. Hybrid funds or hybrid investments are good for investors who seek to have higher return in comparison to debt funds. Hybrid funds have higher risk level. Hybrid funds can give an additional boost to your investor’s portfolio as it includes investment of your money in equity markets too.
  • Shriram Mutual Fund had been constituted as a Trust in accordance with the provisions of the Indian Trusts Act, 1882 (2 of 1882), vide a Trust Deed dated May 27, 1994, as amended from time to time. The said Trust deed has been duly registered under the Indian Registration Act, 1908. The Fund was registered with SEBI vide registration number MF/017/94/4 dated November 21, 1994.
  • Shriram Asset Management Company Limited is a part of the Shriram conglomerate of Chennai. It was incorporated on 27th July, 1994, and received the Certificate of Commencement of Business on 5th December, 1994. The Company received permission from Securities and Exchange Board of India to act as the Asset Management Company of Shriram Mutual Fund in the year 1994.
  • Shriram Credit Company Limited (SCCL) which is holding 68.67% stake in Shriram Asset Management Company Limited (SAMC) is the present Sponsor of SAMC. SCCL, a Non Deposit Taking Non Banking Financial Company registered under RBI Act 1934, is the wholly owned subsidiary of Shriram Capital Limited. Shriram Asset Management Company Limited is a listed quoted company. The shares are listed in Bombay Stock Exchange.

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Tax Saving Schemes

Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate.

Index Schemes

Index schemes work on attempting to replicate the performance of a particular index like BSE Sensex or NSE 50. The portfolio of these schemes consist of only those stocks which comprise of this index. The percentage of each stock is identical to the stocks index weightage of the total holding. The returns in these schemes is more or less equivalent to those of the Index.

Sector Specific Schemes

According to these schemes or funds, you invest in securities of only those industries or sectors that follow a specified document. These include Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. Returns in these schemes are dependent on the performance of the respective industry or sector. These schemes or funds have higher rate of risk and give higher returns. In these schemes, the investors must keep a keen eye on the performance and know the most appropriate time to exit.

Gold Fund

This includes investing on gold as an asset by gold fund. Gold Funds are open-ended mutual fund schemes which invest in units of Gold ETF. Investors can buy, sell, hold, and conduct SIP/STP/SWP in these funds. This is a cost-effective way of investment as investors do not have to incur any charges for de-mat account or brokerage charges and can accumulate through SIP.

Gold Sector

Funds is another gold fund sector for investment. In this, the funds will be invested in shares of companies that work in gold mining and processing.