Mutual Funds
A mutual fund is an investment vehicle, which pools money from investors with common investment objectives. It then invests their money in multiple assets, in accordance with the stated objective of the scheme. The investments are made by an ‘asset management company’ or AMC.
For example, an equity fund would invest in stocks and equity-related instruments, while a debt fund would invest in bonds, debentures, etc.
Funds that will seek to generate inflation – beating returns and limit downside risks. Require holding period of at least five years
Funds with potential to generate high returns but tagged with high risks and volatility. Require holding period of five years and active review of performance
Equity-oriented funds with a lock-in of three years. Qualifies for deduction upto Rs 1.5 lakh under Section 80C of the Income Tax Act, in the year of investment.
Equity-oriented funds with a lock-in of three years. Qualifies for deduction upto Rs 1.5 lakh under Section 80C of the Income Tax Act, in the year of investment.
Investors choosing these funds need to have a high risk appetite and be willing to monitor the fund performance and exit on profits. Funds mentioned here are themes that we think will hold potential in the near future. Investors need to have a 2-3 year perspective and actively book profits on these themes. These funds should not account for more than 5-10% of your portfolio.
Funds with over two-thirds invested in equity and rest in debt. Require at least a three-year holding period.
Equity-oriented
Funds with around two-thirds of the portfolio invested in equity and derivatives with the rest in debt. Seek to contain downsides better than pure equity funds. Require a 2-3 year holding period.
Ultra-short-term funds that invest in money market instruments and commercial paper with high liquidity and short maturity. This list does not include liquid funds. Pl. contact our advisor to choose liquid funds based on your need.
These funds seek to invest in safe, top-quality corporate debt (AAA, A1, etc) and government debt. They need a holding period of at least 2 years.
Low Risk
Moderate Risk
These funds invest in a mix of gilt, long-term corporate bonds as well as short-term papers with varying time frames. They need a holding period of over 2 years.
Moderate Risk
High Risk
These funds can invest in lower-quality corporate debt that carry a higher credit risk (AA and below), in order to generate potentially higher returns.
