tag:blogger.com,1999:blog-39949964242487767042024-02-06T22:14:57.869-08:00Innovative Investment in Mutual FundIn recent times Mutual Fund investment is a rapidly growing and easy investment tool to build one's wealth through a Systematic Investment Plan(SIP) and onetime Lump-sum purchase.SABINA KHANhttp://www.blogger.com/profile/08177621211621563412noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3994996424248776704.post-14120046752482379102021-02-13T06:50:00.001-08:002021-02-13T06:50:13.025-08:00Benefits of investing in Large cap fund in recent economic Condition. <p> <b><span lang="EN-IN" style="background: white; font-family: Arial, sans-serif; font-size: 13pt; line-height: 115%;">Large Cap Funds</span></b><span lang="EN-IN" style="background: white; font-family: Arial, sans-serif; font-size: 13pt; line-height: 115%;"> are also known as Blue Chip funds that have a
huge market capitalization. Companies, with a market capitalization of more
than Rs 1000 crore are known large-cap companies. These stocks are less
resilient and give stable returns. <b>Large-cap
funds</b> are those mutual funds, which endeavour to provide capital
appreciation by investing in stocks of blue-chip companies, there is a high
chance for earnings and growth. Different mutual funds have different norms for
listing companies as <b>large-cap funds</b>.
New investor should start their investment journey with </span><span lang="EN-IN" style="font-family: Arial, sans-serif; font-size: 13pt; line-height: 115%;">Large-cap funds on his portfolio as they have more
potential for earning growth and immense profit with less volatility.</span></p><p><span lang="EN-IN" style="font-family: Arial, sans-serif; font-size: 13pt; line-height: 115%;"></span></p><p class="MsoNormal"><span lang="EN-IN" style="background: #FAFAFA; color: black; font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin; mso-themecolor: text1;">Best <b style="mso-bidi-font-weight: normal;">large-cap funds</b> are
those that invest in equity shares of companies who are into Top 100 as per
AMFI classification. Large-cap companies are well-established venture with an
excellent upward track record and vintage </span><span lang="EN-IN" style="background: white; color: black; font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin; mso-themecolor: text1;">and also they
typically have stable corporate governance practices. These corporate houses
are always among the most highly observed in the market. They have generated
wealth for their investors steadily over the long term.</span><span lang="EN-IN" style="background: #FAFAFA; color: black; font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin; mso-themecolor: text1;"><o:p></o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="background: white; color: black; font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin; mso-themecolor: text1;">Large-cap</span></b><span lang="EN-IN" style="background: white; color: black; font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin; mso-themecolor: text1;"> is a secure direction
for those who want to take advantage of equity investments but do not want
their returns to fluctuate more than the benchmark (i.e. Sensex or NIFTY). As
they are financially stable, they are capable of withstanding downturn markets,
though there’s a risk that the large-cap might underperform as compared to
mid-cap or small-cap equity fund.</span><span lang="EN-IN" style="color: black; font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-family: Arial; mso-hansi-theme-font: major-latin; mso-themecolor: text1;"> In volatile times, it is best to invest in large cap
funds.<span style="background: white;"><o:p></o:p></span></span></p>
<p class="MsoNormal"><b><span lang="EN-IN" style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Why Large Caps Now?<o:p></o:p></span></b></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l1 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Many sectors and
stocks are trading at cyclical<span style="mso-spacerun: yes;"> </span>bottom</span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-weight: bold; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Development of
vaccines has successfully announced by UK and USA<span style="mso-spacerun: yes;"> </span>which can improve the economic growth outlook</span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> <span style="mso-bidi-font-weight: bold;"><o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">35 out of 50
stocks in Nifty50 Index are still underrated.</span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l1 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Most of the
valued stocks are trading below their average</span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> ever
which is so attractive.<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="mso-list: l1 level1 lfo1; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Surprisingly
these cash rich <b>Large caps</b> companies have potential of growth in a good
economic<span style="mso-spacerun: yes;"> </span>environment</span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> <o:p></o:p></span></p>
<p class="MsoNormal"><b><span lang="EN-IN" style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Which Large Caps to bet on?<o:p></o:p></span></b></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo2; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Which meet SQL investment philosophy <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo2; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Beneficiaries of formalization of the
economy <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo2; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Government Monetary policies in favors <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo2; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Trading at cyclical bottom <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo2; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Maximum macro headwinds and can reverse <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo2; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Which belongs to sectors which are core to
the economy <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo2; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Can potentially attract global liquidity<o:p></o:p></span></p>
<p class="MsoNormal" style="tab-stops: 75.0pt;"><b><u><span lang="EN-IN" style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Launching<span style="mso-spacerun: yes;"> </span>ITI Large Cap Fund<o:p></o:p></span></u></b></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l3 level1 lfo3; tab-stops: 75.0pt; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Core part of
the<span style="mso-spacerun: yes;"> </span>portfolio with<span style="mso-spacerun: yes;"> </span>stable<span style="mso-spacerun: yes;">
</span>compounding<span style="mso-spacerun: yes;"> </span>returns</span><span lang="EN-IN" style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l3 level1 lfo3; tab-stops: 75.0pt; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">When
economy<span style="mso-spacerun: yes;"> </span>rebounds big<span style="mso-spacerun: yes;"> </span>companies<span style="mso-spacerun: yes;">
</span>benefit a lot</span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l3 level1 lfo3; tab-stops: 75.0pt; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Differential<span style="mso-spacerun: yes;"> </span>valuations<span style="mso-spacerun: yes;">
</span>provide great<span style="mso-spacerun: yes;"> </span>opportunity
for<span style="mso-spacerun: yes;"> </span>stock picking</span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="mso-list: l3 level1 lfo3; tab-stops: 75.0pt; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 14.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Category is<span style="mso-spacerun: yes;"> </span>suitable for long<span style="mso-spacerun: yes;"> </span>term wealth<span style="mso-spacerun: yes;">
</span>creation and asset<span style="mso-spacerun: yes;"> </span>allocation
needs</span><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;"> </span><span style="font-size: 14.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-size: 11.0pt;"><o:p></o:p></span></p>
<p class="MsoNormal" style="tab-stops: 75.0pt;"><b><u><span lang="EN-IN" style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ascii-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Objectives
of investing in Large cap in current Market Scenario<o:p></o:p></span></u></b></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo4; tab-stops: 75.0pt; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Wingdings; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Large cap companies
are big companies, with proven track record, strong cash flows, and are leaders
in their respective sectors & businesses.<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo4; tab-stops: 75.0pt; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Wingdings; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">They are
generally stable and can withstand business downturns and external shocks
therefore they can sail through turbulent times quite easily.<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo4; tab-stops: 75.0pt; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Wingdings; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Good quality
large cap companies re-invent themselves and keep growing by adapting to the
times.<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="mso-list: l2 level1 lfo4; tab-stops: 75.0pt; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Wingdings; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-bidi-font-family: Wingdings; mso-bidi-font-weight: bold; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">§<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span style="font-family: "Cambria","serif"; font-size: 12.0pt; line-height: 115%; mso-ansi-language: EN-US; mso-ascii-theme-font: major-latin; mso-bidi-font-weight: bold; mso-hansi-theme-font: major-latin;">Large cap stocks
provide stability to the portfolio and can potentially compound your wealth
over the long term with lesser volatility.<o:p></o:p></span></p>
<p class="MsoNormal"><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN">Risk-o-meter
of Large Cap Fund:<o:p></o:p></span></b></p><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpVZBy1n_NWVnoC5dMAtOtYSF-cpcygDDnRc4LpFGpP4bEriVDjrd7KAYhH76S6g5THqQ095JqundE_ivZwoPnMQ5fX1PIYmf-n3m3lZYbuBwjgmYOCsezEorQFvGmIKsN1ih3viIxT5Q/s660/risko+meter.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="320" data-original-width="660" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpVZBy1n_NWVnoC5dMAtOtYSF-cpcygDDnRc4LpFGpP4bEriVDjrd7KAYhH76S6g5THqQ095JqundE_ivZwoPnMQ5fX1PIYmf-n3m3lZYbuBwjgmYOCsezEorQFvGmIKsN1ih3viIxT5Q/s320/risko+meter.jpg" width="320" /></a></div><br /><p></p>SABINA KHANhttp://www.blogger.com/profile/08177621211621563412noreply@blogger.com0tag:blogger.com,1999:blog-3994996424248776704.post-11587326534166455482020-11-28T07:13:00.002-08:002020-11-28T07:34:12.278-08:00how to invest in mutual fund and its classifications<p> </p><p class="MsoNormal"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><i>Mutual Fund is an excellent Investment option for multiplying
your retirement Corpus. Here we are going to discuss what are mutual Fund and
its features. </i><o:p></o:p></span></p><p class="MsoNormal"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><i><br /></i></span></p><p class="MsoNormal"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"></span></p><p class="MsoNormal"><span lang="EN-IN" style="color: #990000; font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Now a day’s <b style="mso-bidi-font-weight: normal;">Mutual
Fund</b> is a popular financial vehicle that pools money from individuals
and institutional investors for common investment objectives. The pooled investments
are professionally managed by the Fund managers. They invest in different
securities such as Stocks, Bonds, and money market instruments that are in line
with investment Mandates. As the Fund managers have in-depth understanding of
markets, so their intention is to provide optimum returns to the investor by
their investment decision. Investors would be allocated the unit-based funds on
the amount they invest.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-IN" style="color: #990000; font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span lang="EN-IN" style="color: #990000; font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Objectives:-<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-IN" style="color: #990000; font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Each Mutual Fund has a different investment objective,
which is set by Fund Manager before launching the scheme in the market.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-IN" style="color: #990000; font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Based on this objective, the Fund Manager selects
financial securities for the fund. Thus, sets its return and risk expectation.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-IN" style="color: #990000; font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">If Fund’s objective is income generation, then Fund
Manager would invest most of the money in Debt and Liquid instruments. Because
they are less risky and give inflation-adjusted returns. Whereas if the fund
objective is wealth creation, then the fund manager would invest most of the money
in Equity & Equity Related instruments. Because they are riskier, have the potential to beat inflation through returns.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-IN" style="color: #990000; font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Mutual funds are broadly divided on the basis of categorization. Which are as follows:-<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo1; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Based on the Structure of Mutual Fund<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 108pt; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Open
Ended fund:-</span></b><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Investor can buy & sell funds at any time.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 108pt; mso-add-space: auto; mso-list: l1 level1 lfo2; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Close
Ended Funds:-</span></b><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Investor can buy the fund once during the Offer period.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Based on Asset Class of Mutual Fund<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 108pt; mso-add-space: auto; mso-list: l3 level1 lfo3; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Equity
Fund</span></b><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">:-Invest mainly in stocks. So also known as Stock
Fund.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 108pt; mso-add-space: auto; mso-list: l3 level1 lfo3; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Debt
fund:</span></b><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"> -</span><b><span face=""Arial","sans-serif"" lang="EN-IN" style="background: white;"> </span></b><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Principally invest in fixed
income securities like bonds and treasury bills etc.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 108pt; mso-add-space: auto; mso-list: l3 level1 lfo3; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Gold
Fund: -</span></b><b><span face=""Arial","sans-serif"" lang="EN-IN" style="background: white;"> </span></b><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">The type of mutual funds that
directly or indirectly invest in gold reserves.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Based on the Risk-Return profile of
Mutual Fund<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 108pt; mso-add-space: auto; mso-list: l0 level1 lfo4; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Equity
Funds</span></b><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">:-These funds invest in Equity & equity related
Instruments. Such funds are so volatile in performance but in the long run, it
will return good capital appreciation.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 108pt; mso-add-space: auto; mso-list: l0 level1 lfo4; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><b style="mso-bidi-font-weight: normal;"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Balanced
Funds</span></b><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">:-These funds include equity and debt both.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 108pt; mso-add-space: auto; mso-list: l0 level1 lfo4; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Debt Funds<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo1; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Symbol; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Based on Market capitalization in Equity
fund.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 54pt; mso-add-space: auto; mso-list: l4 level1 lfo5; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><b>Large-cap:-</b> Top 100 companies in
terms of market capitalization are considering large-cap companies.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="margin-left: 54pt; mso-add-space: auto; mso-list: l4 level1 lfo5; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><b>Mid-cap</b></span><span face=""Helvetica","sans-serif"" lang="EN-IN" style="background: white; font-size: 13pt; letter-spacing: 0.15pt; line-height: 115%;"><b>:-</b>Next </span><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">101st-
250th companies in term of market capitalization are considering mid-cap
companies.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpLast" style="margin-left: 54pt; mso-add-space: auto; mso-list: l4 level1 lfo5; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><b>Small-Cap:-</b> 251st company onwards in
terms of market capitalization are considering small-cap companies.<o:p></o:p></span></span></p><p class="MsoListParagraphCxSpLast" style="margin-left: 54pt; mso-add-space: auto; mso-list: l4 level1 lfo5; text-indent: -18pt;"><span style="color: #990000;"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></span></p><p class="MsoListParagraphCxSpLast" style="margin-left: 54pt; mso-add-space: auto; mso-list: l4 level1 lfo5; text-indent: -18pt;"><span style="color: #990000;"><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><br /></span></span></p>
<p class="MsoNormal"><span lang="EN-IN" style="color: #990000; font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">In a simple way, we can conclude what is mutual fund is<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="mso-list: l5 level1 lfo6; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Investing in Mutual Funds is generally
much easier than buying or selling financial securities like stocks, bonds or
money market instruments.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l5 level1 lfo6; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Mutual funds are operated by
professional ‘fund managers’. They invest the fund’s capital in various financial
securities according to scheme objectives. Thus, attempting to generate capital
gains and income for the fund’s investors. These Fund Managers are highly
qualified individuals who invest your money based on huge backend research and
analysis.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l5 level1 lfo6; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">All funds should be registered with
the Securities and Exchange Board of India (SEBI). </span><span lang="EN-IN"><a href="https://www.sebi.gov.in/" target="_blank"><span color="windowtext" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt; text-decoration: none; text-underline: none;">SEBI </span></a></span><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">regulates
securities markets before it can collect funds from the investor.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpMiddle" style="mso-list: l5 level1 lfo6; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;">Each investor owns units, which
represent the percentage of the holdings of the fund. The income/gains generated
from this collective investment which is distributed amongst the investors
after deducting certain expenses, by calculating a scheme’s “Net Asset Value or
NAV”.<o:p></o:p></span></span></p>
<p class="MsoListParagraphCxSpLast" style="mso-list: l5 level1 lfo6; text-indent: -18pt;"><span style="color: #990000;"><!--[if !supportLists]--><span lang="EN-IN" style="font-family: Wingdings; font-size: 16pt; line-height: 115%; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--></span><span lang="EN-IN" style="font-size: 16pt; line-height: 115%; mso-bidi-font-size: 11.0pt;"><span style="color: #990000;">Simply put, it is one of the most
viable investment options for the common man. Since it offers an option to invest
in a diversified and well-managed basket of securities at a comparatively low
cost.</span><o:p></o:p></span></p><i></i><p></p>SABINA KHANhttp://www.blogger.com/profile/08177621211621563412noreply@blogger.com0