#MutualFundSchemes | Explore Tumblr Posts and Blogs

personalfn-blog · 6 years

Text

Smart & Advance Way To Start SIPs For Your Child’s Financial Future

Are you serious about your children's future?

Of course, I am.

Was this your response?

Please don't get annoyed by the question.

The intent of raising it now wasn't to hurt you.

Quite often it happens that, despite having a good purpose, we end up doing ordinarily in the end.

I want to send my child to a good college for higher studies—Great!

He/she should have an option to pursue a master's programme abroad—Excellent!

And soon after he/she settles abroad, I want to get him/her married in a grand destination wedding—Awesome!

But, are you doing enough to make all this happen?

Thus, saving money for the future needs isn't enough.

Inflation spoils the party.

You need to invest intelligently.

How should you plan for your child's better future?

Estimate the amount you would need in future.

Earmark the amount you will have to invest per month.

Select appropriate mutual fund schemes with a proven track record (or alternatively take expert help in choosing them) Opt for Systematic Investment Plan (or SIPs) to invest in mutual funds.

And Using various hypothetical rates try to estimate where your investments might take you (You might use PersonalFN's SIP calculator for this purpose)

If you have not been SIP-ping in equity-oriented mutual funds until now, you should start soon! What is SIP?

Simply put, SIP is a mode of investing in mutual fund schemes in a systematic and regular manner. The method of investing is similar to your investment in a recurring deposit (RD) with a bank, where you deposit a fixed sum of money (into your recurring deposit account), but the only difference here is, your money is deployed in a mutual fund scheme (equity schemes and / or debt schemes) and not in a bank deposit. Hence, your investments (in mutual funds) are subject to market risk.

A SIP enforces a disciplined approach towards investing, and you inculcate the habit of saving before spending, which we all probably learnt when we maintained a piggy bank.

Yes, those good old days where our parents gave us some pocket money, which after expenditure we deposited in our piggy banks and at the end of particular tenure, we saw that every rupee saved became a large amount.

SIPs work on the simple principle of investing regularly, which enables you to build wealth over the long-term. In case of SIPs, on a specified date which can be on a daily basis, monthly basis, or on a quarterly basis, a fixed amount you decide on is debited from your bank account (either through a ECS mandate or through post-dated cheques forwarded), and invested in the scheme as selected by you for a specified tenure (months, years).

Today some Asset Management Companies (AMCs) / mutual fund houses / robo-advisory platforms also provide the ease and convenience of transacting in mutual funds online. They have set up their own online transaction platforms, where one can do SIP investments by following the procedure as made available on the websites.

[Read: How To Invest In Mutual Funds Online]

So, you have fewer hassles while investing as well as tracking your investment dates.

To quote Albert Einstein, the eighth wonder of the world, the power of compounding plays a crucial role in generating a substantial corpus for your child's future.

But, it's important to invest in the right mutual fund scheme. Otherwise, you will wonder about the eighth wonder.

Here are 5 benefits of SIPs:

1. SIPs are light on the wallet

If you cannot invest Rs 5,000 in one shot, that's not a huge stumbling block, you can simply take the SIP route and trigger the mutual fund investment with as low as Rs 500 per month.

SIPs enable you to invest in smaller amounts at regular intervals (daily, monthly or quarterly).

2. SIPs make market timing irrelevant

Timing the market can be hazardous to your wealth and health. Instead, focus on 'time in the market' in the endeavour to create wealth by selecting the best mutual fund schemes to SIP. If you stay invested in a promising mutual fund scheme for the long-term, it can help you accomplish your financial goals.

3. SIPs enable rupee-cost averaging

Volatility is the very nature of the market; but with SIPs, you can mitigate this volatility. When markets undergo turbulence, rupee-cost averaging comes into play.

Meaning, typically buy more units of a mutual fund scheme when prices are low, and buy fewer mutual units when prices are high. SIPs work in your favour when markets go downhill, and when they are flat quite some time.

4. SIPs benefit from the power of compounding

As SIPs subscribe you to the habit of investing regularly, it enables you to compound your money invested.

So, say you start a SIP of Rs 1,000, in a mutual fund scheme following prudent investment system and processes, with a SIP tenure of 20 years and expect a modest return of 15% p.a., your money would grow to approximately Rs 15 lakh.

So, over the long-term, SIPs can compound wealth better and systematically as opposed to investing a lump sum, especially when the journey of wealth creation is volatile.

5. SIPs are effective medium for goal planning

All of us have financial goals – may be buying a house, buying a dream car, providing good education to children, getting them (children) married well, retiring etc.

But all this comes with systematic financial planning. Very often many invest in the equity markets, with a motive of making short-term gains, and often ignore to use the equity markets as a window for long-term wealth creation, to achieve one's financial goals. The earlier you start SIPs the better it is.

Do you know?

A difference of 4.4% compounded annualised returns on your SIP investments can fetch you additional Rs 45 lakh over 15 years?

The power of compounding and smart selection of mutual fund schemes, working in conjunction, can help you grow wealth.

Want a superlative research-backed guidance to select winning mutual fund schemes to plan your child's future needs?

Consider PersonalFN.

PersonalFN has a dependable track record, guiding investors to achieve their envisioned financial goals with its unbiased views.

PersonalFN does not take shortcuts with research before recommending mutual fund schemes to investors. A comprehensive rating methodology is followed.

PersonalFN analyses thousands of data points to shortlist schemes and also applies a whole host of quantitative and qualitative parameters to select winning mutual fund schemes for your portfolio.

PersonalFN's Mutual Fund Research service 'FundSelect' Vs. S&P BSE 200

Data as on March 28, 2018

(Source: ACE MF, PersonalFN Research)

Out of every four funds recommended in the

FundSelect

— a premium mutual fund research service of PersonalFN, three have always outperformed BSE 200 index. That's the success rate of PersonalFN.

Those who started following PersonalFN's recommendations in June 2003 might have grown their wealth at 21.0% compounded annualised rate vis-à-vis 16.6% returns generated by BSE 200.

Currently, the premium mutual fund research service, 'FundSelect', is celebrating 15 years of wealth creation. If you subscribe now you can avail this premium mutual fund research service for just Rs 2,950 and get 1-year additional access (worth Rs 5,000)... virtually free!

It will provide Buy, Hold, and Sell recommendations... intended at solidifying your mutual fund portfolio and make it free from any bias.

Click here to know more and subscribe to 'FundSelect' today!

You will get FREE access to our premium report, 'Top-5 Funds For 2020'

So, hurry and subscribe to PersonalFN's FundSelect now!

What's more?

PersonalFN is soon launching its robo-advisory platform offering Direct Plans only.

The lower expense ratio for Direct Plans of mutual fund schemes can add significant wealth in the long-run. The magic of power of compounding works better with Direct Plans.

You can potentially build a BIGGER corpus by opting for PersonalFN's robo-advisory platform that offers research-backed recommendations.

So, stay tuned!

Author: PersonalFN Content & Research Team

This post on " Smart & Advance Way To Start SIPs For Your Child’s Financial Future " appeared first on "PersonalFN"

#SIPsForYourChildsFinancialFuture #childrensfuture #mutualfunds #SIPcalculator #mutualfundschemes #recurringdeposit #benefitsofSIP

0 notes

wealthfund-blog · 7 years

Photo

Step Towards Better Tomorrow With Wealthfund. Click https://wealthfund.in/account/signup and Sign Up Now. #wealthfundgoalbasedinvestment #wealthfundinvestmentplatform #mutualfundschemes

#mutualfundschemes #wealthfundinvestmentplatform #wealthfundgoalbasedinvestment

0 notes

indianmoney-com · 6 years

Link

#MutualFunds #FinancialProducts #MutualFundInvestments #FinancialAdvisor #PANCard #MutualFundScheme

0 notes

personalfn-blog · 6 years

Text

5 Things SEBI Needs To Do Right Away For Mutual Fund Investors

The Securities and Exchange Board of India (SEBI) has safeguarded investors’ interest by making mutual fund houses more accountable. Guidelines governing the industry are strict, clear, and one of the best in the global context.

But there is still more to do.

Although instances of mis-selling have been curbed, they haven’t stopped completely. Every time the capital market regulator comes out with stricter regulations, mutual fund houses and their channel partners find a way to achieve their objectives, perhaps, compromising the investors’ interest.

What should SEBI’s next action plan be?

1. Tighten the noose around close-ended schemes

Soon after the capital market regulator issued strict guidelines for open-ended mutual fund schemes for equity and debt both, fund houses floated more close-ended schemes.

New Fund Offers (NFOs) in the form of close-ended schemes not only help mutual fund houses grow their Assets Under Management (AUM), but also help escape the stringent rules applicable to open-ended schemes.

This is a major lacuna in the regulatory framework, and in the investors’ interest, the regulator must fix it with appropriate guidelines.

PersonalFN has highlighted the drawbacks of close-ended schemes on numerous occasions. Recently, it published a couple of articles to create awareness among investors:

5 Reasons To Avoid Close-ended Mutual Funds

Close-ended NFO Factories: Should You Invest?

The capital market regulator should take strict action against the irresponsible behaviour of mutual fund houses and their channel partners.

When the equity indices hit new highs, it’s relatively easy to convince, new investors. Mutual fund houses have mastered the art of playing with investors’ psyche to grow their AUM. They launch close-ended schemes, at a time, when valuations are stretched and committing more money to equity is risky.

As a result, most of the close-ended schemes underperform compared to their open-ended counterparts. In the name of offering stability to the scheme’s operations, “close-ended” nature of the schemes makes them less accountable and lethargic.

2. Do away with the dividend reinvestment option

Dividend reinvestment option, in our view, is a fool’s choice!

Those who do not want regular income should select growth option and those prefer to have occasional pay-outs, should choose dividend pay-out option.

Let’s first understand how these options work. Under growth options, the gains are accumulated and automatically retained and reinvested. In dividend option, at the discretion of the fund house, the gains are distributed among investors.

But under dividend reinvestment options, when the dividend is announced and paid, the proceeds are utilised to buy the units of the same fund at ex-dividend Net Asset Value (NAV).

(Image source: freeimages.com)

What’s the loss?

Dividends are tax-free in the hands of investors. But the mutual fund houses have to pay the dividend distribution tax before paying any dividend. Therefore, dividends aren’t totally tax-free.

Even as far as equity-oriented mutual fund schemes are concerned, the dividend option has become less attractive. As you may know, the Union Budget 2018 introduced dividend distribution tax @ 10% on equity-oriented mutual fund schemes.

Do you still think, dividend reinvestment option should stay?

Hopefully, the capital market regulator would also think on the similar lines.

PersonalFN has always encouraged investors to select their options carefully. Read some of the pertinent articles by clicking on the links below:

Should You Opt For Dividend Option Offered By Equity Funds Now

Choose between dividend and growth option wisely

4 Myths About Dividends Declared By Mutual Funds Debunked

3. Discontinue monthly dividend options in balanced funds

As interest rates fell substantially over last three years, and sharply post-demonetisation; mutual funds started to attract conservative investors to balanced funds backed by a skewed narrative.

Since conservative investors have a strong preference for dividend-pay-outs, a few mutual fund houses launched monthly divided options.

(Image source: freeimages.com)

Recently, before the new financial year, many of mutual fund schemes paid dividends before dividend distribution tax on equity-oriented mutual funds being applicable. They were able to do so with huge gains made over last three-four years.

But such options are always misleading.

Under challenging market conditions, how many of these fund houses will be able to sustain the quantum of dividends they have distributed every month till now?

And let’s not forget, even if you as investors earn dividends and make losses on your capital, due to fall in the NAV post dividend distribution, the net effect is not positive.

4. End ‘copy-and-paste’ of liquid and liquid plus schemes

Observe carefully, many fund houses have similar liquid funds and liquid plus schemes (also known as ultra-short term schemes) in their product bouquet. It is challending to figure out the difference in their mandate and portfolio preferences.

But in this regard we are hopeful that the regulator will prudently regulate, as it did for scheme mergers of similar equity-oriented funds from the same mutual fund house.

5. Need to cap expense ratio of arbitrage funds

Arbitrage funds are classified as equity-oriented schemes for taxation purpose, but their return profile is comparable to that of liquid and liquid plus schemes (also known as ultra-short term schemes).

But their expense ratio is often near 1% –––rather high. Large commissions are paid to distributors to sell these funds.

(Image source: freeimages.com)

Until now, they were marketed as the tax-efficient alternatives to short-term debt schemes.

But soon after the government imposed dividend distribution tax and the long-term capital gains tax on equity-oriented schemes, they have lost their appeal.

PersonalFN has written some enlightening articles on arbitrage funds—comparing them with other available alternatives and explaining pros and cons of investing in them. Read:

Arbitrage Funds vs. Liquid Funds vs. Savings Bank A/C: How to Park Your Short-Term Funds

Arbitrage Funds: Do they work too hard for too little?

The capital market regulator is playing a critical role in creating a fostering environment for all stakeholders: mutual fund houses, distributors, and investors.

Nonetheless, it is essential things that are beneficial for investors’ are done. If investors are happy, educated about invested, money will continue flow into mutual funds. Keeping this in mind, the regulator’s action on all the above mentioned issues would be crucial.

PersonalFN has always placed investors’ interest first!

We advise clients backed by thorough independent research, recognising their: risk profile, investment objectives, financial goals, and the investment time horizon before goals befall, among many other facets.

PersonalFN believes, mutual fund investing is a serious business. At PersonalFN, our research team tests every mutual fund scheme through extensive scrutiny by a set exhaustive research process, consisting of both quantitative and qualitative parameters.

If you are looking at superlative research backed unbiased guidance to build a solid mutual fund portfolio, PersonalFN’ mutual fund research services are for you.

We recommend that you subscribe for our popular premium research service — FundSelect NOW!

FundSelectwill offer you honest and unbiased recommendations on which equity and debt mutual funds to Buy, Hold and Sell.

We will reveal: The 6 Ultimate Secrets that Helped Beat the Market By A Whopping 75%!

Only for a limited period, we are offering this exclusive service with loads of benefits that you cannot afford to miss. Subscribe now!

What’s more?

Only for the next few days…we are giving away our exclusive report, ‘The Super Investment Portfolio’, Absolutely Free to every new FundSelect subscriber.

So, don’t miss out this golden opportunity. Subscribe now!

Happy Investing!

The ideas in this article are inspired by Mr Pankaaj Maalde, and first appeared on ET and his blog.

This post on " 5 Things SEBI Needs To Do Right Away For Mutual Fund Investors " appeared first on "PersonalFN"

#MutualFundInvestors #mutualfundschemes #SEBI #MutualFunds #UnionBudget2018 #balancedfunds

0 notes

personalfn-blog · 6 years

Text

Should You Trade In Mutual Funds As You Do In Stocks

The stock market is perceived to be a den to make quick money. Sections of the media, especially glamorous business channels, are seeding this erroneous idea among people, making them wear the traders’ hat. The fact is, a ‘trader’ is only good to until his last trade. You don’t know what the future has in store – good, bad, or ugly. Meaning, it is not necessary that every trading call would create wealth. Please note that, a stock market is not a casino to gamble …and if you wish to do so might as well visit Macau, Las Vegas, and likes, which are far more fun places. The stock or equity market is an effective channel of wealth creation, of course; however, when you enter it, the utmost discipline, dexterity, and seriousness is required. Simply, because it is a matter of your hard-earned money, which you should not put to undue risk. “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”said Warren Buffet, a legendary investor. So, always choose long-term investments as against short-term trading; because the latter may prove hazardous to your wealth and health. When you buy stocks (which are direct way to invest in equities) construct the portfolio in such a way that it can help you accomplish your financial goals, and not in a way that induces you to ‘trade’ based on the khabar or a tip on Dalal Street. If you don’t have the competence to invest directly in stocks, seek research services offered by an independent and unbiased research house. Alternatively, you may opt to invest in equity mutual funds owing to the merits such as:

Diversification;

Professional fund management;

Ease & convenience of investing (lower entry level and economies of scale);

Liquidity; and

For innovative plans / services (Systematic investment plans (SIPs), Systematic Transfer Plans (STPs), Asset allocation plans, trigger facility, etc.)

But remember that selecting mutual fund schemes for your investment portfolio is not alike buying vegetables from a grocery store. You ought to

adopt a scientific and rational approach to select the best mutual fund schemes

of the hundreds out there and not always go by the smooth persuasive pitch of mutual fund distributors / agents / relationship managers.

Broadly, here are 10 checkpoints for the right decision:

✔ Is the fund sponsor, a person(s) / entity of integrity; ✔ What is the investment philosophy, processes and systems followed at the fund house; ✔ What are the investment objectives of a respective mutual fund scheme, and whether it matches yours; ✔ The investment style followed by the fund house or a respective scheme; ✔ The experience and the track record of the fund management team; ✔ How has the performance of the fund been; ✔ How much is the expense ratio; ✔ How much is the exit load; ✔ What are the tax implications of your investments; and ✔ What is level of investor services and transparency

But given our experience in mutual fund research over decades, we have to say that there are more nitty-gritties involved to select the best mutual fund schemes. And

here’s where PersonalFN research service, FundSelect comes to your rescue. We do all the gruelling, hard-core mutual fund research to recommend to you the best equity mutual fund schemes for your portfolio

, and also highlight the underperforming or average performing ones too

. We’ve discovered the secret to beat the market by a whopping 70%!

So, effectively you don’t need to ‘trade’ to make handsome gains.

Trading is not synonymous with mutual funds, yet many attempt to time the market while buying them. While, it is not ‘timing’, but the ‘time in’ the market that definitely matters for long-term wealth creation and to achieve the financial goals envisioned.

Thus, don’t look at the fund’s NAV while transacting in mutual funds. The NAV of a mutual fund scheme is by no chance a valuation metric. There’s no way you determine a fund’s NAV is high or low, as it represents a basket of securities from different industries where multiple metrics are needed to accurately value the business.

Similarly, neither is the NAV a performance indicator (although integral for calculating returns). A higher NAV does not indicate that a fund has performed better than another with a lower NAV, nor does it signal the potential to earn better returns. This is because when you invest in a mutual fund, you buy units at its NAV, i.e. the current market price of all the assets that the mutual fund owns; all it represents is the total portfolio worth as against the outstanding units.

Likewise, don’t fall for the Rs 10/- proposition that comes with

New Fund Offerings (NFOs)

. You cannot expect listing gains in a mutual fund scheme. It is important to understand that a NAV of Rs 10/- during the NFO period is just the starting price. There is no underlying valuation of the fund for the price you pay. When a fund house comes up with a NFO, it is simply collecting funds from you, pooling it, and further investing it in securities. How the NAV pans out is subject to how well the fund manager has constructed the portfolio and controlled the risk involved.

Therefore, a drop or spike in NAV of your mutual fund scheme should not compel to buy or sell your mutual fund holdings, steal your peace of mind, and/or give you jitters’. Instead when you transact in mutual funds, pay heed to host of quantitative, qualitative, and fundamental factors viz. performance---which includes returns, performance across market cycles, risks, risk-adjusted returns, comparative analysis--- portfolio characteristics, fund management style, costs (expense ratio and exit load), investment processes & systems followed at the fund house, among many other factors.

Don’t get swayed by the nonsensical rhetoric of some business channels and the so-called experts appearing on their shows, mutual fund distributors / agents / relationship managers or even your friends and family who would induce you to churn your portfolio on an illogical premise.

Amid times where the Indian equity market has scaled new heights, opting for the SIP or STP — the two modes of investing — would be a prudent approach / a strategy to mitigate the risk and volatility, instead of timing the market and going gung-ho. Systematic investing infuses a sense of discipline to regularly save and invest, facilitates rupee-cost averaging, and powers your portfolio with the benefit of compounding.

Invest your hard-earned money prudently with diligent consideration to your risk profile, financial goals, and the asset allocation that’s best suited for you.

Take sensible decisions and be in complete control of your investments

Happy Investing!

#InvestingInInfrastructureMutualFunds #MutualFundSchemes #PointtopointReturns #investmentstyle.

0 notes

wealthfund-blog · 7 years

Photo

Step Towards Better Tomorrow With Wealthfund. Click https://wealthfund.in/account/signup and Sign Up Now. #wealthfundgoalbasedinvestment #wealthfundinvestmentplatform #mutualfundschemes

#wealthfundinvestmentplatform #wealthfundgoalbasedinvestment #mutualfundschemes

0 notes

personalfn-blog · 6 years

Text

Is Your Robo-Advisor Competent To Offer You Sound Advice?

With robo-advisory platforms mushrooming over the internet, there’s no dearth of tech startups promising you sound advice on investments and on mutual funds in particular.

Many robo-advisory platforms may not even know how many mutual fund houses operate in India. Exaggerations aside, tech startups are toddlers in the arena of investing. They might not even have seen the sharp swings of the market ever.

But as they say, they are data-driven. They know as much about the history of markets as experienced investment gurus do, because they are take data-backed powered by technology. Tall claims!

If you think tech startups can give you sound financial advice just because they know technology better and can offer you conveniences, then you wouldn’t mind learning a dance form from a cricketer, isn’t it? Footwork is important in cricket, and a better dancer always has a pair of nimble feet.☺

And you should learn how to bat from an actor. Yeah, sometimes a batsman appears an innocent actor to deceive the umpire that he’s not out. ☺

If this sounds bunkum, what makes it so logical to approach a tech startup for advice on mutual funds?

Many tech startups rely solely on third-party recommendations or only number-crunch to recommend mutual fund schemes to potential investors. But be careful: they could be rendering an illogical advice logically.

Imagine this…

A scheme was consistently generating the highest returns in the category, and ‘data filters’ set by the tech startups rushed to announce it as the best scheme for your portfolio.

This is a data-driven decision, with some number crunching on an excel sheet. Great!

But, what about volatility it exposed you to?

Oops!

That wasn’t a parameter.

No problem! A robo-advisory platform realised its mistake and incorporated a few more filters that shortlisted schemes with lower volatility and higher returns.

This was meant to work better, but contrary to the expectations, many of the recommended schemes were on the downside within a few quarters of recommending them, owing to change in their fundamental attributes.

You see, some robo-investing platforms might have a founder with a personal finance background. But the critical question is, can he/she make the entire setup, a technologically-enhanced investment platform meaningful for your long-term financial wellbeing?

What’s more interesting is to see how a robo-advisory platform earns money for itself.

If it makes tall claims and tries to promote Regular Plans offered by mutual funds, or charges you no money and promises to offer you everything for free, you are most likely to make a bad decision opting for it.

Let’s now try to understand the difference between a mutual fund Direct Plan and a Regular Plan...

Regular Plan — This is the conventional kind of plan, where you invest/transact through your mutual fund distributor/agent/relationship manager. The recommendations are usually guided by the mutual fund distributor/investment advisor/relationship manager, backed by indirect commissions earned from the mutual fund house while there is after-sales support and service.

In regular plans due to the distribution cost involved, you incur a higher expenses ratio.

Direct Plan — Opting for the Direct Plan eliminates the services of a mutual fund distributor/agent/relationship manager. You choose to invest directly with the fund house selecting Direct Plans. You do your own research or bank on mutual fund research reports to invest. The transactions can be performed online, using a robo-advisory platform or even physically by visiting the registrar’s or the asset management company’s office.

And since, transactions are routed directly; no commissions are paid by the fund house on the money you invest. Hence, the expense ratio for a Direct Plan is lower compared to Regular Plan.

How do you, as a investor, benefit from a Direct Plan?

One of the advantages of a Direct Plan is you circumvent the rampant mis-selling that goes on to earn commissions.

You will agree that today the scenario is at odds. It’s rare to find a ‘financial guardian’ whom you can trust for sound advice on investing and wealth creation. There are only a few who render financial advice diligently and ethically.

Inflows under Direct Plans are witnessing a steady rise, only from cities such as Delhi, Mumbai, Chennai, Bangalore, Pune, and Chandigarh.

Over last few years, a majority of fund houses have managed to generate higher returns on assets of the same scheme coming through Direct Plans. This is because, besides the fact that market are in the uptrend, Direct Plans make a positive difference to your investments every year.

You earn approximately 0.5% - 1.0% additional returns every year by investing in Direct Plans, abetted by a lower expense ratio. This appears small to the eye at the outset; but over a span of a 15-20 year investment horizon, it reaps you a rich harvest.

Direct Plan: Reaping The Long-Term Benefits

(Source: PersonalFN Research)

As can be seen in the chart above, on Rs 10 lakh investment, a small difference in costs can result in savings anywhere between Rs 8 -17 lakh over 20 years. Yes, you can earn an additional amount of as much as Rs 17 lakh, if the difference in costs is as much as 1% point.

The final portfolio value varies with the magnitude of difference in expenses. Every 0.25% point difference in the expense ratio works out to an additional earning of Rs 4.50 lakh in 20 years’ time, if Rs 10 lakh is invested.

The additional returns earned by investing in Direct Plan of a mutual fund scheme can enable you to fulfil the envisioned financial goals such as buying a dream home, a car, children’s education, their marriage expenses, and your own retirement among others.

Hence, sow the seeds of these small savings to reap a sweet fruit powered by the benefit of compounding.

Does a Regular Plan and a Direct Plan of mutual fund schemes have different portfolios?

No, the portfolio is the same for a Direct Plan and for a Regular Plan of a mutual fund scheme.

The mutual fund scheme constructs its portfolio as per a detail invest mandate cited in its offer document. The fund manager and his research team are expected to follow the investment mandate to meet the set out investment objectives.

Is Direct Plan suitable for naïve investors?

Yes, ideally everyone should opt for a Direct Plan.

Usually, the time-consuming and tedious task of selecting the best mutual fund schemes deters many individuals to opt for Direct Plans.

But with PersonalFN’s research-backed recommendations based on comprehensive mutual fund research methodology, you do not need to worry on that front.

PersonalFN’s flagship mutual fund research service, ‘FundSelect’ is celebrating 15 years of wealth creation. ‘FundSelect’ is time tested mutual fund service that has helped beat the market by a whopping 80%

It will provide Buy, Hold and Sell recommendations… intended at solidifying your mutual fund portfolio and make it free from any bias.

If you subscribe now you can avail this premium mutual fund research service for just Rs 2,950 and get 1 year additional access (worth rs 5,000)... virtually free!

Click here to know more and subscribe to ‘FundSelect’ today!

Do robo-advisory platforms offer Direct Plans?

Yes, some of them do.

PersonalFN is soon launching an ultimate robo-advisory platform and will provide only Direct Plans. And the recommendations will be backed by on PersonalFN’s comprehensive mutual fund research methodology which accounts for host of quantitative and qualitative parameters.

Here are four criteria that make a good robo-advisory platform:

Service

Unbiased and research-backed advice

Established and reputed company

Costs

Some robo-platforms may offer you only transactional services, while others may provide you with a host of offline and online personal finance offerings.

But in addition, a good robo-advisory platform should also have advanced tracking and portfolio rebalancing services. Those that offer a mix of services should be worthy of your long-term financial commitment.

Also, the platform should be backed by a team of experienced customer service associates.

If you have any query related to the investments you make or if you are facing issues when transacting, it should be resolved quickly and professionally.

A robo-advisory platform backed by astute and comprehensive research processes will help you select the right mutual fund schemes. It plays a vital role; the fund’s performance should not be the only criteria.

A Robo-advisory platform that prudently selects best schemes for your portfolio backed by comprehensive research process and risk profiling is the right one for you.

As mentioned before, there is no dearth of robo-advisory platforms as the barrier to entry is low. While the competition is immense, you need to choose wisely and entrust your money to the best robo-advisor.

In this milieu, small robo-advisory firms may find business unviable, could shut shop, and leave you in the lurch. Therefore, opt for a robo-advisor platform backed by established companies in the financial services space, who have been unbiased in their approach and serving investors diligently for decades.

They should be fee-based to ensure that the commissions do not influence their advice. And sound and ethical research-backed investment recommendations are imperative.

Costs play a crucial role when you are planning your investments. Different robo-advisory platforms may charge you through one of the methods below:

An advisory or subscription fee (monthly, quarterly or yearly)

A transaction fee (each time you execute a transaction through them, they charge you a fee)

A percentage of the amount invested. (Popular in the US)

Commissions earned from fund houses of recommended funds

While the first three forms are upfront one-time costs, watch out for the last option, as the advice here may be biased. You can always decide whether the subscription fee or transaction fee is worth your money depending on the quality of advice and services offered.

Also, if you have a high quantum of assets, you can avoid investing with robo-advisors that charge you a percentage of your investment value as fees. The costs could end up higher than the one-time fees you would pay otherwise.

In addition consider this:

Do not be penny-wise and pound foolish while you invest your hard-earned money via a robo-advisory platform.

PersonalFN is soon launching an ultra-reliable robo-advisory fee-based platform offering only Direct Plans, and will be backed by honest & unbiased research that outperformed the BSE-200 index in last 15 years by over 80%!

Author: PersonalFN Content & Research Team

This post on " Is Your Robo-Advisor Competent To Offer You Sound Advice? " appeared first on "PersonalFN"

#RoboAdvisor #roboadvisoryplatforms #investments #mutualfundschemes #benefitfromaDirectPlan #DirectPlanandaRegularPlan

0 notes

personalfn-blog · 6 years

Text

Smart & Advance Way To Start SIPs For Your Child’s Financial Future

Are you serious about your children's future?

Of course, I am.

Was this your response?

Please don't get annoyed by the question.

The intent of raising it now wasn't to hurt you.

Quite often it happens that, despite having a good purpose, we end up doing ordinarily in the end.

I want to send my child to a good college for higher studies—Great!

He/she should have an option to pursue a master's programme abroad—Excellent!

And soon after he/she settles abroad, I want to get him/her married in a grand destination wedding—Awesome!

But, are you doing enough to make all this happen?

Thus, saving money for the future needs isn't enough.

Inflation spoils the party.

You need to invest intelligently.

How should you plan for your child's better future?

Estimate the amount you would need in future.

Earmark the amount you will have to invest per month.

Select appropriate mutual fund schemes with a proven track record (or alternatively take expert help in choosing them) Opt for Systematic Investment Plan (or SIPs) to invest in mutual funds.

And Using various hypothetical rates try to estimate where your investments might take you (You might use PersonalFN's SIP calculator for this purpose)

If you have not been SIP-ping in equity-oriented mutual funds until now, you should start soon! What is SIP?

A SIP enforces a disciplined approach towards investing, and you inculcate the habit of saving before spending, which we all probably learnt when we maintained a piggy bank.

[Read: How To Invest In Mutual Funds Online]

So, you have fewer hassles while investing as well as tracking your investment dates.

To quote Albert Einstein, the eighth wonder of the world, the power of compounding plays a crucial role in generating a substantial corpus for your child's future.

But, it's important to invest in the right mutual fund scheme. Otherwise, you will wonder about the eighth wonder.

Here are 5 benefits of SIPs:

1. SIPs are light on the wallet

If you cannot invest Rs 5,000 in one shot, that's not a huge stumbling block, you can simply take the SIP route and trigger the mutual fund investment with as low as Rs 500 per month.

SIPs enable you to invest in smaller amounts at regular intervals (daily, monthly or quarterly).

2. SIPs make market timing irrelevant

3. SIPs enable rupee-cost averaging

Volatility is the very nature of the market; but with SIPs, you can mitigate this volatility. When markets undergo turbulence, rupee-cost averaging comes into play.

4. SIPs benefit from the power of compounding

As SIPs subscribe you to the habit of investing regularly, it enables you to compound your money invested.

So, over the long-term, SIPs can compound wealth better and systematically as opposed to investing a lump sum, especially when the journey of wealth creation is volatile.

5. SIPs are effective medium for goal planning

All of us have financial goals – may be buying a house, buying a dream car, providing good education to children, getting them (children) married well, retiring etc.

Do you know?

A difference of 4.4% compounded annualised returns on your SIP investments can fetch you additional Rs 45 lakh over 15 years?

The power of compounding and smart selection of mutual fund schemes, working in conjunction, can help you grow wealth.

Want a superlative research-backed guidance to select winning mutual fund schemes to plan your child's future needs?

Consider PersonalFN.

PersonalFN has a dependable track record, guiding investors to achieve their envisioned financial goals with its unbiased views.

PersonalFN does not take shortcuts with research before recommending mutual fund schemes to investors. A comprehensive rating methodology is followed.

PersonalFN analyses thousands of data points to shortlist schemes and also applies a whole host of quantitative and qualitative parameters to select winning mutual fund schemes for your portfolio.

PersonalFN's Mutual Fund Research service 'FundSelect' Vs. S&P BSE 200

Data as on March 28, 2018

Out of every four funds recommended in the

FundSelect

— a premium mutual fund research service of PersonalFN, three have always outperformed BSE 200 index. That's the success rate of PersonalFN.

Those who started following PersonalFN's recommendations in June 2003 might have grown their wealth at 21.0% compounded annualised rate vis-à-vis 16.6% returns generated by BSE 200.

It will provide Buy, Hold, and Sell recommendations... intended at solidifying your mutual fund portfolio and make it free from any bias.

Click here to know more and subscribe to 'FundSelect' today!

You will get FREE access to our premium report, 'Top-5 Funds For 2020'

So, hurry and subscribe to PersonalFN's FundSelect now!

What's more?

PersonalFN is soon launching its robo-advisory platform offering Direct Plans only.

The lower expense ratio for Direct Plans of mutual fund schemes can add significant wealth in the long-run. The magic of power of compounding works better with Direct Plans.

You can potentially build a BIGGER corpus by opting for PersonalFN's robo-advisory platform that offers research-backed recommendations.

So, stay tuned!

Author: PersonalFN Content & Research Team

This post on " Smart & Advance Way To Start SIPs For Your Child’s Financial Future " appeared first on "PersonalFN"

#SIPsForYourChildsFinancialFuture #childrensfuture #mutualfunds #SIPcalculator #mutualfundschemes #recurringdeposit #benefitsofSIP

0 notes

personalfn-blog · 6 years

Text

Have You Been Mis-Sold Financial Products By Banks? Here’s Help…

While a majority of the Indian banking industry is plagued with asset quality woes, a few of them continue to report good quarterly numbers. If you follow their press releases and financial disclosures, they record a steady rise in their “fee income” quarter after quarter. There are no disputes about their conservative lending practices, which help them contain bad loans, however careful analysis of their “fee income” component explains why these banks are ahead in the race. Unsurprisingly, the most straightforward answer is—because they mis-sell. This is either done deliberately or under the pressure of chasing targets. Their staff resort to mis-selling banking and third-party financial products. Until now, the top products on the list of “products to be sold aggressively” were third-party products such as insurance policies, mutual fund schemes, and pensions schemes among others. Here are two reasons why:

These generated high commission income

Banks were unaccountable for mis-selling.

Believe it or not, until now seeking redressal from a banking ombudsman on cases of mis-selling was close to impossible.

It’s no wonder then that banks had a free run so far. If your bank gives you a tag of a “preferred customer”, tread with a caution. Banks which turn a blind eye to this malpractice (mis-selling), target this category of their customer base first. There have been instances in the past where banks have sold insurance products to

people nearing their retirement.

And, you would meet many people whom banks sold

sector and thematic funds

when they didn’t even know about equity diversified funds and the risks associated with them.

People seeking justice were forced to appeal to mutual funds or insurance companies, who in turn were reluctant to act against their “trade partners”— the banks. And the documents signed by customers (without reading them, by trusting the word of a relationship manager) worked against them.

Recently, the

RBI

amended the

Banking Ombudsman Scheme 2006.

As a part of this, it

modified the grounds for lodging a complaint against banks

with the Banking Ombudsman. This includes non-adherence to the Reserve Bank guidelines on para-banking activities such as the sale of insurance, mutual funds, and other third party investment products by banks.

The complaint can be filed for:

Improper, unsuitable sale of third party financial products

Non-transparency or lack of adequate transparency in sale

Non-disclosure of grievance redressal mechanism available

Delay or refusal to facilitate after-sales service by banks

As per the amended rules, the ombudsman can now levy a penalty of upto Rs 20 lakh (up from Rs 10 lakh earlier) on banks violating guidelines. Moreover, the redressal ombudsman can now award a compensation of upto Rs 1 lakh to the bank’s customers for loss of time, mental trauma, and expenses incurred.

What should you do if a bank has mis-sold you any product?

First, approach the grievance redressal department of the concerned bank and wait patiently wait for 30 days. Please maintain all documentary evidence of having contacted the office and seek acknowledgements wherever possible.

If the bank fails to offer you any satisfactory solution, you may approach the banking ombudsman. You can simply write a letter or even send an email with the primary evidence you have against the bank. There are 20 ombudsmen in India that can register your complaints without charging you afee.

You also have an option of approaching consumer courts directly. But it’s better not to skip any channel of redressal. That makes your case stronger.

Now banks must think twice before selling any product (especially, the third party products). And, the implementation of RBI’s recent amendments still remains the key. Speedy delivery of justice will be the real game-changer.

Wake up banks, no easy way out for you.

This post on " Have You Been Mis-Sold Financial Products By Banks? Here’s Help… " appeared first on "PersonalFN"

#FinancialProductsByBanks #insurancepolicies #mutualfundschemes #BANK #RBI

0 notes