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Upcoming IPO’s 2022

IPO stands do initial public offering. IPO is a process by which a company sells its stocks to the public and raises money. It can be done by a new or an old company.
Investing in the IPO of a good company proves to be profitable. For instance, Nureca, a digital health and wellness company issued IPO in February 2021and made a sensational debut with 58% over it’s issue price. The issuer price was Rs 400 and git listed at Rs 634.95 and is staggeringly high at Rs 1915 now. Thus, the stockholders earned a great profit. Many exciting upcoming IPOs are expected in the year 2022 ,we have summed up the main 5 IPOs for you.

NSE IPO

In the row of upcoming IPOs, NSE IPO is the next most awaited one. NSE is a pioneer in Indian financial markets. NSE is also the largest financial market in India providing automated electronic trading. NSE expects to raise Rs 10,000 crore by selling the shares. The date of the NSE IPO is yet to be declared.

OYO IPO

Since its inception in 2013, OYO is the most sought hotel accommodations for tourists. OYO garnered success for its affordable stay. OYO IPO is the talk of the town and the upcoming IPO is expected to be big as Rs 8,430 crore in size. The IPO can take oyo to the top tier level at par with giants like policy bazaar etc.

Pharmeasy IPO

Pharmeasy is all set to raise Rs 6,250 crore through its upcoming IPO. Pharmeasy is an online pharmaceutical platform/app serving top tier cities with medicine delivery, and other healthcare products. It also offers diagnosis test services and teleconsultation. Pharmeasy IPO tops the list of IPO’s of the year 2022.

January 19, 2022
All about Mutual Funds; explore insights
We all know the feeling of watching your savings grow as you invest in something sure to be a hit. What if we told you there are other ways for people like yourself, who don’t have much money but want access to financial markets? Mutual funds can provide this opportunity through investing pools made up by many investors – or even just one!
A mutual fund doesn’t rely on any specific person’s expertise; instead, it draws upon various viewpoints, making them more resilient against negative influences than an individual could ever hope to become alone. So, if curiosity got sparked after reading about how these things work (which, let’s face it, was probably inevitable), then we’re here to give you a whole tour on mutual funds.
A recent report by NS Venkatesh, chief executive officer of Amfi and India’s Mutual Fund Association, reveals that as many as 2.39 crores mutual fund investors have doubled to 1.19 crore at the end of March 2017, which is an impressive growth rate over two years.
Here are the top 4 reasons people buy Mutual Funds!
It’s no surprise that mutual funds are among the most popular financial investments. The funds offer many features to please an assortment of appetites, with affordability as its main selling point for many!

Professional Management

The fund managers are responsible for doing all the research, and they guide you to select which stocks to buy or sell. In addition, their knowledge of market trends helps lower your risk if one company fails because it diversifies investments among many companies in different industries that could be affected by such an event.

Affordability

Most new investors start small, so they can learn about investing before committing lots upon joining up with retirement plans like pensions etc. Still, over time most funds allow adjustments upwards when someone has gained enough experience & confidence.

Diversification

“Keep your financial bowl healthy.” A mutual fund typically invests in various companies and industries to help lower risk and manage your portfolio accordingly. Diversification is a saviour that enables you to balance your highs and lows in mutual funds.

Liquidity

As shared, mutual funds also typically offer affordable pricing with low initial minimums followed by regular purchases at fair market value as NAV goes up over time – often just 1% per year! In addition, you can quickly redeem shares when needed without paying any hefty fees associated.

What are the risks associated with Mutual Funds?

Mutual funds are a great way to invest in the market, but they come with risks. For example, mutual fund managers can force you out if an investment doesn’t go according to plan. And there’s no guarantee that your money will be safe even after retirement since this investing requires constant reinvestment rather than just keeping what earned interest has accumulated over time like saving accounts do.
There are also several advantages; some people feel more comfortable putting their assets into something where someone else knows how it should grow, which might lead them to choose investments. Such as mutual funds because then all risk is offloaded onto others who know what needs doing so long as those managing affairs have to access enough capital from elsewhere (earned through fees).
Your portfolio is worth more today than it was yesterday. But how do you know if the price of your investments has gone up or down? You can check with a financial advisor for answers, but before doing so, be aware that several different types and sources of dividends are available! (And hey, do you know we can help you out too and you don’t have to worry about the losses, we are on it too!)
Dividends may come from stock in companies that pay out profits every quarter; bonds might provide interest income monthly – even daily sometimes-and investor funds invest portfolios based upon specific strategies like growth investing for long term success where small increases could lead to significant returns over time while slowing down economic volatility.
Yes, almost all funds indeed carry some level of risk. And with mutual funds, you may lose money because the securities held by a fund can go down in value, or dividends could change as market conditions do so. But past performance is not an indicator for future returns; it is necessary to diversify your investments and avoid placing all eggs into one basket! And an expert can guide you better at this.
Here is a quick guide to understanding different types of Mutual Funds.
There are so many funds out there; it’s hard to keep up! There is a mutual fund for every type and style of investor.
Common ones include money market or liquid assets management; sector-, country-, region-specific equity investments; alternative strategies that seek high returns by investing in companies that aren’t doing well but may eventually turn around. These can be riskier bets than traditional markets because they’re betting on an unknown future event happening sooner rather than later.
Let’s know about the various Mutual Funds and their unique traits.

Equity Funds

The category of “Equity” funds is the largest in this list. There are many different types, such as small-Cap, Mid-cap and large-cap stocks for investments based on size or approach towards growth strategies. These strategies are aggressive investing versus income-producing values that do not have high expectations about future returns but rather strict guidelines to earn profits from dividends paid out by companies’ earnings instead. Additionally equity can be categorized according to Reflecting Domestic (U S) Stocks vs Foreign Equities which will boost one’s investment options depending upon where you want your money to go generate greater rates than those offered through other countries’ economies.

Fixed-income

Fixed-income funds are a great way to invest if you’re looking for stability. These mutual funds have set rates, such as government bonds or corporate debt instruments. They pay interest on what the company has saved in their pocket, which is then passed down through shares with dividends at regular intervals (usually annually).
It could be argued that these investments offer more security than alternatives like stocks, where one can lose 50% overnight. However, there still needs careful consideration before making any decisions because while fixed income provides peace of mind when things go smoothly – nobody wants an emergency fund complete!

Index funds

Index funds are another popular investment strategy that has become increasingly popular in recent years. Index fund managers base their decisions on the belief it’s tough and often expensive to try to beat market averages consistently over time; this way, you can spend less money with your advisor or research team, who will pass along any excess returns back into shareholder pockets instead of spending them all away trying harder than before when nothing was really gained from those efforts anyway!

Balanced fund

A balanced fund is an investment that attempts to reduce the risk associated with various asset classes. There are two variations- one designed for those who want more stability and another which considers volatility to make it easier on investors’ appetites.
The aim behind this kind of strategy can be summarized as follows: if you’re scared about stocks going down, then put your money into bonds; however, if things don’t look so bad after all but what happened last year seems too far off due historical trends continuing at their current pace – why not try investing some cash alongside its equivalent amount worth gold or silver coins?

Income funds

Income funds are named for their purpose, to provide steady cash flow. These investments consist primarily in high-quality corporate bonds and government debt which holds them until maturity so that they can generate interest rates from it as well as produce income on an ongoing basis? For investors who want this type of security but may also have cautioned about the various financial that makes situation more complicated and make sense because if something goes wrong, it’s not like anyone will come out ahead significantly since most people had invested money into things knowing full well how risky stocks could potentially get once everyone starts panicking again.

How to buy or sell Mutual Funds?

You can buy and sell mutual funds through an online brokerage account, or you may have the option to do so at a local bank branch. Findoc also helps in buying and selling mutual funds. We have an expert team and dedicated fund investors to guide you throughout your mutual funds’ investment journey.
Fund investors buy mutual fund shares from the fund itself or through a broker for an agreed-upon price, including any sales loads. The net asset value at the time of purchase is only included in this calculation and does not reflect changes to NAV after that (this would be considered misleading). Fund managers can redeem their shareholdings with prompt payment within seven days if they choose to–a good reason why those who invest should consider doing so before maturity!
Wondering how to get started?
The best way to invest in a mutual fund is through findoc.com and complete your KYC formalities before you can proceed with the process, but it’s not complicated!
Here’s how:
Signing up for an account on Findoc requires just some basic information like name or email address that will be used as identification once we have taken care of everything else (i.e., full coordination between customer-facing systems).
You can identify the funds you are interested in investing in or take help from our fund investors.
Investing your money is an important decision that you should not take lightly. And investing in Mutual Funds through a reliable source is much more important than anything else.
So, if you are young or even in your late 50s, you must consider this. Also, don’t forget that Mutual Funds can expand your multiple income streams too!
December 20, 2021
Apply Upcoming LIC IPO at Findoc: Check Issue Date, Price, Lot Size & Details
Life Insurance Corporation of India (LIC) is the largest player in the life insurance segment in India. Its size is so significant that every 3 out of 4 life insurance policies sold are from LIC. The insurance giant has been around since 1956 and currently serves over 250 million people – more than a sixth of India’s population. LIC is a state-owned company and is 100% owned by the Ministry of Finance.

LIC IPO

The Government of India is planning to divest up to a 10% stake in LIC through the issue of fresh shares following its plan to systematically divest state-run corporations. The issue is expected to be for INR 90,000 – 100,000 crore (or $13.5 billion) which would make it the biggest IPO listing in India. Some experts have labeled this to be “Saudi Aramco of India”. While the date of the issue is still unknown, we can expect it to go live by March 2022.

LIC IPO – Key Facts

In the 2020 fiscal year alone, LIC collected Rs. 1.78 trillion in the first-year premium, 25.17 percent higher than the previous year.
LIC reported a 17.5 percent growth in the value of the new business. Some private insurers in India like HDFC Life, SBI Life, and ICICI Pru Life are growing faster than LIC due to their small size but they do not have the competitive edge that LIC has.
LIC has a network of over 1 million active agents spread across the country which is significantly larger than any other life insurer in the country. It is because of these agents and over 3000 offices in the country that LIC is able to cater to its large customer base.

Why Invest in LIC IPO?

These are among the primary reasons why investors should consider investing in this IPO –The Life Insurance Corporation of India is the biggest player in the insurance sector in India and has the backing of the government, making it a stable business when compared with other insurance aggregators.
Investing in LIC would favor investors significantly. The company recorded stock market profits of more than Rs. 10,000 crores in this June quarter. Investors can expect healthy dividends from the stock.
LIC will adopt a corporate structure with independent directors. This should increase the performance of the company, thus increasing its value and consolidating its position in the market.

What is the LIC policyholders category? Is there any benefit if I apply?

The policyholder’s category is a new section in the LIC policy, which will benefit customers who hold policies from this company. To be eligible for making an application under the Policyholders’category:
Your PAN has to match with that registered on the Findoc account too.
Before applying here you must make sure your PANs are updated using the same number as earlier entered while signing up with Findoc.

Can I check if my PAN is linked with my LIC Policy?

To check whether your PAN number is already linked with the policy:
Visit this page and enter all required information.
You will be redirected to a web page to provide some basic details like date of birth, PAN, policy number, and captcha.
You then have to press ok or submit a button to view your PAN link status.

What if my LIC policy is still not linked to my PAN, then what should I do?

Visit this Link your PAN to LIC policies page
Update your PAN with the list of LIC policies you hold, click proceed, and move to the next step.
You must enter your valid date of birth (the one mentioned on the PAN), gender, email, mobile number, full name, and policy number on the next page. Make sure all the details match your PAN details.
If you have several policies, don’t forget to click on add policy and proceed further with another policy number.
Now, click on declaration and enter the captcha shown to you.
Locate the OTP option and receive the OTP details on the registered mobile number – click submit.

Why Invest in LIC IPO?

These are among the primary reasons why investors should consider investing in this IPO –
The Life Insurance Corporation of India is the most significant player in the insurance sector in India.
It has the government’s backing, making it a stable business compared with other insurance aggregators.
Investing in LIC would favor investors significantly. The company recorded stock market profits of more than Rs. 10,000 crores in this June quarter. Investors can expect healthy dividends from the stock.
LIC will adopt a corporate structure with independent directors.
This should increase the company’s performance, thus increasing its value and consolidating its position in the market.

Qualifying for the LIC IPO is simple! All you need to do is:

Open a Demat account online
Sign up with your UPI app of choice
Accept the UPI mandate
Once you have accepted the mandate, you will be able to hold or block the bid amount in your account.

How to apply for LIC’s IPO?

You can apply for an IPO if you have a trading/Demat account. This can be done through both online and offline processes. In the online mode, you have to log in to your trading account and enter the number of shares along with the cut-off – the price you want to bid. If you don’t have a trading account you may get in touch with the Findoc Financial Services team and we’ll help you at every stage of the process.
Through offline mode, you can submit the ASBA application to the banking branch designated as Self Certified Syndicate Bank.
August 6, 2021
Best Large Cap Mutual Funds 2021

Large Cap Mutual Funds, is a type of mutual fund which according to SEBI, invests in the top 100 companies.

Things to Consider as An Investor

RISK: Market risk exists in large-cap equity funds, but it is moderate. They are known for generating consistent dividends and wealth accumulation. The money is invested in financially strong businesses, the underperformance is averaged out over time which provides stability.
RETURN: Large Cap Funds do not perform erratically as they have a history of strong performance during both market lows and highs. The risk exposure is comparatively less for these funds, therefore the returns on them are less volatile.
INVESTMENT HORIZON: These funds are suitable for investors with a long- term horizon. Typically, the fund underperforms during market downturns, but returns in the 10% to 12% range over the long term of more than seven years.
FINANCIAL GOAL: They are perfect for an investor who wants to take on a moderate amount of risk. These funds can be used to build wealth for retirement planning, or to fulfill your house loans, to plan for children’s weddings etc. These funds can also be used to establish a portfolio for new investors who want to get into the stock market but are concerned about risk.
CAPITAL GAIN TAX: One of the other advantages of investing in Large Cap Funds is that investor is subject to capital gains. Capital gains on such investments are tax-free as long as they don’t exceed Rs. 1 lakh. Long-term capital gains that surpass Rs. 1 lakh are subject to a 10% tax. Short term capital gains (when money is withdrawn in less than 1 year), are subject to 15% tax.

Now let us take a look at the top 8 Large Cap Funds

These funds invest in companies that have market Cap of more than 20000 crore. It also shows us the returns generated by these funds across 1,2 and 3 years. Let’s take the example of Mirae Asset Large Cap Fund to show the returns we can expect based on historical data.

MIRAE ASSET LARGE CAP FUND

The above table shows us the value of a Rs 1000 SIP started on 1 April 2018. Suppose we invest 1000 every month for 1 year up till 1/3/19. This SIP gives 49.19% absolute returns and an annualized return of 14.27% in 3 years up till 1/4/21. The SIP reaches a value of 17903.17 with just 12000 invested!

Now suppose we instead choose to invest via lumpsum. The value of lumpsum investment of 10000 after 3 years is 16016.13. Thus, the lumpsum gives us a 60.16% absolute return and a 17% annualised return in just 3 years!

It also shows us the risk ratios associated with these funds. For example, Mirae Asset fund has an alpha of 18%. This indicates that it outperforms its expected returns (based on its portfolio) by 18%. The Sharpe Ratio of 0.56 indicates a 56% risk adjusted return for the fund. Its beta of 0.97 means that for every 1 point of deviation in its benchmark index (usually Nifty 50), we can expect the portfolio to move by 0.97 points. The standard deviation of 20.98 indicates the volatility of the returns around its average 17% return. Thus, these ratios must be studied over time and across funds to choose the correct fund for your own risk profile and financial goals.
Another example of Large Cap Mutual Fund with a horizon of 5 years, we have taken ICICI Prudential Blue Chip Fund.

This example shows us an important aspect while investing in mutual funds. Notice how the 2 year value of our SIP is less than the 1 year value. It shows us that there are risks associated with investing in mutual funds. However, over the long run these tend to average out, and in 5 years we can see again that our investment is generating healthy returns. This is the advantage of long-term investing! The investment almost doubles in value to 22504.86 after 5 years, generating absolute returns of 87.54%. The annualised returns rises to 13.4%.

Again, the lumpsum amount follows the same pattern as the SIP, dipping initially before recovering over the 3 and 5 year periods. The lumpsum reaches a value of 19965.35 after 5 years, generating absolute return of 99.65% and an annualised return of 15%.

The ratios for this fund are shown above. As we can see, the fund has a slightly lower beta and standard deviation than Mirae, which indicates slightly less risk in this fund. However, the alpha of this fund is negative, which tells us that the fund is underperforming its expected returns. Thus it is important to consider your own risk profile and goals while investing in the correct mutual fund. Finally, we’ll look at Axis Bluechip Fund to see the effect of investing for 10 years.

Over 10 years, we can start seeing the effects of compounding. Our investment corpus of 12000 has more than tripled in value during this period to 39328.53, with an annualised return of 12.6%. Thus you can reap these benefits by staying invested for longer periods of time.

The lumpsum value more than triples in 10 years as well, reaching an amount of 34673.57 by the end of 10 years. This shows us the power of compounding.

Again, we can see from the ratios that Axis Blue chip has a lower beta and standard deviation as compared to the previous 2 funds, indicating the presence of slightly lower risk in the fund. It thus has better risk adjusted returns than the other 2 funds, despite slightly lower absolute returns. The alpha of the fund indicates that it is beating its benchmark.
This article showed us various time horizons that an investor can consider while investing in large cap Mutual Funds with two different methods of investing, lumpsum and SIP. We saw how different funds have different risk and return profiles using ratios and investors must consider this carefully before investing.

July 13, 2021
Significance of ratios for mutual funds

Here, is the mean of returns, n is the number of returns, and x refers to each individual return. The operator denotes sum. Thus, to calculate standard deviation we subtract each return from its mean, square the deviations and sum them up. Then we divide them by the total number of returns less one, and square root the result. Let’s understand why we use standard deviation.
Standard deviation is a measure of the distribution of a dataset in relation to its mean. Since all funds provide us with mean returns over a period, standard deviation is helpful in measuring the volatility of a fund. A higher standard deviation indicates that the fund’s price tends to fluctuate more, indicating unpredictability of returns. This unpredictability is taken as a proxy for risk in the market, making standard deviation an important metric to judge riskiness of investments.
It is important to note that high or low standard deviation does not necessarily make a good or bad investment. All else constant, lower standard deviation indicates greater consistency of returns, but people who have a higher risk appetite might choose to go with funds that have slightly higher standard deviations. The choice depends entirely on the risk profile of the investor. Also, it must be kept in mind that standard deviation must not be studied in isolation. Because it measures volatility around the mean returns, studying the mean returns themselves is also important before picking the mutual fund that is right for you.

The purpose of the Sharpe ratio is to provide a measure that integrates risk and return. By adjusting the portfolio’s excess returns by its standard deviation, it essentially measures the returns a fund can generate for every unit of risk that it takes. A higher Sharpe Ratio is always desirable as it indicates that the fund is generating higher returns by taking lower risk.
Another important measure of risk is the Beta of a mutual fund.

Thus, it is calculated by dividing the covariance of a portfolio’s returns with the market/benchmark returns, divided by the variance of the market/benchmark returns.
The purpose of beta is to track the volatility of your investment with relation to the market. The beta is centered around 1 as the market has a beta of 1. Thus, a portfolio with a beta higher than 1 is more volatile than the average market, while a beta lesser than 1 indicates lower-than-market volatility. Let’s take an example. Suppose a mutual fund has a beta of 1.15. This indicates that for every 1 point of deviation in the market, we expect the mutual fund’s value to change by 1.15 points. Thus, it is a fund which is riskier than the market.
Much like standard deviation, we cannot establish a thumb rule as to whether a high or low beta is desirable. The beta is merely a measure of risk. Higher betas raise the expected return of an investment as the fund manager is taking on more risk, while lower betas indicate safer investments.
The final ratio we will discuss is alpha.

Alpha measures the excess returns a fund is generating as compared to its expected return, based on its beta. For example, an alpha of 3% indicates that the fund is generating 3% more returns than it is expected to, based on the riskiness of its investments. It is taken as a valuable measure of the quality of a fund and particularly its fund manager. We look for higher alphas as they indicate that the fund can generate market-beating returns.
Finally, investors must keep in mind that ratios must be tracked over time. Consistency across them is important. For example, a fund with a positive alpha currently but with negative alphas in previous periods is something that must be treated with caution. So go ahead, study the ratios of your mutual funds, and decide what’s best for you based on your own risk profile.

July 9, 2021
What are the different ways to invest in fixed-income securities?

Bank Fixed Deposit

One of the most preferred investments of all times is a bank fixed deposit in India. This instrument claims to protect the investor’s capital and provide regular income on it. However, the rate of return has become competitive in the last few years, which makes this investment hard to beat inflation.

Corporate Bonds

Similar to the bank FDs, investors can lend their capital to the company in return for enhanced interest rates. In this, there are many choices available from AAA rated to junk bonds depending on the quality. It becomes pertinent for the investor to select quality bonds.

Mutual funds in the form of debt or liquid

The type of mutual fund which invests in the corporate debt or government securities. They provide a much higher interest rate in comparison with bank FDs. Apart from this, an investor can also gain from the bond price appreciation when interest rates fall.
For the short time horizon investors, liquid funds make more sense than debt funds. Here, the funds can be parked for the matching period and earn higher returns.

Arbitrage Funds

The type of mutual fund which invests in the equity market by locking in any visible arbitrage opportunity. This can be done by locking the spot and future price and realizing the yield either by reversing or rolling over the future position.

What are the benefits of investing in fixed-income securities?

Investors can preserve their capital by investing in such securities. This is the low-risk investment where the invested capital is bound to be returned within a specific time horizon.
These securities also help in creating a steady source of cash flow to the investor. Almost all the products from bank deposits to corporate FDs to debt mutual funds pay a certain amount of fixed return along with dividend rates.
They are positioned higher in the capital structure of a company. This means, in times of bankruptcy, the bond investor will be paid higher in priority than a preferred stock or common equity investor.

April 28, 2021
Top Home Loan Benefits for Women in India

Buying a home is a key financial decision and it becomes even bigger when taken by a woman. With them reaching the sky in their careers, there has been a significant rise in the number of women home-buyers in the last decade.

With this revolutionary shift, there are plenty of benefits and schemes provided to encourage this financial decision by women.

1. Interest Rates: There are special interest rates and discounts available for women applying for a home loan from major banks and NBFCs. The application should be in the name of the woman or she should be a co-borrower of the same to enjoy these.

2. Eligibility Criteria: There are simple eligibility criteria like being an Indian citizen between age 23 and 58 with 3 years of working experience.

3. Lower Stamp Duty: As compared to others, women can enjoy a lower stamp duty of about 1-2% in most of the states. This is a significant amount when applied to the huge cost of the property.

4. Benefits as a co-borrower: As a matter of fact, women are considered to be more trustworthy when applying for loans. This makes the sanction process easier and faster to deal with.

5. Choose long payment tenure: There is also an option to select the longer payment period which ensures low EMIs and lesser stress on the finances.

6. Tax Benefits: They can enjoy the tax benefits in the form of home loan tax deductions of up to Rs. 3.5 lakhs with segregation of Rs. 1.5 lakhs under Section 80 C and Rs. 2 lakhs under Section 24(b).

7. PMAY benefits: With Pradhan Mantri Awas Yojna, a government initiative, any home application applied with a woman as a co-owner is eligible for an interest subsidy up to Rs. 2.67 lakhs.

January 9, 2021
Top 9 fixed income securities in India

The investors vary in market fluctuations and seeking fixed returns are best suited to invest in fixed-income securities. The Indian government along with corporates have been supportive enough to create multiple options of such characteristics to fulfill the required needs.
The below-mentioned products are the top 9 investment options available in India for a stronger and safer investment portfolio.
1. Public Provident Fund: The fund is backed by Government which provides a competitive interest rate. The interest rates, principal amount, and maturity are all exempt from taxes making them very popular among investors.
2. Sukanya Samriddhi Yojana: This is one of the fantastic investment tools that enhance financial inclusions. With the deposit amount as low as Rs. 250, it provides attractive interest rates for the girl child.
3. Senior Citizen Saving Scheme: The older group can invest for a period of 5 years and enjoy a regular flow of income with interest.
4. Pradhan Mantri Vaya Vandana Yojana: This is a pension plan sort of investment that gives a guaranteed return of 8%p.a for 10 years.
5. Debt Mutual Funds: The mutual funds that invest in the debts of organizations like Government securities, corporate bonds, commercial paper, treasury bills, etc.
6. Bank Fixed Deposits: One of the oldest and safest methods to yield a specific rate of return is through bank FDs. However, currently, the rate of return has dropped significantly making this less attractive.
7. National Saving Certificates: These are 5-year post office saving scheme that offers 6.8% p.a currently. The interest for the first 4 years is reinvested while that of 5th year is taxable.
8. RBI taxable bonds: These are government-backed bonds that are providing 7.75% p.a currently for a duration of 7 years.

December 28, 2020
What is a Private Client Group and How Do They Allocate Assets?

If given a choice, would you prefer a ready-to-wear suit or a bespoke one? Most of us would choose the latter for one simple reason: customization to meet our needs. In the world of wealth creation, such a professionally customized portfolio service is termed a Private Client Group.
This service is offered by banks or professional advisory groups and provides an exhaustive collection of research-based advisory services tailored to each client’s needs. It is an exclusive service designed to fulfill the exceptional investing requirements of privileged customers or high-net-worth individuals with capital of 25 lakhs and above.
The basket of investment options can include equities, derivatives, mutual funds, IPOs, or a combination of these asset classes to maximize market opportunities. The achievement of specific goals is facilitated by optimal asset allocation, which depends on two broad factors:
Time: The primary factor is the time frame within which the investor seeks to exit. If an investor has a long-term horizon, they can opt for higher potential returns with a potentially higher risk. Conversely, for a short-term investor, investment choices must be evaluated based on market volatility.
Risk Tolerance: Risk tolerance determines the extent to which the portfolio can withstand risk. This can be assessed based on the investor’s economic/financial ability to tolerate risk and their emotional/psychological capacity to handle the unforeseen.
The major objective behind asset allocation is to mitigate losses arising from one asset class in the portfolio with gains in another. In short, the portfolio of such superior clients is well-equipped to handle risks in the form of a bear market or any sector-specific recession.

Conclusion

Private Client Groups provide high-net-worth individuals with personalized investment strategies that focus on optimizing asset allocation based on time horizons and risk tolerance. By tailoring portfolios to meet specific needs and goals, they help clients navigate the complexities of financial markets, aiming to preserve and grow wealth even amidst uncertainties.

October 17, 2020
Mutual Funds and its importance in daily life

It was Madhu’s 25th birthday, but she was far away from home. She wasn’t very familiar with her new friends in the class, so she dropped her celebration plans and decided to return home early. But when her class friends got to know about her birthday, do you know what happened next? Of course, they bumped into her and excitedly asked “Where is the Party today?”

It was indeed a good reason to meet up and get to know her new classmates in the university. So, she anxiously agreed but realized she had no sufficient money to feed her friends for the party. Disappointingly, she changed her plans and told her friends that ‘No Money, No Party.

Mutual Fund

There was this new restaurant opened in their neighborhood that served delicious burgers. But it looked like the plans got canceled. But, No, it wasn’t like this. There were 10 people including Madhu, and they all mutually decided to pour in little money, and together they paid while also enjoying the burgers.

The Connection!

So, what we are trying to explain to you is Mutual Funds are like a birthday party, but there is no one host in it. Everyone pays some amount of money that gets collected and is further invested in stocks, money market instruments, assets, and bonds by a professional fund/money manager on behalf of you.
Also, Mutual Funds has a specifically defined portfolio designed according to your investment requirements. So you gain what you desire. It is both a short-term and long-term investment that offers incredible financial benefits to you. When you plan to invest in Mutual Funds, you will be asked these questions that help the analyst assist your risk-assessment capabilities and develop a portfolio.

Invest in Mutual Funds

How much is your risk exposure?
– It means how much money are you willing to invest in Mutual Funds.
How much is your time frame?
– It emphasizes short/long term investment or an individual time horizon respectively.
What is your age?
– There are different kinds of Mutual Funds like equity funds that fit best for people who are in the 20-45 age bracket and retirement funds for people who fall into the 60-70 age bracket. So, again age is a major factor in Mutual Funds, it is always great if you start young, but even if you start a bit older, it will still give you a lot of leverage.
How do you want to invest?
– SIP or lump sum are two ways you can invest in Equity Mutual Funds. SIP or Systematic Investment Plan is a way through which you can contribute small but regular amounts. Both of these provide leverage so that they can help you analyze which is more suitable for you.
Portfolio development is extremely important, and thus you must answer these questions with clarity. You can invest into several categories based on your investment purpose that matches your portfolio. Your investment is diversified across different securities, and you can easily start with low investment amounts. You can even start with investing Rs. 100 only!
In simple words, when you invest or buy a unit of Mutual Funds (also called a share of Mutual Funds) you are investing into that share’s portfolio value. It is similar to evaluating the performance of a share. This is a reason why the price of the Mutual Funds is called NET ASSET VALUE or NAV.
NAV keeps on changing every day because of the volatile nature of the market value of the assets. So NAV is also like a navigator that helps you understand the performance of the scheme you have invested in. It can give you a long-term analysis for further speculations.
Remember that restaurant where Madhu and her friends enjoyed burgers? In that restaurant’s menu, there were more items to give a variety of choices to the customers.

It is similar to Mutual funds investment, here, you get to choose from different types of Mutual Funds available in the market like open-ended or close-ended funds. Then comes equity funds which also include sector-specific or index funds. Then debt funds or fixed-income funds, balanced funds, tax-saving funds, and retirement funds. These are some significant Mutual Funds that exist in the market today.
Also, some great advantages that are offered by this kind of investment are that they are easy to access because they are liquid investments, professionally managed by a proficient investor, provide higher expected returns with diversified investment.
Mutual Funds are inclined towards growth investing, but we always urge you to read the complete details before making a move.
Also, do you know what advice Madhu’s friends give her in the cafe?
It was to start investing in mutual funds so that Madhu can enjoy her next birthday with her own savings from the returns of mutual funds without asking for help from anyone. And make her own choices and enjoy financial freedom just like she wishes to.

June 28, 2020