Empanelled with all the Asset Management Companies, our R&D division is always on the hook to provide innovative ways for better portfolio management.

Professional Management – Money is being managed by a team of qualified professionals. Since they continuously analyse the performance and prospects of various sectors and companies, they are in a better position to manage investments and generate better returns. The investments will be made depending on the objectives of the scheme.

• Flexibility – Flexibility A variety of scheme options are available depending on the risk profile, needs and goals of the client. Further, as and when the needs changes, the portfolio can be redesigned and reallocated with ease.
• Liquidity – Client has the option to withdraw money at current NAV at any point of time, in case of open ended schemes.
• Diversification – Since money is invested in multiple stocks spread across sectors, the risk is reduced and the portfolio is not exposed to higher volatility.
• Low Costs – The economy of scale result in low cost.
• Regulations – All mutual funds are regulated by SEBI.
• Transparency – As an investor, regular updates, NAVs and holdings are available keeping the investor updated.

Types of Funds/ Schemes

Open-ended Schemes

An open-end scheme is one that is available for subscription all through the year. Majority of mutual fund schemes are open-ended. Investors have the flexibility to buy or sell any part of their investment at any time at scheme’s Net Asset Value.

Close-ended Schemes

A closed ended scheme operates for a fix duration (generally ranging from 3 to 15 years). The fund would be open for subscription only during a specified period and there is an even balance of buyers and sellers, so someone would have to be selling in order for you to be able to buy it. Closed-end funds are also listed on the stock exchange so it is traded just like other stocks on an exchange or over the counter. Usually the redemption is also specified which means that they terminate on specified dates when the investors can redeem their units.

Interval Schemes

These schemes combine the features of open-ended and closed-ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV based prices.

Equity Oriented Schemes

These schemes invest a major part of their corpus into equities. The aim of these schemes is to provide capital appreciation over the medium to long- term. Since they are into equities, they carry relatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date.

There are further options depending on the market cap of companies such as large cap schemes, mid cap schemes, small cap schemes, multi-cap, etc.

Debt Oriented Schemes

These schemes invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. The aim of these schemes is to provide regular and steady income to investors. They are less risky compared to equity schemes. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

Balanced Schemes / Funds

These schemes invest, both, in equities and fixed income securities in the proportion indicated in their offer documents. The aim of these schemes is to provide, both, growth and regular income. These are appropriate for investors with moderate risk profile looking for moderate growth. They generally invest 40-60% in equity and debt instruments. NAVs of these schemes are affected by, both, movement in equity market as well as change in interest rates in the economy. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

Liquid Schemes / Funds

These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Their aim is to provide easy liquidity, preservation of capital and moderate income. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

Equity Linked Saving Schemes (ELSS)

These schemes are open-ended growth schemes with a mandatory 3-year lock- in. These schemes offer the benefit of section 80(C) of IT Act, up to a maximum of Rs 100,000.

Index Funds

Index Funds replicate the portfolio of a particular index such as the BSE Sensex, NSE Nifty, etc. These schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the respective index.

Sector Specific Funds

These schemes invest only in the equity of companies existing in a specific sector, as laid down in the fund’s offer document. For example, an FMCG sectoral fund shall invest in companies like HLL, Britannia, Nestle etc., and not in a software company like Infosys. The various sectoral funds available are IT, Pharma, Infra, etc.

Fund of Funds (FoF) Scheme

A scheme that invests primarily in other schemes of the same mutual fund or other mutual funds is known as a FoF scheme. A FoF scheme enables the investors to achieve greater diversification through one scheme. It spreads risks across a greater universe.