Mutual Fund News: BSE Sensex Lost 1,270 Points on Wednesday

The longest losing streak of 2017 in the past seven days. The BSE Sensex went down to 31,154.03 on September 27 from 32,432.76 on September 18. Big amount wiped out from the market leaving behind the investors in the sense of shock. The listed companies under BSE loosed over 6.18 lakh crore in their capitalisation. The Sensex has lost 1,270 points in the last few days witnessing to a great fall in the market. This southward flow has laid significant impact on the behavior of the mutual fund investors too. Questions are floating rapidly in the air and queries are being frequently made. Investors are willing to know that whether they should wait for the market to go deeper or it will take the turn from this point. Let’s know some of the parameters which are making the bulls to run away from the market:

Weak Rupee: A sharp fall in the rupee is one of the reasons for this market drop. It weakened for a fifth straight session to hit a fresh six-month low on September 27. The foreign investors don’t like deploying their capital in the weakening currency. Rather, they look for the market which has strong fundamentals and expectation of growth in the value of the currency. Therefore, the falling rupee made the FIIs pull their investment back creating a fall in the market.

Crude Oil Price: The steady rise in the price of crude oil is one of the significant reasons for the recent decline of the market. The rising price of crude oil has an inverse impact on the Indian equity market, and with the crude sweltering at a 26-month high, the rate is expected to reach $60 per bbl soon. This expectation does not indicate good picture for the Indian equity. Due to its inverse correlation with the Indian capital market, the boiling price making the equities sweaty.

Apart from the two mentioned above, there are several other factors which have their impact in the recent fall of the equity market in India. For the mutual fund investors, the market is open to big opportunities. Many uninformed investors spread this myth that one should not invest in the market downfall. But, the astute one knows that southward going market has the best opportunities for the investors and potentially provides high growth in future.

Therefore, it can be concluded that the equity market is on the best mode to invest in it. The investment made now will allow you to purchase more units of the underlying asset upon which the future growth will provide you added benefits. One must not miss the chance to reap the big profits from the down market. If you are willing to take the advantages of this market condition, you can start right away at the various online mutual fund platforms available like MySIPonline.com.

Mutual Funds – An Ideal Investment Option for First-Time Investors

There are many options when it comes to investing money - stocks, shares, bonds, money market securities and more. The investment vehicle that you choose depends totally on the kind of risk you are ready to take and the returns that you are expecting.

If you have no idea about how each one of these investment vehicles work, the safest option would be to go for mutual funds.

Many banks and financial institutions offer mutual funds as an investment opportunity for their clients. A Mutual fund is managed by a professional fund manager who invests the money received from investors into diversified securities, selected intelligently and with great expertise.



When compared to the other kinds of investment opportunities, mutual funds offer maximum benefits to the investors. Some of these include:

Inflation-adjusted returns

Mutual fund offers inflation-adjusted returns, without you having to spend any time or efforts on the same. Investing in mutual funds is a much better option when compared to letting your money grow in your bank. This is how it is so:

Let us say you have deposited Rs.1000 in your bank today as savings, which should be good enough to buy 10 pairs of bathroom slippers. At 5% annual interest you should have Rs.1050 in hand by next year this time.

Now consider a situation where there is 10% inflation that year…

Those bathroom slippers now cost Rs.110 instead of Rs.100 each. So, now with Rs.1050, you will only be able to buy 9 pairs of bathroom slippers instead of 10.

In case of a Mutual Fund Investment you don’t have to worry about such a situation. By offering inflation-adjusted returns, the fund managers make sure your hard earned money will not depreciate in value in the coming years.

Expert Management of Funds

There can’t be a Warren Buffet in every investor, which is why there are mutual fund investments. Whenever a bank or a financial institution comes up with a mutual fund scheme, it ensures all the decisions it takes are based on performance and well-researched prospects that are available in the market. There is an experienced fund manager and a dedicated research team behind every mutual fund scheme.

Convenience 

If you cannot invest time or efforts in doing research to find out which securities are doing well, when is the right time to buy a particular security or sell and so on, you can conveniently invest in mutual funds. An Investment in mutual funds can be started with just Rs.500. There are no worries about buying or selling them due to fluctuating market conditions. There is an option for everyone, whatever be their needs or goals. If you cannot invest in a lump sum, you can even consider a SIP mutual fund, where you can invest a specified amount of money at regular intervals.

Low-Risk / Higher Returns

Mutual funds distribute your investments across different kinds of assets. The loss in case of one stock will easily be made up by a profit in case of another, thereby reducing your risk. They are aimed at helping you achieve higher returns on your investment.

Increased Liquidity

In case of Mutual funds Investment you can get back your money promptly, whenever you wish. If you have invested in an open-ended mutual fund scheme the money you get back would be based on the current NAV or Net Asset Value. Close-ended schemes can be traded in stock exchange.
Make sure you read all the terms and conditions thoroughly before running that online search on “mutual funds India.” This will help you prepare well and achieve your objectives, without any worries.

Smart investors segregating the difference between savings and investing

Have you ever given it a thought that your hard-earned money is capable of showing impeccable returns if invested in the right places? It can even make you a millionaire if you follow the concept regular and planned investment. Don’t be shocked! It is true you can achieve greater returns as compared to the initial investments you did. The clients are able to earn higher profits within a stipulated time period. Many clients aspire for a lot of things like big house, luxury car or a long holiday at an exotic destination. But, these involve a lot of money and a lot of these desires remain unfulfilled due to the insufficiency of funds. If a person plans for such requirements at an early age, then he/she will be able to achieve what they aspire.

Mutual funds have proved to be an innovative solution for the people to make maximum profit with minimized risk. A number of small investors conglomerate their funds in order to earn the best possible returns for their hard-earned money. Mutual Fund proves to be an eye-catcher for the investors who are seeking safety and splendid refunds. Following the phrase, “Individually we are a drop, together we are an Ocean”, Mutual fund’s epicenter lies in achieving the success by integrating. The predominant aim of the mutual fund companies is to pool the money of the investors who are having common investment objective and make use of that accumulated wealth in a proper manner to reciprocate maximum returns.

If you intend to invest in mutual funds, then there are a few steps which would help you to take better investing decisions. They are:

Analyze your requirements

A person has certain goals in his/her life. These may be related to career, family, status, possessions, etc. To earn a place for yourself in life, you need to set an aim. Until and unless there is a target in a person’s life he/she will not be motivated to work towards achieving it. In the same way, if a person wants to invest in mutual funds there should be a target. The client first needs to understand the target of investment like, retirement, child’s future, buying property, etc.

Pick Up the Right AMC, 

With the growing opportunities in the mutual fund industry, the companies providing the facility is also growing. The mutual fund providing firms are popularly known as Asset Management Companies (abbreviated as AMC) like Birla Sunlife MF, TATA Mutual Fund Etc. To select an AMC which has an ethical functioning and is fair in dealings is a tough task. It requires a lot of research before one can spot a company to place their money with. It is an important decision which will determine the growth of your money and the safety of your investments. The clients will have to be extra cautious as not to involve with any company which has a bad track record. Thus, make a good choice and have a happy investing experience.

Stashing of money made easy via mutual fund investing

Mohan is a dedicated employee and pocketed a handsome salary. His primary concern is to secure a good sum for his post-retirement life. But, his concern is the difficulty in locating a suitable scheme. He knows that with PPF money can be saved, but the growth was not up to the mark. And with the recent cut off in the rate of interest has raised the worries of the account holders. With the soaring volatility in the stock market, Mohan strikes out the option. Now, he is searching for avenues which can accommodate his money and facilitate growth as well.

Perceiving the problems of Mohan and many such investors financial experts have come up with a facile technique which would release the traction of clients. The scheme is called mutual fund. Evident from its name, a mutual fund is a technique through which the clients will be able to bank enormous profits through combined investment. The concept may sound a bit confusing to you but is quite straight and simple. We all have enjoyed the golden period of school and college. We all have also experienced a situation where we had to manage our expenses within the limited pocket money. Hence, if an outing was planned everyone contributed their share and with the total amount the party was organized. In the same way, a mutual fund is a scheme that accumulates the money of numerous investors having identical investment needs. The money thus accumulated is reinvested in the stock exchange.

Mutual Fund against Stock Market

Clients often get muddled up between mutual funds and stock market investing. Even though the mutual funds invest in the stock market but it is not the only avenue available. It invests in various other instruments as well. Thus, one cannot state mutual fund as a capital appreciation tool only. The following points will clarify the broad difference between these two:
Stock market investments include buying and selling of shares of listed companies while mutual funds include schemes for tax saving, fixed income, etc. along with capital appreciation. Hence, the area of operation under mutual fund is not restricted to one field. It can be termed as a multi-utility investment plan.

In the stock market, an investor is personally liable for the investments he does. But, the situation differs in mutual funds. A person liability is up to the amount he/she invests. There is no personal obligation on the clients.

Stock market investing is a personalized matter. Each and every step is to be followed by an investor alone. There are advisors but still the major responsibility is of the investing party. But, in mutual fund investing the client needs to select a suitable AMC (Asset Management Company) and the rest will be taken care off by the fund managers of the company. Monitoring is thus required but to a limited extent. All the work is done by fund managers on behalf of the clients.

Mutual fund investment allow the clients to avail any of the available two investing methodologies viz, Systematic Investment Plan (SIP) and lump sum. The clients who cannot or don’t want to carry out one-time investment can surely use SIP to invest little by little at regular time intervals. This facility is absent in stock investment. The investors have to put in a large amount at the same time when it comes to stock exchange.

Even though mutual funds invest in the stock market, they are very much less volatile as compared to the shares. The simple reason is the diversification factor that is possible in mutual funds on a colossal scale owing to the pooling of riches. The stock market also provides diversification, but it is impossible for a single investor to put his money in numerous companies at once.
The return potential of equity is no doubt high, but the risk factor plays a crucial part here. The return perspective of shares is a see-saw between loss and profit adhering to the fluctuating market scenario. However, the gains on mutual funds also vary but then too the equity-oriented funds are capable of providing an average return of 15%.

As compared to any other form of saving and investing, mutual fund is serving as the cushion against fluctuating market scenarios. Along with the security, mutual funds no doubt provides stipulated returns over a longer duration.