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.