Let the money workout instead of resting in bank

A saving bank account is one of the many financial essentials. Nowadays, every single monetary transaction is carried out through the bank like, online transfer of funds, auto-debiting EMI, online shopping, etc. But, people often confuse saving in the bank accounts with investing. The money in your account will earn a mere 4% rate of interest that is calculated through simple interest. Why to just stack your money when it can do miracles with mutual fund investing.

People take up bank deposits as their method of storing money because they consider it to be secure and liquid. By liquid, it means that the cash can be withdrawn from the account at any time. Often mutual fund is associated with long-term capital gains. But, what about the investors who have short-term investment perspective? Will they have to restrict themselves to savings? The answer is no. A mutual fund is called a one-stop destination for all your investing needs. Hence, not a single client’s desires are ignored, whether it may be a long-term investor or a short term. Mutual fund experts have come up with an innovative idea of short-term investments that are equivalent to cash in hand and the same time facilitate money multiplication. The scheme is called liquid mutual fund. The name has been selected owing to its capability of any time withdrawal.

The best liquid funds have been launched with a view to providing an opening for the investors who have unused surplus amount for a short period. For example, Amit, an IT professional, has extra money worth Rs. 50,000. He ought to purchase a bike with it. The market analysts speculate a fall in the prices of bikes within coming three months. Thus, for the span Amit wants to invest money as the cash in hand would attract him to spend. On his friend’s advice, he invested in one of the best liquid funds after thorough research. The investment earned him a return of 8% which facilitated the growth of his money. He was able to save and invest at the same time given the short span.

Liquid funds always show a trending graph. The statement implies that liquid funds remain unaffected by the market fluctuations. They always trend upwards even if the market goes down. The reason is the short spell and the investment mechanism it follows. The investment is realized in money market instruments like the certificate of deposit, treasury bills, etc. These instruments have a maturity period of 91 days.

One can observe that the element of equity investment is absent from liquid funds which makes the scheme much more secure. The clients can easily redeem their liquid fund holdings. A request has to place for redemption on any of the working days before the stipulated time, i.e., 2 p.m. The request will be processed, and the amount will be credited to your account by the next morning. Liquid funds also provide you with the facility of altering your withdrawal amount. For example, a client has deposited Rs. 60,000 in one of the top liquid fund plans for three months. But, after one month he requires withdrawing Rs. 20,000. He is permitted to do so and let the remaining Rs. 40,000 be invested in the same scheme to enjoy the benefits.

Catering to the needs of the short-term investment, liquid funds do not have any exit load. The exit load signifies the penalty or the fees that are charged on before maturity withdrawal of your invested amount. The clients are free to redeem the investment at any point of time.

As compared to the opponent (bank deposit), liquid funds are gaining momentum among Indian investors. The clients are happy with investing rather than simply saving. Liquid funds have certain types viz, growth and dividend. The customers who opt for the growth scheme receive a lump sum amount including the growth value at the maturity of the plan. But, bonus plan will supply the clients with a regular income from the profit during the tenure of investment.

Thus, liquid funds like Kotak Mutual Fund Treasury Advantage Fund and Reliance Money Manager Fund can be the most convenient avenues for the investors to deploy their riches for a short period and earn prolific returns.

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.     

L & T Mutual Fund - A milestone In The Field Of Investment

Larsen & Toubro Limited commonly known as L&T is a leading Indian company in private sector. L&T is working in different fields like infrastructure, information technology, power, electronics, and engineering over 30 countries in the world. It captures 1.91% of Indian capital market. The company is serving its clients from last two decades in financial services also, with great efficiency. The objective of L&T mutual fund is to provide a better investment platform to its investor in a long term. It is an Indian multinational company working for  customer satisfaction and increasing value of the investors amount.

An Overview

L & T mutual fund was Incorporated on the date 25th April, 1996. With the total Asset Under Management (AUM) are Rs.1360234.26 (Cr) and quarterly average AUM of L&T mutual fund is 25944.80 (Cr) as on 31 March 2016. AUM is the total sum of market value of assets that is managed by an investment company on the behalf of investor. Continuously fulfilling the expectations of its employees, investors and society L&T is becoming a global benchmark.

We Understand The Need Of Every Customer

L&T is committed towards the need of every customer. It provides various options for investors. There are fourteen equity funds available to grow the investors money. Thirteen income funds for income of the client. One fund of funds through this investor can invest in multiple real asset stocks globally through a single fund. And the last two hybrid funds in this client can invest in multiple asset class through a single fund. An investor can choose any of these schemes according to their convenience.

Investment Process of L&T Mutual Fund

Priority of L&T is providing superior long term and less risky investments that is why it follows a disciplined approach to risk management. It divides the entire process into 3 categories can be called as GEM i.e. Generation of new ideas, Evaluation of all the companies and monitoring or manufacturing of portfolios.

Generation of new idea

Market analysts along with researcher are committed to bringing new and innovative ideas for investment for the maximum benefit of investor. In-depth knowledge of internal and external market issues, research and reports, investment strategy all are considered.

Evaluation of companies

For the evaluation of companies, many factors are to be considered like profitability, liquidity of funds, attractive business plans, strength of the balance sheet, values of company’s equities, market share of company etc.

Monitoring of portfolios

After evaluation of above-stated factors and the past performance of funds, company invests in the best performing fund the options available. The fund manager will invest in that fund where the maximum output is expected with the adequate safety of client’s investment over the period.

L&T is one of the top performing mutual fund company to park your surplus cash in. It provides a better investment method with higher safety and return. Its customer-focused attitude, teamwork and transparency bring trust among investors.

Birla Sunlife Mutual fund initiating a new era of investment

Becoming parent is the most wonderful feeling in the entire world. Observing your child grow with each passing year is an alluring sight. But, at the same time, the responsibility of being a parent is crucial. The parents start planning for their child’s future as and when they are born, whether it may be for their education or marriage. Every phase of the child’s growth is important for parents. Mr. Sharma shared the same feeling when he fathered a girl child. He always wanted the best for his daughter and so decided to select the best scheme and company to commence his investment. But, was confused with the numerous options available.

One day Mr. Sharma’s friend, Mr. Modi invited him for family dinner. Mr. Modi realized that something is bothering his friend. After knowing that investing is the worry, Mr. Modi told him about Birla Sunlife Mutual fund’s various schemes like equity, tax savers, etc. in which he himself invested. He gave Mr. Sharma the following insights about the company.

Birla Sunlife mutual fund is a joint venture of an Indian and foreign company. The Aditya Birla group of India and Sun Financial are the two companies which joined hands in order to give birth to the new AMC (Asset Management Company). Aditya Birla group collaborated with foreign investment company keeping in view to promote the use of global strategies of investment in order to facilitate Indian investors with better returns.

The new chairman of Aditya Birla group, Mr. Kumar Manglam Birla, took his position at an early age of 28 years. The decision was taken after the early demise of his father. There were many rumors regarding the capability of the new chairman. But, instead of answering the questions with words he replied with the figures that the company attained under his leadership. He gave way to many acquisitions and collaborations, one among it was Birla Sun Life mutual fund India.

Mr. Modi continued, although being a joint venture, the company strictly follows an ethical approach towards business. The clients are the prime focus and not profit maximization, transparency in dealings, growth in terms of client satisfaction and not just numbers, etc. These are the ethics that are followed by the company. The clients are aware of each and every term of their scheme and there are no hidden costs involved.

Mr. Sharma went home after dinner and researched about Birla Sunlife Mutual Funds on Google. He came to know about the acquisitions and joint ventures that the Aditya Birla Group had taken up in the past few years, one of them being Birla Sunlife mutual fund. The company follows a perfect blend of Indian business ethics and foreign approach. The client’s investments are not only secure but also multiplied manifolds. 

Benefiting the clients through differential pricing - Arbitrage Mutual Fund

There was a person named Vikrant. He owned a garment shop in a small city. He used to make his bulk purchase from Mumbai at lower costs and resell it in his city at relatively higher cost. For example, if a regular T-shirt would cost him Rs. 300/- then, he would sell it at a rate not less than Rs. 600/-. Hence making a double profit. This is called arbitrage opportunity. Taking the advantage of the difference in the prices of two markets is the strategy followed by many business firms. However, it lasts for a short-term.

Arbitrage Mutual Fund is a unique scheme of the mutual fund industry. Unique because the investment and disinvestment take place simultaneously. In simple terms, the Arbitrage Mutual Fund deals in two different markets viz, the stock market and derivative market. In the stock market, the dealings are done in cash. The derivative market also called as futures market is a place where the dealings are done on the contractual basis, and no cash is involved. Hence, you buy in cash, but your sell is not in cash.

Initially, for some time, Vikrant got a huge success and was able to earn profits that kept on rising. But, as people knew the secret of his business it became difficult for him to continue with the same strategy. He had to either bring down his profit margin or had to lose its customers to the competitors. Thus, zeroing the scope of further profits.

In the same way, the profits from arbitrage fund are also short-lived, and as more and more investors start investing, the gain narrows down. Hence, it is suitable only for short term investing. People tend to believe that Arbitrage MF performs ably in the bullish and bearish market. But, they are mistaken here. When the market is bullish, then it is a clear fact that the price of shares in the futures market will be more. And in contrast to this, when the market follows a bearish trend then the price of shares in the stock market will be more than that of the derivative market. Hence, the clients can make a profit only when the markets follow an upward trend.

There is another variant of Arbitrage Mutual Fund known as the Arbitrage Plus Fund. Practically there is a thin line separating both the funds. In Arbitrage Plus Fund there is a portion of shares that are not sold in the derivative market. Both funds are embedded in one single scheme because of the minute difference in their working.

Attributes of Arbitrage Mutual Fund

From the viewpoint of a client the Arbitrage Mutual Fund is the best fund due to the following reasons:

• It is a risk averse scheme because the buying and selling of the stock are done simultaneously. Thus, the risk of market fluctuations is negligible. For example, the share of a company is priced at Rs. 50 on the stock exchange and Rs. 52 in the derivative market. If the fund manager buys from the stock market and sells in the futures market at this moment making a profit of Rs. 2 on each stock. 
• Also, to capital gains clients are able to get a scheme which is tax-efficient. In other equity-oriented schemes, the capital gains are taxable according to the tax slab of the client. But, the profit from Arbitrage fund is taxed at the rate of 15%. 
• A notable return percentage of 9% is obtained by the clients. Hence, making it more suitable than debt funds. At the same time, it is less risky than other equity-oriented funds. 
• The Arbitrage mutual fund can make a profit only when there is a price differential in the market. As soon as the market at equipoise, the arbitrage opportunities die out. But, practically it is not possible for the stock and futures market to strike equilibrium. 

Therefore, Arbitrage Fund gives an OK signal to the clients who aspire for capital appreciation through equity investment that too for short-term. The clients will undoubtedly earn higher profits with much lower risks involved. 

Inside out of the ELSS mutual fund

Are you interested in saving through investing? Then, here is the perfect scheme suiting to your needs. ELSS (Equity Linked Saving Scheme) facilitates to save your taxes via investment. ELSS is a scheme which provides tax-rebate up to INR 1,50,000. The scheme falls under the Section 80C of the Income Tax Act. According to the budget declared for FY 2016-17, Mr. Arun Jaitley, the Finance Minister has not altered the income tax slab, which means that the individuals having an income above INR 2,50,000 are the ones who can opt for ELSS.

The income tax saving is a crucial part of the revenue-expenditure cycle. When you invest your revenue in addition to becoming eligible for a tax rebate, you will get growth of your money also. There is capital appreciation in ELSS fund because it is a type of diversified equity. Another factor that shows a green signal to ELSS scheme is the non-taxation policy on the long-term gains from the plan. Owing to its short lock-in period, ELSS mutual fund has gained popularity like no other tax-saving scheme.

There are many restrictions on the lock-in period as well as the maximum investment limit annually in other tax-free schemes. But, in ELSS scheme, there is restriction only in the lock-in period and that too for a short period. The targeted beneficiaries of the scheme are the investors with towering income. The investors having income above INR 2,50,000 are always on a quest for the schemes which can perform extraordinarily. The search for the investors will now end on one single name ELSS mutual fund.

Options under ELSS Scheme

ELSS scheme invests around 65% of the total fund in the equity instruments which are tax-free. Hence, there is a little risk factor involved in it. But, the capital gains are tax-free under the scheme which is the highlighting feature of the plan. The client has the twin option of growth and dividend. Under the growth function, the client will receive a lump sum amount after the lock-in period of three years. On the contrary to it, the dividend option allows the investor to enjoy a payback during three years whenever the dividend is declared.

Why ELSS?

ELSS fund wins over the other tax saving instruments because of the following reason:

• The lock-in period for the close competitor of ELSS, i.e., PPF (Private Provident Fund) is 15 years. Though the partial withdrawal can be made after 6 years, the full amount can be withdrawn after 3 years in ELSS.
• Where the maximum investment in PPF is INR 10,00,000, there is no limit on the maximum investment under ELSS mutual fund.
• The returns are in the form of rate of interest in PPF, which fluctuates around 8.5%. In contrast, to this, the returns from ELSS termed as equity gains or dividends hovers around 12-15%. 
• In addition, to the lump sum withdrawal ELSS mutual fund provides the option of dividend earnings which are absent in PPF.
• As an equity-linked scheme, it provides an edge of capital gain to the investment which marks a prolific growth in the money.

Who should invest in ELSS?

ELSS is not a good choice for the risk averse investors. The investors who want to go in for capital appreciation, as well as tax saving, should go in for ELSS scheme. The dividend and growth options serve the basis for selection. The investors who can not afford to invest their money in the long-term schemes can choose ELSS fund. All in all ELSS mutual fund is the right choice for the investors who want tax-benefit with capital appreciation and have a short-term perspective.

ELSS mutual fund is a beneficial scheme providing a growth rate of 12-15%. The fund offers to invest in diversified equity. This will serve the benefit of growth as well as tax-saving in one go. Therefore, reducing the tautness of investing in two different schemes viz, one for capital gains and other for tax-saving. These all benefits can not be seen in any other tax saving scheme.

Tata Mutual Funds : Dispensing certitude amongst investors

Tata Group is a synonym for excellence since 1868. The foundations of the Tata Group was laid by Late Mr. J.R.D. Tata. Initially established as a steel company, later on, it diversified into various other branches viz, Information Technology, Consumer Products, Financial Services, etc. The Tata Asset Management Company was branched with a perspective of providing harmonious investment strategies. The Tata Mutual Fund is all geared up for providing an outspread range of the schemes coinciding with the wants of the business community to working professionals. The company does not target a particular segment of the society. Abiding by the foresightedness of the founder Late Mr. J.R.D. Tata, the Tata Mutual Fund is centered around connecting with the common masses. The environment and the strategies of the organization should send a positive vibe to the investors and magnetize them first to trust and then invest in the company.

At Tata Mutual Fund, it is strongly believe that confidence and the money which clients invest in the company should be reciprocated copiously. It is a trait which is illiberally adopted from the parent company. Tata Mutual Fund holds the view that the investors along with their money sow the seeds of trust in the enterprise. When the seeds of faith are not adequately nurtured;  then it will create an adverse effect on the goodwill endured for so many decades. The client is the most important asset for any business. Thus, the comfort of the clients is of utmost importance.

The lineage of Tata Mutual Fund is vehement. The foundation of the AMC holds years of expertise and profound knowledge. The business ethics are truly followed by Tata Mutual Fund to procure a lofty position. On the horizon of the mutual fund industry, Tata Mutual Fund has marked its presence as one of the leading mutual fund companies. It has become a globally renowned company which is acting as a role model for the upcoming businesses in the industry. Therefore, Tata Mutual Fund is not only a brand name, but it has genuinely plowed the much-required efforts to be able to hit the crest.

Ethics making Tata Mutual Fund stand unequivocally from the clan are stated below:

• Outlandish schemes for the investors: The clients have diverse expectations from the investment. On one hand, where a businessman may focus on capital appreciation, on the other hand, a person having a moderate income may concentrate on investing for the purpose of accumulating funds for the education of his children. Hence, if the needs are varying so should be the schemes. One single plan cannot serve as a solution to all the requirements. For instance, equity-oriented funds like Tata Equity Opportunities Fund (G), acts as an instrument of capital appreciation. In the same way, for secure investment and generating fixed income debt fund like Tata Income Fund-Regular Plan (G), can be useful. There is no stone left unturned regarding the planning of the schemes. 
• There is always a scope for improvement: The most cardinal point which is included in the strategy of Tata MF is believing in the fact that the learning process is never-ending. Hence, there is always room for improvement. The employees are taught that the need for improvement should not be taken as a shortcoming but, an opportunity for growing through learning. No individual is perfect and doesn’t need improvement. Therefore, the policies of Tata Mutual Fund motivates the employees to have a learning perspective of growth. Wisdom is not only the result of learning new concepts; it can also be achieved by embracing the mistakes. It is conceptualized at Tata Mutual Fund. The employees are careful while carrying out their duties. Hence, the chances of error are zeroed. But, then too any mistakes appear then the employees are happy to correct it and at the same time learn from it.
• Believe in yourself: When one believes that he/she can do the allotted work, half of it gets completed at that very moment. At Tata Mutual Fund, the staff take up the most challenging jobs and complete them flawlessly. This is possible only with optimism. The professionals are of Tata Mutual Fund are trained so well that every difficulty appears to be an opportunity for them to learn and grow. Hence, taking up the challenge with a positive attitude is the first step towards solving the problem. 

Therefore, Tata Mutual Fund is a rock strong company providing an environment which is suitable for the client and making it easy for the customer to converse and put forward any queries or opinion quickly.