SOLUTIONS
Mutual Fund
Mutual Fund
- Provides Convenience
- Beats Inflation
- Ensures Good Returns
- Cost-friendly and transparent
- Income-tax friendly
- No lock-in period
- Helps diversify
Liquid Funds
Aimed towards providing convenience of a saving account with the opportunity to earn higher post tax return, liquid funds can be invested even for a single day and made available withing a day’s notice. Liquid funds invest in debt and money market instruments with less than 91-days maturity. Liquid Plus funds can invest in more than 91-days maturity securities.
Fixed Income/ Debt Funds
Horizon for debt accrual fund is 3 years. After 3 years, debt funds provide tax efficient returns. Debt funds invest in NCD, corporate and government bonds and money market instruments.
Hybrid Funds
These funds enhance the return by allocating funds in equity but reduce the portfolio volatility by balancing allocation in debt. This depends on type of hybrid funds. Balance funds allocate minimum 65% to equity and are most aggressive hybrid funds, whereas, Monthly Income Funds allocate a small portion to equity and hence are less volatile. Hybrid funds invest in mix of debt and equity instruments.
Equity Funds
The primary objective of Equity funds is to generate long-term wealth, typically 10 years and above. Equity Funds invest predominantly in shares of listed companies. A Large cap fund invests in top 100 market cap companies. Mid-cap funds invest in top 250 market cap companies. Diversified Funds can invest across market caps.