Jamshedpur,Jharkhand
Mutual Funds
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Mutual Funds
Selecting a Mutual Fund that suits you is like selecting a paint colour for your bedroom wall. Ever tried selecting a colour! All different shades of colours looks the same, there are 100s of them; and if selected the wrong colour, your room might become an eyesore. Hence at Happy Gains we discuss with you your needs, goals and risk appetite and only then we provide our research backed funds which are tailor-made only for you. This will not only provide best possible growth but also keep you satisfied and happy.
Types of Mutual Fund Categories:
a Equity Mutual Funds
Equity mutual funds invest in shares of fundamentally strong and good performing companies which are capable of outperforming the markets. These funds are managed by a team of professionals who select companies based on strong fundamentals, sector performance or macro & micro economic picture.
Depending on the risk appetites of investors, these funds have different categories like Large-cap, Mid-cap, Small-cap, Sectoral funds or a mix of these. These funds have the potential to create enormous wealth in the long term if properly handled.
Their high risk nature makes it paramount to follow good valuation techniques and stages of economic cycle to select a good fund which might give exceptional returns in the markets. Good fundamental knowledge, close tracking of the fund and prompt changes might provide very good results.
b Monthly Income Funds
These funds primarily try to provide monthly income by distributing their profits to its investors in monthly or quarterly basis. Apart from providing monthly income, they also focus on wealth creation. They make sure that the principal corpus also keeps growing which helps investors create respectable wealth in long periods of time.
These funds are good alternative for people who are looking to buy properties for rental purpose, people who want Fixed Deposits, people who want secondary source of income, retirees who want pension etc. Mutual funds categories like Multicap, Multi Asset, Balanced or Balanced Advantage specialize in monthly income investment strategy.
These funds provide one of the highest returns across all government registered monthly income investment products available in our country.
c Balanced Funds
Balanced or Hybrid Funds invest in more than one asset class – generally in a mix of equity, debt, gold, silver, international markets etc. These try to lower the risk profile of the investment corpus by actively switching between different areas of investment. Their mandate is to provide respectable returns while being less risky than Equity funds. These funds are suitable for people who want to take less risk while also beating FD returns. These can be first time investors, people in their 50s, retired pensioners etc.
d Index Funds
Markets are represented by INDEXES which constitute a set of stocks having different weightages. Index like NIFTY50 represent top 50 companies from different sectors in India. An index like BSE Auto constitute all companies engaged in only in automobile or allied businesses. One can get a good sense of performance by just looking at the performance of the index rather than looking at individual companies of a sector or a theme. The companies selected in an index are based on fix pre-defined filters established by SEBI.
Index Mutual Funds invest in the companies that belong to that particular index as per their weightage in the index. No human interference or decision making is done to select the companies. Index mutual funds have a mandate to replicate the returns of the index they are investing in; no more, no less.
These funds are suitable for people who want to get average market returns from their investments. The tricky part is selecting an index since every sector or theme has an index and not every index might perform in a given period of time as the markets move on a rotational basis. Not all indexes might perform well together. A diversified index might be more suitable than a sector-oriented index. If strategized properly, index funds can give good stable returns in the long run.
e Debt Funds
Debt funds invest in fixed income assets only. They do not have exposure to equity markets. This makes them most secure investment class in all mutual fund categories. They are not affected by equity market volatility. This makes them least volatile. Entry and exit can be done anytime without any restriction.
As per the time frame of the investment, different categories of Debt funds can be selected. A Long term bond fund might be suitable for long tenures of 5 or 10 years while an overnight fund can be selected for investment horizon as little as a single day.
Returns of these funds largely depend on interest rate cycles and Yield to Maturities (YTM). Hence good fund selection is paramount to get maximum benefit with low risk.
Talk to our Advisor
Speak with advisor and ask questions before finalizing your plans or if you want help regarding our services.Our dedicated staff is more than happy to call and guide you.
