Mutual Funds

Investing directly in shares requires time and expertise. Only few are having that facility, knowledge and expertise. So to get the benefits of equity investments for an investor mutual fund is the best platform.

What is Mutual Fund?

  •  Mutual funds are Asset Management Companies who collects money from investors by issuing their units and invest the money after proper research work in different types of financial instruments like Shares, Debentures, Bonds, Government securities and money market instruments for getting better return.
  •  In Mutual fund an investor can make one time investment “lump sum investment” or through “Systematic Investment Plan”, which is popularly known as “SIPs”. Investing through SIPs will help to face the market volatility, one can get the benefit of Rupee cost averaging i.e.; when the market falls one gets more units of MFs and when the market goes up, then less number of units.

Benefits of Investing through SIPs

The reason we advise customers to opt for SIP is that they can plan and invest for their life cycle needs like child education, daughter’s marriage, house construction and retirement. Long term investment through Equity SIPs will generate better returns.

  •  An investment of Rs.2500/- per month over a period of 10 years with an expected return of 12% will turn to Rs. 5,80,848/-. Here the total investment is only Rs. 3, 00,000/- and the return is Rs. 2,80,848/-.
  •  If the same amount is invested in Bank recurring deposit at 6.5% return for 10 years the return on investment will be just Rs.1,23,288/-
  •  Individuals with income tax liability can opt for ELSS (Equity Linked Savings Scheme) under session 80C of Income Tax Act where tax can be saved up to for an amount Rs.1,50,000/- with 3 years lock in.
  •  SIPs encourage a person to build up wealth through regular saving habits.
  •  One can choose equity funds, Debt funds or Balanced Funds according to their risk taking capacity.

Types Of Mutual Fund Schemes

  •   Equity Funds :An Equity fund is a mutual fund schme that invests principally in equity shares .
  •   Debt Funds : Debt funds are a kind of mutual fund scheme that invests majorly in fixed income instruments like Bonds, Debentures, Government securities e.t.c
  •   Balanced Funds : Balanced fund is scheme which invest in a mixture of both equity and debt instruments.
  •   ELSS Funds : An Equity Linked Savings Scheme (ELSS) is an open-ended Equity Mutual Fund that doesn’t just help you save tax, but also gives you an opportunity to grow your money. It qualifies for tax exemptions under section (u/s) 80C of the Indian Income Tax Act.


Sl.No Funds NAV Fund Class Returns (as on 27.12.17)
1 yr 3 yr 5 yr
1 ABSL advantage fund 436.3 Diversified Equity 20.4 17.1 20.4
2 SBI Magnum Multicap 47.14 Diversified Equity 19.6 13.8 18.4
3 HDFC Capital builder 291.5 Diversified Equity 19.6 19.6 19.9
4 DSP Opportunities 223.5 Diversified Equity 20.6 19.8 22.7
5 ABSL Balance 95 772.29 Balanced Fund 29.05 12.85 17.51
6 HDFC Balance Fund 151.88 Balanced Fund 30.64 13.63 19.02
7 Axis Long Term Fund 41.61 ELSS –Tax Fund 41.51 13.94 22.98
8 ABSL Tax 96 Fund 32.33 ELSS –Tax Fund 48.57 18.16 22.33