Equity mutual funds

Equity mutual funds are suitable for passive investors seeking the benefits of capital appreciation over a period of time. By outsourcing the stock selection and monitoring process to experienced Fund Managers, investors can reap rich rewards without the stress of active and daily management of their stocks. Over 40 Asset Management Companies (AMCs) manage over 5000 schemes, making it impossible for any investor to take an informed decision. Careful selection of schemes, based on time-tested parameters is essential. These include short term and long term track record, fund managers performance, composition of the portfolio and Assets Under Management (AUM) of both the scheme and the Fund House. Several equity funds have established track records of outperforming the benchmarks consistently, and provide the ideal hedge against inflation. A time tested strategy to ride out volatility in the markets, is by way of a Systematic Investment Plan (SIP) or Systematic Transfer Plan (STP) which use the concept of rupee-cost averaging to maximise returns. As an asset class, equity has outperformed all other classes like fixed deposits, gold and debt funds over different time frames. The equity schemes offered by all leading Fund Houses can be broadly categorised as large-cap, multi-cap, small and mid cap, and sector funds. Investors can choose between either growth or dividend options. Niether dividends nor returns are assured in any mutual fund scheme.

Direct Equity

This option is better suited for active investors, with a thorough understanding of the stock market. It involves identifying blue-chips of the future and a constant monitoring and evaluation of stocks in the portfolio. One needs to take active calls and move in a swift and timely manner. Transactions are contracted through a stockbroker, and shares are received and delivered via a demat account. For more adventurous traders, intra-day trading provides opportunities for quick money and quick losses. Not for the faint hearted!

Debt Mutual Funds

These investments are suitable for risk-averse and low-risk investors, seeking a reasonable return with an emphasis on preservation of their capital. The selection of these schemes is based on various parameters. These include short term and long term track record, fund manager's performance, composition of the portfolio and Assets Under Management (AUM) of both the scheme and the Fund House. There are other important investor-specific considerations like liquidity, holding period, need for income vs growth, and taxability.

As such schemes invest primarily in interest bearing investments, they have an inverse relationship with interest rates. Meaning if interest rates are falling, these funds in general tend to fare better than in a rising rate regime. To minimise fluctuations in the Net Asset Value (NAV) of the investment, it is essential to opt for investor-specific schemes. This is done by selecting schemes where the duration of the underlying paper matches the holding period of the investor.
Fixed Income or debt schemes as they are generically known, offer investors the options of growth as well as dividend plans. Currently, these schemes attract a dividend distribution tax. As in all investments an evaluation of scheme(s) best suited for the specific need of the investor from a wide array of available ones is necessary. Niether dividends nor returns are assured in any mutual fund scheme.

These schemes are structured to ensure the best possible post-tax return on investment. Timely reports on performance and valuation of the portfolio performance keeps investors updated. Though less volatile than equity funds, a continuous monitoring of scheme performance vis-s-via peers and benchmarks is undertaken.

Fixed Deposits and Bonds

• Only Bluechip companies with a very strong balance sheet and reputed promoters are considered. Safety and security is given priority over higher interest rates. Generally, such companies offer better rates than banks.


• Since inception, we have a 'zero default' track record on Fixed Deposit investments.


• All documentation including submission of Form 15F /15G is handled by us.


• Interest on deposits is subject to TDS (Tax Deducted at Source) and is generally payable quarterly, half-yearly or on maturity (cumulative).


• Submission of indemnities, affidavits and allied documentation in case of lost/ outdated interest warrants, and misplaced Fixed Deposit Receipts is also handled by us.


• Pick-up and drop-off services are provided.

Current options for Fixed Deposits are:

• HDFC 'Premium' deposits.


• Mahindra and Mahindra Financial Services.


• Shriram Transport 'Unnati' deposits.

Other options include:

8% Govt of India Bonds (taxable)

• No Tax Deducted at Source
• Six year lock-in (premature withdrawal not allowed)

Bonds u/s 54 EC for capital gains exemption (taxable)

• No Tax Deducted at Source
• Three year lock-in (premature withdrawal not allowed)
• Current interest rate (subject to change) is 5.75%, payable annually.
• Limited to Rs. fifty Lakhs per investor, per annum.

Interest on all the above investments is taxable in the investor's hands at the investor's marginal rate of tax.

Financial Planning

• Thorough profiling and understanding of client's needs and aspirations.


• Detailed asset allocation plan optimised to suit each investor.


• Analysis of debt and equity requirements, and formulating an appropriate mix keeping in mind the need for capital appreciation, liquidity, income etc.


• Comprehensive portfolio creation comprising of direct equity, fixed income and mutual funds.


• Restructuring and streamlining existing investments by weeding out under- performing and non-performing assets and replacing them with a more efficient, dynamic structure.


• Providing holistic planning for long term requirements.

On-line Services

• Execute all your mutual fund transactions with a few simple clicks.


• One time registration is necessary. Please contact us for assistance.


• Transactions like new and additional purchases, redemptions and switches are possible directly from our website.


• You can also view your consolidated statement of holdings, valuation statement and other reports online. 


• Check your KYC / KRA status on our 'Resources' page. All you need is your PAN number.


• Download all forms necessary for transacting in mutual funds including Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) directly from our website.


• Just log in with your user name and password to get started.


• Pick-up and drop-off services for all documents, forms and cheques from and to the investor's residence or office are provided.

Taxation

• Strategic planning to maximise post-tax returns


• Minimisation of capital gains tax


• Effective planning to set-off capital gains with capital losses, thereby reducing tax liability


• Tax saving u/s 80- C for investments in Equity Linked Savings Schemes


• Investments u/s 54 EC as applicable, to save on long term capital gains tax.

Succesion Planning

• Appointment of nominees and change in existing nominees for existing and future investments in shares and mutual funds.


• Advice in preparation and modification of Wills and codicils, with special attention to transfer of financial assets.


• Execution of wills.


• Seamless vesting of the entire investment portfolio to the next of kin, including transmission of shares, mutual fund units and fixed deposits.


• Help and advice in obtaining a probate, if and when necessary.