The mutual fund industry of India is continuously evolving. Along the way, several industry bodies are also investing towards investor education. Yet, according to a report by Boston Analytics, less than 10% of our households consider mutual funds as an investment avenue. It is still considered as a high-risk option. In fact, a basic inquiry about the types of mutual funds reveals that these are perhaps one of the most flexible, comprehensive and hassle free modes of investments that can accommodate various types of investor needs. Various types of mutual funds categories are designed to allow investors to choose a scheme based on the risk they are willing to take, the investable amount, their goals, the investment term, etc. Let us have a look at some important mutual fund schemes under the following three categories based on maturity period of investment:
An open-end fund is a mutual fund scheme that is available for subscription and redemption on every business throughout the year, (akin to a savings bank account, wherein one may deposit and withdraw money every day). An open-ended scheme is perpetual and does not have any maturity date.
Though past performance is not an indication of a how a scheme will fare in the future, historical return analysis can throw up interesting points. As a first step, investors can concentrate on schemes that have been around for a longer time and avoid schemes that haven't seen a bear market. This is because a bear market is the real test for a fund manager. Go for funds that outperformed peers when the market was not doing well,
Century portfolio has top-notch research capabilities. While it is easy to identify research capabilities of established fund houses like Reliance, HDFC or ICICI, how should one analyze the research capabilities of new fund houses? In such cases, the pedigree of the fund house or its promoter should be taken into consideration. Investors need to give extra weight to mutual funds which Century portfolio Analysts have extensively analyzed through the well established research capability over several decades.
There are several reasons for sticking with large fund houses or schemes. Century portfolio has the capability and the size of research teams maintained to keep track of these companies. Our long-standing team of highly experienced fund managers also gives the stability required in this segment. Accesses to external research can also become problematic for smaller funds because sell side research teams usually offer better service to larger funds from which they draw higher business. We at Century portfolio evenly manage the playing field. Corporate access is also difficult for smaller funds. Smaller fund houses have also been seen to take undue risk to shore up their short-term performance, Even large fund houses ignore their very small schemes and often merge them into a larger, better performing schemes. Hence, it is best to avoid very small schemes from even the bigger fund houses.
Investors need to make sure that the fund house and or scheme follows a clear strategy across market cycles. Continuity in strategy is key at Century portfolio Mutual Fund Services. You also need to ascertain whether the investing style of a fund house is in sync with your risk appetite. While Reliance mutual fund follows an aggressive style, HDFC and ICICI follow counter cyclical styles. We help our client keep in sync with all the latest developments. At Century portfolio Continuation of the fund manager is also long standing practice for the continuation of the investment strategy.
It is derived as the market value of all investments in the fund less liabilities and expenses divided by outstanding number of fund. Buying and selling into funds is done on the basis of NAV. It is calculated on each business day.
Portfolio may have both risky and risk free assets. Risky assets can give benefit during bullish market and risk free assets are helpful to generate stable returns even though equity market is not performing. Portfolio need to be rebalanced at regular interval to get benefit of opportunities in different asset class.
Asset allocation can be strategic (long term) or tactical (short term). It can also be on the basis of risk appetite of investor (conservative, moderate and aggressive). It can be also linked to your goals like short term, medium term and long term.
Diversification reduces investment risks. It can be vertical (different asset class like equity, mutual fund, real estate etc) or horizontal (in case of equity, investing in large cap, small cap and mid cap companies, in case of equity mutual fund, investing in large cap mutual fund, multi cap mutual fund and small cap mutual fund).
SIP is based on the concept of rupee cost averaging. It means when market is high, less units are purchased and when market is low, more units are bought. Young investors have more chance of creating wealth through SIP as they start early.
Investor should invest in equity shares or equity mutual funds for longer duration to beat inflation. In India, inflation is measured in the form of Consumer Price Index and Wholesale Price Index. Real rate of return help to calculate returns post inflation.
Proven Mutual Funds strategy for long term growth, integrated with Mutual Funds diversification and continuous monitoring
Reliable risk management support and high precision asset management solutions aimed at �value addition�
Maximization of returns on investment, through solid fund management and investment advisory services
With our capable and trustworthy Portfolio Management Services managers, you can experience proficiency, talent and expertise, all of which allow us to bring out the best in your Mutual Funds of investments.
With an endeavor to give you the best, Century portfolio provides a highly professional market analysis which enables us to address varying investment preferences and deliver maximum returns to our clients.
Mutual Funds has better transparency because investor knows the stocks holdings of his Mutual Funds. He knows when and what Fund Manager is doing with his Mutual Funds. Besides, we also have one of the finest and most dedicated research teams with experts who have in-depth, unsurpassed knowledge of the market place.
With a complete array of services across all verticals in finance, Century portfolio offers you the perfect blend of financial services to help set your goals and of confidently achieve it.
Century portfolio functioCentury portfolions on an integrated and innovative platform to trade online as well as offline giving its clients the undisputed edge in achieving results.
Our technological prowess and 24X7 Toll Free numbers allow us to monitor and service our clients at all times and across the entire country. All this and more makes Century portfolio the perfect place for you to take your first step in the direction of financial success.