Mutual funds are one of the most popular investment options available in the market. Most people prefer investing their savings in mutual funds because they have the ability to generate good returns over a longer horizon.
You can regularly invest your savings into the mutual fund's schemes through Systematic Investment Plan (SIP) or a lump sum amount. However, to do so you must be aware of the top performing mutual funds in India. To help you in overcoming the confusion of selecting top mutual funds, we have listed down top mutual funds to invest in 2019.
Top Performing Mutual Funds In India in 2019
Let us now learn the factors that you must consider to select top mutual funds.
Factors to Consider Before Investing in Mutual Funds
• Performance of Fund
The performance of the fund is critical for the selection of any top mutual fund scheme. The performance tells you about the returns generated by the scheme over the years. You must ensure that the performance of the fund is taken over a long period so that you can make a better judgment and decision. Also, review the holdings of the fund in the past years. Check the risks that the fund is exposed to. By doing all these checks you will get a better idea of the fund’s performance.
• Fund Manager’s Experience
The experience of the fund manager plays a critical role in generating returns. The fund manager manages the capital of the mutual fund schemes and invests in the direction the market is moving. A good fund manager ensures that the mutual fund scheme is reliable for the long term. The mutual fund scheme can perform well only if the fund manager has the expertise and experience. Therefore, before putting your hard earned money into any top mutual fund, always consider the experience of a fund manager.
• Expense Ratio
The expense ratio is the fee that is charged by the AMC when you purchase their mutual find scheme. It is the charge for management, distribution, administration and promotion of a mutual fund. SEBI (Securities and Exchange Board of India) has capped these charges at 2.25% of the total fund assets. It is always recommended to purchase that mutual fund scheme which has a lower expense ratio.
• Exit Load
Exit load is a charge that is applied to the NAV of the mutual fund. It dents your investment value when you sell your units. The mutual fund schemes that charge lower exit load should always be considered as the first choice for investment. Since the exit load charge is applicable whenever you sell your mutual fund units, it is advisable to hold mutual fund units for the long term and reap its real benefits rather than exiting in the shorter period.
• Track Record of Asset Management Company (AMC)
Asset Management Company (AMC) is the fund house that manages the mutual fund scheme. The decisions at an AMC are taken by the Chief Investment Officer (CIO). If any poor stock is a part of the AMC then it raises questions on the selection of stocks done at the AMC level. Therefore, it is always recommended to track the past record of an AMC before investing in any of the top mutual fund schemes.
• Integrity of Fund’s Promoters
Before investing in the mutual funds, it is important to understand who the promoters of the mutual fund are? You must look at their record in the financial service domain and experience. Securities and Exchange Board of India (SEBI) grants the permission to run a mutual fund only to people who have integrity, experience in the financial service sector and fulfils the criteria of minimum net worth. Even after that, it is important for you to check their background for your own satisfaction.
The above mentioned are a few factors that you must consider before buying a top mutual fund scheme. Whether you are a beginner or a seasoned investor, you must be always active and alert while making an investment in the mutual fund scheme. To make things easier, you may invest in mutual fund through IndiaNivesh Ltd. Our in house experts understand your financial goals before suggesting you the apt mutual fund scheme.
Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.
The ultimate goal for all investments is the same – Wealth Creation. But the routes can be different. In this article, we will talk about two popular investment avenues – Portfolio Management Services and Mutual Funds, both of which have the potential to fulfill your financial goals.Mutual FundsMutual Funds pool in money from a group of people and then invest the corpus in various asset categories as per the scheme’s objective. This investment avenue is professionally managed by a team of experts known as “Fund Managers” from Asset Management Companies.How to Invest in Mutual FundsThere are numerous ways to invest in Mutual Funds. Directly through the company’s website Through intermediaries such as brokers or R&T Agents Through online platforms that work as aggregators Portfolio Management ServicePortfolio Management Services (PMS) is a kind of wealth management service. Like mutual funds, they are managed by professionals known as portfolio managers. These experts offer a wide range of curated investment strategies to benefit from the available opportunities in the market. They can be bifurcated into two categories of services: Discretionary Non- Discretionary If the portfolio manager has complete control over the portfolio and can independently take trade decisions for the customer, it is referred to as Discretionary PMS. In the case of non-discretionary PMS, the portfolio manager does not have the authority to take any portfolio related decisions independently. He/she needs to manage the funds as per the client’s directions. Without the client’s approval, no buy or sell decisions can be taken by the portfolio manager. Portfolio Management Services in IndiaAs per SEBI regulations, only entities who are registered with SEBI for offering Portfolio Management Services in India can provide PMS to customers. Non-Resident Indians can also invest in these products. However, the documentation process is different (and slightly more exhaustive) than resident Indians. They need to open a PIS (Portfolio Investment Scheme) Account for the same.What makes these two investment avenues different?• Regulatory perspectiveMutual Funds are, comparatively, more strictly regulated in comparison to PMS. SEBI closely monitors their activities and investment decisions.• TransparencyBoth Mutual Funds and PMS offer timely disclosures to the clients. In the case of Mutual Funds, clients can get all relevant information such as portfolio disclosures, the commission given to distributors, daily performance data, etc. There are numerous websites through which the performance of each scheme can be tracked. Even in the case of Portfolio Management Services in India, the service provider is required to make periodic disclosures to the clients. The only difference is that it is not available to the general public. This might make it difficult for newbie investors to make an informed decision or identify the best portfolio management services. However, if one reaches out to reputable providers, the credibility of information or quality of services is assured.• FlexibilityIn the case of Mutual Funds, the pooled-in corpus can only be invested in asset categories as per the scheme’s objective. However, in the case of PMS generally there is no such restriction. They need not need to confine their investments to a stated objective or any such stringent terms, unless the theme of the investments is restricted to certain sectors or market cap. This provides flexibility to the portfolio manager to take aggressive calls whenever required. For instance, if they sense risk or volatility and the situation demands, they can decide to maintain a 100% cash position and sell off all the equity holdings.• OwnershipIn PMS, the stocks are held directly by the investor. However, in Mutual Funds, they are held by the AMC or Fund House and the investors receive units of the scheme.• RiskMutual Funds cater to all types of investors. An investor with a high-risk appetite can go for an aggressive equity scheme. Someone who is risk-averse or lower on the spectrum can go for a hybrid or balanced fund. The risk quotient in Mutual Funds is reduced to a certain extent as the risk gets spread across a wide range of stocks.Relatively, investments through PMS are riskier. They are usually a highly concentrated portfolio (consisting of about only 20-30 stocks). However, with higher risk comes the possibility of higher returns with PMS.• Entry BarrierPortfolio Management Services may not be accessible for all retail investors. It is primarily targeted towards HNIs (High net-worth individuals). One can start mutual fund investments with only Rs. 500. However, in the case of Portfolio Management Services, the least investment required is Rs. 50 Lakhs*.• Ease of InvestingInvestments in Mutual Funds can be made easily through multiple channels such as the company's website, through R&T Agents or distributors or with the help of online platforms. However, the process for investment in the case of PMS is lengthier considering the high value of funds that are transacted through these accounts.• Cost StructurePortfolio Management Services are way more customized than Mutual Funds. Mutual Fund charges fees daily as a percentage of AUM and is capped for all schemes. Whereas, the costs involved in PMS is relatively more such as Entry Load, Fund Management expenses, Profit Sharing or Fixed Fee, custodian fees, audit-related fees, brokerage, etc. All these vary according to the provider. However, relatively high returns generated by PMS more than compensate for the costs involved.• TaxationIn the case of Mutual Funds, the investors have taxed basis the type of scheme and the duration for which he/she had remained invested. For instance, in case of equity mutual funds, if one exits from the scheme within the lock-in period (usually 12 months), then 15% tax is applied. However, after that period the proceeds are taxed at 10% if gains exceed Rs. 1 Lakh. (Till the limit of Rs. 1 Lakh it is tax-free)However, the taxation methodology is quite different in the case of PMS. Gains are calculated on every underlying transaction (and not just redemption) done by the portfolio manager. So, each time the portfolio manager sells a share, capital gain (or loss) is calculated for the investor and then taxed accordingly.Which one should you go for?So, is one of these a better option? No. Both Mutual Funds and Portfolio Management Services are managed funds. They have their own set of benefits and targeted towards a different set of investors. The choice between these two should be made after considering factors such as risk profile, investment objective, market understanding, etc. For instance, if you are looking for higher flexibility and customization, PMS may be a better option. On the other hand, if you do not have too many funds at hand but still want to enter into the equity market, Mutual Funds are your best bet.Whatever be your choice, you can seek the help of experts from IndiaNivesh. They are adept at crafting portfolios customized as per the client’s needs and long-term goals.Why should you trust IndiaNivesh with your hard-earned money? Outstanding research experience of more than 11 years State-of-the-art technological tools to keep abreast with the market knowledge Highly skilled experts with the cumulative market experience of 300 years Wide range of financial solutions – broking and distribution, institutional equities, PMS and strategies, corporate advisory, investment banking, and wealth management So, are you looking for the best portfolio management services? Or wondering which is the best mutual funds to invest today? Or still struggling with how to invest in Mutual Funds? Then worry not and just reach out to the team at IndiaNivesh. They will ensure that you realize your financial goals irrespective of the route (PMS vs Mutual Funds) you take. Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing. *Effective from 1st Jan 2020.
Commodity market in India has a great bearing on our routine lives. The prices of fuel, gas, things at the supermarket, jewellery, etc. are dependent on the prices of the commodities in the commodity market. Since there is a great significance of price change in the commodity on our routine lives, it suggests that commodity if rightly traded can give good returns. This provides an opportunity to the traders to trade in the commodity market and take advantage of the price movement to their benefit. In this article, you will learn about all the details that a beginner must know while entering into a commodity market in India. Let us first learn the basic concept of commodity and its meaning.What is a Commodity?To define commodity in simple words, it is the material that is used as an input for producing refined goods. It is only because of the commodities that we are able to use the goods around us. Examples of commodities include copper, iron, aluminium, zinc, lead, crude oil, natural gas, gold, silver, steel, cotton, grains, pulses, etc.After learning the meaning of commodity, let us now learn about the meaning of commodity trading.What is Commodity Trading?Commodity trading is very similar to stock trading. In stock trading, you purchase and sell shares of the companies, while in commodity trading you purchase and sell commodity products. The commodities are traded on the exchanges where traders look for making profits from the volatility in the commodity market by purchasing and selling them.Let us now learn about the different types of commodity markets in India.Types of Commodity MarketThere are two types of commodity markets in India first are spot market and second are futures market. Spot market is a market where physical commodities are purchases and sold. E.g. Agriculture mandies. Futures markets are the market were commodities are purchases and sold in electronic form through various commodity exchanges.In India, there are three major commodity exchanges where you can trade different commodity items. They are as follows:• National Commodity and Derivatives Exchange – NCDEX• Multi Commodity Exchange – MCX• Indian Commodity Exchange – ICEX From the above, MCX and NCDEX are the two most popular exchanges. On MCX, you can trade in metal and energy and on NCDEX; you can trade in agriculture products. ICEX is known for Diamond trading.The commodities traded on these exchanges can be classified into four types.• Energy – Crude oil, Natural gas • Precious Metals – Gold, Silver, Platinum• Base Metals – Aluminium, Copper, Lead, Nickel, Zinc, Steel• Agriculture – Corn, Beans, Rice, Wheat, Pulses, Spices, etc.Let us now learn who regulates the Indian commodity market. Regulation of the Indian Commodity MarketThe regulatory body of the commodity trading market is the Securities and Exchange Board of India (SEBI). Earlier, the Forward Market Commission (FMC) used to regulate the commodity market. But in 2015, FMC got merged with SEBI.As a beginner, you must know how to trade in the commodity market. In the section of the article, we will learn all the details of how trading can be done in the commodity market.How To Trade In Commodity MarketThe best way to trade in the commodity market is through the futures contract. In a futures contract, there is an agreement to buy or sell a particular commodity at a given price at a future time. Future contracts are available for every commodity. The traders use the volatility in the price of the commodity to make profits. The beginners in the commodity market must begin with small trades so that they understand the risks well and get the experience of taking big trading positions in future.Let us now learn about the advantages of commodity trading in the futures market for beginners.Advantages of Futures Market in Commodity Trading• The volume of trade in the future market is good which makes future contracts very liquid in nature.• When the trade is taken carefully, the future contracts can give you huge profits.• The targets in the long or short future contracts can be easily set.• Futures contracts are highly leveraged investments.• They are affordable as they require minimum deposit to open an account and in return, you get control over full-size contract. Let us now learn how to choose a commodity broker in the commodity market.How to Choose a Commodity Broker?Your entire experience in the commodity market will depend upon the broker you select. The commodity market has grown significantly over the past few years and there are numerous brokers present in the market.While selecting a commodity broker, you must check their credibility and past experience. Another important aspect that you need to check is the charges that the broker quotes and services offered by them. Also, the broker must have a proactive customer support team. This is because whenever you face any problem or snag, it can be addressed immediately. Moreover, it is advisable to compare the different brokers and select the one who provides the services at the most affordable rates.Let us now learn how to open a commodity trading account.How to Open Commodity Trading AccountAfter selecting the broker of your choice, the next thing to do is open the commodity trading account. You must follow the below mentioned steps for successfully opening your account. The first thing to do after the selection of the broker is to fill the account opening form. These forms are available on the broker's website and can be obtained from their offices too. The next step involves the submission of the necessary documents that include PAN card, ID proof, address proof, cancelled cheque and income statement. Now the broker will conduct a verification process to check whether the information submitted by you is correct or not. On receiving the approval from the exchange, the commodity account is opened. The beginners get the information about their account number, password and other necessary details. On the opening of the account, you must submit the deposit margin money. The initial margin money is as low as 5%-10% of the total contract value. Apart from the initial margin, the maintenance margin also needs to be maintained by the account holder. Trading in the commodity market can change your fortune. The sky is the limit to make money in the commodity market. Just follow a disciplined approach and you can be a successful commodity trader. If you are looking to open a commodity trading account, you can consider IndiaNivesh Commodities Private Ltd. We provide the best services at the most affordable rates. Our in-house experts and analysts give you the right guidance for the next trade that you should take. For further information, you may get in touch with us via email or call. We will be glad to serve you.Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.
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