Mutual Funds are highly tax efficient financial instruments as there very little tax on all the Buy/Sell operations happens inside the Fund. Investor only pays the long term or short term capital gains for the actual gains received at his/her hand. Moreover various type of Mutual Funds can invest in various assets, Listed Stocks, Gold/Silver, Short Term/Long Term Debt/Bond, Real Estate through REITs and also foreign/US stocks.
A large investment portfolio of tens of Lakhs of Rupees (or even Crores) could be created by choosing appropriate types of Mutual Funds based on the investor’s risk appetite, amount of investment, investment timeline and current Economy/Business Sector situations.
However, there are too many types of mutual funds from too many Fund Houses. Understanding all of these are not easy for an individual investor. Here comes our expertise to help building an individualized Mutual Fund portfolio for an investor, irrespective of the Investment amount.
We help individual investors to create such Mutual Fund portfolio and review that periodically without any additional charges. We not only provide the advice, help in executing the respective Buy/Sell with agreement form the investor. The Trail commission received from the Fund Houses are our monetary benefit.
Goal or No-Goal Based Portfolio
Your investment aim could be associated with certain time based Goal like Retirement, Kids Education, Kids wedding etc. Or could be just investing to grow your future wealth without any specific timeline goal. We factor in all timeline needs along with individual risk appetite to design a Mutual Fund portfolio suitable for you.
Momentum, Quality, Value Factors
These are different strategies of Stock Market investing called Factor investing. Each of these style of investment provides different types of returns at different time period. Understanding the current and mid term/long term trend on these factors may provide you superior returns from the Mutual Fund investment.
Interest Rate Cycle
Central Bank defined Interest Rates are almost never constant and depends on the current inflation, rate, current economic situation etc. Understanding the current and future Interest rate trend can provide good opportunity. e,g, when Interest Rates peaks and are likely to be in downward trend, the Gilt Mutual funds provide high returns.
Sector Rotation for investment
Not every business sector provides same return all the time. Some sectors are on demand at certain time and some remains beaten down. But, these trend changes over time and at some point those Beaten down sectors becomes Hot sector. Understanding the sector rotation, when it starts to happen provides big opportunity for superior returns.
Underlying Asset Classes of MF
Mutual Funds provide opportunity to invest not only to underlying Stock Market investment, but also to various other asset Classes like, Gold/SIlver and companies dealing with other commodities, Real Estate, Debt/Money market funds etc. Understanding the trend of these asset classes can help in creating more diversified Multi Asset Mutual Fund portfolio.
Large vs Mid vs Small Cap trend
Largecap stocks dominates market at some point of time, whereas Midcap or Smallcap does the same at some other time. Most of the time there is some kind of Mean reversion happening between them. Again, understanding this trend helps in investing in right type of funds at right time to earn superior returns.
MF Portfolio Creation
To design a Mutual Fund portfolio for you, we would setup a 1-1 discussion to go through your needs and also to understand your investment/risk profile, based on that we can provide the suggested Mutual Fund portfolio and refine that based on further discussions if needed.
India Investment Corner 