EldersWealth one of the best wealth management firms brings you a wide range of mutual fund schemes to help you attain various life goals. We understand each investor has a different investment objective, horizon and risk appetite. Considering all these factors, we help you find the most suitable mutual fund for your investment journey.

What are Mutual Funds?

Mutual Fund is an investment vehicle that invests in a basket of securities such as stock, bonds, debt papers etc. These combined holdings are commonly known as ‘portfolio’ and it is managed by a professional fund manager.

Benefits of investing in Mutual Funds

Safety & transparency

All Mutual Funds schemes are monitored and regulated by Securities Exchange Board of India (SEBI) which is established to protect investors’ interest. According to SEBI guidelines, each mutual fund house has to disclose the risks associated with respective schemes and keep investors informed about fund management strategies.

Accessibility

Investing in mutual funds is quite hassle-free, and one does not even require a Demat account. Through EldersWealth platform comparing, buying & selling mutual funds is just a matter of few clicks.

Tax benefits

Equity Linked Savings Scheme (ELSS) is a type of mutual fund which offers the tax exemption of Rs.1.50 lakh u/s 80Cof the Income Tax Act. Moreover, these schemes have the shortest lock-in period and the potential to generate higher returns than other 80C tax-saving options.

In-built diversification

Since the mutual fund is a pool of various securities, it diversifies one’s investment portfolio by default. This can help in safeguarding investor’s money in extremely volatile market conditions.

Professional management

Each mutual fund scheme is managed by a professional – the fund manager, who has the experience, efficiencies and expertise about the financial markets. As a result, the investor can include multiple securities in the portfolio without timing the market.

Types of Mutual Funds

Broadly, mutual funds are categorised into three groups – equity, debt and hybrid. Further these are divided into various other types

Sector/ Thematic funds

Mutual funds investing in a specific sector such as pharmaceutical, IT etc. or a specific theme such as consumption, digitisation etc.

Index funds

The fund that closely tracks the benchmark index. In simple terms, these types of funds have the same stock selection that its index is investing in. Therefore performance of such funds are in line with the index returns.

Tax-saving funds/ ELSS

Mutual funds that offer tax-benefit of Rs. 1.50 lakh under section80C, The Income Tax Act 1961. These schemes have a lock-in period of only 3 years and are likely to provide higher returns in the long run.

Balanced funds

Mutual funds investing in both equity and debt asset classes in a balanced manner to give best of both the assets to its investors.

Large cap funds

Funds that predominantly invest in large cap stocks (stocks of top 100 companies in terms of market capitalisation)

Midcap funds

Mutual funds with their primary investment in mid cap stocks (101- 250th companies in terms of market capitalisation)

Small cap funds

Funds predominantly investing in companies with small market capitalisation (251st company onward in terms of market capitalisation)

Multicap funds

These are type of mutual funds that invest across large cap, mid cap and small cap stocks

Gilt Funds

Debt mutual fund which invests in government securities across different maturity periods (or 10 years)

Credit risk funds

Debt schemes investing in instruments with higher credit risk but having ppotential to generate higher returns.

Corporate bond funds

Debt mutual fund scheme that invests in high-rated corporate bonds and other debt instruments.

Short-term debt funds

Debt schemes that invest in instruments with maturity of 1-3 years (short duration fund), up to one year (money market fund), 6-12 months (low duration fund), 3-6 months (ultra-short term funds), up to 91 days (liquid fund) and maturity of one day (overnight fund)

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