Mutual Fund Schemes

Dynamic Asset Allocation Funds, commonly known as DAAs, are investment vehicles designed to adapt to changing market conditions. Unlike traditional funds that maintain fixed asset allocations, DAAs dynamically adjust their portfolios across various asset classes like stocks, bonds, and commodities. These funds utilize sophisticated algorithms and active management strategies to capitalize on market opportunities while mitigating risks. By continuously reassessing market trends and economic indicators, DAAs aim to optimize returns by reallocating assets dynamically. Investors seeking a balanced approach to investment, harnessing the potential of different asset classes in varying market environments, often find Dynamic Asset Allocation Funds an attractive option for their portfolios.

Aggressive Hybrid Funds

Aggressive Hybrid Funds (AHFs) represent a strategic investment avenue blending the best of two worlds: equity and debt. These funds pursue a dynamic approach by allocating 65-80% of assets to equities, fostering growth potential, while the remaining portion goes into debt instruments, ensuring stability. The equity exposure allows for capital appreciation, leveraging market opportunities, and potentially higher returns, albeit with increased risk due to market volatility. Simultaneously, the debt allocation cushions the portfolio against market downturns, offering a buffer against volatility. This balanced strategy aims to optimize returns while managing risk, making AHFs an attractive option for investors seeking a middle ground between risk and growth. They offer the potential for superior returns compared to pure debt funds with a relatively lower risk profile than pure equity funds. Investors should assess their risk tolerance and investment horizon before considering AHFs for their portfolio diversification and wealth creation goals.

Large Cap Funds

Large cap mutual funds are equity funds that invest primarily (Min 80% investment in equity) in the top 100 companies of India. These companies are some of the biggest brands in our country, and most Indians use their products daily. These funds allocate a significant portion of their assets into stocks of well-established and financially stable companies. Market capitalization refers to the total value of a company's outstanding shares in the stock market. Typically, large cap companies are industry leaders with a proven track record of performance and stability. Investments in such firms aim to offer relatively stable returns over the long term, mitigating some market volatility. Large Cap Funds are considered less risky compared to mid-cap or small-cap funds due to the stability and maturity of the companies they invest in. Investors seeking a balance between growth and stability often find Large Cap Funds appealing as they can provide steady returns while minimizing some of the risks associated with smaller companies or more volatile market segments.

Mid Cap Funds

Mid Cap Funds belong to a category of mutual funds that predominantly invest in companies with medium market capitalizations. These funds typically focus on firms that fall between large-cap and small-cap companies in terms of size. The companies from rankings 101 to 250 in terms of market capitalization are known as mid-cap companies. Mid-cap companies generally have the potential for growth, as they are often more dynamic and agile than their larger counterparts while possessing a certain degree of stability compared to smaller companies. Investing in Mid Cap Funds offers the opportunity to participate in the growth potential of these companies, aiming to achieve higher returns than large caps while also balancing some of the risks associated with small-cap investments. Mid cap funds suit investors seeking a balance between growth and risk, as mid-cap companies often exhibit promising growth prospects but may also experience higher volatility compared to large-cap stocks.

Small Cap Funds

Small Cap Funds represent a class of mutual funds primarily investing in companies with relatively small market capitalizations. These funds focus on companies that are smaller in size compared to large and mid-cap firms. Small-cap mutual funds allocate investments to companies ranked below the top 250 stocks based on their market capitalization within the exchange. Small-cap companies are often characterized by their potential for high growth, innovation, and agility. Investing in Small Cap Funds provides exposure to these companies, aiming to capitalize on their growth potential. However, it's important to note that investing in small-cap stocks can also involve higher volatility and risk due to factors such as limited resources, market fluctuations, and sensitivity to economic changes. Small Cap Funds are suitable for investors seeking higher growth potential willing to tolerate increased market fluctuations in pursuit of potentially higher returns over the long term. Due to their growth-oriented nature, these funds can be a valuable addition to a diversified investment portfolio for those comfortable with the associated risks.

Flexi Cap Funds

Flexi Cap Funds are a versatile category of mutual funds that offer flexibility in their investment strategy. These funds have the liberty to invest across companies of varying market capitalizations, including large-cap, mid-cap, and small-cap stocks. The unique feature of Flexi Cap Funds lies in their ability to dynamically adapt to market conditions by adjusting the allocation of assets based on the prevailing market scenarios. Fund managers have the freedom to shift the portfolio's composition, allowing them to capitalize on emerging opportunities and navigate market fluctuations effectively. This flexibility offers investors exposure to a diversified portfolio across market segments, enabling them to benefit from the growth potential of different-sized companies while potentially managing risk. Flexi Cap Funds cater to investors seeking a balance between growth and stability, providing the agility to capitalize on market dynamics while mitigating some of the inherent risks associated with specific market segments.

Multi Cap Funds

Multi Cap Funds represent a dynamic category of mutual funds that offer diversified exposure across various market capitalizations. Multi Cap Funds typically invest in companies across large-cap, mid-cap, and small-cap segments with predetermined allocations set by the fund mandate. Fund managers must adhere to these allocations, ensuring a balance between different market cap segments within the portfolio. Multi Cap and Flexi Cap Funds offer diversification across market segments, the key distinction lies in the level of flexibility granted to fund managers in adjusting their asset allocations based on market conditions. Multi Cap Funds follow predetermined allocations, whereas Flexi Cap Funds offer greater flexibility for portfolio adjustments, allowing for more dynamic responses to market changes. Multi Cap Funds cater to investors seeking a balanced portfolio with exposure to companies of varying sizes, aiming to capture growth opportunities while managing inherent risks associated with specific market segments. Their flexibility in asset allocation makes them an attractive choice for investors seeking diversification and the potential for long-term growth across different segments of the market.

Equity Linked Savings Schemes (ELSS)

Equity Linked Savings Schemes (ELSS) are a distinctive category of mutual funds that combine the benefits of tax savings with the potential for wealth creation. These funds primarily invest in equity and equity-related instruments, offering tax benefits under Section 80C of the Income Tax Act in India. ELSS funds come with a mandatory lock-in period of three years, which is the shortest among all tax-saving investment options under Section 80C. They provide investors an opportunity to participate in the growth potential of the stock market while aiding in tax planning. ELSS funds have the potential for long-term capital appreciation, but being equity-oriented, they also carry market-related risks. Investors with a higher risk appetite looking for tax-saving avenues and willing to stay invested for a longer duration often consider ELSS funds as a part of their investment portfolio, benefitting from both tax advantages and growth opportunities offered by the equity market.

Equity Index Funds

Equity index Funds are a class of mutual funds that track and replicate the performance of a specific stock market index in India, such as the Nifty 50 or the BSE Sensex. These funds aim to mimic the holdings and proportional returns of the chosen index, providing investors with an opportunity to passively invest in a diversified portfolio of stocks representing various sectors. Index Funds follow a passive investment strategy, investing in the same securities in the same proportions as the underlying index, thereby aiming to mirror its performance. Due to their passive nature, these funds generally have lower expense ratios compared to actively managed funds. Indian Index Funds offer investors an easy and cost-effective way to gain exposure to the overall performance of the Indian stock market, making them a popular choice for those seeking broad market exposure with minimal management costs and efforts.

Funds of Funds (FoFs) Overseas

Funds of Funds (FoFs) Overseas are a unique category of mutual funds that invest in international markets through a portfolio of other mutual funds or exchange-traded funds (ETFs) that focus on foreign securities. These funds offer Indian investors exposure to global markets by investing in a diversified basket of international funds across various geographies and asset classes. FoFs Overseas are designed to simplify the process of investing in foreign markets for Indian investors who may lack direct access or expertise in international investing. By pooling resources into a single fund, FoFs Overseas provide diversification across global markets, mitigating risks associated with investing in a single country or region. These funds offer exposure to global economies, industries, and currencies, allowing investors to benefit from potential growth opportunities and currency movements in international markets, thereby enhancing portfolio diversification and potentially reducing overall risk.

Sectoral: Infotech Funds

Sectoral Infotech Funds are a specialized category of mutual funds that primarily invest in companies operating within the information technology (IT) sector. These funds focus on businesses involved in software development, IT services, electronics, telecommunications, and related industries. Sectoral Infotech Funds aim to capitalize on the growth potential and innovation within the technology sector. By concentrating investments in IT companies, these funds offer investors exposure to a specific industry, allowing them to benefit from the sector's growth prospects. However, it's important to note that investing in Sectoral Infotech Funds can be more volatile due to the inherent risks associated with concentrating investments in a single sector. These funds are suitable for investors with a higher risk tolerance seeking exposure to the potential high-growth opportunities offered by the dynamic and innovative landscape of the technology sector.

Multi Asset Allocation Funds

Multi-Asset Allocation Funds represent a diverse category of mutual funds that invest across various asset classes like equities, fixed income, and commodities. These funds aim to provide investors with a well-diversified portfolio by spreading investments across multiple asset types. Fund managers strategically allocate assets based on market conditions and their outlook on different asset classes. The primary goal is to optimize returns while managing risks through a balanced approach. Multi-Asset Allocation Funds offer the potential for capital appreciation from equities, income generation from fixed-income securities, and hedging benefits from commodities, aiming to provide stability and growth opportunities. Investors seeking a balanced mix of growth and risk management in a single investment vehicle often consider Multi-Asset Allocation Funds as they offer the benefits of diversification across various asset classes within a single fund.

Children's Funds

Children's Funds constitute a specialized category of mutual funds designed to address the future financial needs of children. These funds are tailored to assist parents or guardians in accumulating a corpus to meet significant milestones in a child's life, such as education expenses or marriage. Children's Funds typically offer a long-term investment horizon, aligning with the time required for a child to reach a particular life stage. These funds provide a range of investment options, including equities, debt instruments, or a blend of both, allowing investors to select a strategy that aligns with their risk appetite and investment goals. The primary objective of Children's Funds is to facilitate financial security and support for a child's future aspirations by fostering wealth creation and capital appreciation over time. Parents looking to secure their child's financial future often opt for these funds due to their tailored approach in addressing specific long-term financial objectives.

Retirement Fund

Retirement Funds belong to a specialized category of mutual funds designed to cater to individuals planning for their retirement. These funds are crafted to address the long-term financial goals of retirement planning by offering a diversified investment approach. Retirement Funds typically adjust their asset allocation strategies based on the investor's proximity to retirement age. They may start with a more aggressive investment approach in the early years, focusing on growth-oriented assets like stocks, gradually shifting towards a more conservative allocation by increasing exposure to fixed-income securities as retirement nears. These funds aim to provide a balance between capital appreciation and risk management, seeking to grow wealth steadily while safeguarding it from market volatility closer to retirement. Retirement Funds offer convenience and a structured approach to retirement planning, making them an appealing choice for individuals aiming to build a retirement corpus and secure their financial future.

Sectoral: Foreign Equity Funds

Sectoral Foreign Equity Funds constitute a specialized category of mutual funds focusing on specific sectors or industries in international markets. These funds invest in foreign equities within a particular sector, such as technology, healthcare, or energy, offering investors exposure to global industries. The primary objective is to capitalize on the growth potential of a specific sector in international markets. Sectoral Foreign Equity Funds allow investors to diversify their portfolios geographically and across industries, potentially benefiting from growth opportunities and innovations in specific sectors worldwide. However, investing in these funds involves higher sector-specific risks due to concentration in a particular industry and exposure to international market fluctuations. Investors with a thorough understanding of the targeted sector and a higher risk appetite may consider Sectoral Foreign Equity Funds as a means to diversify their portfolio and seek potential growth opportunities in specific global industries.

Money Market Fund

Money Market Funds represent a category of mutual funds that invest in short-term, low-risk debt securities, aiming to provide investors with stable returns and high liquidity. These funds primarily allocate investments in instruments such as Treasury bills, certificates of deposit, commercial papers, and short-term debt securities issued by government entities or highly-rated corporations. Money Market Funds are known for their capital preservation and stability due to the relatively low-risk nature of the underlying assets. They offer investors a safe parking place for their surplus cash, providing a viable alternative to traditional savings accounts. These funds aim to maintain a stable Net Asset Value (NAV) of 1 unit per share, minimizing fluctuations in the principal investment amount. Money Market Funds are suitable for investors seeking short-term investment options with low volatility and easy access to funds, making them a preferred choice for parking idle cash and meeting short-term liquidity needs with stability.

Ultra Short Duration Fund

Ultra Short Duration Funds are a distinct category of mutual funds designed for investors seeking a middle ground between low-risk and relatively higher returns compared to traditional debt funds. These funds predominantly invest in debt and money market instruments with short-term maturities, typically ranging from 3 months to 1 year. Ultra Short Duration Funds aim to provide slightly higher returns than liquid funds or money market funds while maintaining a focus on capital preservation and liquidity. They offer a balance between stability and income generation, making them suitable for investors with a short-term investment horizon and a moderate risk appetite. These funds mitigate interest rate risks by keeping their portfolio duration shorter, providing a cushion against fluctuations in interest rates. Ultra Short Duration Funds are an ideal choice for investors looking to park surplus funds for a short duration with the objective of generating relatively better returns than traditional low-risk debt options while maintaining liquidity and minimizing interest rate risks.

Arbitrage Fund

Arbitrage Funds represent a unique category of mutual funds that leverage the price differential between cash and derivative markets to generate returns. These funds capitalize on the price inefficiencies that exist temporarily between the cash and futures segments of the stock market. Arbitrage Funds execute simultaneous buy-and-sell transactions of the same securities across these markets to benefit from the price differential. The strategy involves buying stocks in the cash market while simultaneously selling equivalent futures contracts of the same stocks. This approach aims to generate returns by exploiting the price differential between the two markets without taking significant directional market exposure. Arbitrage Funds offer relatively lower risk as they seek to lock in profits from market inefficiencies rather than relying on market movements. Investors seeking potential returns with lower volatility and tax efficiency might consider Arbitrage Funds as part of their portfolio due to their ability to generate consistent returns irrespective of market fluctuations.

* Data updated as on Dec 2023

DISCLAIMER

This presentation is for information purposes only and does not represent any financial, legal or other advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instruments including stocks or Mutual funds. The information contained in this presentation is general in nature. The data is collected from various sources like print media, electronic media and social media.

Before making any investment, please consider carefully all risks prior to investing in any security of financial instrument and consult an independent financial advisor with regard to any envisaged investment in stocks.

Investment in mutual funds are subject to market risks, read all scheme related documents carefully before investing. The past performance of the markets is not necessarily indicative of future performance.

We do not intend to hurt sentiments of any community, sect, religion, political party or individual. We stand neutral on all aspects.