Mutual Funds
A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature.
Mutual funds have advantages and disadvantages compared to direct investing in individual securities. The primary advantages of mutual funds are that they provide economies of scale, a higher level of diversification, they provide liquidity, and they are managed by professional investors. On the negative side, investors in a mutual fund must pay various fees and expenses.
Primary structures of mutual funds include open-end funds, unit investment trusts, and closed-end funds.
Advantages of Mutual Funds
1. Economies of Scale: By pooling resources, mutual funds achieve cost efficiencies, enabling you to access premium investment opportunities at a fraction of the cost.
2. Diversification: Spread your risk across a wide array of assets, mitigating the impact of market volatility and maximizing long-term returns.
3. Liquidity: Enjoy the flexibility to buy and sell your mutual fund holdings at any time, providing instant access to your invested capital.
4. Professional Management: Rest assured knowing your investments are in the hands of skilled fund managers who conduct rigorous research and analysis to optimize returns.
EQUITY FUND
A private equity fund is a collective investment scheme used for making investments in various equity securities according to one of the investment strategies associated with private equity.
ELSS FUND
Many mutual fund investors are hunting for the best Equity Linked Saving Scheme or ELSSs to save taxes under Section 80C of the Income Tax Act.
DEBT FUND
A debt fund is an investment pool, such as a mutual fund or exchange-traded fund, in which the core holdings comprise fixed income investments.
LARGE CAP FUND
These mutual funds select stocks for investment from the largest 100 stocks listed in the Indian markets (highest market capitalization).
MID CAP FUND
Mid cap mutual funds select stocks from companies that are neither the largest (the top 250 by market capitalization) nor the smallest.
SMALL CAP FUND
These mutual funds select stocks for investment from the small cap category, which includes all stocks except largest 250 stocks (by market capitalization).
BALANCED FUND
A balanced fund is a mutual fund that contains a stock component, a bond component and sometimes a money market component in a single portfolio.
Investing in mutual funds through a Systematic Investment Plan (SIP) is one of the most popular and effective ways to achieve your financial goals. At masterSchetan, we believe in the power of SIPs to help you grow your wealth steadily and achieve your long-term financial objectives.
What is SIP?
A Systematic Investment Plan (SIP) is a disciplined approach to investing in mutual funds. Instead of making a lump sum investment, SIP allows you to invest a fixed amount regularly, typically monthly or quarterly, in a mutual fund scheme of your choice. This approach offers several benefits:
- Rupee Cost Averaging: SIP allows you to buy more units when prices are low and fewer units when prices are high, effectively averaging out the cost of your investments over time.
- Power of Compounding: By investing regularly over the long term, you can benefit from the power of compounding, where your returns generate additional returns, leading to exponential growth of your investment.
- Disciplined Investing: SIP instills discipline in your investment approach, helping you stay invested through market fluctuations and avoid the temptation to time the market.
Why Choose SIP for Mutual Funds?
- Accessibility: SIPs are accessible to investors with varying budgets, allowing you to start investing with as little as ₹500 or even less, depending on the mutual fund scheme.
- Flexibility: You can choose the SIP amount, frequency, and duration based on your financial goals, risk tolerance, and investment horizon.
- Diversification: Mutual funds offer diversification by investing in a portfolio of stocks, bonds, or other securities, reducing the risk associated with investing in individual securities.
- Professional Management: Mutual funds are managed by experienced fund managers who make investment decisions on your behalf, based on thorough research and analysis.
Our Services
- Comprehensive Guidance: Our team of experienced financial advisors will help you understand the benefits of SIPs, assess your financial goals and risk profile, and recommend suitable mutual fund schemes to achieve your objectives.
- Regular Monitoring: We provide regular updates on your SIP investments, helping you track the performance of your portfolio and make informed decisions as needed.
- Continuous Support: Whether you’re a new investor or have been investing for years, we’re here to provide ongoing support and guidance to ensure you stay on track towards your financial goals.
Get Started Today
Start your journey towards financial freedom with SIP for mutual funds. Contact us today to learn more about the benefits of SIP investing and how we can help you create a customized investment plan to your needs and aspirations.
Capital Market
A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments.
Capital markets are composed of primary and secondary markets. The most common capital markets are the stock market and the bond market.
Capital markets seek to improve transactional efficiencies. These markets bring those who hold capital and those seeking capital together and provide a place where entities can exchange securities.
Functions of Capital Markets:
At its core, capital markets serve two primary functions:
Allocation of Capital:
Capital markets act as intermediaries, connecting savers—individuals, institutions, and governments—with entities requiring funds for long-term productive ventures, such as corporations and governments undertaking infrastructure projects. Through the issuance and trading of securities like stocks and bonds, capital is allocated to its most efficient and productive uses.
Enhancing Transactional Efficiency:
By providing a platform for the exchange of securities, capital markets enhance liquidity and price discovery, thereby improving transactional efficiencies. Investors can buy and sell financial instruments with relative ease, fostering a more transparent and dynamic marketplace.
Components of Capital Markets:
Capital markets consist of two primary segments:
- Primary Market: The primary market is where newly issued securities are bought and sold for the first time. This is where corporations and governments raise capital by issuing stocks or bonds to investors. Investment banks and underwriters play a crucial role in facilitating these initial offerings, ensuring compliance with regulatory requirements and determining the offering price.
- Secondary Market: Once securities are issued in the primary market, they are subsequently traded in the secondary market among investors. Here, buyers and sellers engage in transactions without the involvement of the issuing entity. The secondary market provides liquidity to investors, allowing them to buy or sell securities at prevailing market prices.
Types of Capital Markets:
While capital markets encompass various financial instruments, the two most common types are:
- Stock Market: Also known as the equity market, the stock market is where shares of publicly traded companies are bought and sold. Investors purchase ownership stakes in companies, entitling them to a share of profits and voting rights in corporate decisions.
- Bond Market: The bond market, on the other hand, facilitates the trading of debt securities issued by corporations, governments, and municipalities. Bonds represent loans made by investors to issuers, who promise to repay the principal amount along with periodic interest payments.
Significance of Capital Markets:
Capital markets play a vital role in driving economic growth and development by:
- Facilitating investment in productive ventures, thereby stimulating innovation and economic activity.
- Providing avenues for risk diversification and wealth accumulation for investors.
- Allowing corporations and governments to raise capital for long-term projects, such as infrastructure development and research initiatives.
- Enhancing financial stability by allocating resources efficiently and promoting market liquidity.
In summary, capital markets serve as the lifeblood of economies, connecting savers with entities in need of capital while fostering economic growth and development. By providing platforms for the issuance and trading of securities, capital markets facilitate efficient resource allocation and contribute to the overall vibrancy of the financial system. Understanding the dynamics of capital markets is essential for investors, policymakers, and businesses alike, as they navigate the complexities of modern finance and strive for long-term prosperity.