1) Creating A Budget And Understanding Your Goals

Jumpstart your mutual fund investment process by creating a budget and understanding your goals. Your goals could be like (1) fund for retirement (2) fund for children higher education, and (3) fund for children marriage.

mutual fund investment companies offer different types of products tailored for different needs – like Debt Funds, Equity Funds, Fixed Maturity Funds (FMPs), Growth Funds, Hybrid Funds, Income Funds, Liquid Funds, Pension Funds, Tax-Saving Funds (ELSS); so it is important to research each of these types of funds carefully, and you come to know that which would be great fit for you.

2) How Much You Want To Save

The next step is to consider how much money you want to save over a period of time and the frequency with which you would like to make deposits. Starting a systemic investment plan (SIP) for each of the above mentioned goals would be a great idea. One can start with as little as INR 1000 per month and then increase SIP amount every passing year.

Doing so will help you determine how often a mutual fund should be rebalanced, and ultimately helps maximize returns over time.

3) Evaluating Mutual Funds

Define what factors are most important to you when evaluating mutual funds. CertainFunds may emphasize certain areas like stocks or bonds, so it’s important to understand what those priorities are before investing.

4) Be Mindful Of Fees And Expenses

Be mindful of fees and expenses when making your investment decision.

Some tracking website tools will show all fees associated with a particular mutual fund, while others only show typical fees such as purchase/redemption fees and loads (a fee charged when you buy a mutual fund). Being aware of all possible costs can help keep costs down in the long run.

5) Do Your Homework

Take the time needed to do your homework on each fund before investing, as there are many variables involved in selecting the right one for you. By doing your own research, you can make an informed choice about which funds would be adding value to your portfolio over time.

6) Ideal Investment Plan

Finally, remember that no one “ideal” investment plan exists – everyone’s situation is unique, so assessing whether taking on mutual fund risk is appropriate for you may take some time and effort up front.

But by following these simple mutual fund investment tips, setting realistic deadlines, and conducting periodic reviews of your portfolio, you’ll be on your way to building a successful mutual fund portfolio!

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

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These two words sound fabulous when we hear them from someone as it gives us the feeling of having a lot of money and of course retiring early and not working unless we want to work.

Enjoying financial freedom is very much possible if we thoroughly follow a perfect set of rules in our life. Continue reading.…

What is Financial Freedom?

To put it in a simple way “Financial Freedom or Financial Independence is the prestige of having plenty of wealth or plenty of money sufficient to pay one’s living or day-to-day expenses for the rest of one’s life without depending on others”

Now the question arises ‘how to achieve financial freedom’

Here are 5 such tips that will help generate huge wealth…

Create A Budget

The very first step to financial freedom is to create a budget.

A budget helps you stay focused on what’s really important and gives you a clear picture of where your money goes.

You should set aside time each month to review your spending habits and make adjustments if necessary.

Pay Off Debt

Once you have created a budget, you need to pay off any debts you have.

If you don’t have any debt, great!

But if you do, start paying off the smallest balances first. Once you have paid off a certain amount, move on to the next smallest balance until you have paid off all of your debt.

Make Saving a Habit

You should be saving at least 10% of your income each month.

When you save money, you are investing in yourself and building wealth. Plus, having extra money means you won’t have to rely on credit cards.

Invest Wisely

Investing doesn’t mean just putting money into stocks. There are many different types of investments out there like Mutual Funds, Government schemes, etc…

You may also like to read MUTUAL FUNDS INVESTING: 4 TIPS CAN MAKE YOU MILLIONAIRE

You must decide whether you want ‘short-term gains’ or ‘long-term growth’. Do you want to diversify or focus on specific sectors?

To invest wisely, consider how long you want your money to work for you. You can take the help of a certified planner as well.

Live Below Your Means

‘Living below your means’ means not buying anything unless you absolutely need it. It’s okay to enjoy life and buy things you want now and then, but try not to go overboard.

Happy Independence Day

Also Read

SYSTEMATIC INVESTMENT PLAN: HOW ADVANTAGEOUS IT IS FOR THE INVESTORS

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post Financial Freedom: 5 Tips to follow this Independence Day appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

UTI AMC: Company Profile & Business

Incorporated in the year 2002, UTI AMC is in the business of managing the domestic mutual funds of the UTI Mutual Fund.

The company provides portfolio management services (PMS) to institutional clients and high net worth individuals (HNIs) like Postal Life Insurance, National Skill Development Fund, Employee Provident Fund Organisation, and manages retirement funds, offshore funds, and alternative investment funds.

UTI Asset Management Company and its predecessor (Unit Trust of India) have been active in the asset management industry for more than 55 years, having established the first mutual fund in India.

UTI AMC: Sponsors

The sponsors of the company are the State Bank of India (SBI), Life Insurance Corporation of India (LIC), Punjab National Bank (PNB), and Bank of Baroda (BOB).

UTI AMC: Network

The Company’s distribution network includes the following as of September 30, 2019.

• 163 UTI Financial Centres (UFCs),
• 273 Business Development Associates (BDAs)
• Chief Agents (CAs) (46 of whom operate Official Points of Acceptance (OPAs)
• 33 other OPAs

The company also has approximately 51,000 Independent Financial Advisors (IFA).

UTI AMC: Portfolio

UTI Asset Management Company manages 178 domestic mutual fund schemes, comprising equity, hybrid, income, liquid, and money market funds as of September 30, 2019.

UTI AMC: Strengths

• Well-positioned to capitalise on favourable industry dynamics, including the under penetration of mutual fund products
• A pure-play independent asset manager with strong brand recognition and a diverse portfolio of funds and services
• Multiple distribution channels with wide reach and broad and stable client base
• Long-term track record of product innovation, consistent and stable investment performance, and AUM growth
• Established position in retirement solutions through product innovation and large retirement fund mandates
• Experienced management and investment teams supported by a strong governance structures and human resources programs
• Enhanced profitability “driven by the size and product mix”

Company Promoters

UTI AMC is a professionally managed company and does not have an identifiable promoter in terms of SEBI.

IPO Opening / Closing Date

IPO Details – Price, Minimum Bid and Other

Financial Performance

CONCLUSION

Considering company’s valuation and financial parameters, FinBlab recommends NEUTRAL ratings on UTI AMC IPO

Must Read

Value Pick Stock of the Month: Galaxy Surfactants Limited

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post UTI AMC IPO – Review appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

Reacting To Short-Term Returns –

Towards the end of the financial year or at the beginning of the New Year, investors tend to churn their mutual fund What they generally do is – sell the fund with the negative one year returns and buy the one with the latest best returns. Though it makes them feel better, what they won’t see is that they are selling low and buying high. It is better to buy or hold funds with lagging short-term returns / performance than those with top-quartile returns.

Accumulating Too Many Niche Funds –

Specialist funds, thematic funds or niche funds are exciting to buy, but they will damage your portfolio if you let them go. Thematic funds add extra volatility and make it difficult for you to manage your mutual funds portfolio. Be sure to diversify between market caps, equity and debt, and maybe even some amount of foreign exposure.

Making Things Complex –

The financial industry works day and night to sell the message that investing is complicated, messy stuff that you couldn’t possibly undertake on your own. Actually, buying and holding a portfolio composed of plain-vanilla funds (diversified fund) is more than adequate to reach your financial goals. That’s also the kind of portfolio that you can easily manage yourself.

Failing To Rebalance Portfolio –

When the markets really move, your portfolio can go off-kilter and mess up your nicely laid plan. Rebalance yearly so that you’ll be buying low and selling high.

Failing To Factor Taxes Into Portfolio Decisions –

Taxes play a vital role in your long-term success. But don’t buy ELSS (equity linked savings scheme) funds in a last minute to save taxes. Tax planning must be an integral part of your portfolio planning, so ensure that you sell your units in a way to minimize or avoid tax.

Worrying About Daily Ups And Downs –

Don’t get stressed tracking the market on the web or watching business TV channels. Those activities are informative and exciting but not always helpful if you are long-term investors. All those ups and downs in the markets have no bearing on your long-term financial goals. Warren Buffett, top investor on the earth, advocates buying stocks only you wouldn’t care if the stock market took a two-year holiday. The same applies to mutual funds as well. Buy them and tune out the noise.

The post 6 Mistakes to Avoid When Building Mutual Fund Portfolio appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

Whether it is active investors or passive investors – the security of money, they have invested, is very important to both of them. Snazzy equity market hardly appeals to all, because of its inherent high risk. On the other hand, investing in mutual funds can be a safe option to invest your hard earned money, that too with a satisfactory return. THERE ARE MUTUAL FUNDS THAT HAVE GIVEN OVER 20% ANNUALIZED RETURN IN THE LAST 10 YEARS – SIMPLY DOUBLE YOUR MONEY IN 5 YEARS! IMPRESSIVE – RIGHT!

After reading this you probably start thinking how to find mutual fund schemes that can double your money much faster than other available alternatives. Let me tell you that (1) Past performance, (2) volatility measure, (3) expense ratio, (4) track record of the portfolio manager, and (5) risk-adjusted return, etc. are but some of the primary things to consider before selecting a mutual fund. Let’s check then one by one in order to help you select a top performing mutual fund scheme.

• The Pedigree Of The Fund House – Subscribe to a mutual fund scheme launched by the fund houses that have a sustainable business model and a strong presence in the market. The reason behind doing is that their investment decision, risk measure, building portfolio, and operational efficiency significantly influence the long run growth prospect of a mutual fund scheme.

• Risk-Return Trade-Off – Every investment has some degree of inherent risk. A scheme is not an exception either; ideally, the return should justify the risk taken. A good investment option is the one that has a higher yield than other investment options with the same risk profile. Risk-adjusted return is the best measure of judging the performance. One may use Sharpe ratio to find out an extra return that a scheme generates for each unit of risk taken. The return of a fund is generally compared against the risk-free return e.g. returns from bank term deposit, government bonds, etc.

• Diversification – Well-diversified mutual fund portfolio schemes have a lower risk and thus they manage to produce a steady return over the long haul. Diversification is generally done on the basis of (1) asset class, (2) the risk profile of asset, (3) types of stocks, (4) geographies, etc. Before investing in any particular scheme, one must cross check the portfolio history of a scheme.

• Expense Ratio – Expense ratio refers to the annual expenses incurred by the mutual fund scheme as a percentage of its total asset holding. In the long haul, the schemes having a lower expense ratio are more likely to grow and outperform others with a higher expense ratio. Schemes with low expense ratio have more funds to invest in assets. By and large, the expense ratio of various schemes ranges from 2% to 2.25%.

Before picking top-performing mutual funds, one should gather all sorts of data and information about these four vital parameters to analyze the performance, and then choose the best fund to invest.

The post 4 Vital Tips to Help You Find Top Performing Mutual Funds appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

Reliance Nippon Life Asset Management – Company Profile

• Incorporated in the year 1995, Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset Management Limited) is Mumbai, India based Asset Management Company.
• The Company has a market share of over 11.4% in mutual funds offerings in India.

Working Area

• The company started its mutual fund operations in 1995 as the asset manager for Reliance Mutual Fund and manages 55 open-ended mutual fund schemes including 16 ETFs and 174 closed-ended schemes for Reliance Mutual Fund as of June 30, 2017.
• As part of its managed accounts business, the company provides portfolio management services (PMS) to high net worth individuals (HNI) and institutional investors including the Coal Mines Provident Fund Organisation (CMPFO) and Employees’ Provident Fund Organisation (EPFO)
• The company’s subsidiary, Reliance AIF Management Company Limited manages 2 alternative investment funds, which are privately pooled investment vehicles registered with SEBI.
• The company has also received a certificate of commencement of business as a pension fund manager from the Pension Fund Regulatory and Development Authority (PFRDA) in 2009 and manages pension assets under the National Pension System (NPS).
• Reliance Nippon Life Asset Management is currently managing AUM (Assets Under Management) of 2,31,425 crores (July 20 17 – September 2017 Quarter) and 73.1 5 lakhs folios (as on 30th September 2017 )

Company Ranking

The company ranked 3rd largest asset management company, in terms of mutual fund quarterly average Assets Under Management (QAAUM) with a market share of 11.4%, as of June 30, 2017, according to ICRA. For the financial year 2016, it was ranked the second most profitable asset management company in India, according to ICRA.

Company Network – Branches & Distributors

The company has a network of 171 branches and approximately 58,000 distributors including banks, financial institutions, national distributors and independent financial advisors, as of June 30, 2017.

Company Promoters

• Reliance Capital Limited
• Nippon Life Insurance Company

IPO Opening / Closing Dates & Listing

IPO Details – Issue Price, Minimum Bid and Other

Financial Performance

Revenues

The Company shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 712.67 crore in FY 2013 to INR 1400.44 crore for the period ended FY 2017.

Profits

Though the company has shown superb growth in revenue, the company has also registered impressive profits in these 5 years. Starting from INR 198.96 crore of profits in FY2013, the company’s earnings improved to INR 405.57 crore for the period ended FY 2017.

CONCLUSION –

Considering company’s valuation and financial parameters, FinBlab recommends NEUTRAL ratings on Reliance Nippon Life Asset Management IPO for the time being.

FinBlab Performance on last 5 IPO Recommendation

IPO Section link – finblab.com/category/ipo

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post Reliance Nippon Life Asset Management IPO – Company Profile, IPO Date, Price Band, Analysis appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

Everyone is aware that only money has the power of creating monies. Hence, the savings that we owe are the sources of reaching the financial goals and SIP – Systematic Investment Plan is the route for the same.

What is SIP – Systematic Investment Plan?

SIP stands for the Systematic Investment Plan, is a smart way of investing in the Mutual Fund. With systematic investment plans, the investor gets a chance to purchase units as per the decided date that is given every month so as to go ahead with a certain investment plan.

SIP – Advantages to the Investors

• Investor Can Start With A Small Amount: One can start putting his/her money into Mutual Funds with just INR 1000, via SIP, which does not cause huge burden.
• Periodic Remittance: As per the nature of SIP and its functioning, it requires the amount to be payable on a periodic basis say monthly and thus, helps the investor to plan his/her monthly expenditure.
• Auto Debit Facility: Once the investor is enrolled with the AMC (Asset Management Company) to invest in the SIP, he/she associates his/her bank account with the same and the amount of investment is debited from there accordingly, in a hassle-free manner.
• The Power of Compounding: When we make an investment, we receive the interest on the invested amount on some specific rate. It may be either (1) a simple interest rate or (2) a compound interest rate. In Systematic Investment Plan, investors fetch the return on the compound basis. For example, you invest INR 10000 @ 10% simple interest for 5 years. At the maturity date, you will receive an amount equal to INR 15000 (10000 Invested amount + 5000 Interest). While, in the case of compounded interest rate, the maturity amount will be INR 16105 (10000 Invested amount + 6105 Interest). Accordingly, Systematic Investment Plan is more beneficial to the investor.
• Rupee-Cost Averaging: Every scheme under the Systematic Investment Plan has a NAV (Net Asset Value), which is basically the unit price of that scheme, on the basis of which the units are allotted to the investor. Lower NAV means more units and vice versa. As the NAV of the scheme changing on a daily basis, every time the money of the investor is put into the plan, he/she gets a different number of units every time. Thus, the average cost of investment reduces. Hence, the investment in SIP is low-cost in comparison with others.

SIP – Also Provides the Following Benefits

• Convenience
• Diversification
• Flexibility
• Tax Savings
• Wide Selection

How SIP Benefit As Compared To One Time Lump-Sum Investment

• Let’s take an example of 6 months SIP investment only. Investor one invests INR 6,000 in a single/lump-sum investment at NAV value of 10 (600 Units), while investor two invests in SIP of INR 1,000 every month, where he gets a different value of NAV (such as 10, 11, 9, 8, 8, 11) every month. So the investor two will get average NAV (10 + 11 + 9 + 8 + 8 + 11)/6 = 9.5 (631.579 Units).
• Now at the end of the six months, both investors redeem their money at NAV of 11. In this case, Investor one will get INR 6600, while investor two will get 6947 (347 more than investor one).

Above example is only for 6 months SIP investment, while for a longer period of investment says 15 or 20 years, the return will be huge as compared to the lump sum investment. This is the power of SIP.

If you are really interested into investments via Mutual Funds you can think about systematic investment plans. With such an investment you can manage your investment amount rather than be caught up with the ups and downs in the markets.

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

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