Novelty Wealth Founders (L–R): Sajal Gupta (CTO), Naveen Changoiwala (CEO), and Apurva Agarwal (CPGO), leading the company’s technology, strategy, and product vision respectively

The funding comes at a pivotal moment as India undergoes a structural shift toward digital, data-driven investment advisory driven by rising retail participation, increased financialisation of savings, and growing demand for transparent, unbiased financial guidance.

Early Traction Highlights

• 30,000+ app downloads since launch

• Strong engagement with NovaAI, validating demand for AI-driven financial guidance

• Early Pro membership adoption trends among users seeking deeper portfolio & Mutual Fund advisory

• Increasing usage of family dashboards and goal-based planning tools

The Problem: A Fragmented Financial Landscape

Despite record retail participation in India's capital markets, most investors still lack a unified, actionable view of their financial lives. Investments are scattered across banks, brokerages, and mutual fund platforms - making it difficult to understand true net worth, portfolio performance, risk exposure, and tax implications.

At the same time, affluent Indians are largely served by commission-driven products, creating structural misalignment between agent incentives and investor interests.

The result: gaps in transparency, trust, and long-term decision-making quality, leaving investors to navigate growing complexity without structured, unbiased guidance.

The Solution: A Purpose-Trained AI Wealth Intelligence Platform

Novelty Wealth is building purpose-trained AI wealth intelligence platform that aggregates financial data across accounts and transforms it into structured, actionable insights. Rather than functioning as a simple tracking or transaction tool, it is designed as a decision-making layer for personal finance.

Beyond portfolio tracking, the platform enables investors to:

• Access purpose-trained AI financial insights via NovaAI - your private wealth advisor, delivering real-time, unbiased guidance, and 24×7 clarity to help you make smarter, more confident financial decisions

• Connect banks, brokerages, and investment accounts automatically through seamless data aggregation

• Evaluate portfolio performance, risk, diversification, and concentration exposure

• Manage finances across entire families from one interface

• Identify tax-efficient opportunities and optimise investment decisions

• Align financial decisions with long-term goals such as retirement, home ownership, or education

​

Novelty Wealth operates on a zero-commission, fee-only advisory model and is a SEBI-RIA licensed, ensuring regulatory alignment, transparency, and recommendations that are always aligned with investor interests.

Founder's Perspective

“Our vision is to make wealth advisory accessible and affordable for every Indian investor. In today’s time, investors juggle across multiple apps and get fragmented information and biased advice. We built Novelty Wealth to solve that problem by giving people a unified financial view and a purpose-trained AI assistant that helps them make smarter decisions with complete transparency. We are seeing a clear shift toward data-driven financial decision-making. Today’s investors don’t just need access to financial products, they need clarity and control,” said Naveen Changoiwala, CEO & Co-founder, Novelty Wealth

Investor Perspective

"We’ve always known AI could transform personal finance, but building the right product requires a tough mix of tech skills, regulatory knowledge, and a deep understanding of what users actually need, i.e., something that works in the background. When we met the founders, we knew they had what it takes to get this right," said Anand Lunia, Founding Partner, IndiaQuotient

Market Opportunity

India's wealth management industry is undergoing a structural transformation, driven by rising disposable incomes, increased retail participation in equities and mutual funds, and a broad shift toward digital-first financial behaviour. However, the ecosystem remains highly fragmented, with limited integration between tracking, advisory, and decision-making tools.

This creates a large, underserved opportunity for platforms that can unify data, provide actionable intelligence, and deliver regulated, unbiased advice at scale. Novelty Wealth is positioned at the intersection of these structural shifts, building a purpose-trained AI financial intelligence layer for the next generation of Indian investors.

Founding Team

Novelty Wealth was founded by a team with deep experience across financial services, technology, and product innovation:

• Naveen Changoiwala (CEO & Co-founder) leads the company vision, strategy, and growth

• Sajal Gupta (CTO & Co-founder) leads technology architecture and platform engineering

• Apurva Agarwal (CPGO & Co-founder) leads product, user experience, growth, and distribution

About Novelty Wealth

Novelty Wealth is a SEBI-RIA licensed firm that has developed a purpose-trained AI wealth intelligence platform for Indian investors. The platform offers a unified view of financial assets and liabilities, backed by purpose-trained AI insights, portfolio analytics, tax optimisation, and goal-based financial planning, all within a zero-commission advisory model.

Novelty Wealth is committed to delivering transparent, unbiased, and data-driven financial guidance, enabling investors to make informed, long-term decisions with confidence.

Website: www.noveltywealth.in.

India’s first platform to offer intelligence-led access to Specialized Investment Funds (SIFs)

With this launch, ET Money extends its long-standing mission of simplifying long-term investing by expanding beyond Mutual Funds. It reinforces their effort to offer access to more advanced, professionally managed investment strategies, while ensuring product suitability, decision clarity and investment confidence.

Why SIFs are for you

Specialized Investment Funds were introduced by SEBI to address a growing gap in the Indian investment landscape. It sits between traditional Mutual Funds and Portfolio Management Services (PMS).

As Indian investors mature, many seek strategies that go beyond simple equity or hybrid allocations. They want:

• Better downside management

• Consistent outcomes across market cycles

• Greater flexibility in deploying larger capital allocations

SIFs are designed with an aim to fill this gap by allowing fund managers to use advanced strategies, including derivatives, long-short positioning, and tactical hedging. All of this within the regulated, tax-efficient Mutual Fund structure.

The Intelligence Layer: Making SIFs Investable

While SIFs unlock powerful possibilities, they are also inherently more complex than traditional Mutual Funds. Funds within the same category can have very different objectives, risk profiles, and outcomes, making evaluation difficult for individual investors.

This is where ET Money’s intelligence-led approach comes in.

Rather than presenting SIFs as a list of products, ET Money decodes them based on their intended role in an investor’s portfolio:

• Stable, tax-efficient return strategies

• Consistent return strategies with controlled risk

• Equity-like growth with lower volatility

By translating technical fund structures into clear use cases and expected outcomes, ET Money enables investors to choose SIFs based on purpose, risk appetite, and investment horizon instead of jargon.

ET Money - A Home for SIF and Big Investments

For years, ET Money has been a preferred platform for long-term retail investing. With SIFs requiring a Rs. 10 lakh minimum investment, the platform now naturally extends into serving investors’ larger capital allocations.

“As our investors’ wealth grows, their needs evolve beyond traditional Mutual Funds,” said Mukesh Kalra, Founder & CEO, ET Money. “SIFs represent the next step for affluent Indian investors who want a better balance of returns and risk management. But access alone isn’t enough. What investors really need is clarity. By adding a strong intelligence layer on top of SIFs and decoding their purpose in one’s portfolio, we are helping investors deploy larger sums with confidence and precision. We’re not just offering a new product. We’re providing a clearer roadmap for long-term wealth.”

Flexible Access, Investor’s Choice

All SIFs available on ET Money can be accessed through the investor’s preferred engagement model. Investors may choose between:

• Advisory-based access

• Distribution-based access

This ensures flexibility, transparency, and alignment with individual preferences.

About ET Money
ET Money, a 360 ONE company, is India’s leading full-stack wealth platform, helping Indians invest with clarity and confidence.

It brings the most important, retail-friendly investment products together in one place. From mutual funds and SIFs to fixed deposits, bonds, insurance and pension solutions, ET Money curates investment-worthy choices and makes them accessible through seamless, paperless digital journeys.

The platform leverages technology and thoughtful design to enhance decision-making with research-driven insights, personalised recommendations and active portfolio supervision. Its suite of investment intelligence includes the ET Money Fund Report Card, Fund Verdicts, Portfolio Health Check and Multi-Asset Allocation Strategies.

ET Money envisions a future where every Indian investor gets unmatched support across every stage of their wealth-building journey — enabling disciplined, long-term investing with exceptional ease, clarity, and confidence.

Disclaimers

Investments in Specialized Investment Fund involve relatively higher risk, including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy-related documents carefully before making the investment decision.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Banayantree Services Limited, ARN: 112749, AMFI Registered Mutual Fund Distributor & SIF Distributor, SEBI Registered Non-Individual Investment Advisers, RIA No. INA100006898, Validity January 09, 2017 – Perpetual, BSE Enlistment No. 2369, PFRDA Registered PoP Regn No: 283072019, IRDAI Corporate Agency (Composite) Registration No.- CA0680

Corporate Office: Times Internet Limited Ecstasy IT Park, Plot 391, Udyog Vihar, Phase 3, Gurgaon, Haryana-122016

Registered Address: Express Building, 9-10, Bahadurshah Zafar Marg, New Delhi –110002.

Breaking down basic returns through simple interest calculator

What simple interest means in financial terms

Simple interest refers to interest calculated only on the initial amount invested, also known as the principal. Unlike compounding, the interest earned does not get added back to the principal for future calculations. As a result, the growth pattern remains linear over time.

This method of calculation is often used for short-term instruments or illustrative purposes. It is not designed to reflect how most market-linked investments function, but it may help explain basic return mechanics.

How a simple interest calculator works

A simple interest calculator typically uses three inputs: the principal amount, the rate of interest, and the time. Based on these inputs, it shows the total interest earned and the final value at the end of the chosen period.

The calculator is an aid, not a prediction tool. It may provide only an indicative picture.

Using a simple interest calculator may help you visualise how time and rate influence returns under a fixed structure. However, real-world investments often behave differently due to market-linked factors.

Where simple interest calculations are commonly used

Simple interest calculations are generally applied in situations where returns are predefined and time horizons are short. These may include certain deposits or lending arrangements, depending on terms and conditions.

In mutual fund investing, simple interest is not the method used to compute returns. Still, understanding it may provide a baseline for comparing how different return structures work conceptually.

Understanding limitations of simple interest models

One key limitation of simple interest is that it does not account for reinvestment of earnings. As a result, it may understate potential outcomes when compared with compounding-based approaches over longer durations.

A simple interest calculator also assumes stability in rate and tenure. Markets, however, move through cycles, and investment values may fluctuate accordingly. Treating calculator outputs as learning tools rather than decision inputs may help maintain realistic expectations.

The calculator is an aid, not a prediction tool. It may provide only an indicative picture.

Using calculators as part of early-stage planning

Calculators are often used to bring structure to financial thinking. They help convert abstract ideas into numbers that are easier to interpret. A simple interest calculator may be particularly useful at an early stage, when the objective is to understand how returns are computed mathematically.

That said, calculators do not capture factors such as volatility, taxation, or changes in economic conditions. These elements may materially influence actual outcomes.

Comparing basic and market-linked return views

As investors move beyond basic concepts, they may explore tools that reflect market-linked behaviour more closely. While simple interest offers clarity, it does not mirror how mutual fund returns are generated.

At this stage, some investors refer to an investment return calculator to understand how different assumptions around time, contribution levels, and expected rates interact mathematically.
The calculator is an aid, not a prediction tool. It may provide only an indicative picture.

Using an investment return calculator alongside a simple interest calculator may help highlight the difference between linear and variable return structures, without implying certainty.

Conclusion

A simple interest calculator may serve as a foundational tool for understanding how basic return calculations work. While it does not reflect the dynamics of market-linked investments, it may help build clarity around interest mechanics and time value. As investment understanding evolves, additional tools and perspectives may be required to account for real-world complexity and uncertainty.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Understanding the role SIP plays in mutual fund investing

This approach may help new investors focus on consistency, review their contributions periodically, and adjust as their goals or circumstances evolve.

Understanding how an SIP works

A mutual fund SIP allows you to invest a chosen amount at set intervals, such as monthly or quarterly. This method spreads your contributions over time, helping you avoid relying solely on one-time investment decisions. You may choose the amount and frequency based on suitability, your investment horizon, and your comfort with market fluctuations.

Starting an SIP is that it encourages systematic investing rather than attempting to time the market. This disciplined approach may help new investors gradually build exposure while aligning with long-term financial objectives.

How an SIP may support regular investing habits

One of the key aspects of a mutual fund SIP is the regularity it brings. By contributing consistently, you may develop habits that encourage long-term planning and sustained participation in the market.

For example, investing Rs. 1,000 every month over several years may demonstrate how steady contributions may grow over time.

This approach may also provide flexibility to adjust contributions when your financial situation changes, helping you stay aligned with your objectives.

*For illustrative purpose only

Benefits of staying invested through an SIP

An SIP in mutual funds may help investors remain invested across different market conditions. Regular contributions mean that your investments may capture market ups and downs over time, potentially reducing the impact of short-term volatility.

By staying invested through an SIP, you may focus more on long-term goals rather than short-term market movements. This structured approach may make it easier to maintain discipline and consistency in investing, especially for those new to the market.

Key factors to consider before starting an SIP

Before starting an SIP, you may consider factors such as your monthly budget, your financial horizon, and the type of exposure you are comfortable with. Assessing these elements may help you select a contribution amount that is suitable and sustainable over time.

You may also review your contributions periodically to ensure they remain in line with your financial situation and goals. The objective is to create a rhythm that supports consistent investing without undue pressure.

Using a mutual fund calculator to plan contributions

A mutual fund calculator may help you estimate potential outcomes based on your chosen contribution, investment period, and expected returns. By experimenting with different scenarios, you may understand how consistent investing may impact your long-term objectives.                                                                                                                                                                                

The calculator is an aid, not a prediction tool. It may provide only an indicative picture.

Conclusion

An SIP provides a structured way for new investors to participate in the market through regular contributions. By helping you build disciplined investing habits, it may support long-term financial planning and gradual wealth creation. Considering factors such as contribution amount, frequency, and your overall financial situation may help you maintain a steady investing approach. Using tools like an SIP calculator online may further support planning and scenario analysis, helping you visualise how consistent contributions may contribute to your financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.

How Bajaj Finserv Small Cap Fund uses volatility as a pathway

Understanding volatility in small caps 

Small cap companies are usually in the early stages of growth and often operate in niche markets. Because of this, their stock prices tend to move more sharply than larger companies.  

When you invest in small caps, think of volatility like waves in the ocean. Each wave can feel disruptive, but if you understand the rhythm, you may be able to identify moments where entering the market could be suitable for your long-term goals. Over time, these short-term corrections may offer chances to invest in businesses with strong fundamentals that are positioned for long-term growth. 

How Bajaj Finserv Small Cap Fund approaches volatility 

The Bajaj Finserv Small Cap Fund seeks to navigate these market shifts with a structured approach. The fund does not react to every movement in the market; instead, it seeks opportunities that align with its investment philosophy. 

The fund’s investment approach combines three key strategies: 

• Growth: Targeting businesses with potential to expand and scale over time, 

• Value: Identifying companies trading below their intrinsic value, and 

• Quality: Focusing on businesses with strong governance and sustainable operations. 

By blending these approaches, the fund aims to maintain a balanced portfolio that may adapt to different market phases. 

Turning ideas into your portfolio 

The fund follows five guiding pillars to select stocks: quality, growth, undervalued opportunities, leadership, and governance. Each potential investment is assessed against these principles. 

From a large universe of small cap stocks, only a carefully selected number make it into the portfolio. This disciplined approach may help ensure that the fund is diversified across sectors while concentrating on businesses with strong potential. 

How Bajaj Finserv Small Cap Fund potentially mitigates risks

Here are some common risks of investing in small caps, and how the fund seeks to mitigate them:

• Information gaps – Small cap companies often have limited analyst coverage, lower disclosures, and poor transparency. To address this, the Bajaj Finserv Small Cap Fund relies on in-depth internal research, direct management interactions, and forensic checks.

• Governance concerns – Risks such as promoter dominance, related-party transactions, and ethical lapses can affect small caps. The fund applies strict governance filters and conducts promoter background checks to mitigate these risks.

• Capital misallocation – Reckless expansion, unrelated diversification, or low-return projects can erode shareholder value. The fund emphasises capital efficiency and looks for businesses with a strong ROCE/ROE track record.

• High leverage – Excessive debt makes companies vulnerable during downturns. The fund prefers businesses with a healthy balance sheet and sound interest coverage ratios.

• Business concentration – Dependence on a single product, client, or geography increases vulnerability. The fund screens for companies with diversified revenue models and sustainable growth drivers.

How SIPs may help navigate ups and downs

If you are concerned about market volatility, a Systematic Investment Plan (SIP) in the Bajaj Finserv Small Cap Fund may be a suitable approach. By investing a fixed amount at regular intervals, you spread your exposure across different market conditions. This approach uses rupee cost averaging, where you buy more units when prices are lower and fewer when prices are higher, potentially reducing the impact of short-term swings. 

Over time, your consistent contributions may help you experience the potential benefits of compounding. An SIP allows you to start small, stay disciplined, and gradually build exposure to small caps without trying to time every market movement. 

The calculator is an aid, not a prediction tool. It may provide only an indicative picture. 

Why consider small cap funds for your long-term goals 

Small caps may offer access to businesses that are growing alongside India’s evolving economy. Investing through a mutual fund provides you with professional research, active monitoring, and portfolio management, which can help you navigate risks while staying aligned with your long-term goals. 

Choosing an SIP in a fund like Bajaj Finserv Small Cap Fund allows you to approach volatility thoughtfully, turning market shifts into potential opportunities rather than challenges. 

Conclusion 

Market volatility may feel uncertain, but it also creates moments that could align with your investment goals. By combining a structured investment philosophy with careful research, the Bajaj Finserv Small Cap Fund seeks to potentially help you navigate these shifts. Through a consistent SIP, you may gradually build exposure to small cap opportunities while staying focused on long-term wealth creation. 

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 

RBI’s latest annual report shows bank frauds jumped nearly threefold to ₹36,014 crore in FY25. Developed to combat evolving and complex frauds in modern payment ecosystems, Trident AI combines machine learning algorithms, behavioral analytics, and real-time decision-making capabilities to deliver unprecedented protection for financial institutions and customers. The solution adopts a three-tier approach encompassing real-time fraud detection, intelligent investigation, and automated response mechanism.

• Merchant Fraud Prevention: Trident AI eliminates illegitimate merchant onboarding through automated website verification and MCC analysis, reducing manual processing time while ensuring compliance. The platform's continuous monitoring capabilities detect real-time risk changes, while its proprietary Merchant Trust Score leverages 70+ parameters to deliver precise reliability assessments for informed decision-making.

• Transaction Fraud Detection: Trident AI delivers sub-100-millisecond transaction evaluation with dynamic risk scoring, enabling real-time blocking of high-risk activities while maintaining seamless processing for legitimate transactions. Advanced fraud ring detection capabilities reduce merchant chargebacks and protect customers, especially in cross-border payment scenarios.

• Customer Fraud Intelligence: Platform’s sophisticated Mule Account Identification and Anomaly Detection modules combat systematic fraud attacks through comprehensive ecosystem analysis. The system detects suspicious user behavior patterns, fraudulent merchant activities, and unusual BIN/bank traffic, effectively mitigating BIN attacks, bot attacks, and identifying coordinated fraud schemes across the payment network.

“With Trident AI platform, we are not just preventing fraud, we are building an adaptive intelligence layer for the payments ecosystem,” said Shailesh Paul, CEO, Wibmo. “Our vision is to empower banks and financial institutions with tools that don’t just react to threats, but anticipate and counter them, enabling digital commerce to thrive with confidence and trust.”

“With the launch of AI-embedded Trident, Wibmo is taking a significant step towards fortifying India’s digital commerce ecosystem, making it safer and more resilient every day”, said Manas Mishra, Chief Product Officer, PayU and Wibmo. “Trident AI has already started demonstrating exceptional results in real-world deployments. A collaboration with PayU achieved 40% enhanced fraud detection precision compared to existing systems. Moreover, during a 10-day evaluation period, the platform successfully identified 2,250 high-risk fraud transactions from over 1.23 million processed transactions.”

Trusted by over 100 banks and fintechs worldwide and evaluating close to 4 billion transactions annually, Wibmo’s flagship Trident FRM solution has set gold standard for next-generation fraud risk management. With the integration of Artificial Intelligence (AI) layer, the platform has transformed into a robust platform against fraud threats.

About PayU

PayU, India's leading diversified fintech platform with Prosus as an investor, operates businesses that are regulated by the Reserve Bank of India and offers advanced solutions to meet the digital financial services needs of customers (merchants, banks, and consumers). PayU provides payment gateway solutions to online businesses through its cutting-edge and award-winning technology and has empowered 4.5 lakhs+ businesses, including India's leading enterprises, e-commerce giants and SMBs. It enables businesses to collect digital payments across 100+ online payment methods such as Credit Cards, Debit Cards, Net Banking, EMIs, pay-later, QR, UPI, Wallets, and more. It's a preferred partner in the affordability ecosystem, offering the maximum coverage of issuers and easy-to-implement integrations across card-based EMIs, pay-later options and new-age cardless EMIs. PayU offers e-commerce brands best-in-industry success rates while ensuring a seamless checkout experience.

Wibmo, a PayU company, is a global full-stack PayTech company and an industry leader in payment security and digital payments in emerging markets. Wibmo provides market leading authentication and risk TSP services to leading banks in India and 30+ countries.

Digital Transformation: Megatrends in technology reshaping lifestyles and businesses

Source: Money in Motion: Navigating India’s Evolving Financial Landscape with WealthTech by EY

Let’s look at how this megatrend is driving mutual fund behaviour in India and what investors may want to consider while making financial decisions.

Understanding megatrend investing
Megatrends are long-term structural shifts that influence economies, industries and societies on a large scale. Themes like urbanisation, sustainability, healthcare innovation and digital transformation are often seen as megatrends because of their enduring impact.

For investors, megatrend investing means aligning portfolios with these large forces that may drive potential growth over the coming decades. In the context of India, digital transformation is one such megatrend, it is expanding financial access, lowering costs and changing how mutual funds are distributed and consumed.

Faster onboarding and simpler account opening
With the onset of paperless onboarding, e-KYC and Aadhaar-based verification, the financial journey has been made more seamless. These implementations allow retail investors to open mutual fund accounts without visiting branches.

SEBI and industry measures have standardised digital KYC; this has also helped reduce paperwork and shortened the time from intent to investment, which has helped encourage people to take the first step in their financial journey.

Easier payment rails and regular flows
Unified Payments Interface (UPI) and other instant payment systems have simplified the investment process of mutual funds, particularly for small, regular amounts. This has helped maintain steady monthly flows into SIPs, supporting disciplined investing habits.

Wider distribution and lower friction
With most investing services accessible on varied digital platforms, marketplaces and mobile applications, online onboarding, simplified disclosures and compare-and-apply journeys may reduce distribution costs and open avenues for investors in niche markets. Industry players are also experimenting with new distribution channels, including integration with broader digital networks.

Data, automation and personalised experiences
AI assistants, goal planners and algorithmic profiling tools have also helped translate investor goals into suggested asset allocations. These tools may be a potentially useful starting point for investors seeking consistent, rule-based approaches. 

Past performance may or may not be sustained in the future.

Regulatory and compliance shifts
Regulatory and compliance shifts, like updated KYC validation and proposals for sharing documents through DigiLocker, have further reduced onboarding friction while maintaining oversight. These changes may make processes more efficient but also require investors to stay aware of compliance measures and periodic validations.

Digital pathways for regular investing
With the help of digital tools, it may be easier for investors to set up and monitor their investment journeys by automating payments, setting up regular reminders and goal tracking. You may choose platforms providing transparent fee disclosure, clear scheme documents and simple dashboards to review progress.

It is essential to remember that automated advice and algorithms may be of assistance, but they do not remove the need to assess your risk appetite, your investment horizon and your financial goals.

Considering SIP and lumpsum options
While SIPs are a popular way of disciplined investing; digital platforms also make lumpsum investing more straightforward. Investors may use online tools like calculators and dashboards to compare how a one-time contribution may potentially enhance their regular SIP plan depending on their investment appetite and market conditions. Both approaches have potential merits, and digital transformation may allow easier access to either.

The calculator is an aid, not a prediction tool. It may provide only an indicative picture.

Risks and practical limitations
While digital channels have reduced friction, they also come with a few potential risks. This is why cyber hygiene, credential safety and authenticity verification of platforms need to be taken seriously. Paperless processing depends on the use of correct data and secure custodial practices. Digital convenience may also encourage frequent checking or impulsive changes; investors may want to guard against short-term reactions and maintain a measured approach. Where technology aggregates advice, check the assumptions behind any suggested allocations.

Why megatrends matter in investing
Megatrends represent broad shifts that shape economies, industries, and societies over long periods. At Bajaj Finserv AMC, these themes form an important lens through which investment opportunities are evaluated. By tracking developments that have the potential to influence business models and consumer behaviour for years to come, Bajaj Finserv AMC seeks to construct portfolios that look beyond short-term market cycles and towards trends that may support long-term value creation.

Conclusion
Digital transformation as a megatrend is reshaping how mutual fund products are distributed, accessed and experienced in India. Faster onboarding, instant payment rails and automated tools are part of a broader shift that may support disciplined saving and improve access to financial markets. However, it is important to remember that technology is only an enabler. Investors still need to stay mindful of regulatory updates, platform credibility and their own financial goals. As this megatrend evolves, its influence on mutual fund investing is likely to deepen, making digital pathways an integral part of India’s financial landscape.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

The New Fund Offer period ends on August 11, 2025

A strategy that can adapt to and leverage different market conditions can be a suitable addition to a portfolio.

Enter the Bajaj Finserv Equity Savings Fund, a hybrid fund that combines equity, debt, and arbitrage strategies in a way that aims to respond to each phase of the market.

The scheme’s New Fund Offer period began on July 28, 2025, and ends on August 11, 2025. Read on to find out more about how the Bajaj Finserv Equity Savings Fund seeks to navigate fluctuations in the market and how you can invest.  

Sideways markets: Arbitrage opportunities

A sideways market is when stock prices move within a narrow range without a clear upward or downward trend. It usually reflects market uncertainty, where investors are waiting for stronger signals before making significant moves.

In this phase, returns from equities may not be high. This is where arbitrage and debt benefit a portfolio. In a sideways market:

• Arbitrage strategies can capture small and brief pricing gaps between two markets (eg: the cash and future markets). Multiple small spreads can potentially add up to reasonable returns when managed strategically.

• Debt instruments can offer relatively stable returns through interest income and act as a buffer against volatility.

The Bajaj Finserv Equity Savings Fund may increase allocation to these components when the market lacks clear direction (within regulatory limits and as per allocation pattern mentioned in the Scheme Information Document).

Bull market: Potential for upside

When markets rise, the value of stocks can increase on the back of earnings expansion, economic momentum, and investor optimism. In such conditions, the equity component of the portfolio can potentially capture upside opportunities.
 

The fund’s equity allocation, selected using a GARP (Growth at Reasonable Price) approach, can help the portfolio participate in this upward trend. While the equity exposure is modest, it can allow investors to tap into growth potential during rallies while aiming to reduce downside risk compared to traditional equity funds. This equity component will range between 10% to 40% of the portfolio in normal circumstances.

Bear market: A defensive approach.

Downturns can test an investor’s resolve, but they also highlight the importance of balance.

In falling markets, when equities may decline in value, the fund’s moderate net equity exposure can result in lesser drawdowns. Meanwhile, the debt portion can act as a cushion against volatility, while the arbitrage component has the potential to capitalise on brief price differences.  

Favourable tax treatment

Apart from managing market fluctuations, the portfolio is also planned to be tax efficient. By combining equity, debt, and arbitrage, it offers a blend that may potentially lead to better post-tax outcomes, particularly for investors in higher tax brackets.

The fund seeks to do that by maintaining above 65% allocation to equities (including arbitrage), so that it can qualify as an equity-oriented fund for tax purposes. The tax structure is as follows:

1. Short-term capital gains (levied on units held for less than a year): 20%

2. Long-term capital gains tax (on units held for more than a year): Gains of up to Rs. 1.25 lakh are tax-exempt; thereon, the rate is 12.5%.

Alternative assets: An added layer of diversification

This hybrid fund aims to offer an additional layer of diversification through its strategic allocation to REITs and InvITs. These are alternative instruments are backed by real assets like commercial properties or infrastructure and offer the potential for capital appreciation and relatively stable asset-backed income.  

Who is the fund suitable for?

Bajaj Finserv Equity Savings Fund may be considered by:

• Investors looking for lower volatility options with liquidity

• Those who want reduced risk but with some exposure to upside

• Those seeking an option to park funds to deploy later

• People exploring alternatives to traditional savings plans or fixed deposits*.

*Returns on fixed deposits are fixed, however, returns on mutual funds are subject to market risks.

How to invest in the Bajaj Finserv Equity Savings Fund

You can invest in the Bajaj Finserv Equity Savings Fund either directly with Bajaj Finserv AMC under the direct plan or through a registered mutual fund distributor under the regular plan.

You can invest online or offline, through the following modes:

• By visiting www.bajajamc.com or the nearest Bajaj Finserv AMC official point of acceptance (OPAT).

• Through KFintech, a registrar and transfer agent

• Through a demat account

• Through aggregator platforms

• Through MF Utility.

Units will be available at an offer price of Rs. 10 per unit during the NFO period (ending August 11, 2025). The fund will reopen for subscription within five business days of allotment date and units will then be available at the applicable Net Asset Value. Investments start at Rs. 500 for lumpsum and Systematic Investment Plan (minimum 6 instalments).   

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Features of Bajaj Finserv Small Cap Fund

Let’s explore how the Bajaj Finserv Small Cap Fund may potentially fit into your mutual fund portfolio.

Focus on quality to manage volatility

Investing in a small cap company comes with its share of volatility. Being new businesses, they are more sensitive to market cycles, funding challenges and competitive pressure.

The Bajaj Finserv Small Cap Fund addresses all these challenges through a quality-driven, research-backed stock-selection process. This means that the fund seeks to invest in companies that have strong fundamentals and suitable management practices. By focusing on businesses like these, the fund aims to minimise exposure to speculative companies and build a potentially robust portfolio that may be more suitable in the long run. However, it must be noted that even a quality portfolio cannot be immune to short-term market movements. 

Targeting long-term scalable growth

One of the main objectives of the Bajaj Finserv Small Cap Fund is to select companies that have the capacity to scale in the future. This means that these companies are usually aligned to India’s broader structural shifts.

This fund also looks for long-term growth stories that are backed by sustainable businesses not just short-term gains. This emphasis on scalable growth, when combined with valuation discipline, is intended to support long-term wealth creation potential for investors.

A research-driven and disciplined approach

The small cap sectors can often have companies that are under-researched and overlooked. Many have limited analyst coverage or inconsistent disclosures. To overcome this, the Bajaj Finserv Small Cap Fund relies on in-depth analysis and Bajaj Finserv AMC’s proprietary INQUBE philosophy to evaluate opportunities.

This means scanning companies for their fundamentals, business models, and management track records. The fund management team also takes a meticulous approach to constructing the portfolio, seeking diversification across sectors.

Through this active management of the fund, the portfolio may be able to respond to market movements and keep a long-term focus rather than be influenced by short-term switches.

Who can consider investing?

Here’s a couple of deciding factors you may consider when investing in the Bajaj Finserv Small Cap Fund:

1. Your risk appetite – If you are someone with a higher risk appetite, this mutual fund may be a suitable option for you

2. Your investment horizon – If you are looking to invest for a longer period, the small cap space may be a potential option to explore

3. Your portfolio diversification – If you are looking to diversify your portfolio, a mutual fund in the small cap segment may be your opportunity to potentially add variety to your portfolio

Considering all this, if you are still averse to exploring the small cap segment, you can start with a Systematic Investment Plan in the mutual fund of your choice. In this scenario, doing an SIP in the Bajaj Finserv Small Cap Fund may help you gradually build exposure in the small cap space while mitigating market risks and building long-term participation. You can consider using an SIP calculator to calculate your monthly SIP amount based on your financial goals.

How to invest

You can invest in the Bajaj Finserv Small Cap Fund online through the official Bajaj Finserv AMC website or via authorised mutual fund distributors. Investments can be made through direct or regular plans. To learn more about the investment process, visit www.bajajamc.com.

Units will be available at an offer price of Rs. 10 per unit during the NFO period (June 27, 2025 – July 11, 2025).

Conclusion

If you are looking to venture into small cap investing, the Bajaj Finserv Small Cap Fund may offer you an entry point with its structured and quality-focused approach. The fund invests in companies that are trading under their intrinsic value due to a temporary shift which means that you can add companies with sustainable practices to your portfolio.

Before investing, it is advisable to assess whether this fund aligns with your financial goals and risk tolerance. Investors may also explore systematic investing options like SIPs and consult a financial advisor to make a well-informed decision.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

The Bajaj Finserv Multi Cap Fund NFO ends on February 20th, 2025

The NFO began on February 6^th, 2025, and ends on February 20^th, 2025. Units are available at a face value of Rs. 10 each during this period.

The Bajaj Finserv Multi Cap Fund follows a contrarian approach, making it relatively different from other funds in this space. Contrarian investing involves identifying undervalued and overlooked opportunities before the market recognises their potential.

Suitable for investors seeking a balanced and disciplined allocation across large, mid, and small cap stocks, the fund seeks to leverage contrarian investing to create long-term growth potential.

How Bajaj Finserv Multi Cap Fund uses contrarian investing 

Contrarian investing is built on a simple premise – going against the prevailing market sentiment to find opportunities where others may not be looking. This approach seeks to identify fundamentally strong companies that might be overlooked or undervalued due to temporary market fluctuations.

Instead of following short-term trends, Bajaj Finserv Multi Cap Fund focuses on businesses with long-term growth potential that may be undervalued and potentially benefit if the market recognises their intrinsic value.

Moreover, unlike pure contrarian funds that exit stocks when they reach their intrinsic value, Bajaj Finserv Multi Cap Fund will target sustained exposure* to potentially benefit from the stock’s complete growth wave.

* There is no assurance or guarantee that the AMC will accomplish this with every investment that is undertaken in this scheme

Additionally, contrarian investing requires patience, thorough research, and a strong grasp of market sentiment. This is where the professional management of mutual funds can be a benefit. The Bajaj Finserv Multi Cap Fund is actively managed, with experienced investment experts identifying contrarian opportunities and accordingly making buy and sell decisions.

Balanced exposure to all market caps

Being a multi cap fund, the scheme will invest in large cap, mid cap and small cap stocks, allocating at least 25% of its portfolio to each. This will allow the fund to potentially capture growth opportunities across the broad market and leverage the unique features of each market cap across market cycles.

• Large cap stocks are those belonging to companies listed between 1 and 100 on the stock exchange based on market capitalisation. Such stocks tend to provide relative stability and lower downside risk as large cap companies typically have strong market positions and healthy balance sheets.

• The mid cap allocation seeks out businesses in their growth phase, which have the potential to become large caps in the future. Mid cap stocks are those listed between 101 and 250 on the stock exchange based on market capitalisation. Such stocks can offer better growth potential than large caps in rising markets but are also more volatile.

• Small cap stocks offer opportunities in emerging businesses that could deliver better growth potential over time, but with higher risk. These are companies listed 251 and beyond on the stock exchange in terms of market capitalisation.

By maintaining a structured allocation across market caps, the fund mitigates concentration risk and ensures participation in a broader range of investment opportunities.

Benefits of investing in Bajaj Finserv Multi Cap Fund

1. Leveraging market overreactions and underreactions: The fund’s contrarian strategy aims to capitalise on mispriced opportunities, potentially realising their value over the long term.

2. Diversification across market cycles: A balanced mix of large, mid, and small cap stocks provides exposure to various segments of the economy, reducing reliance on any single market category.

3. Active portfolio management: The fund is actively managed, with a research-driven approach to stock selection that prioritises long-term fundamentals over short-term market movements.

4. Disciplined risk management: By spreading investments across different market caps and sectors, the fund seeks to balance potential returns with risk management.

How to invest

With the NFO period coming to a close, investors looking for a disciplined and contrarian approach to equity investing may find the Bajaj Finserv Multi Cap Fund a suitable option.

You can invest through the following modes:

1. Directly with Bajaj Finserv AMC by visiting www.bajajamc.com or going to the nearest branch

2. Through a registered mutual fund distributor

3. Through the Registrar and Transfer Agent KFintech

4. Through aggregator platforms

Investments in Systematic Investment Plans as well as lumpsum start at Rs. 500. Once the NFO window closes on February 20^th, 2025, the fund will reopen for subscription within five business days of allotment date. Units will then be available at the prevailing Net Asset Value.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

In reality, contrarian investing is not about blindly opposing the market but about identifying undervalued opportunities where the crowd has overreacted.

Invest in Bajaj Finserv Multi Cap Fund NFO

This is what the Bajaj Finserv Multi Cap Fund seeks to do. With a contrarian approach, the fund seeks to leverage overlooked opportunities before the market recognises their potential.

The New Fund Offer period began on Thursday, February 6^th, 2025, and will end on Thursday, February 20^th, 2025. To help you understand this fund and its investment approach, let’s explore and debunk some myths about contrarian investing.

1. Contrarian investing is just about buying what’s falling

A common misconception is that contrarian investors simply buy stocks that are declining in price. However, contrarian investors don’t buy a stock just because it has fallen; they look for assets that are undervalued but have potentially strong fundamentals. A falling stock might indicate deeper problems within a company or industry, and not every underperforming stock is a potentially good investment.

2. Contrarian investors always go against the market

There is a belief that contrarian investors oppose the market no matter what. In reality, they do not take positions just for the sake of being different. They only go against the market when they believe there is an inefficiency or overreaction in pricing. If the market seems to be fairly valuing an asset, there is no reason for a contrarian investor to take the opposite stance.

3. Contrarian investing is significantly riskier

Many assume that contrarian investing involves higher risk because it often requires investing in assets that others are avoiding. However, risk depends on how well-researched the investment is. Buying stocks at a prevailing market price that is lower to their intrinsic value can at times reduce downside risk compared to chasing overpriced stocks in a bull market. Contrarian investing, when done optimally, is based on research, patience, and discipline. More risk can sometimes come from blindly following the crowd, which can lead to buying overhyped stocks at unsustainable valuations.

4. Contrarian investors never follow trends

Contrarian investing is not about rejecting every trend. If a stock or sector is gaining momentum but remains undervalued, a contrarian investor might still invest. The key is to focus on value, not popularity. Just because a stock is widely followed doesn’t mean it is overvalued, and just because a stock is ignored doesn’t mean it’s not a good investment. The focus should always be on fundamentals and intrinsic value rather than the trend itself.

5. Contrarian investing guarantees better returns

No investment strategy guarantees returns, and contrarian investing is no exception. While it can lead to potential gains, success depends on proper research, patience, timing and market reactions. Sometimes, markets take longer to recognise the true value of an asset, and investors may have to wait before their contrarian strategies work. Additionally, not every contrarian move works.

6. If everyone knows about a contrarian opportunity, it’s no longer valid

Some believe that once a contrarian opportunity is widely discussed, it loses its value. However, markets do not always correct inefficiencies immediately. Even when an undervaluation is well-known, investors might still hesitate due to uncertainty or negative sentiment. The key is to act based on conviction and analysis rather than waiting for market validation. Sometimes, even well-recognised contrarian opportunities take time to potentially be realised.

7. Contrarian investing means ignoring fundamentals

Some think that contrarian investors focus only on market sentiment. In reality, contrarian moves need to be backed by strong fundamentals of the stock. Investors must look at revenue growth, profitability, balance sheets, and competitive positioning to understand if a stock is undervalued due to market overreaction or financial weakness.

8. Contrarian and value investing are the same

Contrarian investing and value investing share significant similarities. Both strategies focus on buying undervalued assets, though their approaches may differ slightly. Contrarian investors look for opportunities where market sentiment has led to mispricing, while value investors seek assets trading below their intrinsic value based on fundamentals.

Bajaj Finserv Multi Cap Fund with contrarian investing  

The Bajaj Finserv Multi Cap Fund seeks to leverage contrarian investing to identify undervalued opportunities across the broad market. The fund will allocate at least 25% of its portfolio each to large, mid and small cap stocks. Additionally, unlike traditional contrarian strategies, which start selling off the stocks once their intrinsic value is recognised, the fund will allow for sustained exposure, enabling the portfolio to potentially fully ride the growth wave.

Investors can purchase units at the face value of Rs. 10 each during the NFO period and at the prevailing Net Asset Value once the fund reopens for subscription. Both lumpsum and Systematic Investment Plan (SIP) options start at Rs. 500.  

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Bajaj Finserv Flexi Cap Fund

This future-focused view is at the heart of the Bajaj Finserv Flexi Cap Fund’s investment strategy. The scheme stands apart for its MEGATRENDS approach, which involves investing in powerful forces that can result in fundamental and lasting changes in economies and societies.  

This article tells you more about the Bajaj Finserv Flexi Cap Fund and tips on optimising return potential when investing. 

What are flexi cap funds?

Flexi cap funds are equity mutual funds that can invest in listed companies of all sizes: large cap, mid cap and small cap. These funds are dynamically managed, meaning they can freely adjust the portfolio allocation based on changing market conditions. There is no minimum allocation that needs to be maintained for each market capitalization, which means that fund managers can flexibly respond to changing market conditions and seek to capitalise on opportunities across different sectors and company sizes.

This diversified approach can help reduce risks and optimise return potential.

Investing in MEGATRENDS

One of the key strategies of the Bajaj Finserv Flexi Cap Fund is megatrends investing. Megatrends are powerful, long-term shifts in the economy, technology, and society that have a lasting impact. Examples include digitalisation, artificial intelligence, renewable energy, urbanisation etc. These changes can last for years, even decades, offering substantial growth potential for investors who can capitalise on them early.

The Bajaj Finserv Flexi Cap Fund seeks to identify these future winners and invest in companies that are positioned to benefit from these megatrends.

How to optimise your return potential with Bajaj Finserv Flexi Cap Fund

While returns depend on market conditions and the fund manager’s approach, here are some things that you, as an investor, can do to make the most of your investment strategy.

1. Opt for SIP top-up

One of the simplest ways to invest in mutual funds is through a Systematic Investment Plan (SIP). SIPs allow you to invest a fixed amount regularly (daily, weekly, monthly, quarterly etc.), helping you build wealth over time through affordable instalments.

If you’re young or starting with a small investment amount, a top-up SIP can be beneficial. This feature increases your SIP contributions by a fixed amount at regular intervals, allowing you to gradually and automatically invest more as disposable income increases. This is especially relevant if you have a salary increment ever year. You can make use of an SIP top up calculator to decide the top-up amount.

For instance, you can choose a 10% annual top-up, wherein your SIP amount will increase by 10% every year.

2. Stay disciplined during market volatility

Market ups and downs are part of the investment journey, and it can be tempting to panic during downturns. However, staying disciplined and sticking to your investment plan is key to optimising return potential. Reacting to short-term market fluctuations by redeeming or switching funds can lead to losses.

3. Focus on long-term wealth creation

The Bajaj Finserv Flexi Cap Fund is designed for long-term investors. The fund’s strategy of investing in megatrends is built to harness growth over a longer period.

A long investment horizon can mitigate the impact of temporary market downturns and volatilities. Moreover, it allows your investments to benefit from the power of compounding, which can significantly boost your returns over time. Compounding happens when the returns on an investment are reinvested, potentially earning further returns.

The key is to remain focused on your financial goals and give your investments enough time to grow.

4. Monitor and review your investments regularly

It’s important to review your investments regularly. Check how the fund is performing against its benchmarks and peers and see if it aligns with your financial goals. However, consider the fund’s performance over multiple cycles to make a well-rounded assessment because overperformance or underperformance in a single year or market cycle does not provide a full picture.

5. Align your investments with evolving goals

As financial goals and life circumstances change over time, it's important to regularly review and adjust your mutual fund investments to stay aligned with these evolving needs. For instance, early in your career, you may only have a small amount to invest. As your income increases, you may consider increasing your SIP amount. As you develop new goals, such as buying a house, family planning, etc, you can revisit your investments to support your financial objectives effectively.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Mr Rajesh Shukla

Whenever Reliance Industries steps into a sector, it doesn’t just participate—it changes the entire game. We’ve seen this happen in telecom with Jio, where they turned the market upside down, made data affordable, and pushed competition to new heights. Now, Jio is entering the mutual fund space, and investors should pay close attention because big changes are coming.

What Does This Mean for Mutual Fund Investors?

1. Lower Fees and Higher Returns: With Jio’s entry, expect a shake-up in pricing structures. Mutual fund fees could become more competitive, putting more money back in your pocket and potentially boosting your returns.

2. Innovative Investment Products: Jio Financial and BlackRock’s collaboration could bring in a range of new products—targeted funds, global investment options, and tech-driven solutions that can simplify investing for beginners and experts alike.

3. Increased Access to Small Investors: Jio’s reach into every corner of India means that even small-town investors will have easier access to high-quality funds. This will democratize investment opportunities and deepen market participation like never before.

A Boon for the Market, but Some Caution is Needed

While this development will certainly attract more investors, it’s essential to remember that the combined power of Jio Financial and BlackRock could lead to a concentration of influence in the industry. It’s crucial for regulatory bodies like SEBI to ensure that this doesn’t lead to any imbalance that might affect smaller players or reduce competition in the long run.

Why Should You Be Excited?

• Growth Potential: The mutual fund industry is expected to grow rapidly with such a strong player entering the market, making this a great time to consider increasing your investments.

• Enhanced Financial Literacy: With Jio’s reputation for simplifying complex services, expect more educational resources and tools to help investors understand their portfolios and make informed decisions.

• Global Expertise with Local Knowledge: BlackRock brings a wealth of global investment experience, while Jio understands the Indian market inside-out. This powerful combination could offer better-managed funds that deliver solid returns.

The Bottom Line

With Jio Financial and BlackRock joining forces, the Indian mutual fund industry is on the cusp of something big. For investors, this means new opportunities, competitive products, and the chance to be part of a rapidly growing market. While it’s important to stay informed and keep an eye on how this unfolds, the future of mutual fund investing in India just got a whole lot brighter.

So, if you’re invested in mutual funds or thinking about jumping in, this is the time to stay alert and be ready to capitalize on what could be a game-changing development for your portfolio.

The writer is Mr Rajesh Shukla, Chief Strategist, National Intellectual Advisory, Mentor at Venture Studio Capital, Jagoo Nari and Padhega Bharat

For more information, click here- ww.venturestudiocapital.com.

Himanshoo Bohara, CFO and Director

"We are excited to welcome Himanshoo to the PPFAS family," said Neil Parag Parikh, Chairman and Chief Executive Officer, PPFAS Mutual Fund. "His deep understanding of financial markets and regulatory frameworks, coupled with his proven leadership abilities, will be invaluable as we continue to grow and evolve our business."

In his new role, Mr. Bohara will be responsible for overseeing all financial operations at PPFAS Asset Management Pvt. Ltd., including accounting, budgeting, financial planning and analysis. He will also play a key role in shaping the company's strategic direction.

"I am honoured to join PPFAS Mutual Fund, a company with a strong reputation for integrity and investor focus," said Himanshoo Bohara. "I am delighted to join the young and talented team of PPFAS. I look forward to leveraging my expertise and contributing to the growth and success of the organisation."

Himanshoo is a Chartered Accountant and a Company Secretary with more than 25 years of post-qualification experience. He has worked with leading organisations such as ASK, Centrum, Merrill Lynch, HSBC, Accenture & H&R Johnson.

About PPFAS Mutual Fund

PPFAS Mutual Fund (PPFAS MF) is sponsored by Parag Parikh Financial Advisory Services Ltd. (PPFAS Ltd.), a boutique investment advisory firm incorporated in 1992. The Sponsor was among India's earliest SEBI Registered Portfolio Management Service (PMS) providers, having secured a license in 1996. PPFAS Asset Management Private Limited (Investment Manager to PPFAS Mutual Fund) is led by Mr. Neil Parag Parikh, the Chairman and CEO, since May 2015. Before that, it was led by the Founder, (Late) Mr. Parag S. Parikh.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Disclaimer: www.amc.ppfas.com/media/disclaimer.php.

*Latest Factsheet Link

With Bajaj Finserv Savings+, you can potentially earn better returns on your idle money

What is Savings+?

Savings+ is an innovative facility offered by Bajaj Finserv Asset Management Limited, aimed at optimizing surplus funds lying idle in traditional bank savings accounts. Unlike conventional savings accounts that offer nominal interest rates, Savings+ redirects surplus funds into the Bajaj Finserv Liquid Fund or the Bajaj Finserv Overnight Fund. These funds offer slightly higher returns than traditional savings accounts, albeit with slightly higher relative risk.

Why choose Savings+?

Savings+ combines the liquidity of savings accounts with the potential for enhanced returns. It allows investors to swiftly identify surplus funds in their savings accounts and allocate them into low-risk financial instruments. This ensures that funds remain highly liquid, a crucial feature often compromised when transitioning from a traditional savings account.

Benefits of Savings+

Higher return potential: Traditional savings accounts provide meager interest rates, hindering wealth accumulation. Savings+ offers the potential for relatively higher returns, accelerating progress towards financial goals. However, savings account interest is fixed and guaranteed. In mutual funds, they are not guaranteed and are subject to market risks.

Liquidity: Investors can access 90% or up to Rs. 50,000 (whichever is lower) instantly from their Savings+ account. The remaining balance, if redeemed, is credited within one business day.

Diversification: By investing in low-risk debt mutual funds like liquid funds and overnight funds, Savings+ enables portfolio diversification, thereby potentially mitigating risks.

Automated savings: Savings+ facilitates automated savings, promoting a disciplined approach to investing and wealth management.

How to start with Savings+

Initiating your Savings+ journey is straightforward:

Visit the Savings+ page: Begin by visiting the Savings+ page on www.bajajamc.com.

Link your bank account: Link your bank account to activate the Savings+ facility.

Receive real-time updates: Stay informed with real-time updates on your current account balance.

Assess surplus funds: Determine surplus funds after accounting for expenses, debts, and other obligations.

Decide your investment amount: Based on your financial goals, decide how much to invest through Savings+.

Once linked, Savings+ provides regular notifications about idle funds in your account, ensuring proactive management and optimization of your financial resources.

Understanding Savings+ in depth

Savings+ stands out by providing investors with a balanced approach to wealth management. Unlike traditional savings accounts, which offer limited growth potential due to low-interest rates, Savings+ leverages the Bajaj Finserv Liquid Fund or the Bajaj Finserv Overnight Fund to potentially offer higher returns. This approach not only enhances the value of idle funds but also aligns with long-term financial goals.

Role of Bajaj Finserv AMC

Bajaj Finserv AMC plays a pivotal role in the success of Savings+. As an asset management company, it ensures that investors' funds are prudently invested in instruments that seek to balance risk and return. This strategic approach aims to maximize wealth creation while maintaining liquidity, thereby providing investors with a reliable avenue to achieve financial security.

Why consider Savings+ over traditional savings accounts?

The limitations of traditional savings accounts, such as minimal interest rates and stagnant growth, make them less attractive for investors aiming to build substantial wealth. Savings+, on the other hand, offers a dynamic alternative by integrating the liquidity of savings accounts with the growth potential of market-linked investments. This hybrid model not only diversifies investment portfolios but also positions investors advantageously in the ever-changing economic landscape.

Tips for maximizing Savings+ benefits

Regular monitoring: Keep track of your Savings+ account regularly to capitalize on market opportunities and optimize returns.

Goal setting: Define clear financial goals and adjust your Savings+ investments accordingly to stay aligned with your objectives.

Consultation: Seek advice from financial experts to tailor your investment strategy and mitigate potential risks effectively.

Reinvestment: Consider reinvesting returns from Savings+ to compound growth and accelerate wealth accumulation over time.

Conclusion

In conclusion, Savings+ emerges as a strategic tool for investors looking to enhance their financial journey. By bridging the gap between traditional savings accounts and market-linked investments, Savings+ offers the potential for higher returns while maintaining liquidity and minimizing risk. This innovative approach not only empowers investors to achieve their financial goals sooner but also ensures flexibility and efficiency in wealth management.

As you embark on your financial journey, consider leveraging the benefits of Savings+ to optimize your investment portfolio. Remember, prudent investment decisions coupled with expert guidance are key to unlocking the full potential of Savings+. Start your Savings+ experience today and pave the way towards a brighter financial tomorrow.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

This document should not be treated as endorsement of the views / opinions or as an investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.

There are several hybrid fund categories in India, with different risk levels

Investing in multiple asset classes can therefore help capture the benefits of different types of securities in different market conditions. Hybrid funds allow mutual fund investors to achieve this diversification through a single investment.

Hybrid mutual funds invest in both equity and debt – and sometimes other asset classes too.  This can make them suitable for conservative investors seeking a more optimised risk-reward balance than what traditional mutual funds may offer.

However, there are several hybrid fund categories in India – each with a different risk profile. Investors, therefore, should familiarise themselves with these types to select a that aligns with their risk tolerance and goals.

Types of hybrid mutual funds

The Securities and Exchange Board of India (SEBI) classifies hybrid mutual funds into the following categories:

1. Conservative hybrid funds: Primarily invest in debt securities (75%-90%) of its portfolio, with a small portion in equities (10%-25%).

2. Balanced hybrid funds: Are almost evenly distributed between debt and equity, with a 40%-60% allocation to each.

3. Aggressive hybrid funds: Primarily equity-oriented, these funds allocate 65%-80% in equities and the remainder in debt.

4. Dynamic asset allocation funds: These funds dynamically adjust the equity and debt allocation based on market conditions.

5. Multi-asset allocation funds: Invest in at least three different asset classes, with a minimum of 10% in each, providing broad diversification.

6. Arbitrage funds: Invest primarily in arbitrage opportunities created by price differences between two market segments such as cash and derivatives.

7. Equity Savings:  Invests at least 65% of its assets in equities and at least 10% in debt. It can also invest in arbitrage opportunities.

Hybrid schemes for different risk appetites

The variation in the equity-debt ratio across hybrid fund schemes means that the balance of risk and potential reward differs. Below are the hybrid fund categories that may suit investors as per their risk level. Investors can opt for either the lumpsum or the SIP route for investments.

Risk averse: Those who prefer minimal risk may find conservative hybrid funds and arbitrage funds suitable. The debt-heavy portfolio of conservative funds gives them relative stability, whereas the equity component gives them a slightly higher return potential than pure debt investments. Arbitrage funds are also relatively low risk because they focus on brief price inefficiencies in the market and are not as impacted by larger or long-term trends.  

Moderate risk appetite: Investors who can handle some amount of risk may find balanced hybrid funds and dynamic asset allocation funds suitable. Balanced funds seek to find a middle ground between risk and reward. Dynamic asset allocation funds, meanwhile, can adjust their equity-debt ratio according to market fluctuations. Thus, they can offer a buffer during volatile periods and capitalise on potential growth opportunities in good markets.

High risk appetite: Aggressive hybrid funds, multi-asset allocation funds, and equity savings funds may suit investors with a high risk tolerance as they are skewed towards equities. Multi-asset funds may also suit investors seeking capital growth potential along with risk mitigation because they diversify investments across at least three asset types, such as equities, debt, and gold, and can dynamically adjust their portfolio in response to market conditions.  Thus, they can potentially leverage the opportunities posed by each in different market scenarios.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Diversify your mutual fund portfolio across asset classes

Portfolio diversification involves spreading investments across many assets. The goal is to reduce risk by not depending on the performance of one or a few securities.

Diversification can be achieved within one asset class – such as stocks – which is a strategy adopted by equity mutual funds. However, such a portfolio is still vulnerable to fluctuations affecting equities as a whole.

Another way to achieve even broader diversification, and thereby, better potential risk mitigation, is to invest across asset classes. Such a portfolio comprises stocks as well as bonds, commodities, and real estate. It could also be diversified across different sectors, industries, and geographic regions.

Diversifying across assets

One way to achieve such diversification is through hybrid mutual funds. These funds combine stocks and bonds in their portfolio. The equity portion offers capital appreciation potential, while the debt portion seeks to provide relative stability. The allocation ratio depends on the fund category. Aggressive hybrid funds, for instance, skew more towards equity. Conservative hybrid funds have a debt-heavy portfolio. Balanced hybrid funds, meanwhile, invest between 40% and 60% of their portfolio in debt and equity each.

A unique hybrid fund category that seeks to offer even broader diversification is multi-asset allocation funds. Such funds combine at least three asset classes in their portfolios – typically equity, debt and gold or real estate – with a minimum 10% allocation to each. Multi-asset allocation funds seek to tap into the unique opportunities offered by each asset class in different market conditions while hedging against the risks posed by a single asset type.

Asset class correlation

At the heart of diversification lies the principle of asset class correlation. Asset classes, such as equities, fixed income, commodities, and real estate, tend to behave differently under varying market conditions.

For example, equities tend to soar during a bull run, while debt tends to offer stability during volatility.

This relationship between two asset classes is known as correlation. A high correlation indicates that two asset classes move largely in tandem, whereas a low correlation indicates that they move in different directions.  

By spreading investments across multiple asset classes with low correlation, investors can reduce the overall risk of their portfolios. For instance, during a stock market downturn, the value of bonds or gold might remain stable or even increase, providing a cushion against losses from equities.

Dynamic management

Apart from diversification, some hybrid mutual funds—including multi-asset allocation funds and balanced advantage funds – also offer the advantage of dynamic portfolio management. This means that the fund manager, based on their discretion and economic trends, has the flexibility to rebalance the portfolio as per changing market conditions.

In times of economic expansion, the fund manager may increase exposure to equities to capitalise on growth opportunities. During market downturns or heightened volatility, the allocation may shift towards safer assets like bonds or cash equivalents to seek potential capital preservation. This can give portfolios the ability to potentially mitigate risk in various market cycles.

To sum up, financial markets are inherently unpredictable. Risk management, therefore, is an important part of an investment strategy. Diversification across asset classes can be a strategic way to mitigate risks while leveraging the opportunities offered by different investment avenues in different market conditions. It can help build all-weather mutual fund portfolio that can help investors potentially achieve their long-term financial objectives. Investments in hybrid mutual funds can be done via lumpsum or in regular instalments through a Systematic Investment Plan (SIP) depending on an investor’s convenience.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Equity funds: Strategies to optimize tax liabilities

Understand tax implications: Before diving into equity funds, it's crucial to understand the tax implications. Profits from equity investments are subject to capital gains tax. Short-term capital gains, from investments held for less than a year, are typically taxed at higher rates than long-term gains. Knowing these tax rates can help you plan your investment strategy accordingly.

Here are the types of equity mutual funds taxation:

Income Distribution cum Capital Withdrawal or IDCW

IDCW refers to the allocation of earnings from a mutual fund scheme, encompassing dividends from stocks and profits from selling underlying stocks in the scheme's portfolio. The income received by investors under IDCW is added to their total taxable income and taxed based on the investor's applicable income tax slab rate. Additionally, there exists a standard TDS rate of 10% on dividend income exceeding Rs. 5,000.

Capital gains tax:

This tax is levied when investors sell their mutual fund units at a profit. The tax rate varies depending on the mutual fund type and the duration of ownership:

For equity funds, with more than 65% of the fund's total assets invested in shares of companies, short-term capital gains (for holdings less than 12 months) are taxed at a fixed rate of 15%, along with any applicable surcharge and cess, irrespective of the investor's income tax bracket.

Long-term capital gains (for holdings of 12 months or more) up to Rs. 1 lakh annually are exempt from tax. Any gains exceeding this threshold incur a long-term capital gains (LTCG) tax of 10%, along with any applicable surcharge and cess, without the option of indexation.

Strategies for optimize tax liabilities

Choose tax-efficient funds: Not all equity funds are created equal when it comes to taxes. Some funds are more tax-efficient than others. You can also consider investing in Equity Linked Savings Scheme (ELSS). These mutual funds come with a lock-in period and can help in saving tax.

Hold investments for the long term: Long-term investments are taxed at lower rates compared to short-term investments. If possible, aim to hold your equity fund investments for more than a year to qualify for long-term capital gains tax treatment. This strategy not only reduces your tax liabilities but also aligns with the principle of investing for the long haul. You can start an SIP investment to meet your long-term financial goals and reap tax benefits in the long run.

Stay informed about tax law changes: Tax laws can change, impacting the tax treatment of your investments. Stay informed about any updates or changes in tax regulations that may affect your investment strategy. Consulting with a tax professional can also provide valuable insights and help you navigate complex tax situations.

Monitor portfolio allocation: Asset allocation plays a crucial role in tax efficiency. By balancing your portfolio with tax-efficient and tax-inefficient investments, you can minimize the overall tax impact.

In conclusion, optimizing tax liabilities when investing in equity funds requires careful planning and strategic decision-making. By understanding the tax implications, choosing tax-efficient funds, utilizing tax-advantaged accounts, and employing strategies like tax-loss harvesting and holding investments for the long term, investors can minimize their tax burdens and keep more of their investment gains. Staying informed about tax law changes and monitoring portfolio allocation are also essential aspects of maintaining tax efficiency. By implementing these strategies, investors can enhance their after-tax returns and work towards achieving their financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Myths about equity SIPs debunked

Myth 1: Timing the market is key

One common myth is that you need to time the market perfectly to make money. People often believe they should buy when the market is low and sell when it's high. However, this is easier said than done. Trying to time the market can be risky and stressful. Instead, equity SIPs follow a disciplined approach where you invest a fixed amount regularly, regardless of market conditions. This helps you average out the cost of your investments over time, reducing the impact of market volatility.

Myth 2: Stock market is only for the wealthy

Another misconception is that investing in the stock market is only for the wealthy. However, SIPs have made it possible for people from all walks of life to invest in the stock market with as little as a few hundred rupees per month. Equity SIPs allow you to start small and gradually increase your investment over time as your financial situation improves. You can use an SIP top-up calculator to figure out how much more you should invest according to your financial goals

Myth 3: SIPs guarantee profits

While SIPs can be a good way to invest, it's important to understand that they don't guarantee profits. The stock market can be unpredictable, and there are no guarantees when it comes to returns. However, by staying invested for the long term and remaining disciplined with your SIP contributions, you can increase your chances of generating decent returns over time.

Myth 4: SIPs are only for bull markets

Some people believe that SIPs only work in bull markets when stock prices are rising. However, equity SIPs are designed to work in all market conditions. In fact, investing regularly through SIPs can be particularly beneficial during bear markets when stock prices are low. By continuing to invest during these periods, you can take advantage of lower prices and potentially generate higher returns when the market eventually recovers.

Myth 5: SIPs are complicated

Investing in SIPs is often perceived as complicated, but it's quite simple. All you need to do is choose a mutual fund scheme, decide on the amount you want to invest, and set up an SIP plan with a mutual fund company. Once it's set up, your contributions will be deducted automatically from your bank account at regular intervals, making it a hassle-free way to invest.

How equity SIPs challenge these myths

Equity fund SIPs provide a systematic and disciplined approach to investing in the stock market, helping investors overcome common myths and misconceptions. By investing regularly over time, regardless of market conditions, you can take advantage of rupee cost averaging and potentially generate returns in the long run. Additionally, SIPs make investing accessible to everyone, regardless of their income or financial situation, and offer a simple and convenient way to build wealth over time.

In conclusion, while there may be myths surrounding SIP investments, equity SIPs offer a practical and effective solution for investors looking to grow their wealth in the stock market. By understanding and embracing the benefits of equity SIPs, investors can debunk these myths and achieve their financial goals with confidence.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

SIPs: Automating Mutual Fund Investments

How do SIPs work?
A Systematic Investment Plan, or SIP, is a method of investing a fixed amount of money regularly in mutual funds. Setting up a SIP is easy. First, you choose the mutual fund schemes you want to invest in based on your financial goals and risk tolerance. Then, you decide how much money you want to invest and how frequently you want to invest it. Once you've made these decisions, your bank account will be automatically debited for the chosen amount at the specified intervals, and the money will be invested in your chosen mutual fund scheme(s).

SIPs automate the investment process, making it easy for investors to stay disciplined and consistent with their savings habits. By setting up automatic debits from their bank accounts, investors can ensure that they stick to their investment plans without the need for manual intervention. The convenience of automatic investing has led to a steady rise in SIP investments, with a growing number of investors opting for this hassle-free approach to wealth accumulation.

Benefits of SIPs
Rupee Cost Averaging: SIPs allow you to benefit from rupee cost averaging. When the market is up, your investment buys fewer units, and when the market is down, your investment buys more units. Over time, this can help reduce the average cost of your investments.

Flexibility: SIPs offer flexibility in terms of investment amount and frequency. You can start with as little as Rs. 500 per month and increase your investment over time as your income grows.

Power of Compounding: By starting early and staying invested for the long term, you can optimize the power of compounding. Compounding allows your money to grow exponentially over time as your returns generate additional returns. You can also make use of a compound interest calculator to get an estimate of your total maturity amount.

Diversification: Mutual funds offer diversification by investing in a variety of assets such as stocks, bonds, and commodities. By investing in mutual funds through SIPs, you can spread your risk across different asset classes.

Who should invest in SIPs?
SIPs are suitable for anyone looking to save and invest for the future. Whether you're a young professional just starting your career or a seasoned investor planning for retirement, SIPs can help you achieve your financial goals. They're especially beneficial for:

First-time investors: SIPs can be suitable option for beginners to enter the world of investing without feeling overwhelmed.

Regular income earners: If you have a steady income, SIPs allow you to set aside a portion of your earnings for investment each month.

Long-term investors: SIPs can be a good option for investors with a long-term investment horizon. By staying invested for the long term, you can ride out market volatility and potentially earn higher returns.

Conclusion
In conclusion, Systematic Investment Plans (SIPs) offer a convenient and disciplined way to invest in mutual funds. By automating your investments, you can save regularly without having to actively manage your portfolio. Whether you're saving for a down payment on a house, your child's education, or retirement, SIPs can help you reach your financial goals. So why wait? Start investing in your future today with SIPs.

About Bajaj Finserv Asset Management Ltd.
Bajaj Finserv Asset Management Limited, a wholly-owned subsidiary of Bajaj Finserv Limited, has entered the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Characteristics of Bajaj Fisnerv Large and Mid Cap Fund

Understanding moat investing

The concept of economic moats was popularized by legendary investor Warren Buffett, who envisioned companies as castles with moats protecting them from competition. In the realm of investing, a moat refers to a sustainable competitive advantage that allows a company to stand against rivals, maintain profitability, and, consequently, provide enduring returns for investors.

Characteristics and implications of wide economic moat advantage

1. Powerful and enduring competitive advantage: At the core of a wide economic moat is a powerful and enduring competitive advantage. This advantage could manifest in various forms, such as a dominant brand, unmatched operational scales, or unique technology. For Bajaj Finserv Large and Mid Cap Fund, identifying companies with these attributes is crucial. A dominant brand, for instance, ensures customer loyalty and often provides the company with pricing power, contributing to sustained revenue.

Implication: Investing in companies with competitive advantage aligns with the goal of the fund to secure positions in businesses that are well-positioned to withstand competition and thrive over the long term.

2. Robust protective barriers: Economic moats are characterized by robust protective barriers that shield a company from the onslaught of competitors. These barriers could be high entry barriers for new entrants, significant cost advantages, or exclusive access to resources. The robustness of these barriers contributes to the long-term resilience and growth potential of the companies in which Bajaj Finserv Large and Mid Cap Fund invests.

Implication: Companies with robust protective barriers are less susceptible to market volatility and economic downturns. As a result, the fund aims to build a portfolio that can weather different market conditions, providing relative stability and growth potential.

3. Consistent profits and long-term wealth creation: An economic moat is not merely a shield against competition; it is a pathway to profits, creating long-term wealth for investors and stakeholders. Businesses with wide economic moats often exhibit a history of stable earnings and are better positioned to generate sustained returns. Bajaj Finserv Large and Mid Cap Fund, recognizing the significance of consistent profits, focuses on companies that exhibit this trait.

Implication: Regular profits contribute to long-term wealth creation for investors and stakeholders. By investing in companies with economic moats, the fund aims to align itself with businesses capable of delivering enduring returns, promoting wealth creation over time.

Bajaj Finserv Large and Mid Cap Fund

Bajaj Finserv Large and Mid Cap Fund's adoption of the moat investing strategy reflects a commitment to identifying and securing positions in companies with wide economic moats. The fund recognizes that such companies, possessing enduring competitive advantages, are well-equipped to navigate market challenges and capitalize on opportunities, ensuring long-term wealth creation for their investors.

The incorporation of the moat investing strategy demonstrates a commitment to identifying companies with enduring strengths that go beyond market cycles. By focusing on businesses with wide economic moats—powered by dominant brands, unmatched operational scales, or unique technology—Bajaj Finserv Large and Mid Cap Fund seeks to create a robust portfolio capable of weathering market uncertainties and aim to deliver long-term wealth for its investors. In essence, the moat investing strategy aligns with the fund's vision of sustainable growth and enduring success in the ever-evolving landscape of the financial markets. You can consider starting a SIP investment in this scheme by visiting the official Bajaj Finserv AMC website

About Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Asset Management Limited, a wholly-owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Bajaj Finserv Balanced Advantage Fund

The New Fund Offer (NFO) of this scheme opens for subscription on November 24 and closes on December 8, 2023. Let’s have a brief look at the NFO details of this scheme, followed by some of its unique features.

Investment objective of Bajaj Finserv Balanced Advantage Fund

The investment objective of the scheme is to capitalize on the potential upside of equities while attempting to limit the downside by dynamically managing the portfolio through investment in equity & equity related instruments and active use of debt, money market instruments and derivatives. However, there is no assurance that the investment objective of the scheme will be achieved.

Exploring the Unique Features of Bajaj Finserv Balanced Advantage Fund

Dynamic asset allocation: The fund adjusts its investments based on market conditions, providing a flexible approach that aims to optimize returns while managing risk effectively.

Navigate market volatility: The fund's strategy helps navigate market ups and downs, providing relative stability and minimizing the impact of sudden market movements on your investment.

Optimizing returns: Actively seeking opportunities for growth, the scheme focuses on optimizing returns by making smart investment decisions aligned with its dynamic asset allocation approach.

Risk management: With an eye on potential risks, the scheme seeks to limit the impact of market volatility on investment returns.

Who should invest in Bajaj Finserv Balanced Advantage Fund?

This scheme can be suitable for investors who:

• Want to add dynamic asset allocation to their portfolio.

• Want diversification in their portfolio.

• Are seeking professional fund management.

• Want potential capital appreciation with mitigation of downside risk.

• Have a long-term investment horizon.

NFO details of Bajaj Finserv Balanced Advantage Fund

NFO Period:

November 24, 2023 - December 8, 2023

Minimum Application Amount:

Lumpsum: Rs. 500 and in multiples of Re. 1.

Systematic Investment Plan (SIP):

• From Rs. 500 up to Rs. 1,000: minimum 60 instalments.

• Above Rs. 1,000: minimum 6 instalments.

Plan:

Bajaj Finserv Balanced Advantage Fund - Direct Plan

Bajaj Finserv Balanced Advantage Fund - Regular Plan

Benchmark Index

NIFTY 50 Hybrid Composite debt 50:50 Index

Now that you know NFO details of Bajaj Finserv BAF, let’s have a look at the unique features that make this scheme a stand out proposition.

The INQUBE Philosophy:

At the core of the Bajaj Finserv Balanced Advantage Fund is the INQUBE philosophy, which is a synergy of Informational edge, quantitative edge, and behavioral edge. It's like having a three-in-one toolkit that includes smart facts, number-crunching, and understanding how people think. This blend would help in giving the fund a competitive edge when it comes to performance.

Information edge: This edge is about collecting relevant information about economies, businesses, and markets ahead of the others to ‘outperform the market’ based on superior information.

Quantitative edge: Even if investors don’t have material information earlier than the crowd, they can still generate better outcomes if they are able to process the information better.

Behavioural edge: This edge is achieved by superior behaviour in reacting to the inputs available to seek to maximize alpha. Behavioural managers try to explore situations where securities are mispriced by the market because of behavioural factors. Behavioural edge is split into two parts:

a) Taking advantage of overreaction or under reaction by the market in either direction
b) Improving one’s own decision-making process to avoid behavioural pitfalls

In conclusion, Bajaj Finserv Balanced Advantage Fund aims to address the common challenge of emotional decision-making with its innovative approach. The INQUBE philosophy, blending informational, quantitative, and behavioral edges, seeks to set the fund apart, offering investors a competitive performance edge. The NFO period of Bajaj Finserv Balanced Advantage Fund is from 24^th November to 8^th December 2023. Visit the website to learn more.

About Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Asset Management Limited, a wholly owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

Balanced Advantage Fund

Let’s take a closer look at how these funds work.

The importance of asset allocation

To understand balanced advantage funds, it is crucial to understand the importance of asset allocation. Asset allocation is the strategy of dividing your investments among different asset classes like equity (stocks) and debt (bonds). Proper allocation can help investors manage risks and optimise the return potential. Diversifying across assets can ensure that when one asset class is underperforming, another may be doing well, balancing out the overall portfolio performance.

How do balanced advantage funds work?

Balanced advantage funds are unique because they dynamically adjust the allocation between equity and debt based on market valuations. In most cases, when equities are expensive, the fund reduces exposure, and when they are reasonably priced, the fund increases it. This automated approach helps reduce human emotional biases from the investment process.

Why consider a balanced advantage fund?

Balanced advantage funds have emerged as a popular choice among investors for several reasons.
 

• Dynamic asset allocation: A unique feature of balanced advantage funds is their ability to dynamically shift between asset classes, such as equities and debt. Markets are ever-changing, and static asset allocation might not always be optimal. The adaptability of balanced advantage funds ensures that they remain aligned with current market conditions. Fund managers make use of various metrics and valuation models to determine market conditions. For instance, when the Price-to-Earnings (P/E) ratio of a market is high, it might suggest that equities are overvalued. Conversely, when the P/E ratio is low, equities might be undervalued. Using such indicators, fund managers adjust the asset allocation.

• Effective risk management: By adjusting the ratio of equity to debt based on market conditions, balanced advantage funds can reduce potential downturn risks during volatile market phases. Conversely, they can capture some part of the upside during bullish phases, offering a dual advantage.

• Diversification benefits: The inherent design of these funds ensures diversification across asset classes. Therefore, the underperformance of one asset can be potentially offset by the performance of another if the other asset class is performing, leading to a relatively stable investment experience over the long term.

• Potential for returns: With the capability to switch between asset classes based on valuations, balanced advantage funds can position themselves to capitalise on opportunities in both equity and debt markets. Moreover, the dynamic nature of these funds can lead to relatively consistent returns over the long term. While no investment can guarantee returns, the methodology behind balanced advantage funds is designed to smooth out the highs and lows of the market, leading to steadier growth over the long term.

• Managing emotional investing: One of the biggest challenges individual investors face is making objective decisions that are free from emotional biases. Balanced advantage funds, with their data-driven strategies, aim to make rational decisions based on metrics and valuations rather than emotions.

What is an effective balanced advantage fund?

An effective balanced advantage fund blends the potential for returns with appropriate risk management. The focus is not just on the returns, but also on how those returns are achieved. When evaluating an effective balanced advantage fund, investors should consider factors like consistency, risk-adjusted performance, and the strategy and experience of the fund manager.

Conclusion

Balanced advantage funds offer a dynamic approach to investing, helping investors navigate the unpredictable nature of markets with a combination of equity and debt. By relying on data-driven strategies, these funds aim to overcome the emotional biases that often hinder investment success. Whether you are just starting out or are an experienced investor, balanced advantage funds can offer you a fulfilling investment experience that combines both relative stability and growth potential. 

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Financial lessons

Professional fund managers handle these investments, making it relatively stable for individuals to participate in financial markets. However, you must also be aware of the importance of arming yourself with the right kind of knowledge as well. Therefore, as we approach the festive season, here are a few financial lessons that you can draw upon to improve your financial well-being.

Lesson 1: Start early

Time has the capacity to exert a profound influence on the growth of your investments. Since the entire concept of mutual funds depends on reaping the benefits of compound interest, longer the investment period will be, the greater the compound interest would be.

Lesson 2: Set financial goals

Assess your current financial situation. List out your short, medium, and long-term goals. Ensure your goals are specific, measurable, and achievable with set timeframes. Prioritize your goals and create a clear action plan.

Lesson 3: Do your research

Explore multiple ways of investing in mutual funds through risk assessment tools, fact sheets, and online calculators. Conducting comprehensive research before investing your financial resources is essential. Ensure you understand the mutual fund’s objectives, evaluate the fund manager’s historical performance, and check the fee structure and track record. Checking these critical components will help you make well-informed decisions. Make sure to check for any hidden expenses that may reduce your profits.

Lesson 4: Understand your risk tolerance

Pay serious attention to your risk tolerance. This draws the line between sensible and reckless investing. Recognize your capacity and willingness to endure market volatility and choose funds that suit your comfort level.

Lesson 5: Know your fund types

Knowing the different types of funds you can invest in is highly important. Mutual funds open the door to participation in the dynamic stock market, with equity funds for growth, debt funds for relative stability, and hybrid funds for a balanced strategy.

Lesson 6: Diversify your portfolio

Dispersing your investments across multiple asset classes, sectors, and geographic regions, can help mitigate the impact on your holdings against uncertainty.

Lesson 7: Investing is long-term

Investing isn't about making quick money. Don't get worried by the fluctuations in the financial markets. Embrace a long-term perspective that allows you to withstand market turbulence and profit from the upward trajectory of markets. Bajaj Finserv Flexi Cap Fund can be considered as an option if you are looking to remain invested for a long-term.

Lesson 8: Invest regularly

Disorganized and irregular contributions will yield suboptimal outcomes. Consistency is the bedrock of building a solid financial foundation. Therefore, consider commitment to a structured investment with regular allocation of funds to your portfolio, irrespective of the prevailing market conditions.

Lesson 9: Avoid emotional investing

Impulses often lead to mistakes. Successful mutual fund investors remain driven by rational analysis rather than giving into fear or excitement. The market sentiments do not affect the disciplined investor.

Lesson 10: Review your portfolio regularly

Regularly review your portfolio by checking its performance against your financial objectives and making necessary tweaks. Doing so will help you maintain your course and reduce the probability of financial losses.

While the lessons above can help you invest better, it is always recommended to take advice from a financial consultant before making investment decisions. They will help you understand all elements in detail and make the best decision possible.

To conclude, this article discussed the various lessons that can help an investor make the right investment choices. These lessons are the basic building blocks of a strong financial foundation. It is advisable for investors to regularly assess their investment’s performance and adjust their strategy as required. This festive season, unlock the transformative power of investments with Bajaj Finserv AMC. Choose your preferred scheme by visiting the investor portal and starting your investment journey with a few clicks. You can also consult a distributor to make an informed investment decision.

About Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Asset Management Limited, a wholly owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

SIP investments

What does SIP investment mean

A Systematic Investment Plan (SIP) is a strategy that allows investors to invest their money in small amounts on a regular basis and gain long-term benefits from it. A predefined amount is withdrawn from the investor’s account on a monthly or weekly basis and goes into mutual funds.

Advantages of Systematic Investment Plan

Here are some advantages of SIP that can help you gain an idea of how SIP investment helps make money in the long run:
 

Disciplined investing: With SIP, money is withdrawn regularly from your bank account for investment. This investment will eventually bring discipline to the way you handle money by committing you to invest small amounts of money regularly. Thus, you can ultimately grow your corpus over time. You can consider starting an SIP investment with Bajaj Finserv Flexi Cap Fund for long term growth.

Flexibility: SIP for wealth creation allows you to be flexible. It helps avoid long-term obligations of large amounts like investing in Public Provident Funds (PPFs) or Unit Linked Insurance Plans (ULIPs). This allows you to invest a portion of your maximum budget elsewhere and earn money from it too. These are open-ended funds that may be withdrawn whenever you choose, as opposed to fixed term funds. However, it is to be kept in mind that withdrawing from some SIPs before a specified period comes with some minor costs in the form of exit load.

Compounding: When you opt for an SIP investment, the returns earned are reinvested in your principal investment until maturity. As a result, your investment is exposed to the influence of compounding throughout time, assisting you with exponential development.

Stop whenever: Most SIPs do not charge a fine or penalty if you wish to stop the investment at any point. You just need to go to your Demat account or your mutual fund account or to the distributor and opt out of the plan. This is an advantage of SIP over traditional investments like Fixed Deposits/Recurring Deposits. This ultimately helps you commit to a habit of investing, even with small amounts. The act of investing opens prospects to making more money.

How SIP helps earn money

The process of SIP follows two principles, rupee cost averaging and compounding. The following is an explanation of how these two principles work in tandem to increase profitability in the long run:

Rupee cost averaging: SIPs follow the principle of rupee cost averaging, thus decreasing market volatility and increasing overall returns.

To make this concept simpler, suppose you initially buy a mutual fund at a higher value, then you will get fewer units for a certain price. However, the value reduces at some points, and thus you get more units for the same price in the subsequent cycles. This ultimately averages out the overall value of your mutual fund, which is what rupee cost averaging is all about.

Compounding: Because of compounding, even saving money in smaller amounts for extended periods of time can have a significant impact in the long run. The money you invest grows over time as it earns returns. Further, the interest earned gets reinvested. Thus, your returns also generate subsequent returns. The final amount that is received on maturity is determined by the return rate applied to your contributions.

With these two principles functioning together, SIPs help you get the same units of mutual funds in each cycle on average while ensuring that your investment gains as much interest as possible. Ultimately, this helps you beat inflation over the long run and even make some extra money.

To conclude, we explored what SIP means and how SIP investments can help make money in the long run. We have discussed the benefits and shown how SIPs can help investors overcome market volatility and make use of the power of compounding. However, this is possible as long as investors are disciplined, patient, and goal-oriented. It is recommended that investors periodically review their SIP performance and make the necessary tweaks to their investment strategy as needed. You can easily start your SIP journey with the help of Bajaj Finserv AMC, today. Choose your preferred scheme by visiting the investor portal and start your SIP in a hassle-free way.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Debt Mutual Funds

Debt funds are managed by professional fund managers who strategically select debt instruments based on their credit quality, duration, and prevailing interest rates. Additionally, there are different types of debt funds, each catering to a specific risk appetite and investment horizon. 

What are the types of debt funds?
Liquid funds: Liquid funds are a relatively stable and liquid investment option. They primarily invest in short-term debt instruments with a maturity of up to 91 days. You can consider investing in Bajaj Finserv Liquid Fund. This scheme seeks to provide a level of income consistent with the objectives of preservation of capital, lower risk and high liquidity through investments made primarily in the money market and debt securities with maturity of up to 91 days only. However, there is no assurance that the investment objective of the scheme will be achieved.

Ultra-short duration funds: These funds invest in debt instruments with a slightly longer maturity period than liquid funds, such that the Macaulay duration is between 3 to 6 months. 

Short-term debt funds: If you're looking for investments with a horizon of 1-3 years, short-term debt funds can be a suitable choice. They invest in a mix of short to medium-term debt securities.

Income funds: Income funds target investors with a medium-term investment horizon. They invest in a diversified portfolio of debt instruments, including government securities and corporate bonds, with varying maturities.

Dynamic bond funds: Dynamic bond funds are actively managed debt funds that adjust their portfolio duration based on interest rate expectations. This flexibility allows them to potentially capitalize on interest rate movements and generate relatively higher returns.

Gilt funds: Gilt funds exclusively invest in government securities (gilts), which are considered a relatively stable form of debt instruments in the market. They are suitable for risk-averse investors looking for stability of the corpus. However, they are subject to duration risk.

Fixed maturity plans (FMPs): FMPs have a predefined maturity date. They invest in debt instruments with matching maturities, thereby reducing interest rate risk.

Features of debt funds

Relative stability and predictability
Debt funds offer a level of relative stability and predictability that can be comforting, especially for those with lower risk tolerance. Unlike equity investments, which can be highly volatile, debt funds aim to mitigate impact on capital.

Relatively steady cashflow
If you're looking to generate a potentially steady cashflow from your investments, debt funds can be a suitable option. Many debt funds distribute Income Distribution cum capital withdrawal (IDCW) at regular intervals, such as monthly, quarterly, or semi-annually. 

Liquidity
Debt funds offer liquidity that is often superior to traditional fixed deposits. You can redeem your investment partially or fully at any time, depending on the fund's terms and conditions.

Diversification 
A well-diversified investment portfolio helps spread risk. By investing in debt funds alongside equity and other asset classes, you can achieve better diversification. 

Professional management
Debt funds are managed by experienced fund managers who make investment decisions based on thorough research and analysis. These experts analyze market conditions, interest rate movements, and credit quality to optimize the return potential. Professional management of the fund can be beneficial, especially if you lack the time or expertise to manage your investments actively.

Inflation hedge
While debt funds may not provide the same potential for wealth creation as equities, they can serve as a hedge against inflation. 

Risk management
Different types of debt funds offer varying risk levels, allowing you to tailor your investments to your risk tolerance. If you prefer low-risk options, you can opt for liquid funds or gilt funds. Conversely, if you're willing to take on more risk for potentially better returns, credit opportunities or dynamic bond funds may be more appealing.

Convenience and accessibility
Investing in debt funds is hassle-free. You can start with relatively small amounts, often as low as Rs. 1,000, and the process can be done either through a distributor, or online through various fund houses and investment platforms. You can invest in Bajaj Finserv Liquid Fund or Bajaj Finserv Overnight Fund by visiting Bajaj Finserv Mutual Fund’s investor portal.

To conclude, debt funds offer an attractive proposition for investors seeking relative stability, cashflow, and diversification. Whether you're saving for a short-term goal, building an emergency fund, or balancing your portfolio with a mix of asset classes, debt funds can play a valuable role in achieving your financial aspirations.

Wealth creation in India

Understanding wealth creation

Wealth creation refers to the process of generating long-term wealth through strategic planning, disciplined investing, and sound financial decisions. It involves increasing your net worth over time by creating a diversified investment portfolio that generates consistent returns.

Wealth creation is not limited to earning money; it also involves smart management of finances. It is all about making the right choices with money, such as investing in assets that appreciate over time, managing debt effectively, and building a savings cushion to deal with unexpected expenses.

Why is wealth creation important?

Wealth creation is important for several reasons:

Financial security and stability: In a country like India, where social security systems are still developing, a financial cushion can provide a safety net in times of need. In that aspect, wealth creation enables you to deal with unexpected expenses such as medical emergencies, job loss, or other unforeseen circumstances.

Financial independence: By building a diversified investment portfolio with consistent returns, you can create a passive income stream and get financially independent faster. Plus, a secondary passive income can give you more flexibility and control over your finances and free up time to pursue other interests.

Long-term goals: Wealth creation is essential for achieving long-term financial goals such as retirement planning, education funding, and legacy planning. Investing early and consistently can help you accumulate a sizeable corpus that can be used to fund future goals.

How to start with long-term wealth creation?

Evaluating your financial situation and long-term goals are the first steps. Before you can embark on your journey of wealth creation, you must minimise existing debt and make a commitment to stay disciplined in your approach in the coming years.

Start early: The earlier you start investing, the more time your money has to grow.

Set clear financial goals: Define your financial goals, both short-term and long-term, and align your investments accordingly.

Eye on expenses: Keep a check on expenses such as brokerage fees, mutual fund expense ratios, and taxes before investing.

Stay disciplined: Invest regularly and stay disciplined even during market volatility.

Steps to make a wealth creation plan?

Here are some steps to follow if you want to create a robust wealth creation plan:

1. Define your financial goals, such as buying a house, retirement planning, or funding education.

2. Evaluate your current financial situation, including income, expenses, debt, and assets.

3. Create a budget to track your income and expenses and identify areas where you can save more.

4. Choose investment vehicles that align with your financial goals and risk profile.

5. Build a diversified investment portfolio that includes a mix of assets such as stocks, bonds, mutual funds, and real estate.

6. Invest regularly and stay disciplined even during market volatility.

7. Monitor your progress towards your financial goals regularly and make adjustments as needed.

8. Rebalance your portfolio at regular intervals to ensure that it remains aligned with your financial goals and risk profile.

By following these guidelines, you can develop a comprehensive wealth creation plan and take control of your financial future.

How to choose a suitable investment for wealth creation?

Choosing the right investment for wealth creation can be overwhelming, but here are some factors to consider in order to make informed decisions:

Risk: Determine your risk tolerance by assessing your investment goals, time horizon, and financial situation.

Research: Research different investment options such as stocks, bonds, mutual funds, and real estate to determine which ones align with your risk profile and financial goals.

Diversification: Diversify your investment portfolio by investing in a mix of asset classes to manage risk and increase return potential.

Fees: Evaluate the charges associated with each investment option to ensure that you are getting the best value for your money invested.

Long-term outlook: Look for investments that have the potential for long-term growth and are aligned with your financial goals. You can consider investing Bajaj Finserv Flexi Cap Fund for wealth creation/capital appreciation over the long term.

Expert advice: Consider seeking the help of a financial advisor to help you make informed investment decisions.

It is important to remember that every investment carries a level of risk, and due diligence is essential before making any investment decisions.

How can you achieve your wealth creation goals?

Here are some ways to achieve your wealth creation goals:

Be realistic: Set realistic and achievable financial goals that are aligned with your risk profile and financial situation.

Be loyal: Stay committed to your investment plan, especially during market volatility.

Be regular: Invest regularly with SIPs to take advantage of compounding and grow your wealth over time. You can calculate the estimated future value of investments with the help of an online SIP calculator.

Be watchful: Monitor your progress towards your financial goals regularly and make adjustments as needed.

Be agile: Chop and change your portfolio composition periodically per changing micro and macro events.

Be humble: Seek the help of a financial advisor to help you make an informed investment.

We all need wealth for our well-being and to live a comfortable, secure, and healthy life. The right wealth creation plan can help you achieve your long-term financial goals and secure your financial future. However, to succeed, you must understand the importance of wealth creation, choose the right investment vehicles, and stay disciplined all the way through the journey. Always remember, wealth creation requires patience, discipline, and a willingness to learn. But if you start at the right time and follow the recommended steps, you can build a solid foundation for the days ahead.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Bajaj Finserv Mutual Fund

Myth 1: You need a large sum to invest in mutual funds

Fact: One of the greatest advantages of mutual funds is that they cater to investors with various financial capabilities. Contrary to popular belief, you do not need a large sum of money to invest in mutual funds. Mutual funds offer the option of systematic investment plans (SIPs), allowing you to invest small amounts regularly. This makes it easier for individuals with modest incomes to participate in the market and benefit from long-term wealth creation.

Myth 2: Mutual funds are riskier than shares

Fact: Like any investment, mutual funds carry a certain level of risk. However, it is a misconception to believe that mutual funds are inherently riskier than individual shares. Mutual funds provide diversification by pooling investments from multiple investors, spreading the risk across a portfolio of different securities. The diversification helps to mitigate risk and provide a relatively better return potential over long term compared to investing in individual stocks.

Myth 3: You must have a DEMAT account to invest in mutual funds

Fact: Unlike stocks, which require a DEMAT account for trading, investing in mutual funds does not necessitate a DEMAT account. Mutual fund units are held and managed by the fund house or asset management company. Investors can simply open an account with a fund house or invest through various platforms and intermediaries without the need for a DEMAT account.

Myth 4: Mutual funds are available only for the long term

Fact: While mutual funds are indeed an excellent vehicle for long-term wealth creation, they also offer options for short-term and medium-term investment goals. Depending on your investment objective, you can choose from a variety of mutual fund categories that align with your time horizon and risk tolerance. These categories include equity funds, debt funds, hybrid funds, and more, each catering to different investment durations.

Myth 5: Mutual fund investments have a lock-in period and one cannot redeem investments easily

Fact: Unlike some specific investment options, most mutual funds do not have a lock-in period. Investors have the flexibility to redeem their mutual fund units whenever they desire, subject to terms and conditions. While some funds may have exit loads for early redemption, most funds offer liquidity and the freedom to exit as per the investor's convenience.

Myth 6: Mutual funds only invest in equity markets

Fact: While equity funds are a popular category of mutual funds, it is incorrect to assume that all mutual funds solely invest in stocks. Thus, mutual funds offer a wide range of options, including debt funds, which invest in fixed income securities like government bonds and corporate debentures. Additionally, there are hybrid funds that combine equity and debt investments, providing a balanced approach to wealth creation.

Myth 7: You are too young to start investing in mutual funds

Fact: Age should not be a barrier to starting your investment journey. In fact, starting early can be advantageous due to the power of compounding. Mutual funds offer investment options for individuals of all ages, including young investors. By investing early, you give your money more time to grow, potentially increasing your long-term return potential. You can invest in Bajaj Finserv Flexi Cap Fund easily by visiting the investor portal of Bajaj Finserv Mutual Fund.

Myth 8: SIPs are best suitable for equity Mutual Funds

Fact: While SIPs are commonly associated with equity mutual funds, they can be employed across mutual fund categories. SIPs allow investors to invest a fixed amount at regular intervals, ensuring a disciplined investment approach. This strategy can be equally beneficial for debt funds or hybrid funds, offering the advantage of rupee-cost averaging and mitigating the impact of market volatility. You can use an online SIP calculator to decide an SIP amount.

In conclusion, mutual funds have emerged as a popular investment avenue, but misconceptions can hinder potential investors from reaping the benefits. However, by dismissing these myths and understanding the mutual fund facts, investors can make informed decisions and leverage the potential of mutual funds for long term wealth creation. Remember, seeking the assistance of a financial advisor or distributor can provide valuable guidance tailored to your specific investment needs.

About Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Asset Management Limited, a wholly owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Bajaj Finserv Mutual Fund

SIPs were launched way back in the 90s in India. Fast forward to present times and now you can start to invest in mutual funds with as little as Rs. 500 or Rs. 1,000. The entry bar is so low that you may think that a Rs. 2,000 investment every month (or a total of Rs. 24,000 per year) may be enough. But that is not the ideal way to make the most of your mutual fund investment.

In this article, we will discuss how much of your salary should you invest in a mutual fund and how to start investing in mutual funds.

Define categories for your income needs, wants, and savings

If you are serious about living the good life, the rule of thumb is to divide your monthly income into three categories: needs, wants and savings. This is also known as the 50:30:20 rule. It helps you get a clear picture of your income, expenses, and savings. For example, if you earn Rs. 80,000 each month then Rs. 40,000 goes into the needs, Rs. 24,000 goes into the wants and the rest (Rs. 16,000) into savings.

The needs: 50% of your monthly income goes into things you may have to buy, or pay for every month, such as rent or home loan instalment, buying groceries, making bill payments, etc. These are the things you absolutely must pay for to sustain your daily life.

The wants: The next 30% of your salary goes into things that you want to splurge on, experience or buy, such as dining out, shopping, etc. You can also include the things that you want to improve and enjoy your daily life such as a gym membership, yoga classes, subscription to streaming services, grooming at the salon, etc.

The savings: Then comes the remaining 20% of your income. Save it every single month without fail. You need not put it all in a mutual fund investment, even though you can consider it if that suits your portfolio. You can also start investing a small portion of these savings into an emergency fund. The important thing is to save at least 20% of your income every month.

Spend some time in building your portfolio

Now that you know how much of your salary you must save each month, it is time to start building your investment portfolio.

You can consider starting small if you are a new investor with relatively stable options like debt funds. They have a shorter investment horizon and can help you gain confidence in mutual fund investments.

Next, it is time to diversify your portfolio with the more dynamic and rewarding equity funds. Flexi-cap funds can be a good fit and Bajaj Finserv AMC, too, has recently launched a Bajaj Finserv Flexi Cap Fund. You can invest in this scheme by visiting the investor portal of Bajaj Finserv Mutual Fund.

If you are like most people, you may not have a lumpsum lying around in your account to invest in equity funds. If you do, then you can talk to your financial advisor to know your options when it comes to investing in equity funds.

Decide an SIP amount

If you do not have a lumpsum to invest in mutual funds , you can start a Systematic Investment Plan for equity funds. While most mutual funds let you get started with Rs. 500 or Rs. 1,000, we suggest you consult with your financial advisor and consider increasing the amount to Rs. 5,000 or Rs. 10,000 (or more) to see tangible results from your investment. You will be able to experience the power of compounding with higher amounts, especially if you invest for a longer period – 7 years, 10 years and so on. Additionally, you must consider investing more in mutual funds as your income grows.

However, it is not a problem if you think that you want to get started with a small amount. SIPs are flexible and you can increase (or decrease) the instalment in the future. If you are not sure that you can invest in mutual funds each month, you can set up the SIP instalment to quarterly frequency as well. You can take the help of an online SIP calculator to determine your SIP amount.

Conclusion

How much of your salary should you invest in mutual funds depends on various factors. In general, you must consider saving at least 20% of your income each month and invest the whole amount or a part of it in mutual funds. The sooner you start, the better. Please talk to your financial advisor to find out suitable mutual fund schemes to build a solid investment portfolio.

About Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Asset Management Limited, a wholly owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Behavioural Finance

Bajaj Finserv Mutual Fund has recognized the importance of behavioural finance and integrated its principles into its investment philosophy. In this article, we will take a look at how Bajaj Finserv Mutual Fund leverages behavioural finance to provide value to its investors.

The foundation of behavioural finance

Behavioural finance is a discipline that combines elements of psychology and economics to study how human emotions, biases, and cognitive errors influence financial decision-making. Traditional economic theory assumes that investors are rational and always make choices that optimize their utility. However, behavioural finance reveals that investors often deviate from rationality, leading to suboptimal outcomes.

Key concepts within behavioural finance include:

1. Overconfidence: Investors may overestimate their abilities, leading to excessive trading and portfolio turnover.

2. Loss aversion: People tend to feel the pain of losses more acutely than the pleasure of gains, leading to conservative investment choices.

3. Anchoring: Investors often rely heavily on the first piece of information they encounter when making decisions, even if it's irrelevant.

4. Herd mentality: Individuals often follow the crowd rather than conducting independent analysis, leading to market bubbles and crashes.

5. Confirmation bias: People seek information that confirms their pre-existing beliefs and ignore contradictory evidence.

6. Mental accounting: Investors segregate their money into different mental accounts, affecting how they perceive risk and make decisions.

How does Bajaj Finserv Mutual Fund embrace behavioural finance

Bajaj Finserv Mutual Fund understands that acknowledging these behavioural biases and psychological factors is crucial for making investment decisions. Here's how the company leverages behavioural finance in its investment philosophy:

1. Awareness: Bajaj Finserv Mutual Fund places a strong emphasis on explaining to its investors about the principles of behavioural finance. By providing guidance, the company seeks to empower investors to recognize their biases and make more rational decisions. This approach helps investors understand the psychological traps that can affect their portfolio performance.

2. Risk Assessment and Tolerance: Behavioural finance insights can help to evaluate an investor's risk tolerance more accurately. This approach helps investors stay committed to their long-term financial goals and avoid impulsive decisions during market volatility.

3. Behaviourally informed investment strategies: Bajaj Finserv Mutual Fund integrates behavioural insights into its investment strategies. For example, recognizing that investors tend to anchor on recent market performance, and asking them to focus on long-term performance of the scheme rather than taking decisions based on short term market fluctuations. This approach can ensure that investors don't totally rely on the most recent market data, thereby reducing the risk of making hasty decisions.

4. Communication and transparency: The aim of the company is to maintain open and transparent communication with its investors. This includes providing regular updates on, market conditions, and potential risks.

5. Long-term perspective: Behavioural finance encourages investors to adopt a long-term perspective. Bajaj Finserv Mutual Fund reinforces this by emphasizing the importance of patience and discipline.

6. Behavioural finance research: This research helps the fund managers better understand market sentiment and investor behaviour. By staying at the forefront of behavioural finance knowledge, Bajaj Finserv Mutual Fund can continuously refine its investment processes to adapt to changing market dynamics.

7. Diverse product offerings: Bajaj Finserv Mutual Fund offers a range of schemes such as Bajaj Finserv Flexi Cap Fund and other schemes. Investors can opt for a scheme that aligns with psychological inclinations and financial goals.

The benefits of integrating behavioural finance

By incorporating behavioural finance principles into its investment philosophy, Bajaj Finserv Mutual Fund seeks to bring several advantages to its investors:

1. Enhanced decision making: Investors are better equipped to make rational and informed decisions, reducing the likelihood of impulsive actions that can harm their portfolios.

2. Reduced emotional stress: Understanding the impact of emotions on investing helps investors stay calmer during market turbulence, preventing panic-driven decisions.

3. Long-term wealth creation: Encouraging a long-term perspective helps investors stay committed to their financial goals, increasing the potential for wealth accumulation over time.

4. Increased trust and confidence: Transparent communication with an aim to build trust between the mutual fund company and its investors, fostering confidence in the investment process.

Conclusion

Behavioural finance has emerged as a crucial component of modern investment philosophy, recognizing the influence of human psychology on financial decisions. By educating investors about behavioural biases, adopting behaviourally informed strategies, and emphasizing a long-term perspective, Bajaj Finserv Mutual Fund strives to provide its investors with a more rational and rewarding long term investment experience.

About Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Asset Management Limited, a wholly owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Bajaj Finserv Asset Management

Let’s understand the details of Bajaj Finserv Flexi Cap Fund and how you can optimize this opportunity to inch closer to your financial aspirations.

Investment objective of Bajaj Finserv Flexi Cap Fund

The investment objective of this scheme is to generate long term capital appreciation by investing predominantly in equity and equity related instruments across market capitalisation. However, there is no assurance that the investment objective of the scheme will be achieved.

Why should you consider Bajaj Finserv Flexi Cap Fund?

1. Megatrend Investing approach

Imagine megatrends as powerful currents that shape landscapes, impacting economies, industries, and companies. These currents result from a blend of factors – technological advancements, shifts in consumer behaviours, demographic transitions, environmental concerns, and more. The approach here is like predicting these currents before they arrive, enabling the identification of potential future winner and elevating the prospects of favourable returns in the long run. This forward-thinking approach is the core Bajaj Finserv Flexi Cap Fund's strategy.

2. Our InQuBe Investment Philosophy

Our investment philosophy at Bajaj Finserv Asset Management Ltd. is centred on the belief that over time, equity investments may yield fruitful returns for our investors. To support this vision, we have a three-stage investment philosophy termed InQuBe, which is a combination of informational, quantitative, and behavioural edge.

These edges collectively enable us to gather pertinent information ahead of the curve, enhance prediction models, and leverage behavioural insights for optimizing the return potential.

3. Diversification of portfolio

Flexi cap funds allocate assets among companies of varying market capitalizations. This flexibility empowers fund managers to make decisions based on growth potential rather than company size. The absence of strict capitalization restrictions grants the freedom to reallocate investments based on market shifts.

Five key features of Bajaj Finserv Flexi Cap Fund

Here’s some key features of Bajaj Finserv Flexi Cap Fund before making your investment decision:

Returns on Investment

For those with a high risk appetite and a long-term outlook, Bajaj Finserv Flexi Cap Fund offers the possibility of generating wealth and meeting long-term financial goals.

Risk Level

Given that Bajaj Finserv Flexi Cap Fund invests across industries based on growth potential and megatrends, they are classified as 'Very High' risk. However, staying invested for the long term could yield relatively better risk-adjusted returns.

Exit Load

If unitholders redeem the units within 6 months of the date of allotment, they will not have to pay an exit load on redeeming or switching out up to 10% of the allotted units. For more than 10% of units, 1% of the applicable NAV will be charged. Exit load is not applicable if the units are redeemed 6 months after the date of allotment.

Redemption Process

Units can be sold, repurchased, and redeemed on any business day. Minimum redemption amount is Rs. 500, dispatched within 3 working days from redemption request.

Investment Goals

Geared towards the long term, this high-risk, open-ended equity scheme aligns well with goals like purchasing a house or building a retirement corpus.

Investing in Bajaj Finserv Flexi Cap Fund offers a strategic lens into long-term trends, aligning with targeted exposure and balanced risk. Don't hesitate - take a step towards your financial objectives by investing in Bajaj Finserv Flexi Cap Fund. You can invest in Bajaj Finserv Flexi Cap Fund either online or offline. You can invest in this scheme by meeting distributors in person. Additionally, you can invest through your Demat and online trading account. You can also go to Bajaj Finserv AMC investor portal and create an online account to invest in this scheme.

About Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Asset Management Limited, a wholly owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

What are mutual funds?

Before we dive into the differences, let’s quickly understand what are mutual funds. Mutual funds are like a big pool of money collected from many investors. This money is then used to buy a mix of different things, like stocks and bonds. When these investments make money, the investors also make money.

There are two types of plans in mutual funds in India: Direct funds/ plans and Regular funds/ plans.

• Direct mutual funds: Direct mutual funds are like going to a shop and buying something directly from the shopkeeper. In this case, the shopkeeper is the AMC (Asset Management Company). When you invest in direct mutual funds, you buy them directly from the company that manages the mutual fund (AMC). There’s no middleman involved, like an agent or a broker. Because of this, the expenses, or charges you pay are usually lower in direct mutual funds. This means you get to keep more of the money you make from your investments.

• Regular mutual funds: Regular mutual funds, on the other hand, are like buying something from a shop through a salesperson. In this case, the salesperson is the agent or broker who helps you invest in the mutual fund. They give you the important information, help with paperwork, and take care of things for you. But here’s the catch – because there’s a middleman involved; the mutual fund company pays them a commission. This commission is usually a part of the expense ratio. As a result, the returns you get from regular mutual funds might be a little lower compared to direct mutual funds.

When selecting an online platform for purchasing mutual funds, it's important to consider factors such as user-friendliness, comprehensive information availability, and minimal fees. An example of such a platform is the Bajaj Finserv mutual fund investment platform. With its user-friendly interface and zero commission charges, this platform enables you to effortlessly invest in mutual funds and efficiently manage your investment portfolio.

Difference between direct and regular mutual funds

Let’s understand a few important terms:

• Expense ratio: The expense ratio is the fee that a mutual fund charges to cover its operating expenses. The expense ratio is expressed as a percentage of the fund's assets. Direct funds typically have lower expense ratios than regular funds. This is because there are no intermediaries or brokers involved in the sale of direct funds, so there is no commission to be paid.

• Returns: The returns of a mutual fund are the profits that it generates for its investors. The returns of a direct fund can comparatively be higher than the returns of a regular fund. This is because the lower expense ratio of a direct fund means that more of the fund's assets are invested in the underlying securities, which can lead to higher returns.

• Service: Direct funds are self-service, which means that investors have to manage their own investments. This includes buying and selling units, monitoring the fund's performance, and making changes to their investment strategy. Regular funds are assisted, which means that investors can get help from a broker or distributor. This can be helpful for investors who are new to investing or who do not want to manage their own investments.

How to Invest in direct and regular mutual funds?

Investing in both types of mutual funds is easy. For direct mutual funds, you can directly visit the AMC’s website to make your investments or invest through online platforms like “Bajaj Finserv app" which offers direct mutual funds in association with its group entity Bajaj Finserv Direct Limited

For regular mutual funds, you usually need to go through a broker or agent like the Bajaj Finserv Platform. They will help you with the process. 

Conclusion

To sum it up, the main thing to remember is that direct mutual funds have lower charges because there’s no middleman involved. This can make a difference in the long run and help you keep more of the money you make from your investments. Regular mutual funds involve intermediaries like agents or brokers, which can lead to slightly higher charges. When choosing between direct and regular mutual funds, consider your goals, your comfort with managing your investments, and the fees involved. 

1. Diversification
One of the most significant benefits of investing in mutual funds is diversification. With mutual funds, you can invest your money in a variety of stocks, bonds, and other assets. This diversification helps in reducing the overall risk of your investment portfolio. By spreading your investment across different asset classes, sectors, and companies, you can avoid putting all your eggs in one basket. Find over 1200 mutual fund schemes on the Bajaj Finserv platform to choose from to suit your investment goals.
 

2. Professional Management
Mutual funds are managed by professionals who have years of experience in managing investments. These managers carefully select stocks, bonds, and other assets based on their potential of growth. They continuously monitor the markets, analyze economic data and make informed decisions on behalf of their investors. Investing in a mutual fund saves the time and effort required to research individual companies and make investment decisions. Find the details of scheme allocation on the fund pages of the Bajaj Finserv mutual fund platform.
 

3. Convenience
Investing in mutual funds is convenient and hassle-free. You can invest in mutual funds online through the Bajaj Finserv mutual funds platform, in just a few clicks or any other platform of your choice. You can even set up a systematic investment plan (SIP) in which you contribute a fixed amount of money at regular intervals. Using an SIP calculator online helps you determine the amount you need to invest monthly in order to achieve your goals. The Bajaj Finserv SIP Calculator can give an estimate of your maturity value if you fill in your investment amount, tenure and expected returns.
 

4. Low Investment Threshold
Mutual funds have a low investment threshold, making them accessible to low-income investors as well. You can start investing in mutual funds with as little as Rs. 100. This ensures that everyone has access to quality investment options, regardless of their financial status.
 

5. Liquidity
Mutual funds offer investors high liquidity, which means that they can easily convert their investments into cash whenever they need it. Investors can redeem their mutual fund units and receive the money in their bank account within a few days. This makes mutual funds an excellent investment option for individuals who may require emergency funds. All open-ended funds can be redeemed at any time. There are many open-ended schemes which do not levy any exit load. You can read more about open-ended funds on the Bajaj Finserv platform and compare various funds to understand the difference and the liquidity factor associated with them.
 

6. Tax Benefits
Mutual funds offer tax benefits to investors. Investments in ELSS mutual fund schemes are eligible for tax deductions under Section 80C of the Income Tax Act. Moreover, in India, long-term capital gains from equity mutual funds are tax-free up to Rs. 1 Lakh and gain over 1 Lakh is taxed at 10%. This means that if you hold your investment for more than 1 year, you can enjoy high returns without worrying about taxes.

7. Systematic Investing
With mutual funds, you can set up a systematic investment plan (SIP) which allows you to invest a fixed amount of money each month. This disciplined approach helps investors build their investment portfolios over time. It also helps to average out market fluctuations and avoid the temptation to time the market.
 

8. Low Fees
Investing in mutual funds is cost-effective. Mutual fund managers charge a small fee, which is deducted from the returns earned. This fee is comparatively low when compared to the brokerage charged from the other investment options such as stocks, bonds, and real estate.
 

9. Transparency
Mutual funds offer a high level of transparency to investors. You can easily access information about your investments, such as the NAV (net asset value), performance, and portfolio composition. Additionally, mutual funds are regulated by the Securities and Exchange Board of India (SEBI), which ensures that investors are protected from any fraudulent activities.
 

10. High Returns
Mutual funds have the potential to generate high returns, which makes them an attractive investment option. Historically, mutual funds have delivered returns that are higher than fixed deposits and other traditional investment options. While there is no guarantee of returns, investing in mutual funds can help you achieve your long-term investment goals as investments in mutual funds are subject to market risk.

In conclusion, mutual funds offer a variety of benefits to investors. From diversification and professional management to convenience and tax benefits, mutual funds present a wise investment option. By investing in mutual funds, you can aim to build wealth over time and achieve your long-term financial goals.

Bajaj Finserv Mutual Fund

Understanding megatrends investing

Investing in megatrends offers a range of benefits for mutual fund investors. By concentrating on companies leading in transformative trends, you can position yourself to potentially benefit from consistent growth and expanding opportunities linked to megatrends.

One key advantage of megatrends investing is of spreading the investment across different industries and sectors. Since megatrends span various sectors, you can access opportunities that sector-based investments might not catch. Furthermore, aligning with megatrends can help identify companies with strong growth potential and solid business models. These companies usually perform better during market instability and economic challenges, giving your investment portfolio greater stability.

How does Bajaj Finserv Flexi Cap Fund utilize the megatrends investing approach?

While companies influenced by megatrends have growth opportunities, it's crucial to scrutinize them further to identify the ones with most potential. The fund managers at Bajaj Finserv Mutual Fund evaluate companies based on specific standards:

1. Monetization potential

Monetization involves making money from a business or asset. Sometimes, despite aligning with a positive trend, a business might struggle to capitalize on it. Megatrend investing is about identifying companies capable of capitalizing on trends and driving profit growth.

2. Financial check

Evaluating a business's financial health is critical. Factors like capital intensity, future cashflows, profit growth, and balance sheet quality are assessed. Companies benefiting from megatrends should show strong revenue growth. Weak financials could lead to constant reliance on external funding, thereby negatively impacting investor returns. In-depth financial checks help evaluate a company's potential to enhance investor wealth over time.

3. Valuation analysis

Valuation reflects the market perceptions and expectations about a company's future potential. Markets aren't always precise in valuing a company's business accurately. This presents opportunities for investors to enter or exit a company at favourable prices. Valuations also determine how much of the portfolio should be allocated to different companies.

Investing in Bajaj Finserv Flexi Cap Fund: SIP or Lumpsum?

When considering the Bajaj Finserv Flexi Cap Fund, you have two main routes to invest: Systematic Investment Plan (SIP) and lumpsum investment.

1. SIP route: SIP offers a structured way to invest. It lets you invest in a mutual fund scheme at regular intervals, even with small amounts like Rs. 500. Following a well-defined plan through SIP investment can lead to long-term growth. 

2. Lumpsum route: Lumpsum investment is about putting a significant amount into a mutual fund scheme at once. This approach can be more suitable for investors looking to invest in flexi cap funds and have a high-risk tolerance. 

Conclusion

Whether you choose SIP or lumpsum, considering the Bajaj Finserv Flexi Cap Fund can prove to a wise decision in the long run. The megatrend approach through this scheme provides a distinct opportunity. By embracing ever-evolving trends, you can tap into growth, innovation, and economic progress. Adopting this forward-looking approach with Bajaj Finserv Flexi Cap Fund could potentially lead to financial growth in the long run.

About Bajaj Finserv Asset Management Ltd.

Bajaj Finserv Asset Management Limited, a wholly owned subsidiary of Bajaj Finserv Limited, has announced its presence in the investment solutions industry. Backed by one of India’s most respected and oldest brands, it offers a host of innovative products and solutions to every Indian. With a future-focused and differentiated investment strategy, its ambition is to help every Indian achieve his/her financial goals.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

The multiple benefits of mutual fund investments include its ease of investing, professional fund management portfolio diversification, and tax benefits. In the following sections, investors will learn how to make profits from mutual funds while saving taxes. 

Mutual fund tax benefits under Section 80C 

Equity-linked saving schemes (ELSS) are a popular equity fund that offers tax saving benefits to investors under Section 80C of the Income Tax Act (ITA), 1961. People who invest in ELSS can seek tax deductions of up to Rs. 1.5 lakh. This is the reason why ELSS is also referred to as a 'tax-saving mutual fund’.

The emerging force of the country’s young salary earners is expected to grow further, and women will increasingly adopt mutual fund investments. Women comprised almost 26% of the 1.6 crore new investors according to the CAMS report.

Conducive market conditions, awareness campaigns, digital access, and simplified KYC are some of the factors that have driven many young people to invest in mutual funds. It is expected to increase further once more people become aware of the benefits of tax-saving mutual funds. 

You can find multiple ELSS mutual funds by top Asset Management Companies on the Bajaj Finance platform. You can filter these funds based on your risk appetite, returns, ratings, and benchmark index.  

How does a tax-saving mutual fund work? 

These schemes accumulate money from various investors and invest in the equity market. The most important feature of ELSS is that these funds have a lock-in period of 3 years. Please note that when investors choose to invest in these savings via a systematic investment plan (SIP), the lock-in period of each instalment is 3 years. 

It would be easier to understand with an example. Suppose Ira contributed the first SIP instalment on 1 May 2023 and the second instalments on 1 June 2023. So, the first SIP instalments will remain locked in up to 1 May 2026 and the second instalments will remain locked in up to 1 June 2026. 

Investors can redeem units of ELSS at the end of their lock-in periods at the prevalent Net Asset Value (NAV). 

Taxation of equity mutual funds

Equity mutual funds are schemes that invest at least 65% of their corpus in equities or equity-linked investment instruments. Investors can realise either short-term capital gains (STCG) or long-term capital gains (LTCG) depending on the holding period of their equity investments. 

STCG is realised if an investor redeems their investment within 1 year of investment and it is taxed at a flat 15% irrespective of one's income tax slab.

LTCGs will be realised if an investor redeems their investment after holding the mutual fund units for more than 1 year. Equity fund investors will receive a certain tax benefit for LTCG, i.e., capital gains up to Rs. 1 lakh in a financial year will be tax-exempt.

Once capital gains exceed this threshold limit, investors have to pay a 10% tax on the excess amount and will not receive any indexation benefits.

Taxation of debt funds 

Debt mutual funds are schemes that invest in fixed-income instruments. Instruments such as government securities, corporate bonds, money market instruments, and corporate debt securities that generate capital appreciation.

According to Union Budget 2023, LTCG taxation on debt funds will not be applicable after 1st April 2023. Now, both short-term and long-term investments in these schemes will be taxed as per the investor’s income tax slab rates.

Many people believe that debt mutual fund taxation has become similar to the taxation of fixed deposits at banks. But, there is a difference that makes debt funds a more attractive investment option than FDs. 

Bank FD interest taxation depends on the method of accounting followed by a taxpayer. But, usually, banks deduct tax at source from interest payouts of FD schemes annually. This is where the difference lies. Debt fund investors have to pay capital gains tax only when they redeem their units or transfer their investment.

In addition, investors can offset their short-term capital loss arising from debt funds while filing Income Tax Returns (ITR). It will reduce their taxable income falling under the head ‘income from capital gains’. 

Important things to remember 

Here are some important things that investors should consider when trying to save taxes on mutual fund investments:

• The total deduction investors can avail from an ELSS depends on the amount they have invested in a financial year. However, the maximum deduction available under Section 80C is Rs.1.5 lakh/year. Note that these deductions are not available for the new tax regime.

• Indeed, saving taxes is not the only aim of most young mutual fund investors. So, one should consider his/her current tax liabilities when deciding to invest in mutual funds. 

• What can young investors do with the saved taxes? Well, they can use it to create an emergency fund that would help deal with financial emergencies. If they have incurred any debt, they can use the saved taxes for loan repayments. 

If salaried people want to save taxes on an investment that offers substantial profits, the ELSS funds on the Bajaj Financial platform are an ideal choice. But before choosing a mutual fund investment, an investor should check his/her financial goals, risk appetite, and investment horizon.

The survey showed that direct plans are in vogue with 8 out of 10 respondents favouring them over regular plans. Index funds, which have been the flavour of the season, are yet to catch up with only 1 in 4 participants investing in them. Growth funds remain the preferred investment tool with 6 out of 10 respondents investing in it. Just 4 percent of respondents cited sector funds and value funds as an investment tool of choice while international funds came a cropper with just 2 percent opting for it.

Commenting on the survey, Gaurav Rastogi, Founder and CEO, Kuvera.in said, “As investment tools become more accessible, we are seeing an increase in investors opting for online platforms such as Kuvera.in to make smart investment decisions. Interestingly, we are also seeing fiscal discipline in investors with almost 50 percent opting to invest in mutual funds to grow their wealth and 45 percent to meet their financial goals. Tried and tested direct plans and growth funds find favour with investors as investment tools, over regular, sectoral, value and international funds.”

Financial goals and growing wealth remains the top-most priority for investors, with just about 2 percent investing for tax savings. 55 percent respondents in the age group 36-43 are investing for their financial goals such as home, marriage and retirement, 59 percent in the age group of 44 and above are investing to grow their wealth. Region-specific trends showed that investing for ‘financial goals’ are important for people in Chennai (62 percent) and Hyderabad (52 percent) while growing wealth appealed to most in Delhi (61 percent), Ahmedabad (55.31 percent), Bengaluru (53.54 percent), Kolkata (52.94 percent) and Mumbai (52.63 percent). The concept of goal-based investing also resonates well with the survey participants, with as many as 4,578 out of 5,559 respondents according it a value between seven and nine on a scale of one to nine. As many as 2,568 people marked it nine.

Demographically, a good 79 percent of those at 44 years and above preferred growth funds. In a contradictory trend compared to others, 11 percent respondents younger than 25 years of age prefer sector funds; 6 percent in that age group prefer value funds. Only 2-4 percent respondents in other age groups prefer such funds. Interestingly, the survey participants are well aware of the difference between direct and regular funds with a whopping 88 percent choosing them as they are cheaper than their regular counterparts when it comes to the expense ratio.

Another interesting investing pattern is that 42.57 percent said past performance of the fund is a key determinant for investing in mutual funds. Around half of the 5,559 respondents looked at reputation of the fund house, fund criteria and fund manager’s investment style. Only a miniscule (1.13 percent) track all determinants - which would be the right way to go when investing in a mutual fund scheme. Respondents in Chennai, Hyderabad and Bengaluru accord more importance to the fund house, fund criteria and fund manager’s investment style over past performance.

In what again shows more fiscal discipline and that young India is not just a saver, but also investing to secure their future; around 60 percent of survey participants invest in an SIP of Rs. 10,000 and above in mutual funds. Region-wise, Bengaluru is an outlier where a whopping 73 percent respondents invest more than Rs. 10,000 through SIP. Data collated separately for women are in line with the overall trend. However, even though the highest number of women (48 percent) are doing SIPs of more than Rs. 10,000, the percentage is far lesser compared to men (61 percent).

Respondents also seemed to favour investing in the stock markets with 4,197 of 5,559 respondents investing in it, while 774 stay away from it. The remaining participants mentioned that they had not invested so far but were looking to start soon. Region-wise, Kolkata, Ahmedabad and Pune topped the chart with over 80 percent respondents investing in the stock market.

Sample size and demographics

The survey comprised a list of eight questions in which as many as 5,559 people participated with 1028 from Delhi, 912 from Mumbai, 524 from Bengaluru, 476 from Kolkata, 420 from Chennai, 360 from Hyderabad, 188 from Ahmedabad and 444 from Pune. There were as many as 528 women respondents. Among all survey participants, 46.78 percent fell in the age group of 25-35 while 25.52 percent in 36-43 age bracket. The rest were below 25 years of age or 44 and above. 

LenDenClub - Fixed Maturity Peer-to-Peer - FMPP

LenDenClub, an RBI-approved NBFC-P2P that serves more than 2 million investors, has designed FMPP such that an investment amount is hyper-diversified into a vast pool of borrowers, owing to which the default rate is drastically minimised, thus offering investors risk-mitigated returns. The new, AI- and ML-based algorithms are more potent than before because they have been fine-tuned and trained on proprietary first party data acquired by the company since inception. This enables FMPP to offer hyper-diversification as a unique feature which mitigates risk and offers stability of returns.

LenDenClub’s FMPP investment plan is a term-based investment plan with flexible tenures of 1, 2, 3, 4 or 5 years. The invested funds are reinvested several times throughout the tenure, thus giving the investors the power of compounding along with an annualised yield of up to 12.21 to 15.25% p.a. FMPP is a non-market-linked alternate investment option which makes it immune to the risks of capital erosion on account of market volatility and therefore offers investors enhanced returns along with an added layer of protection to their invested principal. Further, because of the product construct, it competes with other fixed income assets classes like FDs, Gold Bonds etc.

On the launch of FMPP, Bhavin Patel, Co-founder & CEO of LenDenClub, said, “FMPP is a pioneering, customer-first investment offering in this era of low FD rates and volatile stock-market conditions. It has a completely new algorithm for capital allocation. It has been under development and testing for the past 18 months and it is finally live. LenDenClub’s FMPP investment plan is truly an ‘alternative investment avenue’ for all classes of investors, whether retail or HNI. Technology is at the heart of everything we do. By introducing key technology-enabled features such as hyper-diversification, auto-investment, and reinvestment into our platform, we are eyeing to drive a pivotal shift in the way investments are planned and executed, especially by the younger and tech-savvy audiences. With the current investment landscape, beset with high inflation and market volatility, FMPP adds a new paradigm of stability and transparency, which has assumed precedence by far, among investors.”

“Our single-minded focus is to ensure that over 99% of our investors earn stabilised returns of 10-12% p.a. The newly refined algorithm adds a high degree of certainty to this core product proposition and substantiates our ethos of trust, transparency, and stability towards our customers,” he further added.

FMPP, is a fixed investment plan, wherein long-term lock-in facilitates the compounding to kick-in and thereby improves the yields over the due course. With a higher annualised yield of up to 12.21 to 15.25% coupled with the power of compounded interest of stabilised returns and marginalised NPA, one can potentially double their investments in FMPP in about 6 years time. While the minimum investment is Rs. 10,000 per investment, the structure of the plan enables investors to open multiple FMPP accounts with the total portfolio value not exceeding 5 million which is in line as per guidelines set by RBI. Auto investment and portfolio optimisation offered through an enhanced app experience makes FMPP an indispensable investment option for smart investors.

With a stellar record of customer acquisition and loan disbursements, LenDenClub has been one of the fastest and most significant P2P lending companies in India. It is the first NBFC-P2P to cross Rs. 50 billion. worth of loan disbursals. In the past, LenDenClub also raised $10 million in a Series A round Co-led by a consortium of investors, including Tuscan Ventures, Ohm Stock Brokers, and Artha Venture Fund.

ETMONEY has accomplished this superlative growth on the back its customer-centric approach and multiple industry-first initiatives. ETMONEY was the first in the country to offer completely paperless video KYC for Mutual Fund investments and launched the country’s first Aadhar-based SIP payment feature. The recent addition of a report card for every Mutual Fund scheme in India has been of immense help for investors.

Mukesh Kalra, Founder and CEO, ETMONEY

On achieving this milestone, ETMONEY Founder & CEO Mukesh Kalra said, “This is a major achievement for ETMONEY. Crossing the benchmark figure of INR 500 Crore of gross Mutual Fund sales in a month is a testament to ETMONEY’s commitment to simplifying personal finance for the masses. And with over 40% of our inflows coming via monthly SIPs and more investors joining the platform every month, we are well on track to cross INR 10,000 Crore of gross sales in the financial year 21-22. Along with that, we are also super excited about our new range of products and services lined up to solve the next set of challenges in the evolving fintech space.”

About ETMONEY

ETMONEY is India’s largest app for financial services that is simplifying the financial journey of new-age Indians. ETMONEY helps users take informed investment decisions by helping users invest in zero-commission direct mutual funds for free, protect their families with unique insurance solutions and use ETMONEY Credit Card to take instant loans at low-cost. Growing at 350 per cent yearly, combined with multiple innovative solutions, in less than five years, ETMONEY has added 10 million users on its platform from more than 1,400 Indian cities. ETMONEY manages and tracks over INR 20,000 Crore worth of Mutual Fund investments.

L&T Mutual Fund’s ‘Investing Ke Aam Tarikey’ Digital Campaign

While mutual funds are broadly classified as Equity, Debt and Hybrid, between these three categories there are several sub-categories as well, that cater to different investment goals. Flexi-cap category in equities is one such category that has limited investors awareness and L&T Mutual Fund through this 30 second film, uses the sizes of mangoes (large, mid and small) to convey the characteristics of the fund, as this category invests in companies across the market capitalisation spectrum, i.e. large-cap, mid-cap, and small-cap stocks.

The objective of the campaign is to simplify, educate and create awareness about the Flexi-cap category in a way that will help investors connect the dots effortlessly.

‘’Who does not like mangoes?” says Mr. Kailash Kulkarni, CEO, L&T Mutual Fund, “Our digital campaign is aimed to reach out to investors and raise awareness around Flexi-cap funds as we have observed that the younger fraternity of investors often get confused between the various scheme sub-categories and their investment goals. In this regard, here through storytelling, mangoes are as a catchy metaphor to help investors understand the category of Flexi-cap funds.’’

Mr. Kulkarni further added, “A Flexi-cap fund, by nature of the fund, aims to offer both value and growth to investors while striking a balance between risk and volatility in a single portfolio. Through this campaign, we aim to serve the dual purpose of educating investors as well as further building the category.”

The fund house aims to reach out to working professionals (men and women between 21-45 years of age) across geographies through a well-rounded digital campaign including social media platforms - Facebook, Twitter, LinkedIn and YouTube - as well as through the Amazon app, FireTV, on financial news portals and digital contests.

Mr. Ankur Thakore, Chief Distribution Officer, L&T Mutual Fund said, “The campaign Investing Ke Aam Tarikey helps contextualise Flexi-cap fund features which involves investing in large-cap, mid-cap and small-cap stocks through one portfolio as opposed to only investing in single cap stocks. The idea was to take a simple situation that everyone is familiar in this case kids and mangoes, to drive the message, that even a child at home can easily pick up on a conversation and understand the fundamentals of Flexi-cap funds.”

Flexi-cap schemes are open-ended dynamic equity schemes investing across large-cap, mid-cap and small-cap stocks. Fund managers can invest in high-growth, small-sized companies to benefit from high growth.

About the Campaign Video

The TVC plays out in a mango orchard where two kids are seen picking out mangoes from the trees and stacking them in their respective baskets. While one of the kids enjoy filling only large mangoes in his basket claiming they are the best and when his ‘Stacked Mango Tower’ (pyramid) falls, he is corrected by the other kid.­­ The other kid draws parallel between filling mangoes in a basket to investment choices in a portfolio. Like how one needs to pick large, mid- size and small mangoes while making a ‘Tower’ (pyramid), the film shows how flexibility in investing is achieved when we have different sized market cap stocks in a portfolio, which aims to benefits everyone.

Watch the ad film here: L&T Mutual Fund - Investing Ke Aam Tarikey

About L&T Investment Management Ltd.

L&T Investment Management Limited is a subsidiary of L&T Finance Holdings Limited and was incorporated on April 25, 1996. With a total AUM of more than INR 80,000 Cr. (as on September 13, 2021), our aim is to become the best value provider of investment solutions, across asset classes.

Our commitment to catering to different customers and a strong focus on creating value have resulted in a basket of 35 funds, which comprises 12 open-ended equity schemes, 12 open-ended debt/fixed income schemes, 5 hybrid schemes and 6 close-ended debt/fixed income schemes.

We believe the key to building wealth is a solid foundation, and therefore, when you invest with L&T Mutual Fund, you invest in happiness for the long term.

Late Lateef Banner

Through the ‘Late Lateef 2021’ digital campaign, the fund house plans to reach out to a larger pool of users, including millennials, who are interested in ELSS as an instrument to save taxes and also create awareness about the tax-saving tool. Millennials, who formed about 47% of new mutual fund investors in FY19 as per the latest data provided by Computer Age Management Services Limited (‘CAMS’) could use ELSS as an investment vehicle to kick-start their wealth-creation journey early in life.

Mr. Late Lateef

YouTube Link: www.youtube.com/watch?v=EtPFFBBTLNE.

L&T Mutual Fund has created a page for ELSS www.ltfs.com/elss, which includes details about the campaign video, benefits of investing in the ELSS funds etc for guiding investors to choose the right option. The fund house also plans to introduce a goal calculator on this page helping investors to decide about the investment amount. The fund house is running this campaign on social media including YouTube, Facebook, Twitter and LinkedIn. The catchy audio rap is being promoted on audio apps like Spotify and Gaana.

The campaign will also be promoted with Digital Ads viz Display Ads, Google Ads and push notifications on business and financial portals for creating higher awareness.

ELSS is a scheme that offers tax benefits under Section 80C of the Income Tax Act, and it inculcates the habit of disciplined investing, which is necessary for potential long-term wealth creation. Tax planning is usually one of the most procrastinated decisions that is taken last minute and in haste. At the end of the year, people realise that they need to invest in financial instruments that will help them save tax and, in this haste, they do not spend adequate time evaluating optimal tax saving solutions. This film addresses this issue of procrastination and advises that ELSS is not only a tax saving option but also a medium to create potential wealth.

About the Campaign Video

A quirky, new aged 30 seconds rap-based montage film, Late Lateef, uses everyday scenarios to connect with the audience. The film revolves around Mr. Late Lateef, who procrastinates important tasks like school admission for his daughter or birthday wishes for his wife until the last minute, that puts him in a difficult position. The film, with four different scenarios, are made humorous by expressions of the characters and music. The film, however, advises Mr. Late Lateef not to be late for tax saving and aim to create wealth through investments in ELSS.

About L&T Investment Management Ltd.

L&T Investment Management Limited is a subsidiary of L&T Finance Holdings Limited and was incorporated on April 25, 1996. With over Rs. 70,191 Cr (Net Assets Under Management) as of November 30, 2020, our aim is to become the best value provider of investment solutions, across asset classes.

Our commitment to catering to different customers and a strong focus on creating value have resulted in a basket of 38 funds, which comprises 12 open ended equity schemes, 12 open ended debt/fixed income schemes, 5 hybrid schemes and 9 close ended schemes.

We believe the key to building wealth is a solid foundation, and therefore, when you invest with L&T Mutual Fund, you invest in happiness for the long term.

The General Corporate team of Cyril Amarchand Mangaldas advised Tube Investments in both the transactions. The Team was led by L. Viswanathan, Partner; and Gautam Gandotra, Partner; with support from Arnav Shah, Principal Associate; and Ananya Pandit, Associate.

The allotment to SBI Mutual Fund and Azim Premji Trust is proposed to happen under Regulation 164 of the SEBI (Issue of Capital and Disclosures Requirements) Regulations, 2018 (“SEBI ICDR Regulations”).

About Cyril Amarchand Mangaldas

India’s Leading Law Firm, Cyril Amarchand Mangaldas was founded on May 11, 2015 and takes forward the values going back 103 years, of the erstwhile Amarchand & Mangaldas & Suresh A. Shroff & Co. Tracing its professional lineage to 1917, the Firm has over 750 lawyers, including 137 partners, and offices in India’s key business centres at Mumbai, New Delhi, Bengaluru, Hyderabad, Chennai and Ahmedabad. The Firm advises a large, and varied client base that includes domestic and foreign commercial enterprises, financial institutions, private equity funds, venture capital funds, startups and governmental and regulatory bodies.

The Firm received “Law Firm of the Year” award at the Asian Legal Business (ALB) India Law Awards 2020 and “Law Firm of the Year, India” at the Asialaw Regional Awards 2020. The firm was also named as the “Most Innovative National Law Firm of the Year - India for 2020” at the IFLR Asia Awards and voted as the “Employer of Choice for 2020” from India, by the Asian Legal Business.

There are ample types of mutual funds in the market and selecting the one that will suit your requirements and meet your needs is indeed a difficult task. It demands a lot of time and requires adequate product knowledge to choose one from the buffet of mutual funds available in the market.

For this purpose, DSIJ announces the launch of its power-packed product called ‘MF Power’, which will help you to choose the best fund, depending upon your requirements.

‘MF Power’ is a portfolio of mutual funds that invests across various asset classes. It is not just restricted to investing in equity but also, debt and gold, which would act as a cushion to the portfolio in difficult times. MF Power intends to equip investors with mutual fund advisory that would help them to tide market cycles over a 5-year subscription period.

DSIJ - MF Power

In MF Power, the fund selection is done based on our proprietary methodology. Asset allocation strategy adopted is dynamic in nature that depends upon the market dynamics and economic situation. MF Power acts as an enabler, which will aid you to take decisions based on the research-backed advice, rather than your emotions. In MF Power, annual review and rebalancing is also carried out to help investors to reduce risk.

Commenting on the new launch, Rajesh V Padode, Managing Director of DSIJ Pvt. Limited said, ”DSIJ in its 34 years journey, understands the pulse of the stock market very well. We now believe that Mutual Funds should also form a good component of one’s investments along with stocks. Hence, to ensure our readers/subscribers are guided with the best picks and fund folio construction, we have come out with this well-designed product called MF Power. We sincerely hope this product provides the much-needed alpha to our fellow investors."

About DSIJ

Starting off as a 12-page cyclostyled stapled booklet in 1986, Dalal Street Investment Journal (DSIJ), the flagship product of the company, soon began to be looked upon as the gospel of stock market investing. At a time when quality financial and guidance was rare, the company (DSIJ) pioneered many ‘firsts’ to cater to the fast-growing investor base of India. Over the years, its primary publication and other products have helped investors to create and protect their wealth in the most meaningful manner, guiding both new investors as well as the experienced ones, not to forget the established traders, to choose the right stocks, avoid pitfalls and reap the benefits of high tides in the vast ocean of equity investments. It is this vast experience, study and toughening during all kinds of scams and markets’ ups and downs that gives DSIJ an unbiased balanced insight about the several unfolding events without getting swayed by temporary and misleading populous excitement.

 
To learn more about the company and services offered, please visit: www.dsij.in  

To know more about ‘MF power’, Please visit: www.dsij.in/mfpower.

Neil Parag Parikh, Chairman and CEO, PPFAS Mutual Fund

The new offices are located at click here.

Neil Parag Parikh, Chairman and CEO, PPFAS Mutual Fund said​, "​It is extremely heartening to see our ​fund came a long way since we began operations in 2013, in terms of the number of investors as well as the number of advisors. As such, it is imperative that we plan out this growth in a structured and sustainable way. From a single office in Mumbai, we have expanded our branch presence in three additional cities- New Delhi, Bengaluru and Pune in the last 6 months.​"​

​"​It was important that we had 'feet on the street' in these growing markets for us, in order to serve our investors and partners more effectively and promptly. Going forward, in the coming year we hope to start operations in at least four more cities which are showing good traction for us- Chennai, Ahmedabad Hyderabad and Kolkata. I hope this positive momentum continues for us and we can further expand our ​reach, to welcome more investors and partners to the PPFAS family." ​Mr. Parikh further added. ​

​Since its inception, it offers overall three schemes. Parag Parikh Long Term Equity Fund, the flagship scheme of the fund, the house has the freedom to invest in India and up to 35% in the global markets.

Parag Parikh Liquid Fund enables investors to transact and invest in the existing flagship equity scheme through a systematic transfer plan (STP).

The fund house had launched its third scheme Parag Parikh Tax Saver Fund in July 2019 last year. The investor in this scheme can avail Income Tax benefits up to Rs. 1.50 lakhs u/s 80C with a statutory lock-in period of 3 years.

Investors can transact and undertake various other activities using their Mobile and Web App, titled 'PPFAS SelfInvest'.

​The fund manages 2980.32 Crores of around One lakh Eighty Thousand investors as per the latest factsheet. 

About PPFAS Mutual Fund

PPFAS Mutual Fund (PPFAS MF) has been sponsored by Parag Parikh Financial Advisory Services Pvt. Ltd. (PPFAS Pvt. Ltd.), a boutique investment advisory firm incorporated in 1992. The Sponsor was amongst India's earliest SEBI Registered Portfolio Management Service (PMS) providers, having secured a license in 1996. PPFAS Asset Management Private Limited (investment manager to PPFAS Mutual Fund) is led by Mr. Neil Parag Parikh, the Chairman and CEO, since May 2015. Prior to that, it was led by the Founder, (Late) Mr. Parag S. Parikh.

Disclaimer: bit.ly/2Z8Smr9.

BPCL Startup Grand Slam Season#1

Startups can apply for BPCL Startup Grand Slam Season#1 on Startup India portal. The last date for applications is 2^nd February 2020. Winners shall be selected through a two round process. Finalists shortlisted from the first round have to pitch their solutions in the final round to a jury panel consisting of eminent personalities from startup incubators, accelerators, VC firms, other investors, academia as well as experts from Oil & Gas industry.

BPCL Startup Grand Slam Season#1

The Startup Grand Season#1 is being organized by BPCL under its Startup support initiative Ankur. Launched in 2016 with the aim to promote promising start-ups and nurture an eco-system conducive for innovations in the country, BPCL Ankur initiative has supported 25 startups thus far with a cumulative grant funding of Rs. 25 Cr.

Realizing that although providing grants is really helpful, Startups need more support beyond finance to find their footing and commercialize their products, BPCL Ankur also offers

• Collaboration and mentoring support for product development

• Access to test facilities, labs and business challenges to turn your ideas into fine products and solutions

• Connect with partner eco-systems, industry peers and many B2B customers to expand your business

• Challenges, campaigns, networking events, meet ups to build a thriving and connected startup eco-system

Along the way Startups supported by BPCL Ankur have developed many innovative products and solutions. Bandicoot - a robotic system developed by Genrobotic Innovations for manhole and sewer line cleaning aimed at the complete elimination of manual scavenging, Inspection of underwater structures, tanks through submersible robots by Planys technologies, drone based inspection technique developed by Detect Technologies for refinery stack inspection are some of these innovative solutions that are transforming their respective spheres of activity.

BPCL Ankur is turning a new leaf with Startup Grand Slam Season#1, expanding the outreach of the program and exploring innovative engagement models with startups to make positive impact on the overall Startup eco-system in the country. 

The Fund with a minimum investment size of Rs. 1 crore is a “Closed” ended scheme with a term of 5 years and extendable up to 2 years as per SEBI AIF Regulations, 2012. It would focus on early investment in small companies in promising high growth sectors, when they are in their infancy, thus having potential to deliver exceptional returns when they scale up.

Mr. ArunaGiri N, Founder CEO & Chief Investment Officer, TrustLine Holdings Pvt. Ltd.

Commenting on the successful closing, Mr. ArunaGiri N, Founder CEO & Chief Investment Officer, TrustLine Holdings Pvt. Ltd., said, “This has been one of the most challenging environment for micro, small and midcaps. We are pleased to note that we could, not only manage to raise our target commitments, but also exceed our own expectations in this difficult environment. This was made possible because of overwhelming support from our existing investors whose commitments constituted significant share of the overall fund raising. This bears testimony to our long-term performance track record as well as to our focus on long-term client relationship and client servicing. In this fund, our objective is to create ‘Rich’ portfolio from “Small” gems. We aim to do this by handpicking some of the best high quality micro-caps, possessing superior return metrics (ROCE), high operating margin, low leverage, sound track record etc. from the target universe.”

Mr. ArunaGiri who is the CIO for the fund has more than 15 years of experience in capital market in various capacities and manages the PMS/AIF investments at TrustLine with assets over Rs. 400 crores spread across 550+ highly satisfied clients. As an enthusiastic and disciplined practitioner of value investing over long time, Arun has come to believe that key to success in value investing lies not so much in financial skills, but in emotional and temperamental skills. He believes very strongly that value investing is a great wealth-building opportunity for anyone who could think and act long-term without getting swayed by the short-term swings of the market. Large part of success in value investing comes from one’s ability to stay objective/rational in an irrational market setting. By being greedy when fear grips and being fearful during misplaced exuberance.

About TrustLine

Founded in 2004, Chennai based TrustLine is a leading Equity Research and Asset Management firm specializing in small and midcap investing. With financial research as core competence, it tracks and studies large number of companies in the micro, small and midcap universe, as part of the investment research and this has benefitted its clientele of senior professionals from leading organisations across the country. TrustLine has heavily invested in developing the core areas of operations, such as Research, Client Investment Management etc., to provide unmatched value and service to its clientele.

Digital gold purchased through Kuvera is backed by 24K 99.9% pure gold. Kuvera has tied up with Augmont, India’s leading gold platform to bring this service to its clients. Physical gold is stored in secure Brinks vaults and are monitored by an independent third party. Liquidation is easy and available at the click of a button. Gold balance can be sold partially or in whole almost immediately and at the then market price. The sale amount gets deposited electronically into the investor’s bank account making it completely digital and completely secure.

Gaurav Rastogi, CEO of Kuvera said, “Gold is unique among commodities due to its traditional role as a safe-haven and ‘store’ of value. Gold returns have low correlation to equity returns especially during adversity. Through Digital Gold, Kuvera helps users to bridge the gap of owning gold and safekeeping physical gold; while ensuring quick liquidity, transparency and ease of transactions. Similarly, with Digital Gold SIP we want to make accumulation of gold over time as easy as mutual fund units. We are constantly in the process of reimagining investment opportunities for our discerning users and believe this is another step towards portfolio diversification.”

Kuvera was founded in 2016 as India’s first ‘free-to-use’ web-based direct mutual fund investment platform. It provides more than 5 lakh investors with access to a range of innovative investment tools designed to help them save and reach their financial goals and has almost INR 7,000 crores mutual fund assets under advice.

Kuvera is also the first platform that enabled users to easily switch from regular mutual funds to direct mutual funds, lowering the cost of investing. Innovative features such as family login, mutual fund portfolio consolidation make Kuvera relevant for both advanced users and first timers.

More Details on the Kuvera Blog: kuvera.in/blog/digital-gold-for-smart-investors.

About Kuvera

Kuvera is a SEBI registered online investment advisor that pioneered goal based, direct plan mutual fund investing for Indians. It uses technology to helps its users make smart investing decisions and navigate the nuances of mutual fund investing. Trusted by more than 3 lakh investors, it enables access to mutual fund schemes of 37 fund houses. Kuvera’s vision is to be the personal finance platform that individuals trust and love to use. www.Kuvera.in.

Follow the news stories on Kuvera here.
 

Why Invest in Digital Gold? (over Gold ETF and Gold Mutual Funds)

• It is a known fact that Gold ETFs and Gold Mutual Funds do not track the price of physical gold closely. The culprit is fund expenses.

• The NAV for Gold ETF or Mutual Funds is computed after deducting the fee of the asset management company plus storage and custodian charges, which can all add up. Over time this can create a significant mismatch in gold returns and that of the gold ETF or Mutual Fund.

Why invest in digital gold (over physical gold)?

• Purity Certified 24K 99.9% pure gold. As good as it gets.

• Security – Stored in vaults by BRINKS, the global leader in asset security.  No theft issues, no bank lockers, nada.

• Access – Sell it online at the prevailing gold price for immediate cash or request for home delivery. Your gold, your way.

• Quantity – Pay only for gold. No making charges, cuts or commissions. Get more gold.

• Buy it when you want to invest in gold and sell it when you need money – all from the comfort of our app. Digital gold, thus, overcomes some of the traditional challenges of investing in gold.

Why invest in digital gold (along with equity MFs)?

Going back to 1990 and looking at monthly data we can see that Nifty50 returned higher on average, but with higher standard deviation or risk. Risk-adjusted returns are still marginally better for gold but not by much. Gold however adds great diversification benefits.

In the past 29 years of data, the correlation of monthly gold returns and monthly Nifty50 returns is just 0.3% while returning a very respectable 10.7% a year!

Of the 348 monthly returns in our sample, there are 178 instances where the returns on gold and returns on Nifty 50 have opposite signs. That is if gold posted positive returns, Nifty 50 posted negative returns and vice versa. This is exactly what diversification is about – two assets, each with positive expected returns but no correlation in returns.
 

It helps you tide over the bad times much better. Or you could say, when the going gets tough, gold gets going.

Two quick examples:

The dot com burst of 2000 – 2002:

Returns during Dot com Burst

The Global Financial Crisis of 2008: 

Returns during Financial Crisis

For a detailed blog on the subject, please click here.

Mr. Dinesh Pangtey has been appointed as Chief Executive Officer of LIC Mutual Fund. Mr. Pangtey started his career as a direct recruit officer with LIC of India in 1984 and has risen through the ranks to this senior position. Prior to taking over as CEO of LIC Mutual Fund, Mr. Dinesh Pangtey was Director and Chief Executive Officer at LIC HFL AMC.

Mr. Dinesh Pangtey takes charge as CEO of LIC Mutual Fund

Mr. Dinesh Pangtey has 35 years of experience across Private Equity, life, Pension, Group Superannuation Scheme and Insurance sector. During his stint as CEO with the private equity division of the LIC Group, Mr. Pangtey completed investment of the maiden Fund corpus and achieved exit from 4 portfolio companies with an IRR of 22% and returned 79% of the amount drawn from Investors.  He strategized the setting up of the new Fund under SEBI AIF platform & directly raised 92% of the base corpus. The Fund is shortly poised to exhaust the green shoe option and close at Rs. 1000 Cr.

He is a Direct Recruit Officer in LIC at various key positions with expertise in marketing. He has served as Regional Manager Marketing channel in Western Zone spanning the States of Maharashtra, Gujarat and Goa. He has headed Divisions like J&K, Ahmedabad & Delhi.

Mr. Dinesh Pangtey has a Bachelor's Degree in Science.

About LIC Mutual Fund

LIC Mutual Fund was established on 20th April 1989 by LIC of India. Being an associate company of India's premier and most trusted brand, LIC Mutual Fund is one of the well-known players in the asset management sphere. With a systematic investment discipline coupled with a high standard of financial ethics and corporate governance, LIC Mutual Fund is emerging as a preferred Investment Manager amongst the investor fraternity.

LIC Mutual Fund endeavours to create value for its investors by adopting innovative and robust investment strategies, catering to all segments of investors. LIC Mutual Fund believes in providing delight to its customers and partners by way of superior investment experience and unparalleled service thereby truly bring them Khushiyaan, Zindagi Ki. 

For further information, please visit the website www.licmf.com.

DSIJ - Mutual Fund       Magazine

With this launch DSIJ has further strengthened its market coverage and reach beyond ‘Direct equity’ to now also include the ‘Mutual Fund’ investors.

DSIJ Pvt. Ltd. Managing Director, Rajesh V Padode said, “We, at DSIJ, are embarking on a new journey of bringing equity mutual funds information to our readers. As the investment by retail and HNI investors has gone up in mutual fund in the recent years it has become imperative for us to be in this space in the interest and safety of our reader investors.”

Interesting Key features of Mutual Fund Unlocked includes:

•   DSIJ unique MF ranking with expected return of each fund
•   Dedicated Cover Story on the Mutual Fund industry
•   Special reports, interviews and expert opinions on events occurring in the fortnight
•   Fund of the fortnight recommendation and follow through reviews

About DSIJ

Starting off as a 12-page cyclostyled stapled booklet in 1986, Dalal Street Investment Journal (DSIJ), the flagship product of the company, soon began to be looked upon as the gospel of stock market investing. At a time when quality financial and guidance was rare, DSIJ pioneered many ‘firsts’ to cater to the fast growing investor base of India. Over the years, DSIJ's publication and products have helped investors create and protect their wealth in the most meaningful manner, guiding both new investors and the experienced ones, not to forget the established traders, to choose the right stocks, avoid pitfalls and reap the benefits of high tides in the vast ocean of equity investments. It is this vast experience, study and toughening during all kinds of scams and markets ups and downs that gives DSIJ an unbiased balanced insight about the several unfolding events without getting swayed by temporary and misleading populous excitement.

To learn more about the company and services offered please visit: www.dsij.in.

For more information about Mutual Fund section, please visit http://dsij.in/mutual-fund.

Noida-based mass market mutual funds platform Nivesh.com today announced that it has crossed the 1000-customer mark in less than nine months of operations. For the transforming impact of the startup in rural India, the startup received prestigious Startup Superhero 2018 award from Superstar Akshay Kumar.
 

Nivesh.com started its operations in May 2017 with an objective of taking mutual funds to masses in Tier 2 and Tier 3 towns. Within nine months, it has facilitated almost 10,000 transactions for about 1,300 customers. Interestingly, 90% of the customers are first time mutual fund investors located in more than 160 cities across India.

The Winner of the Startup Superhero hunt 2018, Anurag Garg, Founder and CEO, Nivesh.com

For its efforts the Nivesh.com received the Startup Superhero 2018 award by Akshay Kumar which was held in New Delhi. Startup 2018 was the Biggest Startup Carnival in India attended by over 1500 young Entrepreneurs, Innovators, Investors and collegiate community looking to take up entrepreneurship as a career mission. Shri Giriraj Singh, Hon’ble MOS for Micro, Small and Medium Enterprises Government of India along with Shri Anant kumar Hegde, Hon'ble Minister of State, Ministry of Skill Development And Entrepreneurship were the chief guest of the event.

Commenting on the development, Nivesh.com Founder and CEO Anurag Garg said, “This success is a testimony of our belief that there is huge pent-up demand for safe investment options like mutual funds as we move beyond the metro cities, which contribute about 80% of current assets under management for mutual funds.”

The mutual fund investment platform’s major USP is its jargon-free user interface that simplifies the process of selection of right mutual fund scheme. The prospective investors are offered pre-defined buckets of options which link to their broad financial goals. Further, portfolio tracking option helps investors in understanding performance of the investments done by them.

“Our customers in smaller towns are able to track their investments through our mobile app, which is a huge relief from running to offices of insurance companies, chit-funds and post offices to find out status of their investments. Convenience of being able to see their investment value and buy / sell from anywhere is a game-changer. Since we are catering to the masses, the mobile app is available in Hindi as well,” Garg added.

Nivesh.com uses a local business partner network to reach out to customers in small towns since personal touch and push is important in taking the first step. It supports these business partners with required training and encourages them to conduct investor awareness programs to educate customers.

The mutual funds industry has recorded significant growth in 2017 as government continues to push use of banking channels for transactions. As on December 31, 2017, the Assets Under Management (AUM) of the Indian mutual fund industry stood at Rs. 21.38 lakh crore. 
 

About Nivesh.com

Nivesh.com is a mass market mutual fund investment platform, run by Noida-based Providential Advisory Services Pvt. Ltd. It was founded in 2016 by industry veterans Anurag Garg and Sridhar Srinivasan. Prior to starting Nivesh.com, Garg co-founded mutualfundsindia.com, which was acquired by rating agency ICRA while Srinivasan helmed the India unit of investment research platform Visible Alpha. It mainly targets Tier 2 and Tier 3 cities. Nivesh.com raised an angel round from VCCircle founder PV Sahad, Sandeep Shroff founder and CEO Silicon Valley based mystartupcfo.com and Right Global Infosolutions CEO Rahul Gupta.

For more information, please visit www.nivesh.com.

UTI Equity Fund is an open end equity scheme having a corpus of Rs.5344 crore (as on April 30, 2017) and 7.68 lakh investor accounts (as April 30, 2017). The scheme primarily aims at securing for the unit holders capital appreciation by investing the funds of the scheme in equity shares and convertible and non-convertible bonds/debentures of companies with good growth prospects and money market instruments.

UTI Equity Fund is a predominantly large-cap focused scheme with 86 per cent of its equity exposure in large-cap stocks  as of April 30, 2017. The scheme’s top holding consists of well known and researched companies like HDFC Bank, Yes Bank, IndusInd Bank, HDFC Ltd., ITC, Infosys, Shree Cements, TCS, Kotak Mahendra Bank, ICICI Bank, Sun Pharmaceuticals and Maruti Suzuki India Ltd. which accounts for 56% of the portfolio.

The scheme has a proven track record for 25 years and has paid out total dividend of Rs.798 crore during the past 25 years.UTI Equity Fund has generated a return (CAGR) of 12.18% against benchmark return of 10.09% since inception (as on 30.4.17). An amount of Rs.10000/- invested at inception has become Rs.1, 76,297/- at the end of April 2017 as against Rs.1,10,236/- as per benchmark-S&P BSE 100. The scheme has grown 17 times in the last 25 years.  The scheme’s consistent performance is also associated with lower volatility or market risk (measured by standard deviation). The volatility of 14.21 per cent is less compared to the S&P BSE 100 of 14.95 per cent over a one-year period ending April 30, 2017.

Mr. Ajay Tyagi, Executive Vice President and Fund Manager of UTI Equity Fund said, “UTI Equity Scheme follows a well-set Investment Strategy in respect of stock selection and framework for prudent portfolio construction. Investment Strategy involves picking of stocks with strong earnings quality (high operating cash flow and high free cash flow characteristics) and those that can continue to show strong growth into the foreseeable future, thus providing for compounding of wealth. The scheme endeavours to pick high quality businesses in secular growth Industries that can generate economic value through the cycles rather than cyclical industries which are highly volatile.”

UTI Equity Fund is suitable for those equity investors who are seeking long term capital growth through investment in equity instruments of companies with good growth prospects.

UTI Equity Fund declares tax-free dividend of 28% (Re.2.80 per unit on face value of Rs.10) under dividend option-existing plan and dividend option – direct plan. Pursuant to the payment of dividend, the NAV of the dividend option-existing plan and dividend option-direct plan of the scheme would fall to the extent of payout.

The record date for the dividend is June 20, 2017.