ARTICLES (MUTUAL FUND)

It is common for investors to grapple with various investment options. So it's not surprising that at any point of time, their 'to do' list usually has at least half-a-dozen investment options spanning various assets.

As if investing isn't enough, they also have to make elaborate arrangements to track their investments, take revised decisions (in case investments aren't working out as expected) and re-allocate assets (in case allocations have deviated sharply from original levels).

The best way to create a good corpus for retirement is by investing at an early age. However, once you actually retire, it becomes even more important to choose the right instruments to park the accumulated funds.

Becoming crorepati is not that difficult, all you need to set your objectives according to your financial status and plan it in well mannered way to achieve it.

A Systematic Investment Plan (SIP) lets you invest in small amounts in mutual fund o a regular basis. It gives you a lot of flexibility and is a very convenient way of building a large corpus over a period time. In mutual fund terminology, SIP allows the investors to invest a fixed amount every month or quarter for purchasing additional units of the scheme at NAV based prices.

While investing in a debt fund normally assures you of fairly consistent returns, equities have the potential to create wealth. But the unpredictability in equity funds can be quite a deterrent when you make a choice. To combine the best of both worlds, we present Systematic Transfer plan.

KYC is an acronym for "Know your Client", a term commonly used for Client Identification Process. SEBI has prescribed certain requirements relating to KYC norms for Financial Institutions and Financial Intermediaries including Mutual Funds to 'know' their Clients. This would be in the form of verification of identity and address, providing information of financial status, occupation and such other demographic information. Applicant must be KYC compliant while investing with any SEBI registered Mutual Fund.

Fixed Maturity Plan(FMP)

Tenure
FMPs have a fixed maturity date. It could be 15 days, 30, 90, 141, 180 or even 365 days. Some even have a three or five-year time frame. At the end of the period, the scheme matures, just a like a fixed deposit.

Investments
FMPs invest in fixed income instruments, like bonds, government securities, money market instruments (very short-term fixed return investments), to name a few.