India is going thru one of the most uncertain times; as national elections are due in a year’s time to decide on current incumbent or the new stakeholders, US trade war has intensified with Trumps unrelenting signature, Crude surge is unstoppable with OPEC targeting USD 100 per barrel, and many more related events.
All these events are resulting into stock markets behaving badly. This is where one gets to see a difference between the Matured & Panic state of mind.
Sounds exciting! This is the story of Mutual funds today.
We all are looking at Mutual Funds like a 2-minute Maggi noddle. Maggi is promoted as an instant noddle, i.e. it can be cooked in flat 2 minutes, without any hassle & help, compared to Chinese noodles, which requires time & effort.
Mutual Funds on a similar note, are projected as the best investment avenue, where one can easily shortlist funds (with diverse options), and execution (buy) takes not more than 10 minutes effort (as claimed by many).
Akash just completed his MBA and landed a six figure salaried job in IT company. The shift from small town to city with its fast lifestyle made him ecstatic as his dreams came true. Work hard and party harder became his life. At the same time, he fulfilled his family obligations by taking care of his parents. His girlfriend born and brought up in city had a problem of plenty. Living life today was the mantra. But a sudden economic slowdown and many of these young generation had no saving to fall back on. Welcome to the millennial generation of urban India.
“What’s in a name? that which we call a rose by any other name would smell as sweet.”
― William Shakespeare, Romeo and Juliet
Most Indian mutual fund managers won’t agree with the above quote. SEBI has instructed Mutual fund companies to distinguish different schemes in terms of asset allocation and investment strategy. The aim is make it easier for the investor to compare the products. According to the regulator, AMCs use these names as marketing tools to attract customers and many of the new buyers may not fully understand the scheme. This makes sense if one has to choose from around 1998 mutual fund schemes (AMFI March 2016 newsletter) that have raised funds till date.
“Alice: Would you tell me, please, which way I ought to go from here?
The Cheshire Cat: That depends a good deal on where you want to get to.
Alice: I don’t much care where.
The Cheshire Cat: Then it doesn’t much matter which way you go.
Alice: …So long as I get somewhere.
The Cheshire Cat: Oh, you’re sure to do that, if only you walk long enough.” – Lewis Carrol, Alice in Wonderland
Every time the stock markets react, I’m reminded of the above dialogue. Firstly, many who look upon stock market as source of wealth creation have not decided their financial goals. Secondly it is important to sit back and understand the event that lead to fall or even rise, instead of reacting. Let’s look at each of the above points further deep.
With market at an all-time high, we been getting queries in all possible formats from our customers, on what do I do with my SIP (systematic investment plans) in Mutual Funds?
My suggestion; find your own reason on what you want to do with your SIP. But strictly, do-not get swayed by the market jump or the recent surge, or even a dip in the future(which can also happen). As per studies conducted on the human behaviour, most of the time we react or make panic decisions based on the external factors,and miss out on the larger picture, or the long-term benefits.
What are Child Plans?
Which Child Plan to Pick?
How is Sukanya Samriddhi Scheme?
What are Child Plans?
Child plans are predominantly covered by Insurance companies, where currently plans have a fixed premium, to be paid over a period and invested money/ returns paid back when the child enters a certain age (which is generally 16, 18 and/or 21). The main drawback of these type of plans:
#Update: Aadhaar Card Number Linking deadline extended to 31st March, 2018.
31st Dec is the deadline, to link your Mutual Funds Portfolio with your Aadhaar card no.
Below is your “Easy Self Use Guide”, to upload same with respective registrars.
Mutual Fund Companies serviced:HDFC, DSPBlack-Rock, Birla Sunlife, HSBC, ICICI Prudential, IDFC, IIFL, Kotak, L&T, Mahindra, PPFAS, SBI, Shriram, Tata&Union Mutual Fund.
Step 1: Visit CAMS page website above and enter your PAN number,along with your registered Mobile number (you can also select date of birth or registered Email-ID).
Step 2: On the next screen,you have to provide your Aadhaar number, registered Mobile number linked with your Aadhaar or registered Email-ID (optional).
Step 3: You will receive an OTP, which is to be entered on the next page to complete the verification.
At Moneyfrog.in, we have recently released the latest version of Moneyfrog Android App. We have made it Simpler, Easier & Fun-filled for customers to relate, understand & finally make decisions, towards online mutual funds execution (buy/ sell).
Smart phone has become the magic-wand of future, and controls literally everything. Mobile app plays the connecting role with the customers & the manufactures (products or mutual funds). The usability, design, flow & speed are some of the key parameters which makes an app successful.
With the android release, we have tried solving the first part, i.e. we want first time customers to relate, understand, activate & execute on their own.
We are looking at 1lac+ downloads in the next 6 to 9 months, with various marketing campaigns planned. Since we are “work in progress”, we will have new release happening every fortnight on new features henceforth.
Moneyfrog Consultants Private Limited, is an AMFI registered Mutual Fund distributor, managing AUM upward of 250crs, with a registered customer base of 11k.
Next android release; we will go live on NSE NFM-II API integration, which will include all AMC’s schemes being part of the execution platform.
** iOS release be done by Jan18.
Mutual Fund Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Past performance is not an indicator of future returns.