Investing Insights

Visual illustrating the three rules of mutual fund investments, highlighting key principles for disciplined investing, long-term wealth creation, and informed mutual fund decision-making.

The 3 rules of Mutual Fund Investments

Over the years, Mutual Fund Investments have emerged as the top choice for smart investors who are not averse to taking a measured degree of risk in pursuit of achieving better real returns than traditional investments. For long term Wealth Creation, “Mutual Funds Sahi Hai!”.

A stack of coins sheltered under a green umbrella on a white background, symbolising how debt mutual funds aim to protect investors from risk while providing steady returns.

Are Debt Mutual Fund Investments Risky?

Propelled by AMFI’s impactful “Mutual Funds Sahi Hai” campaign, hordes of investors channelized their low-risk moneys from traditional instruments such as Bank Fixed Deposits, into Debt Mutual Fund Investments last year.

A notebook on a desk with the words “Mutual Funds” written in bold, alongside glasses, sticky notes, and highlighted charts, representing analysis and changes in mutual fund investments.

“Change in Fundamental Attributes” of Your Mutual Fund Investment? Here’s How to Decode it!

SEBI, as a forward-thinking regulator, has always taken steps keeping investor interests at the centre of its decision-making process. It’s most recent directive mandated that AMC’s (Asset Management Companies) need to change the names and other attributes of some of their schemes, in order to more accurately reflect their modus operandi.

Equity mutual fund concept image depicting investment analysis, risk assessment, and stock market–linked mutual fund planning.

What is an Equity Mutual Fund?

Despite the stock markets predominantly declining since the Union Budget on 31st January, net inflows into Equity mutual fund (MF) schemes continued to remain strong last month. According to data from AMFI, Equity funds (including ELSS) witnessed monthly net inflows of Rs. 16,268 crore in February ‘18, up 5.7% month on month, and more than 150% on a year on year basis. The increase was mainly driven by sustained inflows through Systematic Investment Plans (SIPs). According to data from AMFI, the cumulative SIP contribution has been Rs. 53,646 crore so far in FY2018.

A blurred person draws an upward-trending bar chart with a red arrow, symbolising growing returns and profitable mutual fund investing.

How to invest in Mutual Funds profitably

With its steadily growing asset base that recently topped the Rs. 22 trillion (22 lakh crore) mark, Mutual Funds have grown in popularity over the past three years. However, not all investors would share AMFI’s view that “Mutual Funds Sahi Hai”!

Small green plants sprouting from stacks of gold coins against a soft green background, symbolising growth and long-term investing in mutual funds while warning against common investment traps.

Mutual Fund Investment Traps to Avoid Right Now

Vibrant markets tend to spawn many a self-advising ‘expert’, and that’s a phenomenon that proliferated widely in the years between 2012 and 2017. Equity markets rose (albeit with its share of jitters in between!) prolifically in this period, with the bellwether NIFTY index more than doubling from 4,800 to 11,000 levels. At the same time, bond markets delivered excellent returns in the 3 years between 2014 and 2017, on the back of multiple tailwinds such as low inflation, falling crude prices and global economic weakness.

Mutual funds highlighted in a financial newspaper, symbolising fundamental mutual fund investment rules, portfolio planning, and long-term wealth creation.

4 Basic Mutual Fund Investment Rules

Whether you’re a short-term investor or a long-term one, a high-risk taker or risk averse; there’s a Mutual Fund out there to suit your needs. Mutual Funds Sahi Hai, but only if you follow a few basic principles while investing in them. Here are four important rules for you to follow while making mutual fund investments.

How to invest into Mutual Funds using STP’s

Despite their widespread proliferation, many investors remain confused about how to invest in mutual funds using STPs or ‘Systematic Transfer Plans’. This article will present a few simple rules for you to make your STP-led mutual fund investments a whole lot more effective. But first – the basics.

A professional graphic showing investors putting money into a glass collection bin, used to illustrate a guide on debt mutual fund myths to watch out for.

3 Debt Mutual Fund Investment Myths to watch out for

While debt funds offer a safer option compared to equities, it's important to debunk these myths before diving in. Remember, terms like 'income' or 'fixed' don’t guarantee what they may seem to promise. Always do your due diligence and be aware of the risks involved, especially with GILT funds and FMPs. Debt funds are about managing risk, not avoiding it entirely!

Financial advisor reviewing investment plans with a client on a tablet, highlighting the value of professional financial guidance and personalised planning.

Should you book profits in your Mutual Funds before March 31st?

Mutual Funds Sahi Hai”, says the impactful awareness campaign that has built up significant momentum in the past year.

A conceptual graphic of a man sitting on large save tax letters, illustrating key things to know about tax-saving mutual funds like ELSS.

Five things You Need to Know About Tax Saving Mutual Funds

As we enter the last month of the Fiscal Year, there’s bound to be an increased interest in tax saving investments. One such investment avenue which helps you save taxes under Section 80C is a tax saving mutual fund, or ELSS (Equity Linked Savings Scheme). If you’re thinking about investing into a tax saving mutual fund this year, here are five things for you to keep in mind.

Hand-written mutuak funds highlighted in a notebook with a growth chart and eyeglasses, illustrating the common investor question of which mutual fund is right to invest in now.

The question most investors are asking: Abhi Kaunsa Mutual Fund Sahi Hai?

AMFI’s impactful “Mutual Fund Sahi Hai” Campaign has been extremely successful in drawing new investors into the fold. The industry AUM recently went past the 23 Lakh Crore mark, with the folio count looking all set to cross 7 crores this year.