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Mutual Funds
A Mutual Fund is a trust that pools the savings of investors who share a common financial goal. The corpus of the fund is then deployed in investment alternatives to meet predefined investment objectives of the mutual fund scheme. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them.
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Access to Professional Fund Managers
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Diversification
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Low Cost
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Flexibility
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Liquidity
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Mutual funds schemes
Investment needs that suits your appetite for taking market risks
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Equity Linked Schemes
Since the investments by the fund under the scheme are made exclusively in equities that are linked to market, there is scope for high returns and capital appreciation. This is most suited for investors having higher appetite for taking risks.
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Debt Funds
Debt Funds are ideally suited for those who are averse to taking any risk but are keen on getting a steady income. The returns are normally in the range of 8-9% per annum.
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Tax Savings Scheme
Ideally suited for investors who want to avail the income tax benefits under Section 80C and at the same time take advantage of the growth in equities.
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Balance Fund
As the name indicates, the mutual fund invests the corpus partly in equities and partly in debt so that the risk is evenly balanced, at the same time providing scope for higher returns and growth.
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Liquid Funds
Ideal for parking short term funds. The earnings are in the range of 6 to 7% per annum and the high liquidity it provides due to an easy redemption process and allows customers to withdraw and invest in other forms of investments without any loss for early closure.
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Systematic Investment Plan
This scheme is ideally suited for salaried class, self-employed etc. The investments are made every month and as the mutual fund invests this amount in the market, and consequently the risk related to fluctuations in the share prices is evenly spread over a longer period, the customer stands to gain.
| Mutual funds schemes | Investment needs that suits your appetite for taking market risks |
|---|---|
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Since the investments by the fund under the scheme are made exclusively in equities that are linked to market, there is scope for high returns and capital appreciation. This is most suited for investors having higher appetite for taking risks. |
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Debt Funds are ideally suited for those who are averse to taking any risk but are keen on getting a steady income. The returns are normally in the range of 8-9% per annum. |
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Ideally suited for investors who want to avail the income tax benefits under Section 80C and at the same time take advantage of the growth in equities. |
|
As the name indicates, the mutual fund invests the corpus partly in equities and partly in debt so that the risk is evenly balanced, at the same time providing scope for higher returns and growth. |
|
Ideal for parking short term funds. The earnings are in the range of 6 to 7% per annum and the high liquidity it provides due to an easy redemption process and allows customers to withdraw and invest in other forms of investments without any loss for early closure. |
|
This scheme is ideally suited for salaried class, self-employed etc. The investments are made every month and as the mutual fund invests this amount in the market, and consequently the risk related to fluctuations in the share prices is evenly spread over a longer period, the customer stands to gain. |
Mutual Funds
Why Invest in Mutual Funds
Great Number Of Options
There are more than 2000 currently active schemes, so you have a lot of options to choose from. This is one of the most significant benefits of mutual funds. Depending on your preferences, risk appetite, etc. you can choose debt funds (least risky), hybrid funds (moderate risk), or equity funds (highest risk). Even within these categories, there are several choices like small-, mid-, and large-cap funds. Just remember, the rewards are always directly proportional to the risk. Higher the risk, higher the returns.
Reduce Tax Liability
One of the top benefits of investing in mutual funds is that you can save on income tax. If you invest in an ELSS fund, you can reduce your taxable income by as much as ₹ 1.5 lakh under Section 80C of the Income Tax Act of 1961.
Option to Invest in Small Amounts
A SIP can be started with as little as ₹ 500 per month. The advantage that you have here is that you do not have to wait till the time you are able to accumulate enough money for the investment. This way you will be able to make optimum use of the money you have available and would be able to maximise your returns.
High Liquidity
Most mutual funds are open-ended, which means that you can buy or sell units at any time, ensuring high liquidity for your investments. The total redeemable value will be based on the net asset value (NAV) of the fund for that day. Even close-ended, which are for a fixed duration, are listed at the exchange after the closing of the New Fund Offer (NFO). Once listed at a stock exchange, they can be freely bought and sold. However, you should note that some mutual funds like ELSS come with a lock-in period.
LUMP SUM Investments Through SIP
Flexibility is one of the best advantages of mutual funds. You can opt for a lumpsum payment or put in small amounts over time through a SIP (Systematic Investment Plan). If you have the required cash at once, a lump sum payment would work well. With a SIP, you have the option to invest relatively less amounts of money.
Cost-Efficient Investments
When you buy equity directly you have to bear costs like Securities Transaction Tax (STT) and brokerage. The more transactions you have, the more you will have to pay. However, with mutual funds, you have the benefit of overlay investors who do bulk investments and are able to enjoy economies of scale. For example, you may be able to avail low brokerage rates.
Great Number Of Options
There are more than 2000 currently active schemes, so you have a lot of options to choose from. This is one of the most significant benefits of mutual funds. Depending on your preferences, risk appetite, etc. you can choose debt funds (least risky), hybrid funds (moderate risk), or equity funds (highest risk). Even within these categories, there are several choices like small-, mid-, and large-cap funds. Just remember, the rewards are always directly proportional to the risk. Higher the risk, higher the returns.
Reduce Tax Liability
One of the top benefits of investing in mutual funds is that you can save on income tax. If you invest in an ELSS fund, you can reduce your taxable income by as much as ₹ 1.5 lakh under Section 80C of the Income Tax Act of 1961.
Option to Invest in Small Amounts
A SIP can be started with as little as ₹ 500 per month. The advantage that you have here is that you do not have to wait till the time you are able to accumulate enough money for the investment. This way you will be able to make optimum use of the money you have available and would be able to maximise your returns.
High Liquidity
Most mutual funds are open-ended, which means that you can buy or sell units at any time, ensuring high liquidity for your investments. The total redeemable value will be based on the net asset value (NAV) of the fund for that day. Even close-ended, which are for a fixed duration, are listed at the exchange after the closing of the New Fund Offer (NFO). Once listed at a stock exchange, they can be freely bought and sold. However, you should note that some mutual funds like ELSS come with a lock-in period.
LUMP SUM Investments Through SIP
Flexibility is one of the best advantages of mutual funds. You can opt for a lumpsum payment or put in small amounts over time through a SIP (Systematic Investment Plan). If you have the required cash at once, a lump sum payment would work well. With a SIP, you have the option to invest relatively less amounts of money.
Cost-Efficient Investments
When you buy equity directly you have to bear costs like Securities Transaction Tax (STT) and brokerage. The more transactions you have, the more you will have to pay. However, with mutual funds, you have the benefit of overlay investors who do bulk investments and are able to enjoy economies of scale. For example, you may be able to avail low brokerage rates.
| Documents | Demat Client | Non Demat Client |
|---|---|---|
| 1. Request Form/Online form |  |
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| 2. ECS/Auto Debit Mandate Form (2 copies) | |
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| 3. CKYC Form |  |
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| 4. PAN Proof(1 copy) | |
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| 5. Address Proof (1 copy) | |
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| 6. Passport size photograph (1 copy) | |
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| 7. Cheque | Drawn in favour of "Muthoot Securities Ltd" |
Drawn in favour of "Muthoot Securities Ltd" |
| 8. AOF | |
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- *Demat clients whose KYC status is Incomplete
need to collect all the above documents - *Demat clients cheque should be from demat linked bank
- ^Outside DPs need to collect Client Master/Transaction statement
- ^ Please ensure that Application form is complete in all respect and signed by applicant
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Ask an Expert
NORTH, EAST & WEST INDIA TOLL-FREE NO.:
1800 313 1212
SOUTH INDIA CALL CENTRE NO.:
99469 01212
WRITE TO US:
mails@muthootgroup.com
BRANCH TIMINGS:
Mon-Sat, 9:30 AM to 6 PM
Ask an Expert
NORTH, EAST & WEST INDIA TOLL-FREE NO.:
1800 313 1212
SOUTH INDIA CALL CENTRE NO.:
99469 01212
WRITE TO US:
mails@muthootgroup.com
BRANCH TIMINGS:
Mon-Sat, 9:30 AM to 6 PM
FAQs
Individual investors above the age of 18, minors through their guardians, HUFs and Non-Resident Indian NRI)/Person of Indian Origin (PIO) can invest. Even non-individual investors such as companies, registered societies, trustee of religious and charitable trusts, partnership firms, banks, foreign portfolio investors are eligible to invest in schemes of mutual funds.
To invest in Mutual Funds, the investor has to submit the following documents:
1) KYC (Know Your Customer) documents
2) Application Form
3) Required investment amount
All investors, both individual and non-individual, have to be KYC (Know Your Customer) compliant. The KYC process involves establishing:
a) Identity, and
b) Address of the investor as this is mandated under the Anti-Money Laundering Laws.
For the application for investment in mutual funds, the investor is expected to have completed the KYC process and have an acknowledgment for the same issued by the KYC Registration Agency (KRA).
The mutual fund would need the completed application form with the KYC documentation and the requisite investment amount to allot an investment folio (account number) in the name of the investor.
Permanent Account Number (PAN) Card with photograph as a proof of identity is mandatory for all applicants except those who are specifically exempt from obtaining PAN. For proof of address, passport, Voter’s Id, Ration card, Driving License, bank account statement, utility bill etc. serve the purpose. These documents need to be submitted to the distributor or stock broker or depository participant who is buying the mutual fund for the investor.
Investors have to provide the bank details of the sole/first holder of the folio in the application form. This includes the name of the bank where the account is held, the branch and the city, the account number, type of account (current, savings, NRO, NRE, FCNR and others), MICR code and IFSC code. These bank account details are required for crediting dividends and redemption proceeds into the bank account.
The investor can track his/her multiple investments in different mutual fund schemes through a Consolidated Statement available in the software available at our branches. This statement provides a consolidated view of all the investments of an investor in securities held in demat form with the Depositories as well as in Statement of Account (SOA) form with Mutual Funds (MF) houses.
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