NFO-New Fund Offer

Avenue to own securities at fair prices!

Similar to Initial Public Offering (IPO) of company shares, NFO is a security offering in which investors may purchase units of a newly launched mutual fund scheme. However, unlike an initial public offering (IPO), the price paid for shares or units is often close to a fair value. This is because the net asset value of the mutual fund typically prevails. Because the future is less certain for companies engaging in an IPO, investors have a better chance to purchase undervalued shares.


Systematic Investment Plan - SIP

The new approach to long-term WEALTH CARE!

Similar to small savings schemes of banks and post offices, SIP is a plan where investors make regular, equal payments into a mutual fund to accumulate certain money to meet future expenses or retirement needs. By using a SIP route, investors are benefitting from the long-term advantages of rupee-cost averaging as units (shares) will be purchased at various rates over a period whereby they maximize profits in up & down markets. They also have the convenience of saving regularly without paying penalty for default, unlike a bank RD. Investors also have the choice to withdraw fully/partially if need arises or even stop further investments.


Systematic Withdrawal Plan - SWP

Flexibility to meet your regular financial commitments

SWP helps mutual fund unit holders to get funds at intervals to meet their regular financial commitments. SWP option in mutual fund schemes works like a ‘standing instruction’ whereby Mutual Fund houses redeem fixed number of units at regular intervals and transfer to their bank account at the current day’s net asset value.


Fixed Maturity Plan - FMP

Better than bank FD

FMPs are closed-ended mutual fund schemes, with a pre-specified tenure. FMPs are usually offered for tenures varying from 30 days to five years. The primary objective of a FMP is to generate income and protect fluctuation in the capital due to interest rate variations. FMP is equivalent to a Bank FD in a mutual fund but more Tax efficient (For comparison, @ 9% return p.a. the post-tax returns on FMPs, it will be 8.93% versus 6.25% on Bank FDs). FMPs have exposure to high quality bonds (generally AAA/AA rated).As FMP being a debt fund, the portfolio is more tilted towards fixed income securities like certificate of deposits (CDs), commercial papers (CPs), Corporate Debt, floating rate instruments, pass through certificates (PTC), money market securities, government securities etc. The exposure across different debt instruments makes it more attractive and reduces the portfolio risk. When you sell or exit your FMP in the third financial year, you qualify for double-indexation benefit, which helps you bring down your tax liability on long-term capital gains that will arise on redemption of mutual funds.


Gold Exchange Traded Funds - ETF

Gold investment reinvented,No making charges, VAT & wear and tear losses, no worries of theft!

Gold ETFs are the same as mutual fund units where each unit is equivalent to one gram gold, though some funds give the option to invest in lower denominations of 0.5 gram as well. Gold ETFs can be bought and sold like mutual fund units through the demat account via a depository. However, a few ETFs give the option of taking physical delivery and some don't.Conversion of gold ETFs into physical gold is possible only after it exceeds a certain size. This can vary from 500gm to 1kg depending upon the fund house. While 1-year holding is considered for computation of long term capital gain and there is no wealth tax involved in Gold ETF as it is considered as Financial Asset, it is 3-years for e-gold and e-gold attracts wealth tax too. Both have indexation benefit while computing LTCG.


Monthly Income Plan – MIP

Regular income with decent returns with moderate or low risk

An MIP a debt oriented mutual fund which gives you income, in the form of dividends. They invest heavily in debt instruments like debentures, corporate bonds, government securities etc. It generally has 75-80% of its money in debt and rest in equity and cash. The income you can get from Monthly income plans is not limited to the monthly option. You can also choose to receive income quarterly, half-yearly or annually. Just like any other mutual fund, the MIP too, comes with two options.


Income Fund

A security offering in which investors may purchase units of a closed-end mutual fund. A new fund offer occurs when a mutual fund is launched, allowing the firm to raise capital for purchasing securities.


Systematic Transfer Plan - STP

Best alternative to effectively use your surplus money

STP best suits those investors who keep large portion of their surplus money in Savings Bank accounts, which would offer them only about 4% interest per annum. On the other hand, if the money is parked in a debt mutual fund, it can give them almost double income! STP is also ideal for those who are cautious about investing large amounts at a time in securities. All mutual fund schemes allow fund transfers to another scheme within same Mutual Fund House.


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Why Mutual Fund SIP

Refer page no.174 in wealth creation Guide


Teach Your Children

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Regional Cancer Center Scheme

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How to prepare a legal will

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Why Invest?

Refer page no.15 in wealth creation Guide


Investment Strategy

Refer page no.17 in wealth creation Guide


Plan your child's future

Refer page no.22 in wealth creation Guide


Plan your Retirement

Refer page no.24 in wealth creation Guide


Involve Your Family

Refer page no.28 in wealth creation Guide


Tax Free Bonds

Refer page no.30 in wealth creation Guide


What's Mutual Fund?

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RBI Monetary Policy

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Investment Mantra

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