🚂 Current Fix Deposit Rates 🌞 SBI - General Citizen 3% to 7.10% Senior Citizen - 3.60% to 7.60% 🌞 HDFC - General - 3.00% to 7.40% Senior Citizen - 3.50% to 7.90% 🌞 ICICI - General - 3% to 7.10% Senior Citizen - 3.50% to 7.60% 🌞 PNB - General - 3.50% to 7.25% Senior Citizen - 4% to 7.75% 🌞 Kotak Mahindra - General - 2.75% to 7.20% Senior Citizen - 3.25% to 7.70% 🌞 Axis - General - 3.50% to 7.10% Senior Citizen - 3.50% to 7.85% 🌞 Bank of Baroda - General - 3% to 7.25% Senior Citizen - 3.50% to 7.55% 🚂 Current Recurring Deposit Rates 🌞 SBI - General 4.40% to 5.50% Senior Citizen 4.90% to 6.20% 🌞 ICICI - General 3.50% to 5.50% Senior Citizen 4% to 6.30% 🌞 HDFC - General 4.40% to 5.50% Senior Citizen 4.90% to 6.25% 🌞 KOTAK - General 4.30% to 5.20% Senior Citizen 4.80% to 5.70% 🌞 AXIS - General 4.40% to 5.75% Senior Citizen 4.65% to 6.50% 🌞 IDBI - General 7% to 7.15% Senior Citizen 7.50% to 7.65% ☁️ National Pension Scheme - 9% to 12% pa ☁️ Employees Provident Fund - 8.15% pa ☁️ Public Provident Fund - 7.1% pa Mutual Fund

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Mutual Fund

 

Mutual fund is a vehicle to collect the money from innumerable investors to invest in a diversified portfolio of stocks, bonds, securities etc., it is professionally managed by Assets Management Companies (AMC) and their fund managers and is regulated by the Securities and Exchange Board of India (SEBI).  The Assets Management Company creates different mutual schemes with specific investment strategy and objective.  Mutual Funds schemes basically offered units investors and by paying certain amounts investors can buy units of the particular fund, according to fund objective they used to buy securities from the amount of the investors.  Investors will receive more units on their investments.

Following are some key points about mutual funds : 

Diversification: Diversification helps investors to reduce risk, in short Mutual funds offer diversification in various assets.

Management: Mutual funds are managed by experienced and professional fund managers.  Fund manager conduct research, analysis to select investments and always make investment on behalf of investors.

Objectives: Mutual funds comes with specific investment objectives and strategy, it’s in several categories like equity fund, debt funds and hybrid funds and many more.

Liquidity:  Mutual fund units are easily and quickly converted into cash, it means investors can easily buy or sell their units on the basis of Net Asset Value (NAV).

Systematic Investment: Investors can invest amount through systematic investment plans (SIPs) by selecting various mutual funds, if could be monthly or quarterly regular contributions.

Tax Benefits: Some Mutual funds like Equity Linked Saving Schemes (ElSS), offer tax benefits under section 80C.

Risk and Returns: Since the market is volatile and mutual funds are linked with the equity risk and returns vary depending on the fund investments objectives.  It is tend to have potential in higher returns but it is depends upon the market up-down scenarios.

Expense Ratio: Mutual fund charges according to the expense ratio, it covers the fund management fees and other expenses.

Note:  Please take an expert or financial consultant advice before investing in Mutual funds.  Before selecting fund carefully analyze their investment goals , risk tolerance and past performance of Mutual Funds.

Types of Mutual Funds :

1. Direct Mutual Funds :

Those individuals are very well known or already has been experienced or have basic knowledge in Mutual Funds are directly invested in mutual funds without taking help of intermediaries like broker, agents , distributors etc.,.  Individual can study and investment himself directly or buy units directly of a particular mutual fund.

Lets checkout some benefits of direct investment.

Less Expense Ratio: Investment in direct mutual funds is less expensive as compared to regular mutual funds.  Investors has to pay only the annual fees charged by the AMC to manage mutual funds.  So there is no broker or distributors involve in the transactions, the cost is very low.

No Commission: Since there is no distributor or agent involves, there is no commission has to paid, resulting in potential cost savings for investors in direct mutual fund. 

Higher Returns: Since there is expense ratio or distributor commission in direct mutual funds, it is potential to provide significance returns. 

Online Investment Platform: Many online investment platforms are available like mobile apps, Net Banking etc., these platforms are user friendly and easy to understand.  With the help of such platforms one can invest, monitor and manage portfolios.

2. Regular Mutual Funds : 

Regular mutual funds are where investors or individuals can  invest in various mutual funds by talk help of financial expert like distributors or brokers.  Financial expert will give the guidelines or guidance on selection of various mutual funds, so that one can invest in selective mutual funds.

Agent and Distributor Involvement: In regular mutual funds distributor and agents are plays a crucial role in all the process of investment, based on their study and experience they properly or advice or assist to investors like in which mutual funds, how much amount to invest, for how much time period etc., In all the process agents and distributor can facilitate al the paperwork and information to the investors.

Commission: Selling of regular mutual funds, the distributors and agents has paid a commission for their services.  The commission paid by AMC from what they changed to the investors.

Higher Expense Ratio: As compared to direct mutual funds, regular mutual funds normally have higher expense ratio, it is the annual fees to manage the mutual funds includes management fees, distributor commission and marketing expenses.

Assistance: Regular mutual funds provide regular assistance from professional financial experts to the investors or in choosing the multiple and right mutual funds.  It access wide range of mutual fund schemes in different assets class with the help of professionals or distributor.








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