Well, if you are a smart investor, you already know what we are talking about. However if you are a simple lay person like me, then we probably need a little intro into what mutual funds mean and how they work. Simply stated, investment is always a great idea and one of the financial books I consulted suggested investment in two/three categories – a low risk investment which can be a recurring or fixed deposit, a high risk investment which can be in the companies and a mid risk investment which can be the purchase of gold or any other such precious materials.
It is pretty simple to look at it from the outset right. But when we delve deeper, we realize that there sure are quite a few headaches when it comes to investments and saving up our hard earned money. Although in principle I love the concept the book suggested, I am still far from doing it. But I have always been pretty curious about the mutual funds. Maybe because of the ads which were really well made. Anyway quite simply stated, mutual funds is a collective investment in an otherwise unaffordable company. The mutual funds use the power of group investment and place it in a company of our choice. And since there are multiple investors, it gives us an opportunity to invest at least a part in our favorite enterprises even if we do not have a huge amount of money to participate in all sectors. Well, all thanks to the collective strength of a group.
The collective strength of a group becomes more evident in the current trend of the local economy. With the shift in governance, the focus has slowly moved towards a capitalistic environment than a purely government run enterprise. In other words, with the fresh developments, the role of government has reduced allowing private enterprises to flourish making it an ideal time to invest. But where to make the investments in a new world where there are so many choices? Wouldn’t it be quite simple and straight forward if someone picked out a few places for us to invest in and tell us where the profits are high? With so many developments happening in the form of newer policies, approaches like Make In India, Interest rate cuts by RBI, deregulation of fuel and so on, it would quite an exciting venture to capitalize on these reforms. The concept of stocks and shares, mutual funds and investments have become more and more relevant these days.
With this in mind, FundsIndia has introduced the New India Portfolio focused on these revival areas of the economy which target long term growth and a higher return on investment. The New India portfolio is a financial product featuring 4 mutual funds that are expected to grow big in the coming years. The research team at FundsIndia has identified these 4 mutual funds dubbed to benefit the most from the current governance scenario.
The 4 mutual funds are:
1) Diversified fund which is invested in the premium blue chip companies which provides stability for the portfolio.
2) A Mid Cap Fund to help capture the potential of high performing mid sized companies focused on providing greater risk appetite and returns.
3) Diversified theme fund wherein the investment is diversified into various themes such as agriculture, social development, infrastructure, etc. These themes benefit from the revival of the related sectors and provide a great base market potential.
4) Long term debt fund to provide an income fund that is aimed at gaining from the falling interest rates. The fund aims at taking advantage of the credit spread between the government and corporate bond rates.
The above four mutual funds which form the New India Portfolio offer an interesting segment for investments at high risk and moderately risky investment. FundsIndia allows management of these mutual funds at a single window. The New India Portfolio offers an investment product for a customer with a higher risk appetite looking to gain more with time. It might not be a portfolio which will give you immediate results but considering a 5 year or longer timeline, this investment might just be the right one if you are looking to reap profits in the long-term.
However one should always note that – “Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs”
After all, it is your and my money, we better know what we are investing in and we better provide it with the due diligence it deserves.