#Best Mutual Funds Distributor in Chennai

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Is Your Robo-Advisor Competent To Offer You Sound Advice?

With robo-advisory platforms mushrooming over the internet, there’s no dearth of tech startups promising you sound advice on investments and on mutual funds in particular.

Many robo-advisory platforms may not even know how many mutual fund houses operate in India. Exaggerations aside, tech startups are toddlers in the arena of investing. They might not even have seen the sharp swings of the market ever.

But as they say, they are data-driven. They know as much about the history of markets as experienced investment gurus do, because they are take data-backed powered by technology. Tall claims!

If you think tech startups can give you sound financial advice just because they know technology better and can offer you conveniences, then you wouldn’t mind learning a dance form from a cricketer, isn’t it? Footwork is important in cricket, and a better dancer always has a pair of nimble feet.☺

And you should learn how to bat from an actor. Yeah, sometimes a batsman appears an innocent actor to deceive the umpire that he’s not out.  ☺

If this sounds bunkum, what makes it so logical to approach a tech startup for advice on mutual funds?

Many tech startups rely solely on third-party recommendations or only number-crunch to recommend mutual fund schemes to potential investors. But be careful: they could be rendering an illogical advice logically.

Imagine this…

A scheme was consistently generating the highest returns in the category, and ‘data filters’ set by the tech startups rushed to announce it as the best scheme for your portfolio.

This is a data-driven decision, with some number crunching on an excel sheet. Great!

But, what about volatility it exposed you to?

Oops!

That wasn’t a parameter.

No problem! A robo-advisory platform realised its mistake and incorporated a few more filters that shortlisted schemes with lower volatility and higher returns.

This was meant to work better, but contrary to the expectations, many of the recommended schemes were on the downside within a few quarters of recommending them, owing to change in their fundamental attributes.

You see, some robo-investing platforms might have a founder with a personal finance background. But the critical question is, can he/she make the entire setup, a technologically-enhanced investment platform meaningful for your long-term financial wellbeing?

What’s more interesting is to see how a robo-advisory platform earns money for itself.

If it makes tall claims and tries to promote Regular Plans offered by mutual funds, or charges you no money and promises to offer you everything for free, you are most likely to make a bad decision opting for it.

Let’s now try to understand the difference between a mutual fund Direct Plan and a Regular Plan...

Regular Plan — This is the conventional kind of plan, where you invest/transact through your mutual fund distributor/agent/relationship manager. The recommendations are usually guided by the mutual fund distributor/investment advisor/relationship manager, backed by indirect commissions earned from the mutual fund house while there is after-sales support and service.

In regular plans due to the distribution cost involved, you incur a higher expenses ratio.

Direct Plan — Opting for the Direct Plan eliminates the services of a mutual fund distributor/agent/relationship manager. You choose to invest directly with the fund house selecting Direct Plans. You do your own research or bank on mutual fund research reports to invest. The transactions can be performed online, using a robo-advisory platform or even physically by visiting the registrar’s or the asset management company’s office.

And since, transactions are routed directly; no commissions are paid by the fund house on the money you invest. Hence, the expense ratio for a Direct Plan is lower compared to Regular Plan.

How do you, as a investor, benefit from a Direct Plan?

One of the advantages of a Direct Plan is you circumvent the rampant mis-selling that goes on to earn commissions.

You will agree that today the scenario is at odds. It’s rare to find a ‘financial guardian’ whom you can trust for sound advice on investing and wealth creation. There are only a few who render  financial advice diligently and ethically.

Inflows under Direct Plans are witnessing a steady rise, only from cities such as Delhi, Mumbai, Chennai, Bangalore, Pune, and Chandigarh.

Over last few years, a majority of fund houses have managed to generate higher returns on assets of the same scheme coming through Direct Plans. This is because, besides the fact that market are in the uptrend, Direct Plans make a positive difference to your investments every year.

You earn approximately 0.5% - 1.0% additional returns every year by investing in Direct Plans, abetted by a lower expense ratio. This appears small to the eye at the outset; but over a span of a 15-20 year investment horizon, it reaps you a rich harvest.

As can be seen in the chart above, on Rs 10 lakh investment, a small difference in costs can result in savings anywhere between Rs 8 -17 lakh over 20 years. Yes, you can earn an additional amount of as much as Rs 17 lakh, if the difference in costs is as much as 1% point.

The final portfolio value varies with the magnitude of difference in expenses. Every 0.25% point difference in the expense ratio works out to an additional earning of Rs 4.50 lakh in 20 years’ time, if Rs 10 lakh is invested.

The additional returns earned by investing in Direct Plan of a mutual fund scheme can enable you to fulfil the envisioned financial goals such as buying a dream home, a car, children’s education, their marriage expenses, and your own retirement among others.

Hence, sow the seeds of these small savings to reap a sweet fruit powered by the benefit of compounding.

Does a Regular Plan and a Direct Plan of mutual fund schemes have different portfolios?

No, the portfolio is the same for a Direct Plan and for a Regular Plan of a mutual fund scheme.

The mutual fund scheme constructs its portfolio as per a detail invest mandate cited in its offer document. The fund manager and his research team are expected to follow the investment mandate to meet the set out investment objectives.

Is Direct Plan suitable for naïve investors?

Yes, ideally everyone should opt for a Direct Plan.

Usually, the time-consuming and tedious task of selecting the best mutual fund schemes deters many individuals to opt for Direct Plans.

But with PersonalFN’s research-backed recommendations based on comprehensive mutual fund research methodology, you do not need to worry on that front.

PersonalFN’s flagship mutual fund research service, ‘FundSelect’ is celebrating 15 years of wealth creation. ‘FundSelect’ is time tested mutual fund service that has helped beat the market by a whopping 80%

It will provide Buy, Hold and Sell recommendations… intended at solidifying your mutual fund portfolio and make it free from any bias.

If you subscribe now you can avail this premium mutual fund research service for just Rs 2,950 and get  1 year additional access (worth rs 5,000)... virtually free!

Click here to know more and subscribe to ‘FundSelect’ today!

Do robo-advisory platforms offer Direct Plans?

Yes, some of them do.

PersonalFN is soon launching an ultimate robo-advisory platform and will provide only Direct Plans. And the recommendations will be backed by on PersonalFN’s comprehensive mutual fund research methodology which accounts for host of quantitative and qualitative parameters.  

Here are four criteria that make a good robo-advisory platform:

Service

Unbiased and research-backed advice

Established and reputed company

Costs

Some robo-platforms may offer you only transactional services, while others may provide you with a host of offline and online personal finance offerings.

But in addition, a good robo-advisory platform should also have  advanced tracking and portfolio rebalancing services. Those that offer a mix of services should be worthy of your long-term financial commitment.

Also, the platform should be backed by a team of experienced customer service associates.

If you have any query related to the investments you make or if you are facing issues when transacting, it should be resolved quickly and professionally.

A robo-advisory platform backed by astute and comprehensive research processes will help you select the right mutual fund schemes. It plays a vital role; the fund’s performance should not be the only criteria.

A Robo-advisory platform that prudently selects best schemes for your portfolio backed by comprehensive research process and risk profiling is the right one for you.

As mentioned before, there is no dearth of robo-advisory platforms as the barrier to entry is low. While the competition is immense, you need to choose wisely and entrust your money to the best robo-advisor.

In this milieu, small robo-advisory firms may find business unviable, could shut shop, and leave you in the lurch. Therefore, opt for a robo-advisor platform backed by established companies in the financial services space, who have been unbiased in their approach and serving investors diligently for decades.

They should be fee-based to ensure that the commissions do not influence their advice. And sound and ethical research-backed investment recommendations are imperative.

Costs play a crucial role when you are planning your investments. Different robo-advisory platforms may charge you through one of the methods below:

An advisory or subscription fee (monthly, quarterly or yearly)

A transaction fee (each time you execute a transaction through them, they charge you a fee)

A percentage of the amount invested. (Popular in the US)

Commissions earned from fund houses of recommended funds

While the first three forms are upfront one-time costs, watch out for the last option, as the advice here may be biased. You can always decide whether the subscription fee or transaction fee is worth your money depending on the quality of advice and services offered.

Also, if you have a high quantum of assets, you can avoid investing with robo-advisors that charge you a percentage of your investment value as fees. The costs could end up higher than the one-time fees you would pay otherwise.

In addition consider this:

Do not be penny-wise and pound foolish while you invest your hard-earned money via a robo-advisory platform.

PersonalFN is soon launching an ultra-reliable robo-advisory fee-based platform offering only Direct Plans, and will be backed by honest & unbiased research that outperformed the BSE-200 index in last 15 years by over 80%!

Author: PersonalFN Content & Research Team

This post on " Is Your Robo-Advisor Competent To Offer You Sound Advice? " appeared first on "PersonalFN"

[ascentwealth123]

Mutual Funds Decoded: Common Questions and Answers

1. What is a mutual fund?

A mutual fund is an investment vehicle that pools money from various investors to invest in a diversified portfolio of securities such as stocks, bonds, or a combination of both. By investing in a mutual fund, individuals can gain exposure to a wide range of assets without needing to directly purchase them.2. How do mutual funds work?

Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors. When you invest in a mutual fund, your money is combined with that of other investors which allows the fund to buy a variety of different assets. The returns generated by these investments are then distributed among the investors based on the number of units they hold.3. What are the different types of mutual funds?

There are several types of mutual funds available, each catering to different investor preferences and risk appetites. Some common types include equity funds, debt funds, hybrid funds, and sector-specific funds. Equity funds invest primarily in stocks, debt funds focus on fixed income securities like bonds, while balanced funds aim to provide a mix of both.4. How do I choose the right mutual fund?

Choosing the right mutual fund depends on your personal financial goals, risk tolerance, and investment horizon. It's crucial to conduct thorough research and seek professional advice...Read more

[ascentwealth123]

The Imperative "Why" of Retirement Planning for Entrepreneurs

In the dynamic landscape of entrepreneurship in India, the significance of retirement planning often takes a back seat amidst the challenges and ambitions of growing a business. This article aims to shed light on the crucial "why" behind retirement planning for entrepreneurs, emphasizing the long-term benefits and strategic considerations that go beyond the routine hustleThe Inherent Importance

Entrepreneurs, driven by passion and determination, may question the need for diverting resources towards retirement planning. However, understanding the intrinsic importance is pivotal for sustained success and peace of mind.

Safeguarding Financial Independence : Retirement planning is not merely about financial security during old age; it's about preserving the hard-earned independence that comes with entrepreneurship. By strategically managing finances today, entrepreneurs ensure they won't be dependent on others or compromise their lifestyle post-retirement.

Mitigating Business Risks : Entrepreneurs thrive on risk-taking, but this risk appetite should not extend to their entire financial portfolio. Retirement planning acts as a safety net, separating personal finances from business risks. In unforeseen circumstances, having a well-structured retirement plan prevents the entire financial empire from crumbling.

Long-Term Business Sustainability : Ironically, securing personal finances through retirement planning contributes to the sustainability of the business itself. Entrepreneurs can make strategic decisions without being solely driven by short-term financial pressures, fostering a resilient and enduring business..Read more

[ascentwealth123]

Mutual Funds versus Monopoly Game – Decoding the Best Moves

Are you ready to roll the dice and learn about the fascinating world of investing? In this blog post, we're going to compare mutual funds with the classic board game Monopoly. Yes, you read that right – Monopoly! So grab your top hat, and let's dive in!

First off, what exactly are mutual funds? Well, think of them as a diverse collection of investments, kind of like owning multiple properties in Monopoly. Instead of putting all your money into one house on Boardwalk, you spread it out across different assets like stocks, bonds, and more. This diversification helps reduce your risk, just like owning multiple properties protects you from landing on someone else's hotel!

Now, let's talk about building wealth. In Monopoly, your goal is to buy properties, build houses and hotels, and collect rent from other players. It's all about generating passive income and growing your net worth. Similarly, mutual funds aim to grow your money over time by investing in a variety of assets. Instead of collecting rent, you earn returns in the form of dividends and capital gains. The more you invest, the more your wealth can grow – just like in Monopoly!

But here's where the real-world magic happens: accessibility and expertise. In Monopoly, anyone can play, regardless of their financial knowledge or experience. Likewise, mutual funds are accessible to everyone, whether you're a seasoned investor or just starting out. You don't have to be a financial expert to get started – just find a fund that matches your goals, and let the professionals take care of the rest. Read more

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Understand the Dynamics: Overnight Funds vs. Liquid Funds vs. Ultra Short-Term Funds

When it comes to parking your surplus cash or optimizing your investments for short-term gains, navigating the realm of mutual funds can be both enticing and perplexing. Among the plethora of options available, overnight funds, liquid funds, and ultra short-term funds stand out as popular choices for investors seeking liquidity and stability.

In this blog post, we'll delve into the nuances of these three types of mutual funds, comparing their features, risks, and potential returns to help you make informed decisions regarding your investment strategy.Overnight Funds: Embracing the Ephemeral

What Are They?

Overnight funds represent the newest entrant in the mutual fund universe, introduced in recent years to cater to investors seeking ultra-short duration investments. These funds invest in securities with a single day maturity, such as overnight repos and CBLOs (Collateralized Borrowing and Lending Obligations), offering the highest level of liquidity and minimal credit risk.Key Features:

Low Risk : Liquid funds primarily invest in instruments with short maturities, reducing the risk of interest rate fluctuations.

High Liquidity : Investors can redeem their units at any time, usually within 24 hours, making liquid funds suitable for emergency funds or short-term financial goals.

Stable Returns : Liquid funds offer relatively stable returns with lower volatility compared to other debt funds.

Ultra Short-Term Funds : Balancing Act

Ultra short-term funds, as the name suggests, invest in fixed-income securities with slightly longer maturities than liquid funds, typically ranging from 3 months to 1 year. They strike a balance between higher returns and moderate risk, appealing to investors seeking slightly higher yields while maintaining liquidity.Key Features:

Moderate Risk : Ultra short-term funds carry slightly higher risk than liquid funds due to their longer average maturity, but they still aim to minimize interest rate risk by investing in short to medium-term debt securities.

Potential for Higher Returns : With a longer investment horizon, ultra short-term funds have the potential to generate better returns than liquid funds, albeit with slightly more volatility.

Suitable for Short-Term Goals : Investors with short to medium-term financial goals can consider ultra short-term funds for parking funds while aiming for better returns than traditional savings accounts or fixed deposits. Read more

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Mutual Funds Decoded: Common Questions and Answers

Welcome to our blog post! Today, we'll be diving into the world of mutual funds and answering the top 9 most common questions regarding this popular investment option. Whether you're a seasoned investor or just starting out, these questions and their answers will help you navigate the complex world of mutual funds. So, let's get started!

1. What is a mutual fund?

A mutual fund is an investment vehicle that pools money from various investors to invest in a diversified portfolio of securities such as stocks, bonds, or a combination of both. By investing in a mutual fund, individuals can gain exposure to a wide range of assets without needing to directly purchase them.

2. How do mutual funds work?

Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors. When you invest in a mutual fund, your money is combined with that of other investors which allows the fund to buy a variety of different assets. The returns generated by these investments are then distributed among the investors based on the number of units they hold.

3. What are the different types of mutual funds?

There are several types of mutual funds available, each catering to different investor preferences and risk appetites. Some common types include equity funds, debt funds, hybrid funds, and sector-specific funds. Equity funds invest primarily in stocks, debt funds focus on fixed income securities like bonds, while balanced funds aim to provide a mix of both.

4. How do I choose the right mutual fund?

Choosing the right mutual fund depends on your personal financial goals, risk tolerance, and investment horizon. It's crucial to conduct thorough research and seek professional advice.

5. What are the advantages of investing in mutual funds?

Investing in mutual funds provides numerous benefits. They offer diversification, professional management, liquidity, and affordability. Additionally, mutual funds allow investors to easily enter and exit the market, making them convenient for both beginners and experienced investors.

6. What are the risks associated with mutual funds?

While mutual funds provide growth potential, it's important to be aware of the risks involved. Market fluctuations can impact the value of your investments, and some mutual funds carry higher risks than others. Additionally, poor fund management or economic downturns can negatively affect returns. Understanding these risks is crucial to making informed investment decisions.

7. How can I track and evaluate the performance of a mutual fund?

To track and evaluate the performance of a mutual fund, you can refer to various metrics such as the fund's historical returns, expense ratio, and benchmark comparison. Additionally, analyzing the fund's consistency, risk-adjusted returns, and fund manager's tenure can provide valuable insights. It’s a difficult task and requires expertise, so it’s advisable to take the help of a financial expert.

8. Can I invest in mutual funds with a small amount of money?

Yes, you can invest in mutual funds with a small amount of money. Mutual fund houses offer Systematic Investment Plans (SIPs) that allow investors to start with minimal initial investments. SIPs also help in rupee cost averaging, meaning you invest a fixed amount regularly, regardless of market conditions. This approach can be ideal for beginners or those with limited funds.

9. How do I redeem my mutual fund investment?

Redeeming your mutual fund investment is a straightforward process. You can fill out a redemption form provided by the fund house or make a request online. Generally, your funds will be transferred back to your registered bank account within a few business days. It's important to note that certain exit loads or taxes may apply, depending on the duration of your investment.

Conclusion

Mutual funds offer a convenient and accessible way to invest in a diversified portfolio of assets. By understanding the basics, assessing your financial goals, and conducting thorough research, you can make informed investment decisions. Remember to consult a financial expert and monitor your investments regularly. Happy investing!

This blog is purely for educational purposes and not to be treated as personal advice. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

[ascentwealth123]

The Imperative "Why" of Retirement Planning for Entrepreneurs

Introduction

In the dynamic landscape of entrepreneurship in India, the significance of retirement planning often takes a back seat amidst the challenges and ambitions of growing a business. This article aims to shed light on the crucial "why" behind retirement planning for entrepreneurs, emphasizing the long-term benefits and strategic considerations that go beyond the routine hustle.

The Inherent Importance

Entrepreneurs, driven by passion and determination, may question the need for diverting resources towards retirement planning. However, understanding the intrinsic importance is pivotal for sustained success and peace of mind.

Safeguarding Financial Independence

Retirement planning is not merely about financial security during old age; it's about preserving the hard-earned independence that comes with entrepreneurship. By strategically managing finances today, entrepreneurs ensure they won't be dependent on others or compromise their lifestyle post-retirement.

Mitigating Business Risks

Entrepreneurs thrive on risk-taking, but this risk appetite should not extend to their entire financial portfolio. Retirement planning acts as a safety net, separating personal finances from business risks. In unforeseen circumstances, having a well-structured retirement plan prevents the entire financial empire from crumbling.

Long-Term Business Sustainability

Ironically, securing personal finances through retirement planning contributes to the sustainability of the business itself. Entrepreneurs can make strategic decisions without being solely driven by short-term financial pressures, fostering a resilient and enduring business.

Strategic Approaches to Retirement Planning

Balancing Present and Future

Entrepreneurs must view retirement planning as a strategic tool, striking a delicate balance between current business investments and future financial security. This involves allocating a proportionate share of profits for retirement savings, ensuring a harmonious coexistence of immediate business needs and long-term personal goals.

Harnessing Expert Advice

The complexity of entrepreneurship demands professional financial guidance. Seeking advice from experts ensures a customised approach that aligns with both business growth and retirement aspirations. Professionals not only navigate the intricate financial landscape but also provide insights into potential tax benefits and investment opportunities.

Embracing Flexibility and Adaptability

Entrepreneurs are adept at adapting to market changes; the same flexibility should be applied to retirement planning. Strategies should evolve with the business, incorporating adjustments as financial goals and market dynamics shift.

The Human Element: Beyond Finances

Quality of Life in Retirement

Retirement planning isn't just about amassing wealth; it's about ensuring a high quality of life post-retirement. Entrepreneurs should visualise their retired selves engaging in fulfilling activities, travelling, pursuing hobbies, or even exploring new ventures.

Mental and Emotional Well-being

Entrepreneurs often underestimate the psychological impact of retirement. Planning should include provisions for mental well-being, encompassing activities that bring joy, relaxation, and a sense of purpose. Prioritising mental health ensures a smooth transition into a satisfying retired life.

Conclusion

In the realm of entrepreneurship, retirement planning is not a luxury; it's a strategic imperative. The "why" behind retirement planning extends beyond financial security, embracing the essence of sustained independence, business resilience, and a fulfilling post-retirement life. Entrepreneurs, by proactively embracing retirement planning, not only secure their financial future but also lay the foundation for a successful and gratifying journey beyond the entrepreneurial hustle.

This blog is purely for educational purposes and not to be treated as personal advice. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

[ascentwealth123]

Mutual Funds versus Monopoly Game – Decoding the Best Moves

Are you ready to roll the dice and learn about the fascinating world of investing? In this blog post, we're going to compare mutual funds with the classic board game Monopoly. Yes, you read that right – Monopoly! So grab your top hat, and let's dive in!

First off, what exactly are mutual funds? Well, think of them as a diverse collection of investments, kind of like owning multiple properties in Monopoly. Instead of putting all your money into one house on Boardwalk, you spread it out across different assets like stocks, bonds, and more. This diversification helps reduce your risk, just like owning multiple properties protects you from landing on someone else's hotel!

Now, let's talk about building wealth. In Monopoly, your goal is to buy properties, build houses and hotels, and collect rent from other players. It's all about generating passive income and growing your net worth. Similarly, mutual funds aim to grow your money over time by investing in a variety of assets. Instead of collecting rent, you earn returns in the form of dividends and capital gains. The more you invest, the more your wealth can grow – just like in Monopoly!

But here's where the real-world magic happens: accessibility and expertise. In Monopoly, anyone can play, regardless of their financial knowledge or experience. Likewise, mutual funds are accessible to everyone, whether you're a seasoned investor or just starting out. You don't have to be a financial expert to get started – just find a fund that matches your goals, and let the professionals take care of the rest.

Plus, mutual funds offer something Monopoly can't: professional management. Instead of relying solely on your own decisions, mutual funds are managed by skilled professionals who analyze markets, research opportunities, and make strategic moves on your behalf. It's like having a team of seasoned Monopoly players guiding your every move, ensuring you make the most of your investments.

In conclusion, while Monopoly is a fun way to pass the time, mutual funds offer a real-world opportunity to build wealth and achieve your financial goals.

Remember, investing involves risk, and it's essential to do your research and consult with a professional fund manager before making any decisions. But with mutual funds, you can take a step closer to financial freedom.

This blog is purely for educational purposes and not to be treated as personal advice. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.