Mutual Funds
Mutual funds have become one of the most popular investment choices in recent years. Once considered a niche product, they are now a part of many individuals’ financial journeys. For most people, investing often starts with mutual funds, which are seen as a smarter alternative to keeping money idle in a savings account.
A mutual fund is a professionally managed investment vehicle that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.
Investors in mutual funds can earn returns in the following ways:
The fund earns dividends from stocks and interest from bonds, which are distributed to investors.
When the fund sells securities that have appreciated, the profits (capital gains) are shared with investors.
Your investments are handled by experienced fund managers who continuously track the markets and make informed decisions.
Mutual funds invest in a wide range of securities, helping reduce risk by spreading exposure.
Mutual funds benefit from economies of scale, meaning lower transaction costs compared to individual investors.
Most mutual funds allow you to redeem your investment at any time at the current NAV, providing easy access to your money.
Investing in mutual funds is simple and accessible, often requiring a small minimum investment and easy online onboarding.
Your go-to resource for mutual fund research and analysis to optimize your financial growth.
Mutual funds are broadly categorized by the kind of assets they invest in. These include equity (stocks), debt (bonds and money market instruments), and hybrid (a mix of both). Understanding these categories can help you select funds based on your financial goals, risk appetite, and investment horizon.
These funds primarily invest in shares of companies listed on the stock market. Their goal is to grow your investment by participating in the performance of businesses across sectors. While equity funds can offer higher long-term returns, they also come with higher risk due to market fluctuations.
Invest a minimum of 80% in the top 100 companies by market capitalisation. These are generally stable and less volatile.
Allocate at least 65% to stocks ranked 101st to 250th by market capitalisation. They offer higher growth potential with moderate risk.
Invest at least 65% in companies ranked 251st and beyond. These funds carry higher risk but may deliver strong long-term gains.
Spread their investments across large, mid, and small-cap companies—a minimum of 25% in each—to balance growth and risk.
Debt funds invest in fixed-income instruments like bonds, treasury bills, and corporate papers. The aim is to provide regular income and capital preservation with relatively lower risk. These are ideal for short- to medium-term goals or conservative investors.
Invest in debt securities with maturities of up to one year, offering liquidity with moderate returns.
Invest at least 80% in high-rated corporate debt instruments, aiming for stable income with lower credit risk.
Park money for just one business day, offering the lowest risk in debt categories. Ideal for temporary parking of surplus cash.
Invest in instruments with maturities up to 91 days. These are suitable for short-term needs and generally carry minimal risk.
Hybrid funds combine equity and debt (and sometimes gold or other assets) in a single portfolio. They aim to strike a balance between growth and stability, making them ideal for investors who want equity exposure but with some protection from market swings.
Allocate 65% to 80% in equities, and the rest in debt. Suitable for moderately aggressive investors.
Invest in at least three different asset classes, such as equity, debt, and gold, with a minimum of 10% in each.
Flexibly switch between equity and debt—anywhere from 0% to 100%—based on market trends and internal asset models.
Use price differences in cash and derivatives markets to earn low-risk returns. These are tax efficient alternatives to traditional debt instruments.
Each fund category is designed for specific financial goals and investor profiles:
First-time Investors Large-Cap, Hybrid, Liquid Funds
Working Professionals Multi-Cap, Debt, Dynamic Allocation Retirees Corporate Bond, Arbitrage, Overnight, Debt Funds High-Risk Tolerant Youth Small-Cap, Mid-Cap, Aggressive Hybrid
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds,
helping you build wealth over time with discipline and consistency.
At Wealth Wisdom Investech, we guide you in choosing the right SIPs based on your goals, risk profile, and investment horizon—making the journey simple and personalized.
SIP is not just an investment—it’s a habit that leads to financial freedom.
In the absence of a straight-jacket formula to grow the value of an investment in the market, access to key data-driven intelligence makes a critical difference in ensuring that the investment is productive.
Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes.
We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.
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