Top 5 Checks While Comparing Mutual Funds

It’s a challenge to choose a mutual fund scheme! The number of mutual fund schemes available in the market would drive any investor insane to zero down on a mutual fund of his/her choice. There is an endless list of checks necessary to be done before arriving at the one mutual fund scheme that meets your requirements and has potential to give decent returns.

Below are the various checks to keep in mind while comparing mutual funds:

Know your fund house:
Choosing a fund house in which you have sufficient faith to invest your money in is important before zeroing in on a scheme of your choice. Investors look for fund houses which can take care of their investments and can manage their money well. Objectives set by fund houses help investors to meet their goals thus securing their future. If the objectives are not met, investors lose faith in the fund house. A budding investor should ask these important questions like, “What are the fund houses’ investment objectives?”, and “How many schemes does the fund house offer to its investors?”, “Are the funds similar under different names?”, “Does the fund make sense to me?” It is equally important to know how the fund manager manages the funds under him/her. One needs to ascertain how schemes have performed during various market cycles managed by the fund manager. A good fund manager is not only important for the fund house but also for an investor.

Fund philosophy:
The next important check is to know the philosophy of the fund house. A set of guiding principles that inform and shape an individual’s investment decision-making process is termed as the philosophy of the fund. The fund house’s investment philosophy plays an important role in determining the performance of its funds in different market conditions. The selection of the funds, investment decisions are directly dependent on the fund philosophy.

Charges and fees:
An Asset Management Company (AMC) that spends on the upkeep of a mutual fund is measured as the expense ratio of a fund. The fees of the advisor, record-keeping, legal expenses, accounting, auditing fees etc. are what make up an expense ratio. Higher churning of portfolio leads to higher costs. It is an expense borne by the investor and is deducted from the investment. For example, if you have invested Rs. 100 and the expense ratio of the fund is 1.25, then your investment is Rs. 98.75. Lower expense ratio means that higher amount is available for investment.

Transparency:
In today’s world it is very important to maintain a good relationship with the customers, and to maintain a good relationship, there has to be a high level of transparency. This holds true even for mutual funds, as all mutual funds disclose the stocks they buy etc., through factsheets SEBI’s new rule, instituted October 1 2016, requires asset management companies to disclose all commissions paid to distributors in the Half-Yearly Consolidated Account Statements (CAS) they send to investors, all this in an effort to bring more transparency into the system.

It is only when SEBI brought the commission disclose rule that we have started paying trail commission to distributors in the Regular Plan effective April 1,2017 by letting you, our investor, know exactly where your money is going and that its serving your interests first.

So when it comes to long term wealth generation that puts the investor first, it may make sense to invest in a fund which focuses on transparency and controlling costs – rather than investing in a typical high-cost mutual fund that consciously uses big ads to attract your money!

Performance:
The last factor is return on investments. All the above factors are major drivers behind the performance of the funds. There are many other factors which have direct and indirect impact on performance of the funds; however, we have discussed the major factors above.

Moreover, it is important to understand that the performance of the funds can change over a period of time (positively as well as negatively), however, its philosophy, ethics, investment strategy are the main pillars. Don’t just only compare the performance of the fund in isolation.

To conclude, sound knowledge and research is very important before choosing a mutual fund to park your hard earned money. Following all the above steps might help you take right decision. However, you may consult your financial advisor before taking any investment related decision.

Redemption should not be tied with Markets Performance

A very simple and clear advice is to remain invested till the time your financial goal is not achieved.

Always remember that the decision of redemption should be connected to your investment objectives and not to market levels.

Fund Managers best to manage your money in such scenario

As a mutual fund investor, it is best not to worry about the market levels. Analyzing market trends and investing money accordingly is the fund manager’s job. When markets are at their peak, the need to redeem shouldn’t cross your mind. Fund managers are supposed to understand market trends better, sell the overvalued stocks and then deploy money as and when markets offer investment opportunities.

Your fund manager may have booked profits on investment and is now waiting for the next suitable opportunity for further investment. Therefore, it is probably better to hold for a while before taking the next step. Fund Managers spend most of their time in research, meeting with company promoters to understand their strategy and business plans which could have an impact on the performance of stocks or markets. In short, your fund managers are potentially in a much better position in understanding markets trends.

There is also a possibility of you not be able to reinvest your redeemed money and may lose out on opportunity which does not happen if you let the Fund Manager manage your money.

Investors who have profitable investments in hands due to recent highs in the markets and now thinking on redemption. We have a question for you! Will you able to be catch a good investment opportunity in the current market especially when interest rates on savings and fixed deposits are falling? Therefore, our advice is continuing your investments with this profit till the time you have not achieved your financial goal.

Redeem only if you have achieved your investment goal!

You may have two reasons for redemption. Either you are worried about the markets levels (markets are at all-time high so may fall down and better book some profit) or you have met your financial goal, investment objective.

If you are looking to book profits then, as we have explained earlier it is better the fund manager do that job.

In second case, if you have achieved your financial goal then you can redeem now. You can spend your profitable investment to fulfill your financial goal like higher education, marriage etc, thanks to outstanding markets performance. Now you can enjoy benefits of long term investments!

One of the best way to redeem your investment is by starting a Systematic Withdrawal Plan (SWP), by doing this you will minimize the risk of redeeming all your money on one day.

To conclude, if you have achieved your investment objective then you can set a new financial goal and start your next long term investment association with markets. If you have not achieved your financial goal, then you should continue with your investments till the time you have not achieved investment objective.

Remain a long term investor to make the most of your investment!

How to buy shares from angel broking?

It’s a human tendency that a field a person is interested in, keeps full knowledge of it. Does it happen with you too? Like, if you are that filmy person and loves Bollywood then you must have all the information of the industry. Similarly, if you keep your eye on cricket and cricket is your keen concern then you might have all the stats regarding cricket in your head only.

In the same way, an investment enthusiast keeps all the information of what’s happening in the stock market, which company is releasing their IPOs and so on. If you are one among such trading zealots then you must be knowing that recently the giant broking house Angel Broking has released its IPO, and it quite had a blast.

After the release of this IPO many traders thought to shift to or open their new demats in Angel Brokings. This discount broker has made an impressive customer base but many new customers are facing difficulties in knowing the platform. So, let us now see what is this platform and how to buy shares from this?

About Angel Broking

Angel Broking is a stockbroker firm of India that was founded back in 1987.The company, Angel Broking is a member of the Bombay Stock Exchange, National Stock Exchange of India, National Commodity & Derivatives Exchange Limited as well as multi Commodity Exchange of India Limited. It is also a depository participant (DP) with Central Depository Services Limited (CDSL). Currently, The company has more than 8500 sub-brokers, and also franchise outlets in more than 900 cities all over India.

The services of Angel Broking encompass online stock broking, depository services, commodity trading as well as investment advisory services. You can also see services like Personal loans and insurance being delivered by this company. Back in 2006, Angel Broking also started its portfolio management services, IPOs business and also, mutual funds distribution arm.

Angel Broking Review also amasses products such as Angel Eye, Angel BEE mutual fund app, Angel SpeedPro, Angel Trade as well as Angel Swift for online trading.

How to buy shares on Angel Broking?

As discussed earlier, many new users of the prominent discount broker app, angel broking have been dilemma that how to use the platform. Though it is very easy platform to handle, but there are always some new people who are not very easy with the technical terms.

So, we are here to solve your one problem of buying shares from the angel broking app. So let’s see how we can do wonder via this platform.

The straightforward process of buying stocks from angel broking is shown below:

Firstly, you are required to click on the menu in the app.
Now you will find an option named as trade. You are now required to cluck on this trade option.
Another option will appear to you ‘buy-sell’, select this option.
Now to search the stock that you are willing to buy, you will be required to click on the search. Now just select the stock you would like to or prefer to buy.
At this moment, an option must be available to you as ‘exchange’, select that option.
Now, simply click on the buy button.
Now, a window will appear to you. This window is known as the buying window.
Now, an option will appear to you as ordered by quantity. Simply click on this option.
Here, you will select the desired option and enter the quantity.
Now, it is the time to select the order type. The two options are limit order or market order.
Now, you will be required to select the product type. It includes intraday, delivery and margin trading.
Now, select the validity( day or IOC).
Finally, to buy the stock click on the submit button. Now your order will be placed.
Hope, now will be clear with the idea of how to use the app and particularly buy shares from the discount broker, angel broking.

What is ‘watchlist’?

Many wonder, what is a watchlist? What is the purpose of this and how is this used? Let’s know that!

So, the watchlist is available to you by default, when you install the app and open it. In the watchlist you could add your favorite or preferred stocks, that you feel you are interested in and feel you will trade frequently.

The benefit of adding the stocks to the watchlist is that you get information about the stock as well as it’s price rates.

Index segment

Another appreciated option in the angel broking app is the index segment. In the index segment you would see the Nifty’s top 50 stocks and sensex’s top 50 stocks. It include options like Nifty, sensex, bank senses and others.

Wrapping words

Angel Broking is nothing but just another platform that provides you with the facility of online trading. It makes the trading procedure more interesting. Over the past few years, it has been tremendously successful in expanding its customer base with a bang.

After reading the above article, you must have cleared yourself with angel broking, what is it all about? How to use the platform? And, how to buy shares from the angel broking.

To be honest, the system is damn easy and could be used by anyone, even if you are new to the game you could use it like other regular apps. Just within a few steps, you could place orders of different stocks and sell it as well. You could do this even while trading in different segments like equity, currency, derivatives, commodity etc.

Apart from having the cutting edge tools, the giant platform angel broking, allows all the traders or investors present out there to Proceed with the techniques of risk management. The platform of angel broking is a one that comes out with advanced technology in all the aspects whether it’s the financial tools or if the graphics of the app are concerned. It will suit you in each and every situation.

If you are really among those who are choosing angel broking as their trading platform then this is time.