Leading Mutual Fund Advisors in Kolkata
Mutual funds are financial instruments that are invested in a portfolio of securities, including stocks, bonds, money market instruments, gold, silver, and real estate investment trusts (REITs), etc. These funds are managed by professional fund managers as per the objectives of the scheme. The funds are categorised as equity funds focusing on growth, debt funds that ensure stability, and hybrid funds that offer balanced returns. Most investors either put out a one-time whole sum amount or opt for SIP, i.e., Systematic Investment Plans.
Consulting a mutual fund advisor in Kolkata helps in the professional management of your finances and also ensures wealth development. You get expert and personalised solutions where the advisors evaluate the risks and market conditions and help you attain your financial goals based on your risk profile.
Net Asset Value (NAV)
NAV is the market value or price of one unit of a mutual fund scheme. It is the per unit price you pay or get when you are buying or selling (redeeming) mutual funds. It is calculated by subtracting the expenses/liabilities from the assets of the scheme and is disclosed by the AMC on each business day. It projects the portfolio's ongoing value and helps examine its performance based on the market. The NAV tends to deviate according to the market transformations, thereby enabling the investors to monitor and analyse the investments while making informed decisions.
SIP (Systematic Investment Plan)/Lumpsum
You can invest in Mutual Funds via SIP, wherein you invest a fixed amount on a weekly, monthly or quarterly basis in a mutual fund scheme, which gets automatically debited from your account. This type of investment helps you save diligently and in a disciplined manner. Lumpsum investment involves a one-time investment of a huge amount in a particular scheme. This is mainly suitable for investors who possess large funds for long-term financial growth. Both SIP and lumpsum investment can be possible by taking financial guidance from MFD or Mutual Fund Distributor in Kolkata. In a way, they assess the risk tolerance, evaluate the economic objectives and check the existing conditions of the market to help you craft an effective strategy.
SWP(Systematic Withdrawal Plan)
SWP or Systematic Withdrawal Plan helps you withdraw a fixed sum of money at specified intervals like monthly or quarterly. On a prespecified day, depending on that day's NAV, mutual fund units will be redeemed and the amount will be credited into your bank account. This type of investment is best for retired people as it offers a stable income source and can be used as an alternative to pension. With this flexibility and periodic cash flow, SWP helps manage the various tax liabilities, which will be taxed as per your tax bracket. In fact, it also provides protection against market fluctuations by steer-clearing the redemption of large amounts of your money.
TYPES of Mutual Funds to Invest
There are three broad categories of mutual funds that you can invest in by seeking the expert help of the mutual fund advisors in Kolkata.
- Equity Funds: These mutual fund schemes invest in equity and equity-related securities and primarily invest in large, midcap, small-cap, multi-cap, and flexicap fund schemes. The primary investment objective of equity funds is capital appreciation and beating inflation.
- Debt Funds: These mutual fund schemes invest in debt and money market instruments depending on the maturity profiles of the underlying debt or money market instruments, such as overnight, liquid, ultra-short duration, low duration, short duration, medium duration, and long duration. The primary investment objective of debt funds is principal protection and steady returns. These funds can be considered an alternative to bank FDs.
- Equity Funds: These funds invest in equity and debt securities, in addition to gold, silver, REITs, InvITs, etc. Their primary investment objective is asset allocation. Different types of hybrid funds include aggressive hybrid funds, conservative hybrid funds, balanced advantage funds, equity savings, etc.
RISK
Mutual funds invest in stocks for equity funds and money market instruments for debt funds. The price of the underlying securities can go up or down depending on market movement; hence, the NAV of your mutual fund scheme can also vary. Different mutual fund schemes have different risk profiles. Our team of professionals at Call Andii, a Mutual Fund Distributor in Kolkata, will guide you based on your risk profile so that your investment is right on track based on your short and long term goals.
TAXATION
The taxation process on the mutual fund investment tends to depend on the type of investment as well as the period of investment. Mutual funds, whose average equity allocation (i.e. where underlying assets are equity and equity-related securities) is 65% or more, are treated as equity funds from a tax perspective. Short term tax gain (units held for less than 1 year) is taxed at 20% while long term gains ( units held for more than a year) are taxed at 12.5% rate. Do note that upto Rs1.25 lakhs per annum gains are tax free and anything above that is taxed, based on short or long term.
Any mutual fund scheme with less than 65% allocation in equity is a debt fund. Gains from debt funds are taxed basis the tax slab you are in.
FAQS
- Why should you invest in mutual funds?
Investing in mutual funds will help you gain diversification of your assets, financial management by experts and access to various types of assets besides beating inflation. If you are someone who is willing to attain your financial goals efficiently managed by professionals by adopting systematic and strategic approaches, go for mutual fund investment via a mutual fund distributor.
- Which mutual fund scheme should I invest in?
If you are confused about which mutual fund scheme to invest in, make sure to seek help from highly professional mutual fund advisors in Kolkata. They can help you choose by assessing your financial objectives and the risk tolerance capacity of your portfolio.
- Why do I need a mutual fund distributor (MFD)?
Choosing a mutual fund distributor will help you receive personalised and expert guidance from professionals and also enable you to choose the appropriate schemes based on your portfolio and long-term financial goals. They also manage your portfolio while providing various tax saving strategies, shedding light on the ongoing market trends, and making sure to craft a relevant investment plan.
- How do I track my mutual fund portfolio?
Your mutual fund portfolio can be monitored using our very own app. You can download statements from our website and we will sit with you periodically and help monitor your portfolio.
- Can I withdraw my mutual funds anytime?
Yes you can withdraw the units any given time as all MF offers this flexibility. However, you must consider the tax implications as well as exit loads that may be added owing to the scheme's holding period.
| Fund Type | STCG(Short term Capital Gains) | LTCG(Long Term Capital Gains) |
|---|---|---|
| Equity + Hybrid | 15% +cess+surcharge | Any amount more than Rs1 lakh Is taxed @ 10%+cess+surcharge |
| Debt | Your tax slab rate | Your tax slab rate |
