Mutual Funds

Mutual funds remain one of the most accessible and widely used investment vehicles for retail investors in India. However, as investment needs become more complex, high-net-worth individuals (HNIs) are turning to Portfolio Management Services (PMS) for a more customised approach.

One of the most important things to consider when investing is the return capability of the investment vehicle. For equity, there are ratios like the risk-reward ratio that help you assess the maximum risk to take for a trade.

As a non-resident Indian (NRI), you can invest in mutual funds by following certain guidelines.

Value funds invest in stocks of companies that are currently undervalued but have strong fundamentals with the potential to do better in the future.

Mutual fund charges primarily come in the form of total expense ratio or TER. The maximum TER is fixed by SEBI basis the fund’s assets under management (AUM).

One of the newer tools in the mutual fund space is called TREPS, which stands for Triparty Repo in Government Securities. It's a handy tool that gives mutual funds a flexible way to handle their cash flow.

Global funds allow you to invest in companies beyond national borders. They help diversify your portfolio and benefit from the world’s leading economies.

A mutual fund fact sheet helps you understand key details about a fund going through which can help you in informed decision-making.

Emerging markets are economies that are progressing toward becoming advanced, developed economies. They typically have lower per capita income but offer higher growth potential.

When it comes to investing in mutual funds, "hybrid funds" seem to confuse a lot of new investors. Within hybrid funds, two categories that often get mixed up are balanced advantage funds (BAFs) and flexi cap funds. Read on to understand the meaning and key features of both these fund types when mapping your investment journey.