Dear Investor,
Below mentioned are the links of the Annual Report 2010-2011, for the various schemes of Reliance Mutual Fund.
Please click on the link to download the Annual report of the respective scheme.

With Best Wishes
Reliance Mutual Fund

1. Reliance Growth Fund
2. Reliance Vision Fund
3. Reliance Regular Saving Fund – Equity Plan
4. Reliance Tax Saver (ELSS) Fund
5. Reliance Long Term Equity Fund
6. Reliance Diversified Power Sector Fund
7. Reliance Equity Advantage Fund
8. Reliance Equity Fund
9. Reliance Equity Opportunities Fund
10. Reliance Infrastructure Fund
11. Reliance Natural Resources Fund
12. Reliance Monthly income Plan
13. Consolidated Equity Scheme
14. Condolidated Debt Scheme

The economy is once again in turmoil and our money is in its roller coaster ride.  As interest rates climb, most bond owners are shaking their heads. The price of existing bonds falls when rates are on the rise. There is a way to offset the decline. You can invest in bank loan funds, also known as floating rate funds. There is a risk to these funds, but they can be a rewarding alternative to traditional fixed-income investments.

Obviously, bank loan funds are made up of loans made by banks or other financial institutions to companies. They are often below investment grade. They aren’t really fixed income; there is the potential of losing money. The funds can provide a return equal to or better than high-yield money market accounts. The loans that make up the funds are short-term. This allows the lenders the opportunity to frequently raise the interest rate. This helps the funds keep pace with interest rate changes and helps keep the principal more stable than with a typical bond fund.

Moreover, according to many portfolio managers, the way the loans are structured removes a lot of the risk to investors. The loans are secured by cash or assets. The funds are not independently rated, but experts say the bank should be able to show you the performance of the fund. The bank will package the loans and sell them, and the funds come into play.

Ban loan funds are senior loans. If the company defaults, senior loans must be paid back before bond holders are. You may not receive enough to cover your initial investment, but something is better than the nothing you could receive with a high-yield bond. Typically, in the case of default, the investors will recover 75 to 80 cents on the dollar.

The change of losing principal is reduced because the interest rates on the loans reset very quickly. Short-term interest rates rise and fall in response to the Federal Reserve. That, combined with the short terms of the loans, makes for a fund that responds quickly to the rise and fall of interest rates.

Many brokerages, including Merrill Lynch and Eaton Vance, sell bank loan funds. In certain asset classes there may be a high expense ration. Make sure that you check every fund out carefully.

Best Reading:

• What is Balanced Mutual Fund Class?
• What is Hybrid Mutual Fund Class?
• What is Gold Mutual Fund Class?

As a conclusion, many funds in this group allow investors to buy shares at any time. There are some funds that will allow you redemptions at any time, while others will restrict you to monthly or quarterly redemptions. Martin Lukac represents RateTake Refinance Rates marketplace. RateTake matches consumers with multiple lenders offering low rates. Got too much credit debt? Get Debt Help and you’d be surprised what we can do together.  Thus, there is still hope to solve all our credit debts no matter how plenty and huge they maybe.  Just be honest and confident enough that you can manage all your money.

It is very interesting to note that in this world of money, we simply need to become aware of a lot of things lest we fall into the trap of bankruptcy.  Let us now talk today about money market funds class.  Well, certificates of deposit and Money Market Funds Class (MMF) fall within the same asset class. They both can be classified as Income Options – an asset class that offers moderate return with limited risk. The returns from these two products are both higher than returns from cash options and are less risky than growth options.

Indeed, money market funds are a type of mutual fund that use short-term debt instruments like bonds, debt securities and other money-based funds for investment. The objective of these funds is to insulate the investor from major financial risks while providing a better hedge against inflation.

Furthermore, the objective of Certificates of Deposit is to attract funds for a specific period for use by a financial institution. These funds would normally have a fixed, guaranteed interest rate with the capital assured as well (up to certain limits). The rates CDs offer differ based on different factors such as savings period and initial capital.

As CDs and MMFs belong to the same asset class, it is often necessary to choose one over the other. The choice of a financial product should be premised on your needs and circumstances. However, there are a few justifications for choosing money market funds over CDs.

Liquidity: Money market funds have far more liquidity than Certificates of Deposit. This does not suggest that you cannot retrieve money from a CD if you really need it though. CDs normally bear stiff withdrawal penalties for withdrawal before maturity. MMFs offer the investor the possibility to buy and sell shares daily, with no withdrawal fees.

Uncertainty over investment period: For short or medium term investment horizons, MMFs are better suited. Sometimes an investor needs to keep a certain amount of money fairly secure until it is needed by a certain period. He may not be certain exactly when it is required (the uncertainty could span months). In such circumstances, setting a time period for a CD is difficult, so the MMF is the safer option.

Emergency funds: Given the inherent nature of an emergency fund, a CD would be a poor financial instrument for it. Money market funds allow your emergency funds to at least maintain their real value while providing the requisite liquidity necessary.

Best Reading:

• Which is the most suitable for you: Index or Diversified Funds?
• Concept of Mutual Funds

In conclusion, it is good to note that there are a few reasons to choose money market funds over CDs do not indicate that money market funds are better. With the economic downturn of 2008, money market fund yields have fallen while CD rates have generally remained stable. Based on their regulations, losses in the MMFs are rare, but technically, not impossible.What this suggests is that there could be a few reasons to choose Certificates of Deposit over MMFs as well. Still, if you are faced with investment-horizon uncertainty, selecting an emergency fund or need a balance between liquidity and returns; the MMF should prevail.

People in the business arena are very much into gold fund class investment since this type of fund will give you a greater probability of earning more from your capital or investment.

With the US dollar experiencing continued weakness and no clear signs of a strong economic recovery, the idea of holding gold or investing in gold funds is an attractive one for many. After all, while the markets suffered one of its quickest and steepest decline in history, gold ramped up to all-time highs, helping many countries like China strengthen the value of its reserves and, in many cases, sell off at profits that they could turn around and lend back to other countries at rates that would make many of us blush.

However, just like holding many commodities is risky, holding gold and gold funds is a very risky proposition. It often does not seem that way, but remember that it never does. The following three points outline exactly why holding gold in your IRA (or any investment) is a bad idea.

• Gold is currently trading at elevated values. Just like oil futures in 2007 might not have seemed risky as that commodity kissed the $134 marker, holding gold today might not seem overly risk. But where gold in an IRA is a super-bad idea is in the fact that any losses will be extremely difficult to recover. Just as properly diversified equity investors saw their portfolios tank during the 2007-2009 period, people who have just recently shifted into gold will find their portfolios devalued yet again. Need more proof – consider that the largest holder of gold right now consists of Exchange Traded Funds; not banks and countries.
• Gold funds are considered specialty funds. If investors are able to maintain discipline and limit their exposure, fine. However, the allure with gold right now is that it keeps touching new highs, enticing greedy and fearful investors into pouring more and more of their hard-earned cash into the metal. The risk with this is gradual but obvious over-exposure to this asset class. And within an IRA, it makes for an even greater risk because an IRA is typically used for retirement savings, resulting in a shorter time horizon to recover any losses.
• Many people do not fully understand how to trade gold. While television infomercials cite gold as an inflation-hedge, most of us cannot truly appreciate what such a claim really means. Understanding of course that many people actually experienced the complete reverse of inflation protection in the early 1990′s as gold saw a depreciation in value for several years (unlike this recent market crash that lasted less than 2 years), it should make sense to many that gold is just like any other investment with particular similarities to commodities that have much higher risks.

Best readings:

• What is Balanced Mutual Fund Class?
• What Is Mutual Fund?

As a conclusion, these points should provide at least some indication and warning for people to enter into gold investments with extreme caution. Understanding that gold comes with considerable risk, investors are well-advised to keep gold holdings outside of their IRA accounts and, if they insist on holding gold to do so in regular-tax accounts.

Hybrid fund class is defined as a category of mutual fund that is characterized by portfolio that is made up of a mix of stocks and bonds, which can vary proportionally over time or remain fixed. Morning star separates hybrid funds into domestic hybrid and international hybrid categories.

On the other hand, investopedia says that hybrid fund class most importantly in the hybrid category, this funds tend to stick to a relatively fixed allocation of stocks and bonds. Actively managed asset allocation funds tend to have portfolios with a mix of stocks and bonds that responds to market conditions as perceived by the fund manager. Passively managed asset allocation, life-cycle and target-date funds generally have a stock-bond mix that changes over a lifetime, moving progressively from aggressive to more conservative structures.

Hybrid fund class”, often referred as “hybrids”, are a broad group of securities that combine the elements of the two broader groups of securities Debt and Equity.

Hybrid fund class pay a predictable (fixed or floating) rate of return or dividend until a certain date, at which point the holder has a number of options including converting the securities into the underlying share.

Therefore, unlike a share of stock (equity) the holder has a ‘known’ cash flow, and, unlike a fixed interest security (debt) there is an option to convert to the underlying equity. More common examples include convertible and converting preference shares.

A hybrid fund class is structured differently and while the price of some securities behave more like fixed interest securities, others behave more like the underlying shares into which they convert.

A convertible bond is a bond (i.e. a loan to the issuer) that can be converted into common shares of the issuer. A convertible bond can be valued as a combination of a straight bond and an option to purchase the company’s stock.

An income security is a hybrid between a stock and a bond. The bond portion pays interest, and the stock portion pays dividends. Income securities are popular in Canada.

A PIK loan may carry a detachable warrant (the right to purchase a certain number of shares of stock or bonds at a given price for a certain period of time) – the loan is the debt, while the warrant is the equity.

The important hybrid instruments are listed below:

1. Preference shares
2. Convertible/exchangeable debentures/bonds
3. Debt with attached Warrants

Important terms in relation to hybrid fund class:

• Returns: Predictable dividend, often franked therefore possible tax advantage to the holder
• Capital price: 1.Price moves in line with share price (fixed conversion terms e.g. 1 hybrid convert to 1 share)
  2. Bond like, price does not move in line with share price (variable conversion terms, face value (usually $100) convert to $100 worth of shares).
• Discount: A discount is usually offered to the share price at the time of conversion.
• Reset/Resettable: At the reset date the terms of the security (dividend rate, next reset date) may change. The holder can elect to accept the new reset terms or convert into shares.
• Cumulative/Non-cumulative: This refers to the event of missed dividend payments.
• Cumulative: missed dividend payments are added to the next dividend payment.
• Non-cumulative: missed dividend payments are forgone.
• Redeemable/Non-redeemable
• Redeemable: At certain times the holder may have the option to sell the securities back to the company at the face value/issue price.
• Non-redeemable / Irredeemable: The company is not offering to buy the securities back.

Traditional hybrids fund class: Traditional hybrids fund class were usually structured in a way that leads the securities to react to the underlying share price. Although each has individual characteristics, typically:

• They have a set dividend until conversion
• The conversion might occur at a number of dates
• They are usually issued at a similar price to the underlying share
• They convert at a set ratio. e.g. 1 hybrid converts into 1 underlying share

Note: This fixed conversion ratio means the price of these hybrids react to the movement in the underlying share price. (The extent of the co-relation is sometimes referred to as a delta, and these typically have a delta of between 0.5 and 1) In addition, some of these securities include minimum and maximum conversion terms, effectively giving the holder a put and call option if the share price reaches a certain prices.

Most of the hybrid fund class issued recently are very bond-like. Although each has individual characteristics, typically:

• They have a set dividend rate for a 5 year period (‘reset’ period)
• Are issued at $100
• The holder has the ability to take the new ‘reset’ terms, redeem the face value or convert
• The holder can convert into the shares at a discount to the current ordinary share price e.g. 5%
• The conversion ratio is into a dollar amount of shares. e.g. $100 worth of the underlying equity Note: This ‘variable’ conversion ratio means the price of these hybrids does not react to the movement in the share price, and they therefore behave in a similar way to fixed interest securities (this lack of co-relation with the underlying shares is sometime referred to as a zero delta).

The most popular hybrid fund class among financial institutions (banks and insurance companies) is the Basket D security. Basket D is a reference to a point on Moody’s debt-equity continuum scale that treats the hybrid as 75% equity and 25% debt. In order to qualify, the security must give the issuer the right (or even the obligation) to roll-over the security at expiry to an indefinite or long maturity bond and to suspend dividends (effectively coupon payments, but to reflect the equity nature of the security, the term “dividend” is used). Most Basket D issuances have been structured in a way that also preserves the tax deductible nature of their interest payments, avoiding double taxation/customs.

Do you know how the hybrid fund class perform? How to analyze their performance? You can become an expert investor by yourself. Read this article and you can get more guidance.

Best Reading:

• Mutual Fund and ULIP
• Benefits of Mutual Fund

As a conclusion, there are truly plenty of things that we need to know regarding hybrid fund class. For the past years, hybrid fund class have skyrocketed in popularity since Moody’s released a new set of guidelines for treating debt-equity hybrids in February 2005. The new guidelines establish a “debt-equity continuum” and allow institutions to classify part of the hybrid security as equity and part as debt (in a shift from the previous policy, that counted the entire amount as debt). This change allowed companies to issue hybrid fund class and securities at a time of record low interest rates (and thus gain access to cheap capital) and then use the proceeds to repurchase equity shares (which have a very high cost of capital). Since only a fraction of the recapitalization would be listed as debt on the balance sheet, hybrids allowed companies to repurchase more shares than previously without negatively affecting their credit rating.  This information will surely help investments to progress more in view of his or her capital and investments.

Simply put, a Balanced fund class is a fund that combines a stock component, a bond component and, sometimes, a money market component, in a single portfolio. Generally, these hybrid funds stick to a relatively fixed mix of stocks and bonds that reflects either a moderate (higher equity component) or conservative (higher fixed-income component) orientation.

Investopedia explains balanced fund class as a balanced fund which is geared toward investors who are looking for a mixture of safety, income and modest capital appreciation. The amounts that such a mutual fund invests into each asset class usually must remain within a set minimum and maximum.

Moreover, in balanced fund class, incorporating a proper asset mix is arguably the most important task any investor will ever undertake. Between determining what percentage of one’s investments should be invested in one asset class versus another and then picking the right investments to maximize long-term returns while minimizing risks, the average investor will find that investing really is a part-time job, at best. In most cases, keeping on top of one’s investment portfolio can take the fun out the investment process altogether.

One way to improve the investment process is to focus on investments that are more exciting or interesting to the investor. This often means specialty asset classes, such as small cap, international, or other specific asset classes.

For the rest of the portfolio (the core of the portfolio) such an investor would be wise to incorporate a actively managed balanced fund class. In fact, balanced funds work well for investors who might have absolutely no interest at all in managing the investment portfolio.

Here are some of the benefits that a partially interested investor will enjoy by putting the core of their portfolio in a balanced fund class are as follows:

1. Active Management: Balanced funds class will do exactly what the investor is expected to do. Some balanced funds are strategic in nature, meaning they will stick a specific strategy that sees strictly adhered-to limitations on how much assets are invested in which asset classes. This allows the investor with some interest in specialty assets to pursue their interests while remaining confident in the fact that the rest of their investment will not deviate from the strategic asset allocation.

2. Professional Research: Most individual investors have a tough time researching the right assets to hold in the core of their portfolio. This is normal; managing a portfolio while working a full-time job becomes difficult if not impossible. Balanced funds class enjoy different circumstances. While the investor labors at work to earn funds to save in their investment portfolio, balanced fund companies are managing, researching and analyzing the assets currently under management.

3. Ongoing Management: Even in strategic funds where the asset classes are pre-determined, the underlying assets can and will change with time. Fund managers will capitalize on opportunities as soon as they become available, in real-time. Most investors cannot enjoy such ongoing management until they are able to find the time available to dedicate to their investments.

Best Reading:

• Which is the most suitable for you: Index or Diversified Funds?
• Concept of Mutual Funds

As a conclusion, by investing in a balanced fund class, investors can not only minimize the risk to an infrequently-managed portfolio, but can enjoy the benefits can along with working with professional, full-time asset managers. In addition, allowing a professional to manage the core of their portfolio allows investors to spend time on the asset classes, if any, that appeal most to them.  Although they are in the “asset allocation” family, balanced fund portfolios do not materially change their asset mix. This is unlike life-cycle, target-date and actively managed asset-allocation funds, which make changes in response to an investor’s changing risk-return appetite and age, or overall investment market conditions.

Money is indeed one commodity that you must take into account seriously.  Otherwise you will one day wake up not having any single cent that you wish to spend with all your needs most especially in times of urgent and crucial situations.  There are various ways to invest or make your money earn passively.  The most basic and proven are the index fund and the diversified fund. It is one reality in finance that had you put your money in the S&P CNX Nifty Index 5 years ago, there is a 70% chance that you would have made more money than by investing in a large-cap fund. According to S&P CRISIL SPIVA report for the year ended December 2009, over 70% of large-cap funds underperformed the S&P CNX Nifty Index over a 5-year period. This is a lot of money that you should have earned from investing in the said manner mentioned above.

Because of such turn of events discussed above, there is now a sudden change of status with regard to Sensex.  But at the same time, with the Sensex reaching near-18,000 level, market experts are calling it a stock picker’s market rather than one for the index investor. So, what should you, as an equity investor, do? Is it time to invest money into an index fund or stick to a diversified equity fund? To know the way forward, you need to answer some of the following three questions.

Obviously, the most basic response given in view of this question can make your life simple. Investors prefer to choose between active or passive styles of investing depending on their needs. It has been observed in developed markets that institutional investors such as pension funds looking for asset exposure prefer to stick to passive investing by opting for index investments. Hence it is important to be more keen in view of investing your hard earned money.

Truly, these policy holders and investors are willing to commit their money for a long term. Liquidity remains a key parameter in any investment decision of these investors, which is ably addressed by index investing. The second segment of investors that would like to opt for index investing is known as ‘asset allocators’. It must be noted here that once done with their risk profiling and investment needs, they prefer to allocate their money to various asset classes and hold on to them for a long period resorting to asset re-balancing at regular intervals. Index funds are preferred vehicles for many asset allocators.

Moreover the rest of the policy and plan holders, typically looking for alpha — the excess returns over the returns offered by the broad market — can look at actively-managed funds.  These are the common type of people who simply wish to invest their money in a company who will do something with regards to earning from their capital.

In must be noted moreover that, while investing in the market, there is a need to have a sound foundation of a theory you subscribe to. Efficient market hypothesis (EMH) is a celebrated and equally-criticized theory in markets. EMH maintains that the financial markets are information-efficient. Hence, the prices of traded assets already reflect all the available information and keep changing to accommodate any new information. In other words, stocks always trade at a fair value and factor in all possible information available in the market. Hence, no investor can buy an under-valued stock or sell an over-valued stock. There is no scope for an investor to beat the market in the long run by earning excessive returns than those offered by the broad market.

It is obvious a fact that as an investor you therefore must be wise and smart in view of which type of investment will you risk your hard earned money. If you believe in this theory, indexing is the best solution to look at while investing. Market returns can be earned at low cost with minimum efforts at your end using an index fund. Yet, if you are looking at Warren Buffet as the reality and believe in the possibility of beating the markets hands down in the long term, it’s better to look at actively-managed diversified equity fund. A point to note, the possibility of beating the market is one thing and an investor doing so in reality is another.

Hence as a person who wish to double your capital, or at least to earn, you should note down your strengths and weaknesses. When you look at a mutual fund to invest, either you have admitted that you cannot invest in equities on your own or you prefer to have a ‘money manager diversification’ that should help if your equity investments do not deliver. Ask yourself this question then, have you been investing in under performing schemes only? Have you been investing in schemes you know because those are advertised the most? Saying ‘yes’ to these questions brings forth some bitter facts. Be it the lack of time or lack of willingness, desire and ability to analyze a fund scheme, you run the risk of investing in a wrong scheme. If this is something very clear to you, then there is a greater chance of earning big bucks.

Furthermore, value research says that, in the diversified equity funds category that delivered an average return of 29.28% over one year as on July 29, 2010, the best fund delivered 59.99% whereas the worst booked 6.98% returns over one year. With the high range and the popular caveat — past performance is no guarantee of future — your choice of fund manager matters. If you want to avoid this gamble, look at indexing.

Best Reading:

• Post Office FD and Mutual Fund
• Concept of Mutual Funds
• Advantage of SIP(Systematic Investment Plan)
• What is Net Asset Value(NAV)
• Mutual Fund and ULIP
• Benefits of Mutual Fund

As a conclusion, it is good to quote some experts in view of their respective opinions and stand on which among these two types of fund is more effective and proven successful in terms of earning more income from your capital or investment: “After deciding on asset allocation, based on risk profile, investors should invest in low-cost solutions such as index funds that offer them exposures to desired asset classes,” says Sanjiv Shah, executive director, Benchmark AMC. Most critics say index fund managers do not book profits at higher levels. “If investors stick to their asset allocation and book profits using asset re balancing, index funds investors can take their profits home,” points out Mr Shah.  Hence, after hearing from their side the last card has been finally opened and laid down for you to finally decide on which type of mutual fund suits you best.

Are you aiming to have a better, money-free financially stable future?  Well, you must start making such a dream a reality by reading and enriching yourself with the following topics: mutual fund, SIP and NAV definition.

Definition of mutual fund: Let’s begin then with this first basic question: What is mutual fund? Mutual funds are investment companies that pool money from investors at large and offer to sell and buy back its shares on a continuous basis and use the capital thus raised to invest in securities of different companies. In this you amount is invested in different companies according to percentage ratio.

In addition, mutual funds can be either or both of open ended and closed ended investment companies depending on their fund management pattern.

• An open-end fund offers to sell its shares (units) continuously to investors either in retail or in bulk without a limit on the number as opposed to a closed-end fund. Open end fund have no limit in number of shares.
• Closed end funds have limited number of shares.

Advantages of mutual fund:

These are the advantages that you must bear in mind in view of mutual fund:

• Lowest per unit investment in almost all the cases start for Rs 10 in INDIA
• Your investment will be managed by professional money managers so you need not worry about your money.
• You can merge from one fund to another fund.
• Easy earning opportunity in share market.
• For long term they will provide good result.
• Your investment will be diversified

Disadvantage of mutual fund:

These are the advantages that you must bear in mind in view of mutual fund:

• Simply one line show you that mutual fund investment is depend on market risk please read offer document carefully before investing means market down mutual fund down.
• Mutual funds are like many other investments without a guaranteed return so it is not necessary you will get profit from mutual fund.

What is SIP?  Let us now define what is SIP.

SIP simply means Systematic Investment Plan. It is not a type of mutual fund. It is a method of investing in a mutual fund. SIP allows the investor to buy units on a given date every month. The investor decides the amount and also the mutual fund scheme. I want to say that save 1 rupee daily then after 30 days you will got 30 rupee. For saving money we need to follow some method and SIP is one of them.

Let us now take in to account the relationship between mutual fund and SIP

There are two ways in which you can invest in a mutual fund.

In my previous article I show the difference between mutual fund and post office fix deposit.

1.) A one-time outright payment

• If you invest directly in the fund, you just hand over the cheque and you get your fund units depending on the value of the units on that particular day. Suppose you invest Rs 10000 and NAV on that date is Rs 10.
• So you will get 1000 units (Rs 10000 / 10).
• If after one year fund NAV is 11 then you value is 11,000 (Rs 11*1000)

2.) Monthly, daily, quarterly or yearly investments

• This is referred to as a SIP. That means that, every month, you need to invest some money suppose you are investing Rs 1000 per month for three month and at the end of three month your total invests will 3000.
• Let’s say the NAV on the day you invest in the first month is Rs 10, you will get 100 units (Rs. 1000/10).
• The next month, the NAV is Rs 20. You will get 50 units (Rs. 1000/20).
• The following month, the NAV is Rs 40. You will get 25 units (Rs. 1000/40).
• Now total amount invested 3000, total unit you got 100+50+25=175 unit.
• Current NAV of mutual fund is 41 then your current value is 175*41= Rs 7175.

Definition of NAV: What is NAV?

NAV: NAV is net asset value of a mutual fund. NAV, is the sum total of the market value of all the shares held in the portfolio including cash, less the liabilities, divided by the total number of units outstanding. Thus, NAV of a mutual fund unit is nothing but the ‘book value.’

Your fund value= Total Unit * current fund NAV

Above are just figure performances, actual value depend on mutual fund and its market performance.

This are some best fund in current market.

Note: Liquid funds, cash funds and floating rate debt funds do not offer an SIP. These are funds that invest in very short-term fixed-return investments. Floating rate debt funds invest in fixed return investments where the interest rate moves in tandem with interest rates in the economy (just like a floating rate home loan).

All types of equity funds (funds that invest in the shares of companies), debt funds (funds that invest in fixed-return investments) and balanced funds (funds that invest in both) offer a SIP.

Please read treading tips before investing.

Best Reading:

• Post Office FD and Mutual Fund
• Concept of Mutual Funds
• Advantage of SIP(Systematic Investment Plan)
• What is Net Asset Value(NAV)
• Mutual Fund and ULIP
• Benefits of Mutual Fund

In conclusion, gaining more than enough information through our friends and experts in the field of investing such as mutual funds, will definitely make a great difference in your business investing pursuit.  It is very much advisable that as you become more knowledgeable with mutual funds and other details of investing then it is most likely that you can now be ready to risk your hard earned money.  Investing is a big risk but once you get to know the basics of which, everything will fall in its proper place and business perspective.  Happy investing and good luck!

In the arena of investment, you will always find different type of business people.  But among these various types, two categories emerge:  the high risk takers and the low risk takers in view of investment returns.

Now, as regards to which type of investment could reward a higher investment return, either the post office FD or the Mutual Fund, here is my practical answer, both of these options are good it only depends on your risk appetite and the expected returns from your investments. If you are a high risk taker and expect higher returns from your investments; then you can go for Mutual Funds. If you are a low risk taker and expect capital safety in any circumstance then go for Post office FDs.

It is interesting to note that, UTI Mutual Fund (UTIMF) is planning a joint venture with the Indian postal department to introduce products meant to be sold through the postal channel.

Moreover, confirming the development, senior fund officials said the plan was still in the planning stage and will be taken up only after its distribution tie-up with the postal department shows some degree of success.

Indeed, the schemes under the joint venture would be largely targeted towards the retired bracket of customers, savings plans for children, retirement plans, schemes targeted at women and so on.

Ashutosh Bishnoi, chief of marketing, UTIMF, said: “We do not mind developing products which are specific to a particular channel of distribution.”

The intention, said officials, is to sell products which would appeal to, and be easily understood by the kind of, people who generally frequent post offices. So the stress would be on savings rather than investments.

Truly, “Once the reach of the postal products swells to a certain size, we would have no problem in utilizing this channel exclusively for any of our other products,” Bishnoi said.

Such schemes, in accordance with the industry norms, would not be assuring any returns at all.

Furthermore, UTIMF, in fact, plans to utilize the postal channel in a wider way than it has been doing so far.

According to UTIMF vice-president, and head of marketing Ratin Lahiri, there are plans to set up a postal finance mart. “In other words, designated post offices will be used as specific point of sales for a whole host of financial products to be launched by the UTIMF.”

It must be noted, under the current arrangement with India Posts, UTIMF is selling four schemes through 50 post offices throughout the country.

These schemes are — UTI Mahila Unit Scheme, Unit Linked Insurance Plan, Children’s Career Balanced Plan, and UTI Retirement Benefit Plan.

This is common question on investor mind for deposit money so the answer is:
Both the options are good it depends on your risk appetite and the expected returns from your investments. If you are a high risk taker and expect higher returns from your investments; then you can go for Mutual Funds. If you are a low risk taker and expect capital safety in any circumstance then go for Post office FDs.

Please read trading tips before investing.

In conclusion, in order to sell the scheme, each of these post offices would have an account manager while personnel in the post offices are being trained to sell the products and explain the products’ attributes to the customers.  Therefore, it doesn’t matter what type of investment scheme you wish to use in your stock endeavors, it’s up to you to decide.  Happy investing!

Mutual fund investment is undoubtedly one of the best ways to save your money and at the same time earn a good fortune and secure your old age with a prosperous retirement benefits.
Friend always remember word of Warren Buffet -
“Rule No. 1: Never lose money.
Rule No. 2: Never forget rule No. 1.”
This time I will discuss with you some concrete ways and means in order to really save a lot and get something from your current financial status.

What is SIP?
Let us begin with one of the basic or fundamental ways of earning and saving namely the SIP.  What then is SIP? SIP simply means, Systematic Investment Plan. Well, you might think that this is one such way of earning from your mutual fund or just one type of mutual fund. Well no, instead it is a method of investing in a mutual fund. SIP will give the signal to the investor to buy certain units from the mutual fund stocks on a particular given date every month of the year. The investor then will decide the amount together with the method of the mutual fund itself. This would simply imply, that if you wish to save one rupee daily then in just a matter of 30 days you will be able to save and get 30 rupees.  Hence this is one principle in saving money.  Therefore, in saving money, we need to follow certain methods and SIP is one of these effective methods, no doubt.

Why invest using SIP?
Investing through SIP in a mutual fund indubitably is the key solution in order to avoid or prevent the loopholes of equity investment and yet, continually enjoythe high returns of investment.  Isn’t it great therefore to invest using this effective strategy of SIP?  Obviously, yes!  And not only that, it makes all the more sense today when the stock markets are booming and are tempting to really invest.

1. Tension free investment.
Experts and other well versed people in this business who will definitely manage your money and other forms of investment is one of the key advantages of investing through a mutual fund. They regularly carry out extensive research – on the company, the industry and the economy – thus ensuring informed investment.  This then is one big advantage in view of investing your hard earned money.

In addition to that, they regularly track the market. Thus, for many of us who do not have the desired expertise and are too busy with our vocation to devote sufficient time and effort to investing in equity, mutual funds offer an attractive alternative. Therefore, indubitably this type of business is indeed, a  tension-free form of investment.

2. SIP invest money in different-different sector
Another advantage of investing through mutual funds is that, even with just small amounts we are able to enjoy the benefits of diversification. Huge amounts would be required for an individual to achieve the desired diversification, which would not be possible for many of us.

3. Its well-regulated
It is interesting to note that the mutual fund industry is well regulated both by Sebi (Securities and Exchange Board of India) and AMFI (Association of Mutual Funds in India). They have, over the years, introduced regulations, which ensure smooth and transparent functioning of the mutual funds industry.  Moreover, you can also change mutual fund time by time, switch in different mutual fund, this is one of the big profit.

4. Does not after our monthly budget
Furthermore, with SIP we can invest small amounts (Rs 500-Rs 1,000) periodically in Mutual funds as against larger one-time investment required, if we were to buy directly from the market. In this way, an investment does not appear to be a burden every month. On the other hand, to prevent losses in volatile markets, investing in Sips is the best option as every month you may get an opportunity to buy at lower levels.

5. Reduces the average cost
Another advantage in using SIP is the fact that it reduces the average cost.  In SIP we are investing a fixed amount regularly. Therefore, we end up buying more number of units when the markets are down and NAV is low and less number of units when the markets are up and the NAV is high. This is called rupee-cost averaging. In addition, we would stay away from buying when the markets are down. We generally tend to invest when the markets are rising. SIP works as a good discipline as it forces us to buy even when the markets are low, which actually is the best time to buy.

6. Helps to fulfill our dreams
Finally and the best part of all is the fact that with the use of SIP, it will make our dreams come true.  The investments we make are ultimately for some objectives such as to buy a house, children’s education, marriage etc. And many of them require a huge one-time investment.As it would usually not be possible to raise such large amounts at short notice, we need to build the corpus over a longer period of time, through small but regular investments. This is what SIP is all about. Small investments, over a period of time, result in large wealth and help fulfill our dreams & aspirations.

Below are our best reading on mutual fund:

• What Mutual Fund do with investor’s Money
• Concept of Mutual Funds
• Benefits of Mutual Fund
• What is Net Asset Value (NAV)
• What Is Mutual Fund?
• Post Office FD Vs Mutual Fund
• Mutual Funds vs portfolio management

As a conclusion, you should never hesitate getting for yourself a mutual fund and eventually use SIP as a tool to save more, invest more and earn more.  There are other ways to facilitate more benefits earning from mutual fund but using the SIP is simply the best, most recommended, tested and simply efficient. Now think for the investment and select best mutual fund. Happy Investing.