Importance of Mutual Funds

Mutual funds are the financial instruments that specifically aim at those investors who cannot get time to track the markets and invest in them accordingly. Also, they are a lucrative tool for those who intend to make money through investing in markets but are not educated adequately.

There are different types of Mutual Funds, popularly equity, debt, hybrid, etc. Mutual funds are also used as tax saving instruments and some result in tax savings via dividend declared on schemes invested

Dividends declared are nothing but a part of profits booked on the Mutual Fund holdings. Dividend declaration is a source of regular income for some investors. Dividend declaration reduces the Net Asset Value (NAV) of the Mutual Fund. There is a misconception amongst the investors that dividend declared on the mutual funds are additional income which is not true. Since the dividends declared are from the NAV only, that’s why it reduces the NAV.

The reason why dividend are declared, although they are not beneficial is that it helps in keeping investors’ confidence. Regular dividends by a company also show its prospects are good.

The investors who redeem units after dividend declaration at lower NAVs will book capital loss and thus resulting in savings on tax. Although to stop the rampant dividend stripping, government has made strict laws in regards to the same.

ICICI Prudential Mutual Fund is the second-largest mutual fund company in India in terms of AUM. It was established in 1993 as ICICI Prudential Asset Management Company Limited (a part of ICICI Group). In 1998, Prudential plc, came in as a joint venture (JV) partner. Prudential Plc is one of the largest companies in the financial services sector in the United Kingdom (UK). ICICI Bank holds a 51% stake in the JV and Prudential Plc has 49%.
With an experience of over two decades, ICICI Prudential Mutual Fund also offers Portfolio Management Services. Its reach is spread across over 350 locations and an investor base of 7.5 million investors (as of 31st Mar 2022). As of 28th Feb 2023, the AMC had an AUM of Rs 518767 crores. Know More

  • ICICI Prudential Mutual Fund offers 252 mutual fund schemes. These comprise 54 equity schemes, 153 debt schemes, 14 hybrid schemes, and 31 other schemes.
  • ICICI Prudential Balanced Advantage Fund, ICICI Prudential Liquid Fund, and ICICI Prudential Value Discovery Fund are the three largest funds of the company as of 14th April 2023.
  • The fund house comprises 12.59% of the industry AUM.

About SBI Mutual Fund
SBI Mutual Fund was established on 29 June 1987 as a Trust with State Bank of India (SBI) as the sponsor and SBI Mutual Fund Trustee Company Private Limited as the Trustee. It was registered with SEBI on 23 December 1993. On 13 April 2011, an agreement was signed between SBI and AMUNDI Asset Management, making the fund house a joint venture.
Today, the fund house offers a wide range of mutual fund schemes across equity, debt, hybrid, and other categories. SBI Mutual Fund has Rs. 791796.86 crore assets under management (AUM) as of June 30, 2023. It holds 17.83% of the industry AUM.

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  • SBI has a 63% stake in SBI Funds Management Pvt Ltd (SBIFMPL). The remaining 37% is held by AMUNDI Asset Management through Amundi India Holding, a wholly-owned subsidiary.
    SBI Mutual Fund offers 139 primary schemes.
  • Out of these, the AMC offers 39 equity funds, 77 debt schemes, 12 hybrid schemes, and 11 others, including Exchange Traded-Funds (ETFs), index funds, and gold funds.
  • SBI Nifty 50 ETF, SBI S&P BSE Sensex ETF, and SBI Equity Hybrid Fund are the three largest schemes of the fund house.

About HDFC Mutual Fund
HDFC Mutual Fund (formally known as HDFC Asset Management Company Limited) was established in the year 1999 as a joint venture between HDFC Limited and abrdn Investment Management Limited. It is one of India’s largest mutual fund houses and it has Rs 4,49,169 crore as assets under management as of Feb 2023 which is 10.91% of the industry’s AUM. The fund house became a publicly listed entity in August 2018.
The fund house has a strong position in equity investments and holds an institutional customer base of 9.9 million live accounts as of 31st March 2022. Know More

  • HDFC AMC offers approximately 108 primary schemes.
    Of the 108 schemes, 58 are debt funds, 33 are equity-oriented, 6 are hybrid schemes, and 11 others (ETFs, Gold, FoFs, etc.).
  • The company’s vision: To be the most respected Asset Manager in the world and the mission is to be the wealth creator for every Indian.
  • They have an investment team of 29 highly competent members with a consistent track record of performance, stability, and business understanding.
  • The company has a network of customers and investment partners across 200 cities.

About Franklin Templeton Mutual Fund
Franklin Templeton Mutual Fund (part of Franklin Templeton Investments, a US-based financial services company) was established in India in 1996 as Templeton Asset Management India Pvt. Limited. It was registered with the Securities and Exchange Board of India (SEBI) in February 1996. The company entered the mutual funds business with the launch of Templeton India Growth Fund (now called Templeton India Value Fund) in September 1996. As of Feb 2023, the fund house has Assets Under Management (AUM) worth Rs 65293 crores.

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  • Franklin Templeton Mutual Fund offers 47 mutual funds schemes.
    Of these, 14 are equity schemes, 4 are hybrid schemes, and 24 are debt schemes. The remaining 5 schemes belong to other categories.
  • The company held 1.59% of the total industry AUM as of Feb 2023.
  • Some of the largest Franklin Templeton’s mutual fund schemes as of Apr 2023 are Franklin India Flexi Cap Fund, Franklin India Focused Equity Fund, and Franklin India Prima Fund

About LIC Mutual Fund
LIC Mutual Fund was established on 20th April 1989 by LIC of India, which is the largest life insurer in the world. With a 45% stake, LIC Of India is the biggest shareholder of LIC Mutual Fund Asset Management. The other notable stakeholder of this AMC include LIC Housing Finance (39.30%), GIC Housing Finance (11.70%), and Union Bank of India (4%).
The fund house was registered with SEBI in 1994, so it has a history of nearly 30 years of managing investors’ money. Its total assets under management (AUM) stood at around Rs 24,100 crore by the end of July 2023.

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  • LIC Mutual Fund has 43 mutual fund schemes for investors to choose from.
  • Among these 43 schemes, there are 19 equity schemes, 15 debt schemes, 5 hybrid schemes, and 4 other schemes.
  • LIC MF Liquid Fund, LIC MF Large & Midcap Fund, and LIC MF Large Cap Fund are among the fund house’s popular schemes

Mutual funds offer diversification or access to a wider variety of investments than an individual investor could afford to buy. There are economies of scale in investing with a group. Monthly contributions help the investor’s assets grow. Funds are more liquid because they tend to be less volatile.

Mutual funds offer diversification or access to a wider variety of investments than an individual investor could afford to buy. There are economies of scale in investing with a group. Monthly contributions help the investor’s assets grow. Funds are more liquid because they tend to be less volatile.

About Mahindra Manulife Mutual Fund
Mahindra Manulife Mutual Fund is the joint venture of Mahindra & Mahindra Financial Services Limited and Manulife Investment Management (Singapore) Pte. Ltd (MIMS).
Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India’s leading non-banking finance companies. MIMS is a member of the Manulife Financial group of companies and is an indirect wholly owned subsidiary of Manulife Financial Corporation. MIMS has a strong presence in Singapore, managing retail fund schemes and institutional client mandates as well as managing assets on behalf of its insurance affiliate.
The fund house?s total assets under management (AUM) stood at around Rs 1,739 crore by the end of July 2023. Read More

  • Mahindra Manulife Mutual Fund has 21 mutual fund schemes for investors to choose from.
  • Among these 21 schemes, there are 9 equity schemes, 6 debt schemes, 5 hybrid schemes, and 1 other scheme.
  • Mahindra Manulife Midcap Fund and Mahindra Manulife Large & Mid Cap Fund are among the fund house’s popular schemes

Mutual funds offer diversification or access to a wider variety of investments than an individual investor could afford to buy. There are economies of scale in investing with a group. Monthly contributions help the investor’s assets grow. Funds are more liquid because they tend to be less volatile.

Mutual funds offer diversification or access to a wider variety of investments than an individual investor could afford to buy. There are economies of scale in investing with a group. Monthly contributions help the investor’s assets grow. Funds are more liquid because they tend to be less volatile.

Mutual funds offer diversification or access to a wider variety of investments than an individual investor could afford to buy. There are economies of scale in investing with a group. Monthly contributions help the investor’s assets grow. Funds are more liquid because they tend to be less volatile.

Mutual funds offer diversification or access to a wider variety of investments than an individual investor could afford to buy. There are economies of scale in investing with a group. Monthly contributions help the investor’s assets grow. Funds are more liquid because they tend to be less volatile.

Mutual funds offer diversification or access to a wider variety of investments than an individual investor could afford to buy. There are economies of scale in investing with a group. Monthly contributions help the investor’s assets grow. Funds are more liquid because they tend to be less volatile.

Mutual funds offer diversification or access to a wider variety of investments than an individual investor could afford to buy. There are economies of scale in investing with a group. Monthly contributions help the investor’s assets grow. Funds are more liquid because they tend to be less volatile.

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