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Thursday, August 5, 2021

Mutual Fund : top executives are touting the biggest myths about fund raising in India

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Mutual fund : Joint investments are often regarded as one of the best ways to invest in retail investors. They can start investing in stocks or loans through joint venture schemes at a lower rate through Systematic Investment Plans (SIPs).

In addition to the benefits to investors, there are several myths associated with the product. Below, some of the country’s top fundraisers are releasing some of the biggest legends.

Balasubramanian, MD and CEO, Aditya Birla Sun Life AMC

Balasubramanian, who is in charge of more than Rs 2.7 million, believes that there are many myths that include the belief that only shared funds are made for the elderly and not for thousands of years and that general investment should be stopped when markets are low.

“The worst enemy of human intentions to invest is emotional drive and moral bias,” Balasubramanian said.

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“SIP is an effective tool, which provides twin benefits of cost-effectiveness and integration costs. SIPs are not about setting time in the market but about empowering you to spend time in the market in a targeted way. Any knee-jerk reaction to sudden market actions… can be detrimental to the investment journey, ”he added.

According to the Balasubramanian, it is always best to start early because “investing is a lifelong exercise” and “first and foremost the best thing can be a mutual benefit and learning about how to navigate market cycles as long as one has saved long enough. ”

“Your future planning should start from the moment you start earning as planning early can determine your future career and long-term success,” Balasubramanian said.
Sundepep Sikka, chief executive officer of Nippon India Mutual Fund

Sundeeep Sikka, his company that manages under-owned assets costing more than Rs 3.55 lakh crore, feels that the most common myths around MFs are that one needs a lot of money to invest in MFs and that these are just investment tools.

“Given the fact that most of the time joint venture negotiations are focused on equity funds, many investors view joint ventures as investments alone,” Sikka said.

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“However, it is because investors have realized that mutual funds offer a variety of investment options in different categories of assets, including debt, equity, gold, etc. One can also think of hybrid funds, which provide access to several different categories of assets within a single fund, ”added Sikka.

The fact is that one can start a SIP for as little as Rs 500, Sikka said while speculating that a joint investment requires a lot of money.

“This is also one of the most common myths about co-financing, that one needs a lot of money to invest in MFs. Even if one wishes to invest a lump sum, one can invest for a minimum of Rs 5,000. Therefore, embarking on a journey of investing in joint ventures is expensive and easy, ”said Sikka.

Swarup Mohanty of the Mirae Asset Mutual Fund

Mohanty, who oversees AUM’s nearly Rs 75,000 crore using 35 lakh folios, believes that since instruments such as bank deposits and transaction papers offer guaranteed benefits, many think credit schemes are safer than equity schemes.

“It is unwise to assume that all debt schemes are safer than equity schemes. There are two types of credit risk – interest rate risk and credit risk, ”said Mohanty.

“Like the bull and bear markets of equality, interest rates also go up in circles. If the provider fails to make interest or the principal payment, the investor may need to lose permanently. Investors should always be aware of the risks of debt when investing because the risk of debt can be permanent, ”Mohanty explained.

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While making a fuss about the myth that shared funds are not only equitable but also creditable, Mohanty highlights the fact that debt financing has the potential to provide high returns compared to traditional traditional investments and that is why SIP in debt funds can also benefit from consolidation.

Ashwin Patni, Head – Products and Alternatives, Axis AMC

Patni said there is a myth that joint ventures offer limited options only when it comes to investing.

“Joint funds offer a high number of products – Lascapcap Fund, Midcap Fund, Smallcap Fund, Multicap Fund, Credit Fund, Bond Fund, Duration Fund, Liquid Fund, Gold Fund, Retirement Fund, Children’s Fund, Hybrid Fund, Global Fund, Sector Funds, Fund and more, ”said Patni.

Interestingly, affiliate marketing and advertising campaigns end with mandatory disclosure that joint investment is subject to market risks and this leads many investors to believe that MFs are a risky proposition, says Patni.

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“Shared investments are market-linked products which is why investors are warned before investing in market-related risks. Both funds are professionally managed and every fund manager strives to manage these risks while seizing the right market opportunities, ”said Patni, adding that mutual fund schemes are comprised of six congregations ranging from ‘low’ to ‘high’ investor freedom.

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