Top TEN 10 Best Mutual Fund Companies in India to invest your money for 2018.

Top TEN 10 Best Mutual Fund Companies in India to invest your money for 2018.

We have identified the best top ten Mutual Fund Companies in India to invest your hard earned money for 2018.

RANKING NAME AAUM(LAKHS)
1 ICICI Prudential Mutual Fund 30617349.99
2 HDFC Mutual Fund 30079372.59
3 Aditya Birla Sun Life Mutual Fund 24779454.09
4 Reliance Mutual Fund 24558135.45
5 SBI Mutual Fund 21803397.37
6 UTI Mutual Fund 15493934.88
7 Kotak Mahindra Mutual Fund 12488805.71
8 Franklin Templeton Mutual Fund 10414047.74
9 DSP BlackRock Mutual Fund 8632570.03
10 Axis Mutual Fund 7737748.04

Source: AMFI – JAN- MAR 2018.

These are the top ten best Asset Management Companies to invest your hard earned money with. Remember these are listing of AMC. These AMC’s AAUM is no reflection of its fund managers investment abilities.

 

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SBI Magnum Tax Gain Fund Scheme 1993 dividend for 2018 has been announced by SBI MF

With over lakhs of investors and a stable track-record of over 25-years SBI Magnum Tax Gain Fund ELSS Scheme 1993 has proved to be one of the most consistent performer amongst the tax saving schemes category in the Indian Mutual Fund Industry. See previous dividends declared

Dividend for 2018

Magnum TaxGain ELSS Scheme : 40%

Magnum Tax Gain ELSS has generated excellent returns over past 25 years and continues to provide retail investors a profitable avenue with constant stream of fat dividends. The SBI TaxGain Equity Linked Savings Scheme is also one of the largest equity scheme in India with corpus of over 6067 Crores. SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation.

SBI Magnum Tax Gain Fund Scheme 1993 dividend for 2014 has been announced by SBI MF

With over 14 lakh investors and a stable track-record of over 20-years SBI Magnum Tax Gain Fund ELSS Scheme 1993 has proved to be one of the most consistent performer amongst the tax saving schemes category in the Indian Mutual Fund Industry. See previous dividends declared

Dividend for 2014

Magnum TaxGain ELSS Scheme : 35%

Magnum Tax Gain ELSS has generated excellent returns over past 20 years and continues to provide retail investors a profitable avenue with constant stream of fat dividends. The SBI TaxGain Equity Linked Savings Scheme is also one of the largest equity scheme in India with corpus of over 4074 Crores. SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation.

After an long delay it had become almost imperative for the fund manager/investment managers at SBI MF to declared a dividend no matter how small the dividend amount be. The scheme’s rivals like HDFC TaxSaver and HDFC Long Term Advantage Fund had already declared decent and timely dividend income in the past. Irony of dividends in falling markets is that, it lowers already low NAV.

Dividend Income Bigger than Annual Bonus/Increment:

In fact, for many Salaried Investors of this scheme, due to economic downturn the Dividend Income received from SBI Magnum Taxgain has ironically outstripped their annual bonus/incentive and annual increment incomes in their current profession.

The record date for dividend is 28-Mar-2014. Post declaration of the dividend the NAV of the scheme will fall to the extent of the dividend payout. Check NAV of the scheme.

What are the features and benefits of International Feeder Funds?

International Feeder Funds offer a diversification tool which can be added to your investment Portfolio for more balanced returns.

Let’s understand the concept of feeder funds, before we delve into their International feeder funds.

What are Feeder Funds?

Feeder Funds are those funds which feed the pooled investor money into another Master Fund which carries out the investing and trading activities. The trading or investment profits derived by Master Fund on behalf of feeder fund are divided on a

pro-rata basis depending on the proportion of such investments. Various fees and charges are also paid at the feeder fund’s level.

What are International Feeder Funds?

Feeder Funds which gather investor’s money to invest predominantly in overseas fund to take advantage of investment opportunities in those markets are called International Feeder Funds. These funds enables local investors access to international offshore funds with varied investment and portfolio management strategies.

What are the features and benefits of International Feeder Funds?

Geographical Diversification: Feeder funds which feed into Offshore Funds offer unparalleled diversification tool to expand investment horizon beyond local markets. Often due to various reasons local markets may or may not offer attractive returns to investors. Such investors tend to benefit by investing in markets which offer higher potential returns.

Economies of Scale across multiple markets: Managing offshore portfolios needs local expertise, knowledge and involves several other overheads, including creating offshore entities, securing Trading licenses, employees etc. These establishment and other costs, are mitigated by feeder funds by using the Master Fund/Offshore Fund route which enables pooling of resources to reduce costs and provides efficiency. These efficiency enables economies of scale by allowing international transactions to be conducted at nominal costs without creating the need of establishing own proprietary desk in such locations.

INTERNATIONAL FEEDER FUND STRUCTURE

INTERNATIONAL FEEDER FUND STRUCTURE

Benefits from Currency Hedging: The International feeder funds structure provides multiple hedging and arbitrage opportunities to investors seeking higher returns or safe bet against currency fluctuations. Though the quantum of such opportunities are fairly limited and often erased due to time zone differences during trading sessions. Often feeder funds can be utilised to take advantage of depreciation of local currency to Offshore Feeder’s base Currency. Investors can benefit from arbitrage opportunities that arise on account of such appreciation of Offshore Feeder’s base currency. Due caution needs to be taken into account while dealing in such transactions due to risks associated with the same.

Example:

Australian investors investing in US Offshore feeders can benefit from appreciating US Dollar (USD) v/s Australian Dollar (AUD).

Indian investors investing in US Offshore feeders can benefit from appreciating US Dollar (USD) v/s Indian Rupee (INR).

Risk mitigation of large investments in local markets alone: Often investors who have large exposure to domestic markets alone tend to have unbalanced portfolios during times when those markets under-perform due to various issues like growth, inflation, business cycle changes, political changes etc.

When should you invest in International Feeder Funds?

Usually there exists no thumb rule for right or wrong time to invest in markets. However, investments in such mutual funds should be done only after you have diversified adequately across domestic markets. The basket has different assets and different classes which adequately provide support in times of distress. Usually, when the local currency is appreciating is also a suitable time to begin such investments. In due course the portfolio would gain value in future, when the offshore currency depreciates.

What are the various taxation matters that should be considered while investing in International Feeder Funds?

Each country has various taxation models developed which needs to be considered while in making such investments. Varied tax definitions and accounting treatments to these complex structures have to be given due importance.  

Hottest Colour Fashion Trends for investing in Mutual Funds.

If you don’t know what the hottest colour trends are for 2013 then you’re in the right place. We’ve rounded up the hottest colours from the investment runways in our spring/summer 2013 trend round up. Mutual Funds would now flaunt new hottest fashion colours to help help you decide best ones for your profile. Now investing in mutual funds is a lot simpler as you need to select only the colour that looks best on you.

Wondering what’s latest runway fashion and colours connection to Mutual Funds. Well actually there none. Its simple attempt to make you all grab the attention to new changes in the Indian Mutual Fund industry. You can now invest in funds which have colour codes pre-defined as per set criteria.

RISK, COLOURS

RISK PROFILE FOR MUTUAL FUNDS

DECODE THE COLOURS 

The blue colour coded box indicates low risk, 

The yellow colour coded box indicates medium risk, 

The brown colour coded box indicates high risk. 

Market regulator Securities and Exchange Board of India (SEBI) has put in place a broad guidelines for “product labelling” with colour coding for mutual funds (MF). This move is with an aim to assist each individual investor assess risk associated with the respective schemes. SEBI said these guidelines would be implemented from 1 July 2013, for all existing and forthcoming Mutual Fund Schemes.

According to these guidelines, product labels carrying different colours along with details about the schemes need to be disclosed on front page of the Mutual Fund Initial Offering Application Forms.

A blue colour coded box would indicate low risk, yellow would signify a medium risk, while brown would represent schemes with high risk. Essentially in future all Initial Offering Application Forms would carry such colours which denote the investment parameters of that specific scheme.

According to the Indian Securities Market Regulator SEBI the move was undertaken to address the issue of rampant mis-selling in the past. A committee comprising of Senior Members of Securities and Exchange Board of India Officials was set up to examine the system of product labelling that would provide potential investors an easy understanding of the kind of scheme in which they are investing in and its corresponding suitability to them. The labels would include details about the scheme including nature of schemes. Indicators would provide insights if the scheme if likely to create wealth or provide regular income. It would also provide an indicative minimum time horizon for such schemes.

DECODE THE INVESTMENT HORIZON

The coded box indicates Short term investment horizon,

The coded box indicates Medium investment horizon,

The coded box indicates Long Term investment horizon.

Moreover, each mutual funds would have to state a brief about the investment objective in a single sentence followed by kind of product in which investor is investing (equity portfolio or debt portfolio).

Investing in Mutual Funds – Know your charges.

When investing in mutual funds – know your charges, so you will not be caught off guard while calculating the total returns on your investments. Investors in Mutual Funds do always consider various fund related factors like Manager, performance, ratings, returns etc prior to making a decision. However, one aspect that few look into are the charges paid to make these investments.

All investors investing in mutual funds conduct some background checks on schemes and fund houses they invest their hard earned money into. Is the Fund manager experienced, are the returns consistent etc, are few aspects which are considered. As this factors do have a major bearing on the overall performance of the money that you have invested. The lesser known fact is that recently many banks and other Mutual Fund agents have started charging their customers through what are called are Transaction Charges or Transaction Fees.

Recent mandate by SEBI, a government body which regulates the Indian Mutual Fund Industry allowed agents/brokers to charge the every new customers Rs.150 as transaction charges for first transaction where the total value exceeds Rs.10000. This includes new Systematic Investment Plan investors as well.
Existing investors of Mutual Fund schemes are charged. They also need to pay Rs.100 as transaction charges for first transaction where the total value exceeds Rs.10000. This includes existing Systematic Investment Plan investors as well provided the total commitment towards SIP is for Rs.10000/- or above.
In respect of systematic investment plan (SIP only), a transaction charge of Rs.100/- is payable in 4 equal instalments, starting from the 2nd to the 5th instalment. So read your statements to know your charges of Rs.25 from your 2nd to 5th SIP instalment. These charges would be deducted from your total amount invested by the Fund in which you are investing then the balance would be your net investment in the scheme. So look out for those innocuous charges ranging from Rs.25 to Rs.150 in your next Mutual Fund Account Statement. If you do notice those charges on your Mutual Fund Account Statement, you know you read it first here at OnlineMF.

MF CHARGES

MUTUAL FUND TRANSACTION CHARGES

I hate these charges, we all do. So is there a solution?

Not all investors would be charged these fees. If your total investments do not go beyond Rs.10000, you would be not charged. SEBI has also granted an option for agents/brokers to not charge their customers for these fees. Many have opted not to charge these fees to their customers. Brokers can decide category of schemes they intend to charge depending on the same, investors can opt for such brokers. So next time you can ask your broker about these fees and can decide knowing if it’s worth opting for it.

Final Word

The Mutual Fund industry has some of the lowest charges paid by investors compared to other products available in the market. The Mutual Fund government regulator is very proactive towards the interest of the investors. The Indian Mutual Fund Industry strives to portray transparency to its investors to the extent possible. It’s always good to be an informed investor, however, not making an investment would be a bigger mistake. So next time you invest in mutual fund, keep in mind the these charges, do not be much concerned and go ahead with your planned investments in the Funds to suit your goals.

Wishing you all Happy Investing In Mutual Funds.
© OnlineMF

How to file a mutual fund complaint with SEBI?

Often many investors ask how to file a mutual fund complaint with SEBI after their numerous attempts to resolve their mutual fund related queries. OnlineMF tries to explain to the entire process of filing a online mutual fund complaint form with the mutual fund regulator SEBI.

USE THIS AS THE LAST MEANS OF PROBLEM SOLUTION

All investors should knock on the doors of the regular SEBI only after all the other means of finding a resolution for investor complains are not met. Mutual Fund Complaints should be addressed with the respective Mutual fund companies before you adopt this route.

SEBI INVESTOR COMPLAINT WEBSITE http://scores.gov.in/default.aspx

SEBI SCORES (SEBI Complaints Redress System)

ONLINE MODE

1] Log on to SEBI SCORES (SEBI Complaints Redress System)

http://scores.gov.in/default.aspx

2] Select Complaint Registration under Investor Corner

Update all the below information like

  • Name of Investor  :  
  • Complaint Lodged by  :
  • Address of Correspondence of  Investor  :    
  • City/Location  :
  • Pin Code  :
  • State/UT :
  • PAN of Investor  :
  • Phone Number  :
  • Mobile Number (For receiving SMS)
  • E-mail Address of Investor

Ensure the highlighted information are accurately filled up in your mutual fund complain to SEBI.

3] Select Appropriate Category

  • Listed Companies/ Registrars & Transfer Agents
  • Brokers/Stock Exchanges
  • Depository Participants/Depository
  • Mutual Funds
  • Other Entities
  • Information to SEBI

Click on Mutual Fund Category to register investor complaint

4] Complete the Online Complaint form

Selected Category :   Mutual Funds

*Complaint Against  :

*Nature of Complaint Related to  :  MutualFunds

Select the appropriate nature of your complaint for any of the below options:

  •  Delay/Non-receipt of dividend on Units
  •  Delay/Non-receipt of Interest on delayed payment of Dividend
  •  Delay/Non-receipt of Redemption Proceeds
  •  Delay/Non-receipt of Interest on delayed payment of Redemption
  •  Non-receipt of Statement of Account/Unit Certificate
  •  Discrepancy in Statement of Account
  •  Non receipt of Annual Report/ Abridged Summary
  •  Wrong Switch between Schemes
  •  Unauthorised Switch between schemes
  •  Deviation from scheme attributes
  •  Wrong or excess charges/load
  •  Non updation of changes viz.address, PAN, bank details, nomination, etc
  •  Non receipt of Annual Account
  •  Others

5] Select the mode of your Mutual Fund holdings

  •  Physical Mode
  •  Demat Mode

6] Complete the image verification

Verify and complete the image verification by tying in the numbers/alphabets provided in the image into the comments box in the same format.

7] Click on Submit Button

Once you complete the online mutual fund complaint you would be provided with a registration number. Do remember to store carefully this complaint registration number for future reference.

An email is generated instantaneously acknowledging the receipt of the complaint and allotting a unique complaint registration number for future reference and tracking.

PHYSICAL /OFFLINE MUTUAL FUND COMPLAINT

If you are facing issues registering your online mutual fund complaint form OR you do not have access to Computer or Internet Connection you can register your complain by calling on the phone number of SEBI at 022-26449188/26449199. Investors can also send the complaint physically by post to any of the Offices of SEBI.

USEFUL MUTUAL FUND RELATED INFORMATION

SEBI TOLL-FREE PHONE NUMBER

SEBI helpline Number: Use the SEBI Mutual Fund helpline number 1800-22-7575 and 1800-266-7575 for your investor related questions.

SEBI INVESTOR’S WEBSITE

Before you register mutual fund complaints to SEBI check the investor website for more details. SEBI INVESTOR’S WEBSITE http://investor.sebi.gov.in

Back to Basics Series II : This article is in response to SEBI’s Public Appeal for following the right approach to Mutual Fund Industry.

SEBI Investor Education
©OnlineMF