‘Mutual Fund Sahi Hai’ campaign launched in March 2017 by AMFI. The campaign promotes exactly what it states ‘mutual funds are the right choice.’ The aim of the campaign was to promote mutual funds and educate investors.
The campaign is a huge hit. As a result, within one year of the campaign launch, 50 lakh new investors have started investing in mutual funds. The article talks about why mutual funds are the right choice and how to pick the right mutual funds.
Mutual Fund Sahi Hai is a campaign launched by AMFI as a part of its investor awareness outreach program. AMFI is a non-profit organization.
It is an association of all the asset management companies of SEBI registered mutual funds. Mutual fund sahi hai campaign is not a Government of India initiative. However, SEBI strictly regulates AMFI, and under SEBI‘s guidance, AMFI launched this investor awareness program.
Mutual fund sahi hai is a campaign by the AMFI to position mutual funds as a preferred investment option for potential investors. With everyday situations as a backdrop, the campaign promotes mutual funds as the right investment option for prospective investors. Also, The campaign aims to educate the common public about mutual funds and dismisses the myths around them.
In multiple languages, the campaign was launched in 2017 in different media such as TV, digital, radio, print, outdoor, and cinema. The campaign is a huge hit. As a result, within one year of the campaign launch, 50 lakh new investors have started investing in mutual funds. Consequently, within two years, the Average Assets Under Management (AAUM) has grown 33% from INR 18.5 trillion in February 2017 to INR 24.6 trillion in March 2019.
Mutual funds are the ‘Sabse Sahi’ option to invest. The following are the reasons why mutual funds are the best option to invest.
Mutual Fund investments have the potential to offer higher returns. Compared to traditional investment schemes, a mutual fund has a better chance of providing higher returns as they invest in a wide range of assets. Although returns depend on various factors, on average mutual funds, give returns that help investors beat inflation.
It goes without saying, thorough research is required for investments. Mutual Fund is managed by a professional manager. Therefore, his experience, expertise, and continuous research help in making investment decisions. The fund manager also monitors the economy and market and makes the necessary adjustments to maximize returns for investors.
Investment in a mutual fund is a synonym for diversification. Unlike other traditional investment vehicles like PPF and FDs, mutual funds help investors create a balanced and diversified portfolio.
An equity mutual fund invests depending on its investment objective. Also, it invests in shares of various companies across or within market capitalizations. Debt mutual funds invest in fixed income instruments of multiple companies as well as those issued by the government or RBI.
With Mutual Funds, savings have become easy. With a Systematic Investment Plan (SIP), investors can start mutual fund investments with as low as INR 500 a month. Also, monthly automated debits can be enabled from the bank account, with several online platforms available for investing.
Therefore, mutual Fund investments can now be tracked without much hassle. The investor has the comfort of choosing the amount they would want to invest. Hence online account makes systematic investments, accessing account statements & portfolio details convenient and easy.
Mutual Fund investments are highly liquid. However, close-ended funds are not liquid like other funds. Upon redemption, the cash gets credited into the bank account in a short period. ELSS is a type of diversified equity mutual fund. It offers tax benefits while opportunities for investment growth.
SWP helps mutual fund investors in creating regular income. It allows investors to redeem a fixed number of units at a predetermined interval. The withdrawal period can be monthly, quarterly, or annually. Also, SWP is ideal for retired investors.
The most challenging job of investing is choosing the asset. Similarly, while investing in mutual funds, choosing the Sahi mutual fund is a challenge. Before investing its utmost important to understand the financial goal, risk appetite, and investment horizon of the investor.
Mutual funds offer a variety of investment options that suit different kinds of investors. Therefore, investment in Mutual funds is suitable for low risk, high risk, short term, long term investors.
To choose the Sahi mutual fund, an investor needs to make sure they fulfill the following checklist:
Scripbox offers financial goals based plans and systematic investment options. Scripbox has predefined financial goals aligned with life events. Such as weddings, buying a dream car/ bike, foreign vacation, loan closure, children’s education, retirement, emergency money, and tax savings.
The biggest challenge for any investor is to pick the best mutual fund from the universe of 6000+ funds. Hence, Scripbox aims to simplify the process of investing. Also, the USP of the platform is that investors have access to an algorithmically selected portfolio of the best mutual funds to invest in.
The scientific investment process is without bias. It also helps build a holistic investment portfolio in the right way. As a result, Scripbox monitors and reviews the selected funds periodically and suggests necessary changes. It is done to keep the investment in line with financial goals.
The biggest benefit of using Scripbox is that one can invest in different mutual funds from a single account. Further, mutual fund investment needs monitoring, tracking returns, redemption, and re-investing. At Scripbox, all these processes are available online, making the user experience completely hassle-free. Additionally, investors are provided with annual reviews, automated SIP facility, and periodic reports related to their investments.
Above all, the process is online, 100% paperless and can be done using a single Scripbox account.
Scripbox has made mutual funds investment extremely easy even for new investors. One can invest in mutual funds by following the steps below:
Step 1 – Visit Scripbox and Begin the Investment Journey
On the homepage of the Scripbox website, click on the “Let’s get started” button. A list of investment options based on life goals is available.
For investing in mutual funds, pick any of the options that are close to one’s financial goals.
For example, the “Save smart” option is selected (highlighted above). Next, a predefined short term money plan is shown below;
Click on “Continue” to proceed with the mutual fund investment.
Step 2 – Signup and Create an Account
Upon logging in, the investment details will be available as shown below;
Here Scripbox allows investors to select the payment option. One can select “Every month SIP” or “One-time” payment options depending on their cash flow.
Click on “See Recommended Funds” to proceed for investment.
Step 3 – Check the Plan and Fund Allocation
The list of mutual funds and the allocated amount for the selected plan is shown on this page. Check all the details before proceeding ahead.
If the investor wishes to change the fund or amount, click on the option, “I want to change Funds/ Amount.”
Click on the “Next” button to make payment.
Step 4 – Bank Details and Money Transfer
In the last step, enter the bank account and PAN details. Scripbox provides a secure environment, and a bank account will be used for investing and crediting the redemption proceeds only.
Scripbox uses its proprietary algorithm to pick top funds from each category to invest. The Best Performing Mutual Funds 2020 recommended by Scripbox are listed below.
|Mirae Asset Large Cap Fund||Large Cap|
|AXIS Bluechip Fund||Large Cap|
|Kotak Standard Multicap Fund||Diversified|
|Invesco India Growth Opportunities Fund||Diversified|
|Nippon India Growth Fund||Mid Cap|
|L&T Midcap Fund||Mid Cap|
|Franklin India Feeder – Franklin U.S. Opp.||International|
|DSP US Flexible Equity Fund||International|
|UTI-Nifty Index Fund||Index|
|HDFC Index Fund-Nifty 50 Plan||Index|
|Mirae Asset Tax Saver Fund||ELSS|
|Motilal Oswal Long Term Equity Fund||ELSS|
|Axis Liquid Fund||Liquid|
|Tata Liquid Fund||Liquid|
|Kotak Savings Fund||Ultra Short Duration|
|ICICI Prudential Savings Fund||Low Duration|
Scripbox curates top funds to make a portfolio for multiple purposes like building long term wealth, a tax saver plan, or emergency fund. Below are the portfolios curated by Scripbox for different financial goals.
Long Term Wealth
|Mirae Asset Large Cap Fund|
Axis Bluechip Fund
Kotak Standard Multicap Fund
Invesco India Growth Opportunities Fund
|Tax Saver Plan||Mirae Asset Tax Saver Fund|
Motilal Oswal Long Term Equity Fund
|Short Term Money||Axis Liquid Fund|
Kotak Savings Fund
ICICI Prudential Savings Fund
|Emergency Fund||Axis Liquid Fund|
Tata Liquid Fund
Mutual Fund Sahi Hai! A mutual fund is a right (Sahi) investment option that scores over traditional investment options in terms of diversification, expert management, liquidity, and higher growth rates. The investor has the flexibility of SIP, lower investment cost, and has schemes for all financial needs. Invest in the ‘Sahi’ mutual funds with Scripbox.
Taxation on mutual funds is a complex topic. Taxes paid on your mutual fund investments vastly depend on factors such as what kind of funds you have invested in, the duration of your investment, which income tax slab you belong to and so on.