Latest news with #SystematicInvestmentPlans
Time of India
14 hours ago
- Business
- Time of India
HSBC Mutual Fund's new ad encourages to retire to more
HighlightsHSBC Mutual Fund's new investor education initiative, #RetireToMore, encourages Indians to view retirement as a new beginning rather than the end of their professional journey. According to the HSBC Quality of Life report, 40% of affluent individuals feel unprepared for retirement planning, and nearly 58% plan to work post-retirement, often out of necessity. The #RetireToMore campaign includes three short digital films focusing on life, passion, and freedom, illustrating how retirement can be a time of rediscovery with early financial planning through Systematic Investment Plans. Retirement is often perceived as the end of one's professional journey. But the new investor education initiative from HSBC Mutual Fund #RetireToMore , challenges that notion — urging Indians to see retirement as a new beginning, filled with more life, passion and freedom. According to the HSBC Quality of Life report on retirement planning , 4 in 10 affluent individuals across all generations feel unprepared for their retirement planning, despite nearly 8 in 10 knowing what they need to retire. Nearly 58 per cent plan to work post-retirement, not always by choice, but often out of necessity. While the average retirement savings needed in India is nearly USD 0.39 mn. The above data brings out one clear message that 'Retirement isn't a choice, Planning for it is!' To drive this message home, HSBC Mutual Fund has launched #RetireToMore — a 360°, emotionally resonant campaign that positions Systematic Investment Plans ( SIPs ) as a simple, disciplined and powerful route to building long-term wealth and securing a comfortable retirement. Targeted at working individuals between 30 to 45 years of age, the #RetireToMore campaign is a series of three short digital films, each film focusing on three different aspects – life, passion and freedom respectively. Each narrative reflects the heart of the campaign: Retirement can be a time of rediscovery, provided one begins planning early. The first film portrays a former corporate executive who now pursues her passion as a classical dancer. The second film features a retired couple savouring the sunrise sitting at a high altitude on a cliff And the third film showcases a banker who reinvents himself as a baker. Talking about the campaign, Kailash Kulkarni, chief executive officer, HSBC Mutual Fund, said, 'Through our #RetireToMore campaign, we want to make people realise that retirement is not the end, but the beginning of a new chapter in life. And to fully enjoy this phase, one needs smart financial planning through disciplined investment in SIPs. We are confident in driving this message with our relatable films.' The #RetireToMore campaign will be rolled out across social media platforms, including YouTube, Instagram, Facebook, and LinkedIn, with special attention to regional languages. Other channels to boost visibility include metro and bus branding, outdoor hoardings, and OTT platforms.
Hans India
a day ago
- Business
- Hans India
Advantages of Investing in a Mutual Fund
Investing may seem daunting for beginners because of the variety of instruments available. An option that introduces simplicity and structure for such investors is mutual funds. This investment option enables you to invest in different asset classes without having to manage the investments yourself. Whatever your investment goals are, be it: saving for the future, wealth creation over time, or diversification of assets, mutual funds can help you attain them through a well-disciplined process. The article discusses advantages of investing in mutual funds, their nature, availability, and major aspects to keep in mind while investing in them. What is a Mutual Fund? A mutual fund invests the capital from various investors in a pool of diversified mix of securities equities, bonds, and other market instruments. A professional fund manager oversees and manages the funds. Each investor hold units of the fund in the ratio of the amount they have invested. This setup enables people to access numerous types of investment products within one single avenue, thereby making the process of investment easy for people with little knowledge or experience in the markets. Major Benefits of Investing in a Mutual Fund Mutual funds simplify investing, increase transparency, and makes investments easier to retail investors. Some of the significant advantages that make them preferable among a variety of investors are below: Diversification of Investments Mutual funds invest in a combination of asset classes. This diversifies the investment in different industries and companies. A diversified portfolio can assist in mitigating the effects of market volatility. Professional Fund Management A fund manager who has access to detailed market research manages each fund. This enables them to make informed decisions based on data, and also on their previous experience. Investors have access to this professional advice without necessarily learning about the market themselves. Liquidity and Flexibility Open-ended mutual funds may offer liquidity, allowing investors to redeem their units at any time. This ensures funds are available during emergencies or for anticipated expenses. There are mutual funds that have a lock-in period, but many offer daily liquidity. Affordability and Accessibility Mutual funds are available to investors with different income levels. You may begin investing with modest amounts. Furthermore, Systematic Investment Plans (SIPs) simplify investing by allowing individuals to invest a fixed sum at regular intervals, thus instilling discipline. Transparency in Operations Mutual funds are under the Securities and Exchange Board of India's (SEBI) purview. Furthermore, a particular fund's details such as its asset allocation, tentative interest rates, and other details are shared before and as well as periodically by the fund house. This helps investors stay informed regarding their investments. Tax Efficiency Alternatives Certain mutual funds are capable of saving tax under sections of the Income Tax Act. ● Equity-linked Savings Scheme (ELSS) is a category that has a three-year lock-in requirement. ● Dividend and capital gain taxation depend on fund type and holding period, offering a degree of certainty in terms of total possible gains. Convenience through Digital Platforms One of the reasons for the growth of mutual funds over the last several years is the availability of several mutual fund investments apps that simplify investing. Using these apps, investors monitor portfolios, make transactions, and view performance. It further allows investors to monitor their investment and make informed investment decisions without having to rely on paper statements or visiting a branch. Sufficient for a Wide Variety of Financial Purposes Mutual funds may be suitable for different financial goals, such as retirement planning, education, or buying a house. This is because there are various types of funds available, namely equity, debt, hybrid, and liquid, being some of them. Investors can choose funds that are suitable for their investment horizon, risk appetite, and desired goal. ● Equity funds can be useful for long-term goals. ● Short-term objectives can be achieved using debt or liquid funds. ● Hybrid funds combine debt and equity to give balanced exposure. Things to Keep in Mind While mutual funds offer numerous advantages, there are a few significant considerations: ● Market-Linked Nature: Fund performance is subject to market fluctuations. Past performance may not accurately indicate potential future outcomes. ● Fees and Charges: Mutual funds have fees such as fund management fees and exit fees. ● Selection Process: Investors must review their fund goals, risk tolerance, and past performance before investing. Additionally, Investors should also read the offer documents and understand the product prior to making a decision. Conclusion Mutual funds offer a disciplined method of investing in financial markets with the benefits of professional management and diversified risk exposure. They are suitable for both novice and experienced investors because of their flexibility, transparency, and convenience. Additionally, with digital services such as mutual fund investment apps, investment in financial markets is simplified. However, it is important to approach mutual fund investing with a degree of awareness about its advantages and potential risks, considering the market-linked nature of the product.
Time of India
2 days ago
- Business
- Time of India
Volatile Markets and SIPs: What should mutual fund investors do?
Live Events Amid a volatile market , many investors are questioning whether they should continue their Systematic Investment Plans (SIPs) or pause until stability returns. However, market experts recommend continuing SIPs, citing reasons such as attractive valuations, lower average purchase prices, the benefits of habit formation, the impossibility of timing the market, and the long-term advantages of compounding.'When equity markets fall, valuations also fall, making investments at a lower price more attractive; therefore, when the market falls, it is the best time to continue SIP, discontinuing SIPs can hamper the investors' ability to save and invest, and take away the discipline of long term investing, the investor thinks that he/she can enter again or restart at lower prices, but it's not always possible, and lastly the whole idea of a SIP is to do away with market timing speculation and stopping a SIP can disrupt the process of compounding,' Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai told ETMutualFunds He added that since equity investing is aimed at long-term compounding benefits, one can start SIPs at any time. However, while markets have recovered from their recent lows, periods of market decline typically lead to more attractive valuations. Investing more during such times—when markets are not at their peak—increases the probability of achieving superior long-term returns. 'So, depending on cash flow surpluses, there is a need to try to have a significant portion of the cash flow surpluses going through SIPs ideally.'Another expert cited studies which show that investors' returns and market returns are not the same. This is because an investor is either entering or exiting the market at the wrong time. To achieve their goals, one needs to give time and be patient. That's what SIPs do: help you achieve your goals in a disciplined manner over periods of time.'In the journey, there will always be short-term hiccups, but staying focused on your investments is the only way to achieve your goals,' said Manish Mehta, Joint President & National Head –Sales, Digital Business & Marketing, Kotak Mutual Fund , shared with far in the current calendar year, the benchmark indices — BSE Sensex and Nifty50 — have gained 4.23% and 4.67%, respectively. Over the past three months, they have risen by 11.27% and 11.86%, respectively, while over the last nine months, they have declined by 1.11% and 1.92%, May, Nifty50 breached the 25,000 mark for three days. On May 26, Nifty 50 closed up by nearly 13% from April's low level, and as the benchmark index scales up, many market experts recommend that investors continue with their SIPs, whereas they should stay cautious while doing lump-sum investments and should try to stagger their an addition to this, Dhawan recommends that currently, valuations are above their long-term averages, especially in the case of mid and small caps, and thus it is preferred to invest through SIPs/STPs. 'However, the ongoing volatility driven by global trade wars and cross-border tensions could present sudden opportunities. Market corrections can be sharp, so it's wise to be prepared for lump-sum investing, besides continuing with SIPs,' he further shared with the other hand, Mehta recommends that STP is suited when one has some money available for lumpsum investment but varies with market fluctuations and in this case one can park the money in a fixed income scheme and do a STP with a duration of their choice plus if an investor plans to invest out of a regular income stream then SIP fits the requirement where in a disciplined manner one can regularly keep looked at the performance of equity mutual fund categories since the April low and found that out of 21 categories, 19 offered double-digit average returns, and two, pharma and consumption-based funds, gave single-digit returns in the same time frameSince April 7, the Auto sector-based funds offered an average return of 19.13%. Technology-based funds gave a 17.44% average return in the same period. International funds gave 16.83% and infrastructure funds delivered 15.95% average return in the same and small-cap funds gave 15.86% and 16.42% respectively since April's low level. Contra and large-cap funds were last in the list of double-digit gainers. The categories gave 11.92% and 11.03% respectively in the mentioned the categories gain since April's low and the market being still volatile, Mehta recommends that long term wealth creation can happen through regular investments in equity oriented schemes to support which there is enough historical data to demonstrate long term wealth creation through equity schemes and since SIPs are recommended over longer time horizons, investments in multicap / flexicap / large and midcap kind of to a release by Motilal Oswal Private Wealth, large-cap valuations are now around their 10-year average, while mid- and small-caps still trade at a premium, though select opportunities further shared with ETMutualFunds that currently, large-cap stocks offer attractive valuations compared to small and mid-caps, which makes them a smart starting point for SIPs (Systematic Investment Plans), especially in funds that are currently overweight in the large-cap category, and these funds are also safer for new adds that different assets perform well in different timeframes; therefore, your portfolio should include multi-asset funds. Geographical diversification is crucial for any robust portfolio, so consider adding global or international funds to reduce reliance on the domestic market and gain exposure to different economies and currencies. Additionally, under debt funds, one can consider short-term funds for short-term goals and long-term funds to take duration exposure, and for those in higher tax brackets, equity savings and arbitrage funds offer good options for short-term fund parking, he informed should always choose a scheme based on risk appetite, investment horizon, and goals.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Economic Times
2 days ago
- Business
- Economic Times
Volatile Markets and SIPs: What should mutual fund investors do?
Since the April low, 19 out of 21 equity mutual fund categories delivered double-digit average returns, while pharma and consumption funds posted single-digit gains. Amid a volatile market, many investors are questioning whether they should continue their Systematic Investment Plans (SIPs) or pause until stability returns. However, market experts recommend continuing SIPs, citing reasons such as attractive valuations, lower average purchase prices, the benefits of habit formation, the impossibility of timing the market, and the long-term advantages of compounding. 'When equity markets fall, valuations also fall, making investments at a lower price more attractive; therefore, when the market falls, it is the best time to continue SIP, discontinuing SIPs can hamper the investors' ability to save and invest, and take away the discipline of long term investing, the investor thinks that he/she can enter again or restart at lower prices, but it's not always possible, and lastly the whole idea of a SIP is to do away with market timing speculation and stopping a SIP can disrupt the process of compounding,' Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in Mumbai told ETMutualFunds. Also Read | Balanced advantage vs. Multi Asset Allocation Mutual Funds: Which should investors choose? He added that since equity investing is aimed at long-term compounding benefits, one can start SIPs at any time. However, while markets have recovered from their recent lows, periods of market decline typically lead to more attractive valuations. Investing more during such times—when markets are not at their peak—increases the probability of achieving superior long-term returns. 'So, depending on cash flow surpluses, there is a need to try to have a significant portion of the cash flow surpluses going through SIPs ideally.'Another expert cited studies which show that investors' returns and market returns are not the same. This is because an investor is either entering or exiting the market at the wrong time. To achieve their goals, one needs to give time and be patient. That's what SIPs do: help you achieve your goals in a disciplined manner over periods of time. 'In the journey, there will always be short-term hiccups, but staying focused on your investments is the only way to achieve your goals,' said Manish Mehta, Joint President & National Head –Sales, Digital Business & Marketing, Kotak Mutual Fund, shared with ETMutualFunds. So far in the current calendar year, the benchmark indices — BSE Sensex and Nifty50 — have gained 4.23% and 4.67%, respectively. Over the past three months, they have risen by 11.27% and 11.86%, respectively, while over the last nine months, they have declined by 1.11% and 1.92%, May, Nifty50 breached the 25,000 mark for three days. On May 26, Nifty 50 closed up by nearly 13% from April's low level, and as the benchmark index scales up, many market experts recommend that investors continue with their SIPs, whereas they should stay cautious while doing lump-sum investments and should try to stagger their investments. Also Read | New investors' dilemma: Is flexi cap fund alone sufficient to deploy Rs 10 lakh for meeting goals As an addition to this, Dhawan recommends that currently, valuations are above their long-term averages, especially in the case of mid and small caps, and thus it is preferred to invest through SIPs/STPs. 'However, the ongoing volatility driven by global trade wars and cross-border tensions could present sudden opportunities. Market corrections can be sharp, so it's wise to be prepared for lump-sum investing, besides continuing with SIPs,' he further shared with ETMutualFunds. On the other hand, Mehta recommends that STP is suited when one has some money available for lumpsum investment but varies with market fluctuations and in this case one can park the money in a fixed income scheme and do a STP with a duration of their choice plus if an investor plans to invest out of a regular income stream then SIP fits the requirement where in a disciplined manner one can regularly keep investing. ETMutualFunds looked at the performance of equity mutual fund categories since the April low and found that out of 21 categories, 19 offered double-digit average returns, and two, pharma and consumption-based funds, gave single-digit returns in the same time frameSince April 7, the Auto sector-based funds offered an average return of 19.13%. Technology-based funds gave a 17.44% average return in the same period. International funds gave 16.83% and infrastructure funds delivered 15.95% average return in the same and small-cap funds gave 15.86% and 16.42% respectively since April's low level. Contra and large-cap funds were last in the list of double-digit gainers. The categories gave 11.92% and 11.03% respectively in the mentioned period. As the categories gain since April's low and the market being still volatile, Mehta recommends that long term wealth creation can happen through regular investments in equity oriented schemes to support which there is enough historical data to demonstrate long term wealth creation through equity schemes and since SIPs are recommended over longer time horizons, investments in multicap / flexicap / large and midcap kind of schemes. Also Read | MF Tracker: Will this April midcap star sustain its momentum? According to a release by Motilal Oswal Private Wealth, large-cap valuations are now around their 10-year average, while mid- and small-caps still trade at a premium, though select opportunities exist. Dhawan further shared with ETMutualFunds that currently, large-cap stocks offer attractive valuations compared to small and mid-caps, which makes them a smart starting point for SIPs (Systematic Investment Plans), especially in funds that are currently overweight in the large-cap category, and these funds are also safer for new adds that different assets perform well in different timeframes; therefore, your portfolio should include multi-asset funds. Geographical diversification is crucial for any robust portfolio, so consider adding global or international funds to reduce reliance on the domestic market and gain exposure to different economies and currencies. Additionally, under debt funds, one can consider short-term funds for short-term goals and long-term funds to take duration exposure, and for those in higher tax brackets, equity savings and arbitrage funds offer good options for short-term fund parking, he informed should always choose a scheme based on risk appetite, investment horizon, and goals. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Business Recorder
26-05-2025
- Business
- Business Recorder
Mutual funds offer investment solutions: SECP chief
KARACHI: The Securities and Exchange Commission of Pakistan (SECP) conducted Mutual Fund Focus Group Sessions 2025. The closed-door session brought together a diverse range of stakeholders from across Pakistan's capital markets for in-depth discussions on critical issues shaping the mutual fund industry. According to the spokesperson, the event was structured into thematic segments and facilitated by expert-led deliberations on mutual fund reforms, product innovation, digital transformation, investor inclusion, governance frameworks and market development, addressing both domestic challenges and global best practices. During his opening remarks, SECP Chairman Akif Saeed underscored the strategic importance of mutual funds in broadening access to formal investment opportunities, particularly for retail investors. He stated that mutual funds have the potential to democratize investing by offering professionally managed, transparent, and regulated options to a wider investor base. He further emphasized that the SECP remains fully committed to strengthening the mutual fund ecosystem by fostering innovation, simplifying accessibility, and enhancing regulatory oversight to ensure long-term and inclusive growth of financial sector. The sessions featured robust discussions on emerging global trends, including the rise of ESG-focused, thematic, and infrastructure-linked funds, as well as the expanding market for Shariah-compliant investment products. A key focus was also placed on women's financial inclusion, with participants exploring how mutual funds can serve as an effective tool to enhance female participation in the economy. Discussion also centered on digital transformation and governance, with stakeholders examining the role of technologies such as Systematic Investment Plans (SIPs) and Centralized Gateway Portals (CGPs) in improving investor onboarding and operational efficiency. Additionally, discussions emphasized the need for strong governance frameworks, transparent disclosure practices, and robust risk management protocols to bolster investor confidence and safeguard market integrity. SECP Commissioner Abdul Rehman Warraich highlighted the significance of stakeholder input in shaping future regulatory policies. He thanks the stakeholders for the candid and constructive engagement from industry partners and hoped that the insights gathered will play a crucial role in informing upcoming reforms by SECP. He emphasized that a transparent, well-regulated, and inclusive mutual fund industry is vital for deepening Pakistan's capital markets and advancing financial inclusion. The SECP, as a sole regulator of capital markets in the country, extended its appreciation to the participants for their valuable contributions and reaffirmed its commitment to ongoing collaboration with industry stakeholders. The Mutual Fund Focus Group Sessions 2025 will also continue on Tuesday with further discussions on the same thematic areas involving a fresh group of experts and market participants. Copyright Business Recorder, 2025
