Natex Capital : Invest in Best Performing Mutual Funds in India

Risk diversification

The biggest advantage of investing in mutual funds versus stocks is risk diversification.Every stock is subject to three types of risk: company risk, sector risk and market risk.Company risk and sector risk are unsystematic risks, while market risk is known as systematic risk.
What is the essential difference between unsystematic and systematic risk?
The stock price of a company may fall if the company's financial performance is poor, even if the market rises.On the other hand, even if the company performs well, the stock price may still fall, if the market falls. Mutual funds help investors diversify unsystematic risks by investing in a diversified portfolio of stocks across different sectors
Hence, mutual fund risk is much lower than individual stocks.
Smaller capital outlay
Investors require a large capital outlay to build a diversified portfolio of stocks
On the other hand, since mutual funds work on the basis of pooling of money, mutual fund investors can have the beneficial ownership of a diversified portfolio of stocks with a much smaller capital outlay.
Investors can buy units of a diversified equity fund with an investment as low as Rs 5,000 only (or even lower for some schemes).
Investment expertise
Investing in stock market requires a lot of experience and expertise.
In our view understanding the risk return trade-offs in stock market investments is the most important part of equity investing
Many retail investors have lost money in share trading because they make poor risk return trade-offs
Mutual funds are managed by professional fund managers who have sufficient expertise and experience in picking the right stocks to get the best risk adjusted returns.
Economies of scale in transaction costs
Since mutual funds buy and sell securities in large volumes, transaction costs on a per unit basis is much lower than what retail investors may incur if they buy or sell shares through stock brokers
Variety of products
Mutual funds offer investors a variety of products to suit their risk profiles and investment objectives
Apart from equity funds, there are also balanced funds, monthly income plans, income funds and liquid funds to suit different investment requirements
Variety of modes of investments
Mutual funds also offer investors flexibility in terms of modes of investment and withdrawal.
Investors can opt for different investment modes like lump sum (or one time), systematic investment plans, systematic transfer plans (from other mutual fund schemes), systematic withdrawal plans, switches from one scheme to another etc. You can invest in growth option of mutual funds if you want to take advantage of compounded returns over a long investment period. You can invest in dividend option if you want regular income from your investment.
No other investment product offers such wide array of investment modes.
Disciplined investing
Share prices are highly volatile and can induce the investor to buy or sell in short time periods due to fear or greed. Frequent trading often leads the investor to incur losses. Mutual funds encourage investors to invest over a long time horizon, which is essential to creating wealth. Furthermore, systematic investment plans encourage investors to invest in a disciplined manner to meet their long term financial objectives
Many investors fail to build a substantial investment corpus because they are not able to invest in a disciplined way. Savings not invested regularly often gets spent on discretionary lifestyle related expenses
Systematic investment plans (SIPs) in mutual funds help investors to maintain a disciplined approach to savings and investment
SIPs also help investors take emotions out of the investment process. Very often investors get very enthusiastic in bull market conditions, but get nervous in bear markets.
It is an established fact that investments made in bear markets help investors get high returns in the long term.
By investing through SIPs in a mechanical way, investors can stay disciplined, which is critical to achieving their financial objectives

What is Mutual Fund & Its History ?

A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets.

What is the Legal Structure of Mutual Funds ?

The popular investment concept for creating wealth is ‘Start Early. Invest Regularly. Stay invested for Long Term’. Even if the investment is as low as Rs 500, it is important as it marks the beginning of a journey.

Can I start invest in Mutual funds with as low as Rs 100 ?

What is SIP (Systematic Investment Plan) ? & How does it works ?

A Systematic Investment Plan or SIP is a smart and hassle free mode for investing money in mutual funds. SIP allows you to invest a certain Pre-Determined amount at a regular interval (weekly, monthly, quarterly, etc.).

What if one or more SIP installments are missed ?

Well, you need not worry as your SIP would remain active even if you missed 1 or 2 installments due to insufficient amount of balance in your bank account.

Can I withdraw my money at any point of time from Mutual fund?

Yes, open ended mutual fund provides facility to withdraw partial or full amount of money from mutual fund but if it is withdrawn before completing 365 days from investment date than there is exit load up to

Do we need to close SIPs first before withdrawing money ?

No, you can withdraw current value of investment which is being accumulated gradually through SIP, but if three SIP is bounced continuously than SIP get stopped by default.

Will I be Charged Penalties & Exit load(Charges) if I withdraw my investment early?

Open ended mutual funds levy exit load upto 1% of withdrawal value if money is pulled out before completing 365 days from investment date, once investment completes 365 days there is no penalties & or exit load on withdrawal amount,

Can I invest for 1 day, 1 week, 1 month, 1 year, or longer period?

Yes you can definitely invest money for even 1 day duration in liquid mutual fund and there are many fund like ultra-short term, short-term fund where money can be parked as per investor need and there is

What is Short term,Medium term,Long term period of investment ?

There is no prescribed time horizon but generally, Short term is considered the investment horizon of 1-3 years, Medium term horizon is considered 3-6 years of investment, and the investment which has

What is Equity Mutual fund ?

Equity mutual fund invests money in listed Share( Stock & Equity) and fund manager of equity mutual fund constructs a diversified portfolio as per scheme objective and invest certain percentage money of portfolio into different sector or companies

What is Debt & Fixed income Mutual fund ?

Debt-Oriented schemes generally invest in fixed-income securities such as Bonds, Money Market Instruments, Corporate Debentures, Government Securities (Gilts) etc. The objective of these Schemes is

Why one should make investment via Mutual and not directly equities ?

Is there any different type of mutual fund to achieve short term, medium term & long term goal ?

Yes, there are multiple type of mutual fund that caters varieties of need of an investor which depends upon the financial goal & time horizon of investor

What is STP ( Systematic Transfer Plan)?

STP refers to Systematic Transfer Plan where in an investor invests a lump sum amount in one scheme and regularly transfers (i.e. switches) a predefined amount into another scheme. Every month on a

What is SWP ( Systematic Withdrawal Plan)?

Systematic Withdrawal Plan (SWP) is a service offered by mutual funds which provides investors with a specific amount of payout at a pre-determined time intervals, like monthly, quarterly, half-yearly or

How does Mutual fund process works?

What is Mutual fund unit & NAV and how its calculated ?

Every mutual fund scheme has its own NAV and the units allotted are based on the closing NAV of the day you place your investment. Simply put, NAV is the cost of a single unit (of that particular fund)

what is open ended, Close ended & interval mutual fund

Open ended mutual fund:- is a fund in that an investor is free to invest and withdraw money on prevailing NAV ( Net assets value) at given point of time that means investor has no restriction be remain

Do I need to have Demat account for mutual fund investment ?

No, You do not need to have demat account for mutual investment, on Natex Capital one can invest in best performing mutual fund on a few click with Bank level kind of securities and track each & every

What is ‘KYC’ ( Know your Client)?

KYC is an acronym for "Know Your Customer" and is a term used for Customer Identification Process as a part of Account Opening process with any financial entity. KYC establishes an investor’s identity & address

What is growth option in mutual fund ?

“It is simply a cumulative option. You don’t receive any payouts. Whenever you need the money, you should withdraw the entire or part of your investment,”. The profits are not paid out in between, rather

What is dividend option in mutual fund ?

“Whatever profit is earned by the mutual fund scheme is paid out on a periodic basis in the form of dividend,” This option is recommended to retires or to investors looking for regular income from their

What is ELSS Fund ?

ELSS fund stands for (Equity Link Saving Scheme) its one the tax saving option among all under Income tax Sec 80 C. It’s pure equity based mutual fund and fund invests on predefined investment objective to generate higher return in longer term

WHY ONE SHOULD MAKE INVESTMENT VIA MUTUAL AND NOT DIRECTLY EQUITIES ?