Month: July 2022

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Why KFinKart Distributor Portal Is The Ideal Mutual Fund Software For Distributors

July 26, 2022

Mutual fund distributors are the first point of contact for most investors when they have queries or want to buy new mutual funds. In the digital age, however, many distributors have moved away from high-pressure sales techniques and instead adopted a more personable approach to help investors understand their products better. 

The KFinKart Distributor Portal gives distributors the power to invest, track and manage across a host of mutual funds, meeting all their transaction management needs. Here, we will explore why KFinkart distributor portal is the ideal mutual fund software for distributors. 

Why KFinkart Distributor Portals Is The Ideal Mutual Fund Software For Distributors 

The KFinKart Distributor Portal comes packed with features designed to make it convenient for mutual fund distributors to manage investments and grow their business at the same time. Some key features include: 

  • Dashboard – The dashboard enables mutual fund distributors to have a bird’s eye view of their entire investment gamut. They can view their total AUM, the number of schemes that have been invested in and the total number of investors. Apart from this, they also get a breakdown of the AUM as per asset classes and different AMCs.The dashboard also offers a Transaction Summary. 
  • Investors – The Investors tab gives distributors access to details pertaining to individual investors. Apart from investor AUM and KYC status, distributors can view which funds they are invested in and whether any SIPs are coming up. They can also view a breakdown of investments as per asset class. 
  • New Transactions – This section enables distributors initiate a host of transactions for new and existing investors. From SIPs and SWPs to redemption and pausing investments, distributors can do it all! 
  • NAV – This feature enables distributors to view the NAV of individual schemes of every AMC, and keep themselves and their investors informed. 

Advantages of using KFinkart Distributor Portal 

Apart from making mutual fund distributors’ lives less stressful, some key advantages of the KFinKart Distributor Portal include: 

  • Paperless and hassle-free mutual fund transactions and service fulfilment, on the go from your phone or desktop.  
  • The distributor platform gives you access to information and transaction processing at your fingertips, which means you don’t need to run around meeting customers. 
  • No need to rush during peak hours to the AMC or R&T branches. Most functions that you’d need can be done digitally. 
  • Superfast and secure transactions. 
  • Opportunity to focus on business growth. 
  • The ability to serve digital-first customers better. 

Final Words 

If you are a mutual fund distributor, then using the KFinkart Distributor Portal will make your work much easier. The platform comes with many features that make managing sales easier and tracking data simpler. If you don’t have a distributor portal yet, then you should consider using the KFinKart Distributor Portal, which is equipped with all the features a mutual fund distributor would need, all in an easy to use package. 

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10 Tips for New Mutual Fund Investors to Get Started

July 22, 2022

Thinking about investing in mutual funds for the first time? If so, you’ve come to the right place. Investing in Mutual funds can be an effective way to build a portfolio and meet your long-term financial goals, but it isn’t necessarily easy. There are plenty of details to understand before you jump in and buy shares, such as what types of funds are available, how much you need to invest, and how much risk you’re willing to take. There are also numerous considerations when deciding which mutual funds to buy and which brokerage service is best for your needs. This blog post will serve as your one-stop shop for everything you need to know about investing in mutual funds. Whether you’re just starting out or have some experience under your belt already, keep reading to learn all the insider secrets we have for you!

 

What are Mutual Funds?

Mutual funds are investment funds that are owned by a group of investors, such as a pension fund. Unlike stocks, where investors buy shares of a company, mutual funds are collections of stocks, bonds, and other assets that are held by a fund manager, who is responsible for the fund’s performance. Investors pool their money together and use it to buy shares in the fund. Mutual funds allow people to diversify their portfolios by investing in a single fund that includes a variety of instruments. In addition, mutual funds provide liquidity, which means investors can sell their shares whenever they want without having to wait for a stock’s trade to settle. As with most financial products, there are both advantages and disadvantages associated with mutual fund investing. Some of the most important considerations are the types of mutual funds available, how much you need to invest, and the risk you’re willing to take.

 

Types of Mutual Funds

There are many different types of mutual funds, each with their own unique investment strategy. These include equity funds, bond funds, hybrid funds, index funds, and specialty funds. Equity funds invest in stocks and are typically more risky than bond funds. Hybrid funds include both equity and bond funds, which gives investors a balance between risk and reward. Index funds track a specific index, such as the NIFTY50. Specialty funds invest in specific sectors, such as biotechnology, energy, banking etc. One of the most important decisions when choosing which mutual funds to invest in is deciding how much risk you’re willing to take. The type of fund you choose is a major factor in determining risk. Riskier funds generally have a higher potential for growth, but they also increase the likelihood that you’ll incur a loss.

 

Pros and Cons of Investing in Mutual Funds

Pros:

  • A wide range of mutual funds to choose from.
  • Easy to invest in.
  • Easy to liquidate.
  • Wide variety of risk levels.
  • You can buy into funds with small initial investments.
  • Tax advantages 

Cons:

  • No guarantee of a profit.
  • No control over the specific stocks held in your portfolio.
  • No control over the fund management process.
  • No guarantee that the fund will remain open to new investors.
  • May have to pay a front-end load.

All investments come with some level of risk. But investing in mutual funds can help you manage that risk to make sure you meet your investment goals. Mutual funds vary in type and level of risk. So be sure to select funds that match your risk tolerance. The wide range of risk levels among mutual funds makes it easy to find funds that match your risk tolerance, based on your financial situation. Plus, it is easy to put money in, easy to liquidate, and you can buy into funds with small initial investments.

 

10 Tips for New Investors

  • Invest in a diverse group of mutual funds.
  • Spread your funds across different types of investments.
  • Select funds that complement each other and create a balanced portfolio.
  • Choose funds with low expense ratios.
  • Avoid funds that have annual expenses exceeding 1%. Diversify your portfolio across different types of funds.
  • Make sure to include a mix of stocks, bonds and cash in your portfolio.
  • Make sure to take a look at the fund’s past performance. Choose funds that have done well in the past, as this may be an indication of future success. Get help from a financial advisor if you’re unsure which funds to invest in.
  • A financial advisor can help you pick the best funds for your situation.
  • Stay consistent over the long-term.
  • If you start investing early, you’ll have plenty of time to ride out any bumps in the road.

 

Conclusion

Mutual fund investing can be an effective way to build a portfolio and meet your long-term financial goals. But it isn’t necessarily easy. There are plenty of details to understand before you jump in and invest. Doing one’s own research before investing is critical, but so is taking professional advice from a certified financial advisor. Reach out to your financial advisor and begin your mutual fund investing journey.

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What To Do Before Investing In An IPO?

July 18, 2022

What is an IPO? 

An IPO, short for Initial Public Offering, is when a private company sells its shares to the public and makes these shares tradeable on the stock market. Private companies work in collaboration with investment banks and multiple other agencies to bring their shares to the public. There are a lot of regulatory requirements that need to be fulfilled, along with a lot of patience and marketing, before an IPO can be launched.  

There is always some element of risk involved with every IPO and you should always do your due diligence before investing in any of them. 

Now, let’s discuss some points you should consider before investing in an IPO :

  1. Carefully read the Red Herring Draft – The DRHP, or Draft Red Herring Prospectus, is a document that is prepared as per SEBI requirements before any company wants to go public. This document is made available publicly and is an essential resource for any potential investor. The DRHP also expounds on how the organization plans to utilize the money that will be raised, and potential risks for the investors. Investors should go through the DRHP before putting their money into a new IPO. 
  1. Use of the proceeds – It is vital to check how the proceeds raised from the IPO will be used. If an organization intends to only reimburse its debt with these funds, it’s probably not a great sign of things to come, but if it intends to raise funds to partly pay the debt, and partly to grow its business or to use it for general corporate purposes, it shows that the funds raised are being put back into the business, which is good news for an investor. 
  1. Figure out the business – An investor should understand the nature of the business of a company before investing in it. Understanding the business allows you to better judge how a company will perform given its priorities. A company’s capacity and ability to increase its market share make a significant difference to its appeal since returns and growth depend on this. On the other hand, an investor ought to avoid an IPO if the business exercises are not clear.  
  1. Who runs the company – An investor should always check who runs the company and has the power to make decisions. It is crucial to look at managers and key people of the company as they are answerable for its performance. The experience of the top management gives a glimpse into the company’s working environment. 
  1. Look for a company’s potential – An investor should analyze the potential of the company and figure out future possibilities. If a company performs well in the wake of raising capital, investors will acquire significant returns on their IPO investments. The organization that you’re investing your hard-earned money in ought to have a good plan of action to sustain itself in the future. 
  1. Relative valuation of the company – Investors should closely research the company’s competitive position. The DHRP will usually include a company’s comparisons with its peers, both on monetary numbers and valuations. An investor can look at the new IPOs’ comparative valuations to check if a company’s valuations are in line with its peers.  
  1. Investment Horizon – An investor should have a clear understanding of the investment horizon before investing in an upcoming IPO. One must be clear, whether they are planning to invest to make a quick return or if they’re looking to hold these shares for the long term. A short-term strategy depends on current market sentiments while long-term ones rely on the fundamentals of the business. 

Timing is essential when you operate in the stock market. When you enter the market and when you leave it can make all the difference. Sometimes, the timing is right during the IPO and at others, it will be a smarter decision to wait. Make a decision based on how much you can make and how good the fundamentals of the business are as far as valuation is concerned. 

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5 Best Strategies For Short-Term Investments

July 12, 2022

Making short-term investments is a crucial strategy for any investor. Short term investments are great tools to help you diversify your investment portfolio. Both investors and businesses can make short-term investments for many purposes. They require a low holding period and are usually low in risk. In most cases, short-term investments refers to any asset with a holding period of between one to five years. Some investors also like to invest for the short-term since it typically gives them their returns within the first five years.

As an investor, you must recognize the risks and rewards associated with short-term investments. You must not only know how to differentiate between good and bad opportunities, but also how to shield yourself from risks.

Your investment goals usually decide the type of investment that is best for you. Some investors invest with a motive to create alternative income, while others may want to pursue it as their main source of income. No investment can guarantee you high returns as there is always an element of risk. In simpler words, are you willing to take the risk? That is the question.

Here are the 5 best short-term investment strategies that can deliver returns with considerably lower risk factors:

1. Savings Account – This could be a good short-term savings option. The average savings account generates a small amount of interest, but if you can open a high-yield savings account, you can get higher returns. When compared to regular savings accounts, high yield savings accounts typically offer higher interest rates.

2. Corporate Bonds – These are a kind of debt security sold to investors. Many conglomerates issue them to generate money for various purposes. Corporate bonds are only at risk if the company issuing them dissolves, but a company’s assets can be used as collateral, maximizing your chances of being  reimbursed for your losses.

3. Government Bond Funds – These work on similar lines as corporate bonds; the only difference is that they are issued by the government. It’s a low-risk investment as it pays low-interest rates. Most government bonds are issued to boost infrastructure, public services, and domestic programs.

4. Money Market Accounts – Borrowing and lending of short-term funds in financial markets comes under the money market segment. These account mature anywhere from one day to one year. RBI and SEBI regulate this market in India. 

5. Certificates of Deposit – In this, you deposit a large sum of money for a fixed  period of time such as 6 months, one year, or five years. You must keep it untouched, or you will be charged a penalty for an early withdrawal. In return, you will get a premium interest rate. You will get higher interest rates than any savings account. It can be a great way to make your savings work for you.

Short-term investments use many routes to make money. The catch is that you must educate yourself on applying these investment vehicles to attain success. As you learn more about short-term investments, you’ll find yourself drawn to one strategy or another before settling on the right mix for your preferences and risk appetite. The goal of any trading strategy is to keep losses at a minimum and profits at a maximum, and this is no different for short-term investment. 

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