Category: Uncategorized

Back to Blog

Reshaping the Future of Young Bright Minds of Jinnaram Tribal Welfare Boys’ School

September 21, 2023

We at KFintech hold a steadfast commitment to corporate social responsibility that extends far beyond our core business operations. CSR is about making a real difference in the lives of those who most need it. We take great pride in being a catalyst for the success of tribal students in Telangana, and our CSR initiatives are designed to reshape their futures.

On September 1st, 2023, the KFintech CSR committee achieved a significant milestone by celebrating the academic achievement of students from Jinnaram Tribal Welfare Boys’ School. The young minds, who had excelled in their studies, were presented with 21 laptops as a sign of our support. 

This event was graced by the Additional Secretary from Tribal Welfare, Smt. P. Madhavi Devi with other esteemed dignitaries from the Tribal Welfare Department, along with our Chief People Officer, Kiran Aidhi.

However, KFintech’s dedication to transformation goes beyond just providing laptops. We went above and beyond by inviting these students’ proud parents to share the stage with them, signifying a shared path to success. Everyone could see the faces of the parents, their smiles, and their tears, which were narrating the hard work of the students and our promise to change their lives. The idea that education is the key to a better future is at the heart of KFintech’s CSR philosophy. These talented young minds are now on the path to fulfilling their dreams. We are sure that these students will achieve great things if they are persistent and given ongoing guidance.

This transformative event signifies our dedication to bringing positive change to our society, where education can be the key to making a difference. Our CSR initiatives are not just about corporate philanthropy; we believe in a comprehensive approach to empowering individuals and uplifting the entire community. We believe investing in education and nurturing young talent is the need of the hour, and we are actively contributing to building a stronger and more equitable society. But change doesn’t come in a day; one has to work for it continuously with belief and vision.

We want our youth to achieve their dreams and excel in their respective fields, and education is the core pillar in order to witness their success stories.

KFintech’s CSR initiative is a shining example of how businesses can play a crucial role in empowering young, bright minds and creating a brighter future. KFintech’s commitment to education and empowerment is more than just a corporate responsibility; it’s an initiative that gives Telangana’s future leaders hope and opportunities.

Featured Posts

Empowering Education Beyond Classrooms: KFintech’s CSR Activity at CSIR-IICT HyderabadNurturing Future Talent – KFintech’s CSR Initiative at NIN Leaves a Lasting ImpactKFintech and GMR Aero Technic – Empowering Telangana Tribal Welfare Residential Fine Arts Academy Students
Back to Blog

User Interface of Debt and Equity Mutual Funds

September 14, 2023

When you look to buy a mobile, the first thing that comes to your mind is ‘which brand? There are many smartphones available in the market but there are many different brands and many differences between them. 

Some have a good processor; others might have a great camera and battery backup. But, although these features look the same, if you dig deeper, you will find many differences as far as features are concerned.

The same is true for mutual fund solutions; although they are all related to investing, there are a few differences. In this blog, we’ll discuss the main differences between debt and equity mutual fund solutions.

Debt Mutual Funds

Debt funds primarily invest in fixed-income securities such as government bonds, corporate bonds, and money market instruments.

Here are some key characteristics of debt funds:

  • Stability – Compared to equity funds, debt funds are typically thought to be less risky. They provide a consistent and dependable source of income through recurrent interest payments.
  • Lower Volatility – Debt funds are less susceptible to changes in the market, making them a good option for risk-averse investors looking to preserve their capital.
  • Fixed Returns – Since these funds typically offer fixed or stable returns, they are a dependable option for investors looking for a consistent stream of income.
  • Options for Short to Long-Term Goals – Debt funds are available in a variety of categories with various maturity profiles, addressing both short and long-term investment objectives.
  • Lower Returns: Although debt funds offer stability, they frequently generate lower long-term returns than equity funds.

Equity Mutual Funds

On the other hand, equity funds invest mainly in stocks and company shares. 

The following are some essential traits of equity funds:

  • Growth Potential – When compared to debt funds, equity funds have the potential to offer higher returns in the long run. 
  • Market volatility – Equity funds tend to be more sensitive to market fluctuations. This means that they are prone to significant fluctuations.
  • Diversification – Equity funds, which invest in a variety of stocks, provide diversification by lowering the risk involved in making individual stock investments.
  • Capital Appreciation – When the stock market performs well, equity fund investors benefit from capital appreciation as the value of their investments rises.
  • Long-Term Horizon – Equity funds are the best choice for investors who are prepared to endure market volatility and have a longer investment horizon.

Some things to think about when choosing between debt and equity mutual fund solutions

  • Financial Objectives – Debt funds might be a better option if you’re looking for consistent income and capital preservation. Equity funds might be a better option for long-term wealth growth and creation.
  • Determine your level of risk tolerance – If market volatility makes you uncomfortable, debt funds might fit your risk profile better.
  • Investment Horizon – Keep your time horizon in mind. Shorter investment horizons might be better for debt funds while longer horizons frequently favour equity mutual funds.
  • Diversification – A balanced investment strategy can be achieved by diversifying your portfolio with a combination of debt and equity funds.

Conclusion

Choosing between debt and equity mutual fund solutions depend on your financial goals, risk tolerance, and investment horizon. A well-diversified portfolio that includes both types of funds can provide a balanced approach to wealth creation and capital preservation. Consulting with a financial advisor can also be invaluable in making the right investment decisions.

Featured Posts

9 Reasons Why MFDs Should Use Mutual Fund Software in 2025 5 Best Practices for Mutual Fund Distributors to FollowThe Dynamic Landscape of Mutual Fund Software | Explained Factors to look for while investing in Mutual Funds for Beginners Mutual Fund Software For Distributors: Things To Avoid While Choosing It 
Back to Blog

Wealth Management in the Digital Era

September 6, 2023

Both novice and experienced investors who want to grow their capital significantly and build wealth over the long term may find wealth management to be of great assistance. Wealth managers offer a variety of advantages, from easing financial strain and streamlining the way your wealth is managed to providing individualised and tailored solutions for your particular situation.

With the onset of the digital age, many financial services including tax planning and investment advisories are adopting tech-friendly tactics. Self-directed investment options are growing in popularity. Following this recent development, it is evident that digital wealth management tools, such as DIY investment platforms, can revolutionise how investors like you manage your wealth. This is how wealth management services connected to do-it-yourself investing can change to fit the digital era. 

Mobile Applications to Inform Users

Customers who are better informed make larger investments. Here is where businesses that offer wealth management services can benefit from digital solutions. Particularly mobile apps have the potential to change the game. Wealth management and DIY investment platforms can launch mobile apps that provide clients and customers with a wealth of information such as investment guidance, financial news, stock watches, and more in order to adapt to the changing requirements of the digital age. As an alternative, it may be advantageous to use already-available apps that support intelligent conversation with investors.

Private wealth management portals and DIY investment solutions could assist clients in accessing digital portals that facilitate simple investment in addition to the educational component of such apps.

Operation-Simplifying Digital Tools

The initial stage of wealth management solutions is largely focused on gathering information, compiling KYC documentation, and adhering to other accepted protocols. The core wealth management procedure is significantly delayed as a result. Wealth managers can standardise such repetitive processes and streamline the operational aspects by using technology-based automation. Additionally, it means that they can start advising and assisting clients earlier on in the process.

Risk Management Using Technology

An essential component of a wealth management solution is risk management. Handling risk and compliance manually can be tiresome, time-consuming, and frequently error-prone. DIY investment apps can advance quickly and keep up with the times by handling these areas digitally. Automated checks can provide wealth managers with early warning signs about risks and credit defaults. Digital tools can also be employed to run simulations of varying risk-and-reward scenarios, so investors can make more informed decisions about how they wish to manage and multiply their wealth.

Digitisation to Personalise Solutions

The needs of each customer are unique. Professionals can identify each person’s goals and needs with the aid of digital wealth management solutions, allowing for more customised services. For instance, digital tools can assess a client’s risk appetite, the nature of their financial goals, their existing portfolio, and their expectations of future growth. Wealth managers can improve the caliber of the solutions they provide by using this information. These technological substitutes open the door for greater customisation of wealth management services.

Conclusion

These are just a few of the many ways in which private wealth management can adapt to the digital age. Millennials and investors from generation Z are more tech-savvy than older people, and as a result, they can benefit greatly from such automated and digital solutions. With the growing use of digitization, there have already been many positive developments in the wealth management industry. Social media support, gamification, and tracking software are only some of the many examples of digitisation that’s happening in wealth management services.

Featured Posts

Factors you should consider before finalizing a wealth management software in India?The Significance of Wealth Management Services in IndiaHow Private Wealth Management Platforms Add Value for Wealth Managers?What are Wealth Management’s Advantages and How Would You Choose a Wealth Manager?The Role of Financial Literacy in Private Wealth Management
Back to Blog

How to Drive Ahead with Mutual Funds in India?

September 4, 2023

When you learn how to drive a car, the first thing you learn is how a car basically operates: when to start, when to push the clutch, when to hit the brakes, and what the right moment is to change gears. Investing in mutual fund schemes works on a similar pattern; you need to learn how they operate before you let mutual funds drive your growth.

Investing in mutual funds has become a popular choice for individuals looking to achieve their financial goals. But have you ever wondered how these funds actually work? Despite having little knowledge of how the stock market operates, you might be interested in making investments there. In these circumstances, mutual funds are preferable investment choices for novices looking to gain market experience. We will discover what they are in this blog post, along with how mutual funds operate in India.

In India, how do mutual funds operate?

In India, mutual funds are regulated by the Securities and Exchange Board of India (SEBI), which sets guidelines and regulations for their functioning. Mutual funds pool money from multiple investors and invest it in various asset classes such as stocks, bonds, and money market instruments.

Depending on the asset class they invest in, their structure, risks, and benefits, there are various types of mutual funds in India. Mutual fund investments can be made in lump sums or through a Systematic Investment Plan (SIP).

Let’s examine the steps involved in launching a mutual fund scheme, learning how they operate, purchasing mutual funds, and redeeming them.

  • Launch of a New Fund Offer (NFO): An asset management company (AMC) releases a new fund offer (NFO), which is a first-time subscription offer for a new mutual fund scheme. In order to invest in securities like shares, bonds, and other financial instruments, the fund house first raises money from the general public through the new fund offer. The NFOs are open for subscription for a limited time, and after it closes, investors can only purchase the units of that fund.
  • Pooling money: Money is gathered by mutual funds from a large number of investors who make modest investments. These investors have the opportunity to invest in sizable securities portfolios.
  • Investment in Securities: The portfolio manager then invests the money pooled in different asset classes, such as shares, bonds, commodities, etc., depending upon the fund’s strategy. These investments are done on the back of their expertise, in-depth research, and analysis based on the strategy created to maximise the returns for the investors.
  • Returns to Investors: The performance of a mutual fund scheme is assessed by its Net Asset Value (NAV). It is the market value of all the securities held by the scheme. The market value of securities changes every day, and so the NAV of a scheme also varies on a day-to-day basis.
  • Redemption: Investors can sell or redeem their mutual fund investments. For this, the fund manager utilises the portfolio’s cash balance to pay investors who redeem their investments.

Conclusion

It is important for investors to carefully consider factors such as past performance, expense ratio, investment strategy, and track record before investing in mutual funds. They should also assess their own risk tolerance and align their investments accordingly.

Overall, mutual funds provide individuals with an accessible and professionally managed investment avenue that allows them to participate in various financial markets within India while diversifying their risks.

Featured Posts

9 Reasons Why MFDs Should Use Mutual Fund Software in 2025 5 Best Practices for Mutual Fund Distributors to FollowThe Dynamic Landscape of Mutual Fund Software | Explained Factors to look for while investing in Mutual Funds for Beginners Mutual Fund Software For Distributors: Things To Avoid While Choosing It 
Back to Blog

Retire from Work, not Life! National Pension System for Retirement Planning

August 31, 2023

Life is a beautiful gift, and age is just a number. If you approach life with a positive outlook, everything you encounter and feel can be positive and joyful. Your thought process and mindset play a big part in how happy you are, so it all depends on those. Although the legal retirement age is 60, you can still be young at heart after that age.

Retiring from work doesn’t mean retiring from life! One has to have a retirement plan, as it is a crucial aspect of financial management that often gets overlooked. As we navigate through the various stages of life, it becomes important to secure our future and ensure a comfortable retirement. One such avenue that has gained significant popularity in recent years is the National Pension System.

An early retirement plan is a type of investment strategy in which the retiree sets his retirement income goals and determines how to achieve them. The retirement plan can also help in managing your and your family’s post-retirement expenses, such as health and medical costs, lifestyle costs, etc., while considering the risks and amount of investment required.

The National Pension System comes with various features and benefits. Wondering what they are? Let’s discuss them briefly.

Features of the National Pension System

  1. Portability – NPS is a portable pension system, so members can keep contributing even if they change jobs.
  2. Choice to choose – Investment options are available through NPS, allowing subscribers to select their preferred mix of government securities, corporate bonds, and equity investments.
  3. Management of the fund – Managers of pension funds oversee the investments made with subscriber contributions.
  4. Convenient – Subscribers can invest in NPS on a monthly basis through a systematic investment plan, which can assist them in building a corpus over time.
  5. Low cost – Due to its reputation for affordability, it is a desirable choice for long-term savings.

Benefits of the National Pension System

  1. Tax benefits are available for contributions to the NPS under Section 80C of the Income Tax Act, and there are also additional deductions available under Section 80CCD (1B).
  2. Subscribers can withdraw up to 60% of the corpus as a lump sum on retirement and use the remaining 40% to buy an annuity, which provides a regular income.
  3. Market-linked returns are offered to subscribers by NPS, which invests in a variety of government, corporate, and equity securities.
  4. Subscribers have flexibility in terms of pension income because they can select from a variety of annuity plans and providers.
  5. NPS sends account statements to subscribers on a regular basis, allowing them to monitor their pension savings and investment performance.

Conclusion

Overall, with its diverse investment options, tax benefits, and annuity choices post-retirement, the National Pension System provides individuals with a comprehensive platform for long-term financial planning and security.

Featured Posts

How to Save Tax with NPS? Explained in this blog.NPS Scheme Benefits: An Attractive Option for Retirement PlanningUnderstanding the National Pension System (NPS) DetailsNPS Vatsalya – Building a Strong Financial Future for Your ChildGet NPS Tax Benefits Today and Safeguard Your Future Tomorrow! 
Back to Blog

It’s Time to Find the Right Strategy for Alternative Investment Funds

August 24, 2023

People enjoy collecting timepieces, so if you’ve been looking for a wristwatch to show off or that complements your fashion sense, you’re not alone. It must match your sense of style, whether it’s a smart watch or a limited-edition vintage mechanical watch. There are a few things to think about if a mechanical watch is your choice. Smooth hand movement; no need for software updates or recharges, like with smart watches. Some people adore the ticking sound of a mechanical watch.

AIFs are an interesting investment option for those investors, mostly HNIs, who aspire to receive high returns and are willing to take high risks. Investors can conduct thorough market research and invest in a category of AIF based on their financial goals and risk appetite. And when it comes to finding the right strategy for your AIFs, what should you look at first and what do you think about next, then, before investing in an AIF? Let’s talk about it in this blog.

What should you think about before making an AIF investment?

Begin by reviewing the investment strategy. Have you already been exposed to the proposed strategy through your current equity and debt portfolios? To prevent any overlap with your conventional investments, it is advisable to avoid strategies that are similar when allocating funds to “alternative assets”.

If it goes through the first filter, then dig deeper. You tend to look for a brand when finalising a wrist watch. You read, watch influencer videos, or do research about it. A 50-year-old brand or a comparatively new brand – who would you choose? Most people will go for a vintage brand for its record and experience. A track record and experience are critical.

Look for a skilled and specialised team to manage AIFs

When it comes to managing your alternative investment funds, particularly in India, it requires specialised skills, and the talent therefore resides in key individuals within the investment management teams. Look for team consistency and cohesion, as well as teams’ commercial alignment with the performance outcome of the fund. This is critical as these products tend to have long lock-in periods, and you want the management team to be there to achieve targeted outcomes.

Then, there are other factors like the vintage of funds and matters relating to related party transactions, etc., all of which need to be checked out. This is the reason why market regulator SEBI has rightfully put in a minimum requirement of ₹1 crore in commitment amount, which may be raised further.

While some of the distributors of AIFs do some diligence, there is much to be learned by the ecosystem as it evolves. Although investors must do as much research as possible, it may be better to rely on the advice of a qualified investment advisor who has a deep understanding of these products and also has rich data to evaluate performance. SEBI has also mandated performance records to be disclosed, but it is at a nascent stage of refinement, and hence the requirement for a deep dive by knowledgeable persons is necessary.

The last look: Conclusion

Prior to making an investment, investors should carefully consider the alternative investment funds option and conduct adequate due diligence on the platform. You should also avoid making decisions based solely on the interest rate that an alternative investment offers. Instead of concentrating your investment in one alternative investment fund, you should diversify it across a number of asset classes and begin investing in alternative investment funds in India. Review the investment strategy to determine if you are gaining access to genuinely unique assets that are not already included in your portfolio and cannot be easily achieved independently. Depend on an expert advisor and ensure to ask appropriate questions, while also seeking input from the advisor.

Featured Posts

The Top 7 Benefits of Investing in Alternative Investment Funds (AIFs) in IndiaComprehending the Key Differences Between AIFs and PMS FundsHow is XAlt changing the landscape of fund administration in India?Taxation and Alternative Investment Funds in India—how do they work together?AIFs and Traditional Funds: The Key Differences Between Them
Back to Blog

Alternative Investment Funds – A good, diverse weather condition for your portfolio!

August 9, 2023

India is well-known for diverse culture as well as weather. We witness majorly four seasons in a calendar year when it starts with winter, followed by summer, monsoon, and post monsoon. How would you plan for the rainy season? Buy an umbrella, water-proof footwear, and good coverings for your electronic devices, or would you also look for some alternatives? Similarly, the same can be said for both the winter and summer seasons, respectively.

The Indian climate has something to offer for everyone. Diverse weather conditions can be beneficial in various ways. People tend to enjoy every weather, many crops can be produced depending on the weather, a great destination for tourist attraction, good for economic growth, and many others. 

Diversification helps in growth and mitigating the risk. You must have heard the phrase, ‘Don’t put all your eggs in one basket.’ While in investment, when you keep money for future needs or emergencies, it is crucial to focus on investment opportunities that can yield attractive returns.

How alternative investment funds diversify your portfolio, lower volatility and enhance returns?  

Since alternative investment funds frequently behave differently from conventional equity and bond investments, including them in a portfolio may help to reduce volatility, provide greater diversification, and boost returns.

  • Lower volatility

The alternative investment funds may potentially lower the overall risk of a portfolio because they rely less on general market trends and more on the strength of each individual investment.

  • Diversification

Alternatives investment funds can be a significant way to diversify your portfolio with low correlation to traditional asset classes.

  • Boost returns

Alternatives give investors access to a wider range of investments and investment strategies, which can improve a portfolio’s risk and return profile and increase total return.

Why are Alternative Investment Funds getting popular in India?

Asset managers invest in unlisted companies or private equity situations, which are essentially growth capital for businesses that aren’t quite ready to enter the public markets, through alternative investment funds. While a significant portion of their capital is already invested in the listed market, it gives them the chance to diversify their portfolio while also giving investors the chance to invest in the private market through these kinds of products.

There are many opportunities in alternative investment funds which includes investing in farmlands, agricultural products, artworks, etc. In the coming times, people will get an opportunity to consume products/services and invest and earn from what they use in their everyday lives.

Conclusion

Alternative Investment Funds can be a good option for investors whose risk appetite is high and who are willing to receive high returns over a period of time. Prior to making any investments in Alternative Investment Funds (AIFs), it is highly recommended to engage in comprehensive market research. By doing so, investors can make informed decisions and strategically allocate their funds with the objective of attaining their financial goals.

Featured Posts

The Top 7 Benefits of Investing in Alternative Investment Funds (AIFs) in IndiaComprehending the Key Differences Between AIFs and PMS FundsHow is XAlt changing the landscape of fund administration in India?Taxation and Alternative Investment Funds in India—how do they work together?AIFs and Traditional Funds: The Key Differences Between Them
Back to Blog

How Does the National Pension System (NPS) Benefits You – Simple Explanation

August 3, 2023

When you start a business or switch to a new career, what would you look at? ‘What would I get in return? How will it be beneficial?’ The answer is simple: ‘benefit’. Remember those days when we would choose a college and a course to pursue?

The scenario of investing is no different. Whether you invest a small amount or a huge amount, you tend to look for benefits. What would you look for when you invest in NPS? The main thing that comes to mind is – benefits. The earning potential of NPS is higher as compared to other fixed-income schemes.

There are many benefits of NPS. We will discuss some of them in this blog.

National Pension System (NPS)

Returns/Interest
The National Pension System (also known as National Pension Scheme) benefits the investor as it offers returns that are relatively higher than other tax-saving investments like PPF, although it may not offer guaranteed high-returns.

Risk Analysis
Currently, the National Pension System’s equity exposure is capped between 75% and 50%. The cap for government workers is set at 50%. The equity portion will decrease by 2.5% annually in the range specified starting in the year the investor turns 50. However, the cap is set at 50% for investors 60 years of age and older. As a result, the risk-return relationship is stabilised in the interest of investors, protecting the corpus to some extent from the volatility of the equity market.

Flexibility
This is another National Pension System benefit as it gives investors the power to choose their fund manager from a pool of 7.

Liquidity
After 60 years, the remaining 40% may be invested in any annuity plan, while the remaining 60% may be withdrawn. After paying for three full years, you can also withdraw up to 25% of the money for any emergency needs.

Diversification
Risk is reduced through diversification because NPS gives you the option to select from a small number of asset classes, including equity, corporate bonds, government securities, and alternative funds.

Benefits from Taxation
The NPS programme allows for a tax benefit of up to two lakhs. The NPS scheme has three provisions that govern the tax benefits. 80CCD (1), 80CCD (1B), and 80CCD (2) are the three. Every person will be given a tax-free lump sum withdrawal at retirement, up to 60% of the total.

Low Cost
One can invest as little as ₹1000 in the NPS scheme each fiscal year. The minimum contribution needed to open an account is ₹500.

Conclusion

Every investment you make today has to have a purpose. While investing in the National Pension System (also known as National Pension Scheme), you tend to look at its benefits while achieving your financial goals.

Featured Posts

How to Save Tax with NPS? Explained in this blog.NPS Scheme Benefits: An Attractive Option for Retirement PlanningUnderstanding the National Pension System (NPS) DetailsNPS Vatsalya – Building a Strong Financial Future for Your ChildGet NPS Tax Benefits Today and Safeguard Your Future Tomorrow!