UNDERSTANDING YOUR STATEMENT OF DEMAT HOLDINGS

Before getting to know what a Demat account is, let us first understand why holding documents in digital form is more beneficial than having them in physical form.

Today, we are more into digital wallets like Google Pay, Paytm, and all such. Because they are more secure and easily accessible.

Isn’t it?

In the same way, having a Demat account helps you keep all your financial assets in a single electronic form.

The main purpose of the Demat account is to hold all the shares that you have bought or dematerialized (converted to electronic format physical shares) and to make trading easier for you.

Why is it important to check the Demat Statement regularly?
After depositing a cheque in the bank account, we normally check the account statement to ensure funds have been credited to the account. But how often do we check our Demat account statement, to check whether the purchased shares have been credited to the Demat account?

It is important to regularly monitor your Demat holding statement to ensure that the requisite transfer of shares has been made to your Demat account. While in the majority of cases, the transfer takes place as a matter of course, there could be an element of chance of an error. It could well be possible that the shares are still kept in the broking firm’s common pool account, and utilized to fulfill the margin requirements of other clients. In such a scenario, not only do you face the threat of losses from your investments, but also stand to lose corporate action benefits, like dividends, stock splits, and so on. So please ensure that the purchased shares are promptly transferred by your broker from the common pool account to your Demat account.

How to access Demat account statement

The CDSL website now allows all investors an online medium to check their CAS, the procedure for which is as follows :

1. Log onto the CDSL website at cdslindia.com

2. Under the ‘Quick Links’ tab on the homepage, select ‘Login’ and login to – CAS.

3. Proceed to enter your PAN number

4. Proceed to enter your Demat Account Number

5. Enter other requested data such as date of birth and complete captcha requirements.

6. Submit

7. You will receive an OTP on your registered mobile number which you can use to authenticate the login

If all the details entered are correct, you should now be able to view your CAS and check the Demat account statement.

Things to look for while reading the Demat account statement.
Once an individual has gained access to their CAS and can view their Demat account statement, there are a number of things to look for in order to correctly interpret the statement.

Personal Details: Even before looking into the account statement, one should first verify their details.

Folio Number: This is another piece of information unique to each investor, and functions as an identity stamp for all future investments made by the investor.

Fund options and names: This shows users the title of their funds along with mentions of dividend payments and the growth of the fund.

Dividend payouts: This shows investors a history of the dividend payments they have received from their investments.

The Net Asset Value: Also known as the NAV, this varies daily. Thus, the NAV shown in the statement is from the time of investment.

Transaction Summary: This functions as a giant compilation of all records of any transactions the investor has made in the share market. Along with this, the SIP and SWPs are also mentioned.

Holding statement: This section is a compilation of all the assets held by the investor. For equities, it includes the ISIN, security name, current balance, frozen balance, pledge balance, free balance, market price or face value, and the value of the investments. The statement includes the fund name, folio number, investor details, date, transaction description, amount, NAV, Price, units, stamp duty, opening and closing balance for mutual funds.

Consolidated Account Statement

For investors who have multiple Demat accounts under either NSDL or CDSL, or even mutual funds that are registered under Registrar and Transfer Agents (RTAs), the provision of a Consolidated Account Statement (CAS) has been made. As per norms, the consolidated statement is issued by the depository under which you opened your first online Demat account, making it your default depository.

The CAS is a statement of investments and transactions made through several brokers and Demat accounts. In case you have been actively transacting with the help of any brokers or using any account, a monthly CAS is sent to you, but if there has not been any activity in any of your accounts for six months, the statement is released half-yearly.

On the CDSL portal, you may check your CAS at https://www.cdslindia.com/cas/logincas.aspx using these steps. For NSDL, visit https://nsdlcas.nsdl.com/ and follow these instructions for registration.

Conclusion

Demat accounts allow investors a place to store their investments and keep track of them. You may choose to register directly with your depository and check your Demat statement on either NSDL or CDSL web portals. Alternatively, if you operate multiple Demat accounts in India, you may sign up for a consolidated statement. The ‘how’ of how to check Demat account balance and statement is rather simple and can be done simply through the CDSL website. In order to correctly interpret the data and stay on top of one’s investments, however, investors need to pay keen attention to aspects of their CASs such as the transaction history and the names of their funds and options and ensure that all is in order.

To learn more about Asset classes enroll to our course NM 103: Basics of Asset Classes

You can also check our youtube video to learn in detail about Demat Account and how do they work - Click here

Uncategorized - 07/22/2021

Indian Stock Market timings

Indian Stock Market Timings

Trade in the stock market can only be undertaken during a specific time interval in India. Retail customers have to perform such transactions through a brokerage agency between 9.15 a.m. to 3.30 p.m. on weekdays. Most investors undertake the purchase/sale of securities listed on the major stock exchanges in India – Bombay stock exchange (BSE) and National Stock exchange (NSE). Indian stock market timings are the same for both these major stock exchanges.

Indian stock market timings for trade is divided into three segments:

Pre-opening Timing

This session lasts from 9.00 a.m. to 9.15 a.m. Orders to purchase or sell any securities can be placed during this time. It can be further classified into three sessions:

9:00 a.m. – 9.08 a.m.

During this stock market opening time in India, orders for any transaction can be placed. The order entry is given preference when actual trading begins, as these orders are cleared off in the beginning. Any requests placed during this time can be changed or canceled according to need, which is beneficial to investors, and no orders can be placed after this period of 8 minutes during the pre-opening session.

9:08 a.m. – 9.12 a.m.

This segment of Indian share market timing is responsible for the price determination of security. Price matching order is done by corresponding demand and supply prices to ensure accurate transactions among investors who want to purchase or sell a security, respectively. Determination of final prices at which trading will begin during normal Indian stock market timing is done through a multilateral order matching system.

Price matching order plays a vital role in determining the price at which the security is transacted during a normal session of Indian stock market timing.

However, the benefits of modification of any order already placed in not available during this session.

9:12 a.m. – 9.15 a.m.

This time acts as a transition period between preopening and normal Indian share market timing. No additional orders for transactions can be placed during this time. Also, existing bets already placed from 9.08 a.m. – 9.12 a.m. cannot be revoked as well.

Normal Session

This is the primary Indian share market timing lasting from 9.15 a.m. to 3.30 p.m. Any transactions made during this time follow a bilateral order matching system, wherein price determination is done through demand and supply forces. The bilateral order matching system is volatile, thereby inducing several market fluctuations which are ultimately reflected in security prices. To control this volatility, the multi-order system was formulated for the pre-opening session and was incorporated in Indian stock market timings.

Post-closing Session

Stock market closing time in India is marked at 3.30 p.m. No exchange takes place after this period. However, the determination of closing price is done during this time, which has a significant effect on the following day’s opening security price.

Stock market closing time in India can be divided into two sessions –

3:00 p.m. – 3.40 p.m.

The closing price is calculated using a weighted average of prices at securities trading from 3 p.m. – 3.30 p.m. in a stock exchange. For determining the closing prices of benchmark and sector indices such as Nifty, Sensex, S&P Auto, etc. weighted average prices of listed securities are considered.

3:40 p.m. – 4 p.m.

This period is post stock market closing time when bids for the following day’s trade can be placed. Bids placed during this time are confirmed, provided adequate buyers and sellers are present in the market. These transactions are completed at a stipulated price, irrespective of changes in opening market price.

Thus, capital gains can be realized if the opening price exceeds the closing price by an investor who has already placed their bids. In case closing price exceeds opening share price, bids can be canceled during the narrow window of 9.00 a.m. – 9.08 a.m.

The overall stock market operating time in India can be demonstrated by the following table:

S. No.	Name	Time
1.	Pre-opening session	9.00 a.m. – 9.15 a.m.
2.	Normal session	9.15 a.m. – 3.30 p.m.
3.	Closing session	3.30 p.m. – 4.00 p.m.

Aftermarket Orders

Post this time frame. No transactions can take place. However, investors can place aftermarket orders, for securities of chosen companies, which would be allocated at opening market price the following day.

‘Muhurat’ Trading

Indian stock market is generally closed for any transactions on Diwali, as it is a religious festival celebrated all across the country. However, a one-hour trading session is conducted from 5.30 p.m. to 6.40 pm as it is considered to be auspicious.

Equity / Insurance / Investments / stock market - 09/24/2020

How am I investing in current times - Akruti Agarwal

Hoping you all have looked at your investments and decided on your next course of action. I thought it is only fair that I share my investing journey with you at the end of these email series on 'what should you do with your Investments'. I have listed what I have been doing about my investments for the past couple of weeks.

1. I started investing in 2011 with the guidance of my colleagues and newspaper articles. Even for me, this is the first Market Crash where my entire investment portfolio is down by 27%.

It is said that an average investor faces 3 recessions and 1 depression in his life span of 75 years.

We all have to learn how to manage it and make the most of it.

2. This is the time where I can practically put to use everything that I have learnt and read about investments. I am trying my best to deal with the big notional loss in my portfolio, be ok about it and then do my asset allocation.

It is not easy but discussing my money decisions with my family helps me keep my emotions aside and make rational decisions about investing further.

3. Before Investing, let me tell you that I have my term & health insurance in place. I have my Emergency Fund kept aside in a liquid mutual fund which I am not touching. I also had 2 short term goal funds - Travel Fund (though not a priority for the next 1 year, but untouched) and my father's health fund (important right now, so untouched and safe)

4. How am I doing my Asset Allocation?

After ensuring my goals are secured, I set out to do my Asset Allocation.

As per my Risk Profile, I am a Balanced Profile, my Debt: Equity ratio is 50:50

As you can see from the above table, my Equity ratio is down to 36% and to rebalance my portfolio back to 50%, I have sold 14% of my total investments in Debt and started investing them in Equity in a staggered manner. Given that my Risk Profile is a Balanced Profile, I am investing in the Equity market to the extent I am comfortable as per my risk profile and investing it in a staggered manner given the uncertainty in the market. Also, I have been sticking to investing in Large Cap companies and good businesses rather than small-cap companies as I do not want to compound the risk exposure I have in equities. However, where you are an Aggressive Risk Profile, you could invest in small-cap & mid-cap Equity Mutual Funds to take advantage of the beaten-down markets.

'Be greedy when the times are fearful and be fearful when the markets are greedy'

Maintaining my asset allocation is making it easier for me to invest comfortably in the markets right now without letting the emotions take the best of me.

Lots of courage to every investor out there. Keep your cool and think rationally before you make any decisions.

Equity - 03/31/2020

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Should you sell your Existing Investments in Equity?

Hello fellow investors

In one place, where investors are planning to invest more money because there is a downfall in the market, there are some investors who are really worried and are asking us if they should sell their existing investments in Equity Mutual Funds/Equity stocks, book their losses and try to move on.

For the ones who are checking their portfolio every day and abusing their stars for investing in Equity, please read through.

Equity investing was always about 'Long Term - Goals' for more than 3 years.

Don't forget the reasons for which you started investing in the first place.

Think Equity - Think Long Term

Your Asset allocation and goal setting will always be the answer to all these questions.

How does it help to invest in Equity for a long duration?

The way to manage market risk in Equity is by investing for a long period of time.

Historical data from the Sensex proves that if you stay invested in Equity for a longer period your probability of loss reduces. Analysis of BSE Sensex data for the past 29 years shows that the probability of loss diminishes as the investment tenure exceeds 5 years. Data shows that investment for a period of 1-year duration on the first trading day between 1990 and 2018 created a loss probability of 25%. The probability of loss goes down further to 4.55% when the investment tenure goes up to 7 years. The benefits of long term investing are clearly visible as the investment tenure grows beyond 10 years and above.

(this graph & numbers above have been taken from business today article-https://www.businesstoday.in/markets/stock-picks/analysis-why-you-should-be-a-long-term-investor-in-equities/story/267408.html )

In the above graph, you can see that as your number of years of investing in equity increases, your probability of loss reduces.

Having said this, one must always check the quality of shares and mutual funds that they have invested in to ensure that they do not fall under the exceptional cases of this analysis.

Further, note that the analysis presented here is based on historical data, so it is not a true predictor of future outcomes. However, we can gather from this analysis that even with the lack of ability to forecast the future, by investing with a long term horizon, an investor is able to better withstand the detrimental effects of volatility, market downturn and bouts of recession, and achieve a positive ROI.

Hence, if you are planning to sell only because you are worried about what is happening with the markets right now, you should look at your goals & asset allocation and decide accordingly.

Don't try to be speculative right now with the market; just stick to the core values of your investing, do Asset Allocation and long-term investment planning.

Equity - 03/31/2020

Should You Invest More In Equity Right Now?

Hello Investors

We believe that our first email in this chain would have given you direction on how you should go about investing in current times.

Some of you were asking us if they should invest more money in Equity right now? Is this the Big Sale we were all waiting for and should we start investing? Will the market fall more so should we wait or invest now?

No one can tell you with certainty whether we have reached hit rock-bottom. Every time one is thinking it cannot go further down, the markets are reaching another lower circuit.

'You can never predict what is going to happen with the markets as that is not in our control. What is in our control is how we react to the market and take actions accordingly.'

You must keep a note of the below mentioned before you start investing all your money into Equity:

1.Always have an Emergency Fund (at least 4 times your monthly expenses) invested in risk-free investment options.

I cannot emphasize enough on how important it is to have that emergency fund in place, especially in times like these. I do not intend to scare you but I am sure everyone is an expert in their fields and are aware of how the near future looks like. Hence, even before you start investing ensure that your emergency fund is enough to help you sail through the worst-case scenarios in the coming months.

Keep some surplus money with you before you go all investing in Equity right now.

2.Have your Health Insurance and Life insurance in place.

With the current pandemic situation, it important to prioritize our life and health. You must have these insurances to ensure your family has something to fall back on. Also, where there is no security about the future, it is not the smartest decision to just rely on your company's health insurance. It is advisable to have one for yourself and your family members. You can read more about it on our blog.

3.Do not forget the goals and reasons for whichyoustarted Investing in the first place.

Remember our entire discussion from the workshop on how to Invest.

For short term goals - less than 3 years - Invest in Debt (Risk-free Investment options)

For long term goals - more than 3 years and beyond - Invest proportionately in Debt and Equity based on your Asset Allocation.

Debt Investments acts as a cushion when the Equity markets are volatile.

Note: Once your long term goal (more than 3 years) becomes a short term goal (you reach closer to that goal), redeemed/ sell off the equity investments and shift the same to secured debt investments so that any change in the equity market while attaining your long-term goal does not impact your investments.

Now do your Asset Allocation that shall determine how much money you should invest in Debt & Equity in the current market scenarios. Your asset allocation will help you invest based on your risk profile and sleep peacefully even where the markets are being volatile.

First-time investors should also invest based on their Asset Allocation and not invest 100% in Equity.

Remember that it is not the stock that determines your exact return from portfolio but your asset allocation which determines over 90% of the return.

This is probably a good time to open your goal- working sheets (shared during the workshop) and review your portfolio.

Equity - 03/31/2020

How Should You Invest Right Now

Tough times call for tough decisions! Well for us, it is about utilizing our time at home as much as possible and evaluating the action plan what to do now! With COVID 19, the world financial markets are also giving investors quite a scare. While we are all sitting at home and doing our bit to avoid the spread of COVID 19, we at Wealth Cafe decided to share more information on what you as an investor could do to manage your money better.

'Investing is not about avoiding the risk but managing the risk to make maximum returns possible'

Investing Rule 101 - High Risk = High Returns & Low Risk = Low Returns

Never forget the Rule of Investing.

Only after you have understood and digested this fundamental Rule of Investing that you should read further.

How should you Invest?

- Know your Risk Profile (How much risk can you bear)

- Invest in financial products that match your risk appetite by doing Asset Allocation

How to do Asset Allocation?

- We have attached the asset allocation table based on your Risk profile to help you understand how much you should be investing in debt & equity. Further, we believe that you all remember the Risk profile Questionnaire you took in the Workshop.

- A simpler method is to use your age to determine your asset allocation. If you are in the age bracket of 25- 35 years, invest 30% in Debt and 70% (100 - 30) in Equity. The rationale here is that the younger you are the more risk you can take as you would have a longer investment horizon and have a higher risk-taking appetite. While this appears to be a simple method, this is a crude method and risk profiling is the best way to arrive at your personal risk profile.

What Next?

Once you have determined your investments into Debt: Equity-based your Risk profile. Ensure that you maintain your Asset Allocation Ratio.

For Example:

This is how you begin your investing journey.

Now, given the current volatile markets, if after a month, Equity falls further down (which we are not sure of!), you must do Asset Allocation again.

This action of checking your investments and selling/buying as per your asset allocation is known as re-balancing your portfolio.

How often should you re-allocate/re-balance your portfolio?

You must re-balance your portfolio where your asset allocation varies by more than 5% from the desired Asset Allocation ratio.

How does this help?

By sticking to this rule-based allocation, all sentiment-based investments can be kept aside and you end up buying equities when they are cheap and selling them when they are expensive.

Equity - 03/31/2020

Understanding a Mutual Fund

A Mutual Fund is a TRUST that pools the savings of a number of investors who share a common financial goal.

The money collected is then invested in capital market instruments such as shares, debentures and other market securities. The investments of the mutual fund are driven by the investment objectives of the scheme.

The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them after recovery of the management expenses.

Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

About MF_1

FLOW OF FUNDS

The following are the parties to a Mutual Fund:

Unit Holder: is a person who is holding the units in a scheme of a mutual fund. The term is comparable to shareholder in case of a company. Unit holder can be a resident individual, HUF, company, NRI, partnership, society etc.

The Mutual Fund: As stated, the Mutual Fund is the legal entity in the form of a trust which holds investments of its Unitholders.

Sponsor: A sponsor is the promoter who sets up the Mutual Fund, appoints trustees and the AMC in accordance with the SEBI Regulations. Generally the sponsor and the AMC are part of the same business house.

Trustee: A trustee is appointed by the sponsor. The trustee holds the property of the mutual fund for the benefit of the unit holders and is responsible to the investors of the fund. The trustee is vested with the general power of superintendence and direction over the AMC.

About MF_2

INTER RELATIONSHIPS

Asset Management Company(AMC): AMC is the business face of the mutual fund as it manages all the affairs of the fund. Investment professionals employed by the AMC determine which securities to buy and sell in the fund’s portfolio, consistent with the fund’s investment objectives and policies. In addition to managing the fund’s portfolio, the AMC often serves as administrator to the fund with the support of the R&T agent and the Custodian.

R&T Agent: The Registrar and Transfer Agent (R&T) helps investors with the purchase of units in the Mutual Fund schemes, redemptions and switches, change of address and bank details and resolving related queries and complaints. CAMS and KARVY are the key R&T agents in India.

Custodian: The securities which form a part of the mutual fund’s portfolio are usually held by an authorized custodian. The custodian is like the mutual fund’s demat account.

Distributor: A distributor acts as an intermediary between the mutual fund and the investor. He helps the investor choose the right fund as per the investor's objectives. Mutual fund units can be distributed by only AMFI registered, certified distributors.

AMFI: The Association of Mutual Funds in India(AMFI) is a body dedicated to developing the Indian Mutual Fund Industry on professional, healthy and ethical lines and to enhance and maintain standards in all areas with a view to protecting and promoting the interests of mutual funds and their unit holders.

SEBI: SEBI is the market regulator in India which, apart from other functions, overseas the functioning of the entire Mutual Fund industry with the objective of protecting the interest of investors.

Investments / Mutual Funds - 10/01/2018

Most Essential Factor for a Successful Investor

Scores of articles have been written on this topic, what does it take to be a Successful Investor. A quick search on Google will give you results which include Fundamental Analysis, Technical Analysis, Economic data Analysis, Understanding the business of company, Timing the markets, monitoring Currency movements, and the list goes on and on. Then, what is the Most Essential Factor for a Successful Investor?

DISCIPLINE.

This one word overrides all other factors.

Discipline to stick to one's investment plan.

Discipline to continue to contribute for one's goals.

Discipline to book profits and re-allocate based on one's Asset Allocation.

DISCIPLINE PAYS OFF

Studies have shown that more than 90% of the returns earned by an investor can be explained by Asset Allocation. That means, right Asset Allocation (for example, Debt or Equity) is more important than the selection of the actual instrument (say an HDFC Fund scheme or a Reliance Fund scheme). And it requires DISCIPLINE to maintain the Asset Allocation as time passes and as markets fluctuate.

Investors reaped enormous profits when the markets reached new peaks in January, 2008. This was followed by the famed crash in September, 2008 all across the globe. This led to panic redemptions on part of many many investors. Unexpectedly, the markets recovered quickly to reach the 2008 highs in November, 2010.

Investors who stayed invested were the ones' who reaped maximum returns on the systematic investments made in the dips. Investors who exited in 2008 out of panic have only themselves to blame for missing out on the rally.

Again, the longer you stay invested in the equity markets, lesser is the probability of getting negative returns. A study of the Sensex returns for the past 30 years have shown that, if you were invested in the index for any period of 14 years or more, there is zero probability of earning negative returns. As one of the Investment gurus rightly said, "Time in the market is more important than timing the market".

Successful investors from around the world swear by only one thing...DISCIPLINE. A Financial Plan helps you initiate and maintain that Discipline.

Equity / Investments / Mutual Funds - 09/28/2018

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Risk Involved in Investing in Equities

As mentioned, Risk is the uncertainty involved in the expected returns. Risk associated with Equities are much higher compared to Debt instruments. So are the returns. This follows the universal principle, "Higher the Risk, Higher the Return".

Market Risk

The biggest risk associated with Equities is Market Risk. Equity instruments are volatile and prone to price fluctuations on a daily basis due to changes in market conditions.

Financial Risk

This is the second biggest risk associated with investment in Equities. Disruption in the internal financial affairs of a company will have a direct impact on the share prices of the company and may cause a loss to the investor. A prime example of such an instance is the Satyam fiasco in the January 2009 or a recent example of management fights in SKS Microfinance.

Investing Risks...there are a multitude of them.

Liquidity Risk

This refers to the ease with which a security can be sold at or near to its market value.

Securities, which are not quoted on the stock exchanges, are inherently illiquid in nature and carry a larger amount of liquidity risk in comparison to securities that are listed on the exchanges. While securities listed on the stock exchange carry lower liquidity risk, the ability to sell these investments at the market price is limited by the overall trading volume on the stock exchanges.

Settlement Risk

It is a risk that the counter party does not deliver the security purchased against cash paid for it or value in cash for the security sold is not received after the securities are delivered by us.

Such risk can be avoided by entering into transactions in the nature of delivery versus payment (DVP) or settlements via clearing houses where the Stock Exchange acts as the counter party to every transaction.

Risks associated with investing in foreign securities

The biggest risk associated with investments in foreign securities is fluctuation in foreign exchange rates. If you invest in a US Stock which gives you 20% return over a period of time and the US Dollar depreciates by 10% during this period, your net return in domestic currency will be much lower than 10%.

Other risk involved include restriction on repatriation of capital and earnings under the exchange control regulations and transaction procedures in overseas market.

You will see that a some of the risks listed above also affect Debt Securities. It is very difficult to segregate risks which affect only one type of investment.

Equity / Investments / Mutual Funds - 09/18/2018

Types of Mutual Funds

In the last few years, mutual fund companies were releasing various mutual fund scheme and there was a lot of confusion amongst retailers on the definition of the same and how are the classified. To avoid this, SEBI released a notification to classify mutual fund schemes into 5 broad categories:

Equity Schemes
Debt Schemes
Hybrid Schemes
Solution Oriented Schemes
Other Schemes

An understanding of the classifications of the various categories of schemes will help sort clear the confusion to a certain extent.

All the listed Equity Stocks are divided into large cap, mid cap, and small cap equity stocks based on the ranking on the stock exchange as per their market capitalization. Accordingly, AMFI, in consultation with SEBI and Stock Exchanges, has prepared the list of stocks, based on the data provided by Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and Metropolitan Stock Exchange of India (MSEI).

Large Cap Equity Stocks - 1st - the 100th company in terms of full market capitalization.
Mid Cap Equity Stocks are - 101st - the 250th company in terms of full market capitalization.
Small Cap Equity Stocks are - 251st company onwards in terms of full market capitalization

EQUITY MUTUAL FUNDS

Any fund which invests not less than 65% of its corpus in equities is known as an equity fund.

Multi-Cap Funds: An Open-ended equity scheme which invests a minimum of 65% of its total assets in equity related instruments. These funds invest across large-cap, small-cap and mid-cap stocks.
Large Cap Funds: An open-ended equity scheme which invests a minimum of 80% of its total assets in large-cap equity stocks.
Large & Mid Cap Funds: An open-ended equity scheme which invests in both large-cap and mid-cap stocks with a minimum of 35 % of its total assets in large-cap equity stocks and a minimum of 35% of. its total assets in mid-cap stocks.
Mid Cap Funds - An Open-ended equity scheme which invests a minimum of 65% of its total assets in mid-cap equity stocks.
Small Cap Funds - An Open-ended equity scheme which invests a minimum of 65% of its total assets in small-cap equity stocks.
Dividend Yield Funds - An open-ended scheme which predominately invests in dividend yielding stocks and has a minimum of 65% of its total assets invested in Equity.
Value Funds - An open-ended scheme following a value investment strategy and invests a minimum of 65% in equity and equity related instruments.
Contra Funds - An open-ended scheme should follow a contrarian investment strategy with a minimum of 65% in equity and equity related instruments.
Focussed Fund - An open-ended scheme focussed on the number of stocks (maximum 30) and has a minimum investment of 65% of its total assets in Equity and equity related instruments.
Thematic Funds: These funds are also known as Sectoral Funds. An open-ended scheme which invests a minimum of 80% of its assets in equity stocks of a particular sector/theme. Such funds can be focused on Infrastructure, Power, Banking sector, Pharma companies, only Public Sector Undertakings(PSUs), etc.
ELSS - Equity linked savings scheme - An open-ended scheme with a statutory lock-in of 3 years for the purpose of tax deduction. It has a minimum investment in equity and equity related instruments of a minimum of 80%.

DEBT FUNDS

Debt Funds are funds that invest in debt securities like debentures, commercial paper(CP), certificate of deposit(CD), government securities, etc.

Overnight Funds - Investment in overnight securities having a maturity of 1 day.
Liquid Funds - Investment in debt and money market securities with a maturity of up to 91 days only.
Ultrashort Duration Funds - Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 3 months - 6 months.
Low Duration Funds - Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 6 months- 12 months.
Money Market Funds -Investment in Money Market instruments having maturity up to 1 year
Short Duration Funds - Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 1 year – 3 years
Medium Duration Funds - Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 3 years – 4 years
Medium to Long-Duration Funds - Investment in Debt & Money Market instruments such that the Macaulay duration of the portfolio is between 4 – 7 years
Long Duration Funds - Investment in Debt & Money Market Instruments such that the Macaulay duration of the portfolio is greater than 7 years
Dynamic bond - An open-ended dynamic debt scheme investing across the duration
Corporate bond Funds - An open-ended debt scheme with a minimum investment of 80% in the highest rated corporate bonds
Credit Risk Funds - An open-ended debt scheme with a minimum investment of 65% in the highest rated corporate bonds.
Banking and PSU Fund - An open-ended debt scheme with a minimum investment of 80% of total assets in Debt instruments of banks, Public Sector Undertakings, Public Financial Institutions
Gilt Fund - An open-ended debt scheme with a minimum investment of 80% of its total assets in government securities across the maturity
Gild Fund with a 10-year constant period - An open-ended debt scheme with a minimum investment of 80% of its total assets in government securities having a constant maturity of 10 years
Floater Fund - An open-ended debt scheme with a minimum investment of 65% of its total assets in floating rate instruments.

HYBRID FUNDS

Hybrid funds are funds that invest in a mix of debt and equity based on their investment mandate.

Conservative Hybrid Funds - An open-ended scheme investing 10%-25% of its total assets in Equity and 75% -90% in debt instruments.
Balanced Hybrid Funds - An open-ended balanced scheme investing up to 40%-60% of its total assets in both debt and equity. No arbitrage is permitted in this scheme.
Aggressive Hybrid Funds - An open-ended hybrid scheme investing 65%-80% of total assets in Equity and Equity related instruments and 20%-35% in debt and debt related instruments.
Dynamic Asset allocation or balanced advantage - Investment in equity/debt that is managed dynamically. (0% to 100% in equity & equity related instruments; and 0% to 100% in Debt instruments)
Multi-Asset Allocation - An open-ended scheme which invests in at least three asset classes with a minimum of 10% in each of the three asset classes.
Arbitrage Funds - An open-ended Scheme following arbitrage strategy. Minimum investment in equity and equity related instruments of 65 of total assets.
Equity Savings - An open-ended scheme investing in equity, arbitrage and debt with a minimum investment of 65% of its total assets in equity or equity-related instruments and a minimum of 10% in debt instruments.

SOLUTION ORIENTED FUNDS

Retirement Fund - An open-ended retirement solution oriented scheme having a lock-in of 5 years or till retirement age (whichever is earlier)
Children's Fund - An open-ended fund for investment for children having a lock-in for at least 5 years or till the child attains the age of majority (whichever is earlier)
Index Funds/ETFs -An index fund is a mutual fund or exchange-traded fund(ETF) that aims to replicate the returns of a specific index. The fund manager does not have a major role as he has to only replicate the composition of the index.
FOFs (Overseas Funds) - An open-ended fund of fund scheme investing 95% of its total assets in the underlying funds.

Investments / Mutual Funds - 04/12/2018

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