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If you are looking to invest in a <keyword id="6354820" type="ORGANIZATION" weightage="20" keywordseo="mutual-fund">Mutual Fund</keyword> (MF), you will find one that will match your needs but with so many companies, each with so many schemes, it will be a difficult journey to find one that fits the requirement. 
 
Here, we will focus on a few parameters that will help you in choosing the right mutual fund for investment depending on an individual’s requirements. 
 
Ø Identify the objective: Like stated before, there is a right kind of mutual fund for everyone and every need. So, the first thing one needs to do is identify their objective for <keyword id="35175" type="UNKNOWN" weightage="20" keywordseo="investing">investing</keyword> in the mutual fund. This can be based on the timeline for investment (short or long term) or the financial goal. For instance, if Asha is looking to invest in a mutual fund to save tax; an Equity Linked Savings Scheme (ELSS) will suit her requirements, while Mr. Mehta is looking for a regular flow of income so for him a Monthly Income Plan (MIP) is required. So the first step is to be sure about the reason for investing in a MF so that you can focus on that segment and choose a scheme that suits you best. You can have multiple funds to satisfy one objective or different fund to meet different kinds of goal. 
 
Ø Asses your Risk Appetite: Mutual funds are managed by professionals and generally these professionals base their decisions on extensive research. However one cannot forget the MFs are market linked products which means they are susceptible to market risk and they do not have guaranteed but have indicative returns. So before choosing a scheme it is important to understand if it matches your objectives and whether it matches your risk appetite also or not. Equity funds are high risk and high returns, while debt funds lie on the other end of the spectrum. Balanced funds as the name suggests lie somewhere in between. Generally those in advanced years do not prefer equity oriented schemes while the younger investors can afford to invest in equity funds and take some risk. 
 
Ø Focus on History: As stated earlier, MFs are market related instruments so there can be no guaranteed returns. Even for debt funds the returns are indicative; so how does an investor decide if the fund will deliver what it promises in terms of returns? This can be assessed to an extent by looking at the past performance which can be indicative of the expected future returns but again there is no surety that in the future also a similar pattern will be followed. Looking at the past returns can help in assessing a trend that a mutual fund follows in terms of returns. 
 
Ø Use Statistics: Apart from returns, certain other numbers are also important when choosing the right mutual fund. Alpha is one such indicator; it is a measure of MF’s performance on a risk adjusted basis and as compared to the benchmark. A positive alpha indicates that the fund is doing well. Beta is the measure of fund’s volatility as against the benchmark. It measures the fund’s sensitivity to changes in the market. For an investor with low risk appetite a fund which has a beta value less than one is the right choice and the opposite is true for those are willing to have a bigger risk appetite. Standard deviation in terms of a MF will indicate its volatility; how much the returns deviate from the expected returns calculated based on the past performance. An investor should also keep an eye on the various costs that he/she incurs as these costs ultimately impact the overall profitability of a mutual fund. 
 
Ø Pedigree is Important: Another factor that one should focus on while selecting a mutual fund is the fund house that is promoting it and who the fund manager is. Choosing a well known and experienced fund house will ensure that they will not indulge in unethical practices or will go bust while leaving you in the lurch. A fund manager decides which instruments or securities to invest in so an experienced and knowledgeable fund manager will ensure that you get good returns on your investments. Being preemptive and not reactive is what distinguishes a good fund manager from an average one. 
 
The above factors can hopefully help you in choosing the right mutual fund for yourself which not only helps you in meeting your financial goal but is also a safe and profitable investment. 
 
(Rajiv Raj is the Director and Co-Founder of www.creditvidya.com) 
 
(Image: ThinkStock)

Here are 5 ways that will help you zero on the right mutual fund

In essence, mutual fund investing is about trusting your money to a professional <keyword id="135622" type="POSITION" weightage="80" keywordseo="investment-manager">investment manager</keyword> and letting them take investment decisions for you. You take a high-level decision to invest through <keyword id="6357979" type="ORGANIZATION" weightage="80" keywordseo="mutual-funds">mutual funds</keyword> and then let the professionals take over from there. 
 
The investment manager collects a pool of money from a large number of investors and makes the day-to-day decisions to invest it in a portfolio of securities or other assets. These could be <keyword id="6354298" type="ORGANIZATION" weightage="80" keywordseo="stocks">stocks</keyword>, bonds, gold, real estate, or some other securities. Each investor in the fund gets a share of the total assets. 
 Then you only need to monitor if the <keyword id="109711" type="POSITION" weightage="80" keywordseo="Fund-manager">fund manager</keyword> is doing a good job for you. If not, fire them by taking your money out. 
<h2>
	How it works in practice is as follows:</h2>
 
 A reputed financial service company with a track record of managing <keyword id="6362476" type="ORGANIZATION" weightage="80" keywordseo="investments">investments</keyword> sets up what is called an Asset Management Company (Also referred to as an <keyword id="6358378" type="CITY" weightage="80" keywordseo="AMC">AMC</keyword>, mutual fund company, or fund house). Not everyone can set up an AMC. They have to get a license from <keyword id="35210" type="ORGANIZATION" weightage="80" keywordseo="sebi">SEBI</keyword> (the regulator that governs mutual funds in India) by demonstrating a track record and solid financial standing. 
 
After getting a license, the AMC decides what kind of mutual fund they want to offer. They can offer just one or many options. Each is called a Mutual Fund Scheme (commonly shortened to scheme, mutual fund or just fund). They will also appoint one or more named individuals to act as the fund manager for that scheme. While offering the Scheme, the AMC clearly defines the investment objective and the mode of operation of the scheme in a set of Offer Documents the format of which has been specified by the regulator. This ensures that the public investor knows exactly how their money is going to be invested. 
 
Let’s say the fund house offers two schemes: 
 
Scheme 1: invests in stocks 
 
Scheme 2 invests in bonds. 
 
As an investor, you can choose to invest in whichever one suits your purpose. Like you, thousands of investors will ‘subscribe to’ or ‘buy’ that scheme. The money so collected is the pool of money or ‘corpus’ available for the fund manager. He or she will then take the decisions about which specific stocks to invest that money in. 
 
The total corpus of the mutual fund scheme is sub-divided into units (or shares), which the investors buy. To begin with the corpus is divided into units of Rs 10. 
 
As the value of the investments made by the mutual fund changes, the value of the units changes as well. This is called the NAV (Net Asset Value) of the unit. It’s calculated by dividing the total value of the net assets of the fund by the number of units. This is published daily so you know how your money is doing. You also get periodic statements with information about your holdings. 
 
The AMC does not do all this for free. They charge a fee for managing the money. In addition there are other costs such as brokerage fees, costs of publishing statements etc. These need to be borne by the investors and are deducted from the corpus periodically. These are called Expenses of the fund and the ratio of expenses to the total money managed by the fund is called Expense Ratio. To protect investors, the regulator SEBI has specified the maximum expense ratio that can be charged. Most fund houses manage to control costs and keep the expenses below the maximum cap. 
 
That was probably a lot of new stuff to learn in one go. But now you can hold your own when your advisor throws these terms at you: 
<ul>
	<li>
		Asset Management Company (AMC, Mutual Fund Company or Fund House)</li>
	<li>
		SEBI (Securities &amp; Exchange Board of India)</li>
	<li>
		Mutual Fund Scheme (Scheme, mutual fund or fund)</li>
	<li>
		Offer Documents</li>
	<li>
		Units or shares</li>
	<li>
		NAV (Net Asset Value)</li>
	<li>
		Expenses, Expense Ratio</li>
</ul>
The next Lesson in this series will be: Why should you consider investing in mutual funds? If you would like to learn more, stay tuned! 
 
(About the author: This article has been contributed by Sanjiv Singhal, CEO, <a href="http://scripbox.com/" target="_blank">scripbox.com</a>.)

Investment
series part 1: What is a mutual fund?

Investment decisions must follow a careful analysis and informed knowledge so that we get the best results in line with our expectations. Here we compare between the two investment vehicles namely Systematic Investment Plan vs Public Provident Fund to understand which is better for investment. What do they mean to an investor? A Systematic Investment Plan or a SIP is a kind of <keyword id="6354820" type="DEFINITION" weightage="20" keywordseo="mutual-fund">mutual fund</keyword> investment. Under an SIP investment option, the investor subscribes to a given mutual fund through a pre-defined amount payable on a monthly or any other regular interval basis. Since the investors are buying units of the said mutual fund by paying a standard amount over a well-defined tenure, the investments will not be affected by the market volatility. A PPF investment is a conventional savings scheme introduced by the government of India under the 1968 Public Provident Fund Act. The objective of this investment is to enable people make savings with encouraging returns over a long period of time. Year on year, the government decides the rate of interest over this investment. PPF is a kind of long term investment with a 15 years tenure. The minimum and maximum amounts that can be invested in a PPF scheme is Rs 500 and Rs 1,50,000 respectively. How these two schemes compare Returns Since an SIP investment is done in mutual funds, the returns will depend on the given mutual fund’s performance. The returns on SIP will be as per the current market trends. The returns on PPF are calculated on an annual basis and are decided by the government. Purpose SIP investments are suitable for most people as they can satisfy short term, medium and also long term goals. They are deemed ideal for wealth creation. However, a PPF investment will suit only long term investments. It can be the best scheme for retirement benefit, education or marriage of children and not for other kinds of investment needs. Tax benefits Investments in SIP will invite both short term and long term capital gains tax. Nevertheless, investment in an equity linked savings scheme will enable you to claim deductions of up to Rs 1,50,000 under Section 80C of the Income Tax Act 1961. A PPF investment falls under Exempt, Exempt, Exempt (EEE) category that means the returns and also investments are tax free. Investment Tenure The investment tenure is flexible in case of SIP between 6 months and 1 to 20 years or more. The PPF scheme allows a minimum investment tenure of 15 years. After the maturity period, the investment can be extended for 5 more years. Liquidity SIP investment carries the highest degree of liquidity when it comes to withdrawals. You can get the entire mutual fund amount credited to your bank account linked with the plan within just 3 working days. From a PPF scheme, you can withdraw a partial amount only from the 6th year of investment. How to choose between them The choice of whether an SIP or PPF investment scheme will suit you depends on your investment goals. Decide if you are looking for a risk free long term investment in a PPF plan or you would expect higher returns that carry some risks and more liquidity in a SIP plan.

PPF Vs SIP: Which is better for investment?

Market regulator Securities and Exchange Board of India (<keyword id="35210" type="ORGANIZATION" weightage="100" keywordseo="sebi">SEBI</keyword>) has issues a new set of rules, allowing investors to redeem only up to Rs 2 lakh from a mutual fund (MF) scheme in case the fund house faces systemic crisis. Other than this, the fund houses are also allowed to impose restrictions on redemptions only if either there is a systemic crisis or in case something severely constricts market liquidity. 
 
The move has come after the redemption crisis that JP Morgan faced last September, in two of its schemes involving Amtek Auto. 
 As per SEBI’s latest note, the changes come into effect immediately for new schemes launched now onwards, while the existing ones would get the changes from July 1st. The note says that an asset management company (<keyword id="6358378" type="CITY" weightage="100" keywordseo="AMC">AMC</keyword>) can impose restriction only in case of broad liquidity issues, which lay an effect on "almost all securities rather than any issuer specific security," in case of market failures or exchange closures or under exceptional operational problems. 
 
Also, these restrictions can be imposed only for a maximum 10 working days after taking prior approval from its board and trustees. 
 
If investors request for redeeming more than Rs 2 lakh, fund houses would have to redeem the first Rs 2 lakh without any restrictions after which the remaining part would be subject to the restriction. 
 
<a href="http://www.yashcapital.com/services-images/93-mutual-fund.jpg">Image source</a>

If fund house takes a hit, your mutual fund will too get affected. Here’s how

Proponents of passive investing will argue that just buying a Nifty 50 index fund and liquid fund is good enough. But it is good to diversify your investments across securities, asset classes, and types of stocks based on risk appetite, saving needs, and future goals. However, quite often, small investors find their money parked in one too many mutual funds. What is the optimal number of mutual funds to have in your investment portfolio? A five-fund portfolio that takes care of all your needs, according to investment advisory firm Kuvera. Over time, it will become incredibly hard to manage and rebalance your portfolio and make any changes to it. New investors should be aware of this and take proactive steps to not let their portfolios grow to too many funds. The only argument to add multiple funds is if there is minimal stock overlap – so invest in a Nifty 50 fund, a Nifty Next 50 fund, a value biased fund, an international fund and one debt fund. This is the ideal mix according to Kuvera. Just following the below rules will bring down the number of funds in your portfolio to 4-8 funds: 1. Only one scheme per Equity sub-category (e.g one large cap scheme). 2. If you are investing in market cap schemes (large, small, mid etc) then don't have a multicap scheme. 3. Avoid investing in Sector or Thematic schemes. Sector outperformance is notably hard to predict. 4. Invest in one fixed income scheme (debt or liquid). That's right, just one liquid scheme is enough. Take risk on the equity side of the portfolio. 5. If you have both equity and debt schemes then don't have balanced and hybrid schemes. Gaurav Rastogi is the CEO and co-founder of Kuvera.in, a direct <keyword id="6354820" type="DEFINITION" weightage="20" keywordseo="mutual-fund">mutual fund</keyword> investing platform

A common mistake mutual fund investors make⁠ can be fixed through five simple steps

<ul><li>In October 2017, the Securities and Exchange Board of India enforced rules to make mutual-fund categories more uniform and standardised. For example, <keyword id="136469" type="PERSON" weightage="20" keywordseo="large-cap">large-cap</keyword> stock schemes had to comprise at least 80% large-cap <keyword id="6354298" type="DEFINITION" weightage="20" keywordseo="Stocks">stocks</keyword>. </li><li>The rules were meant to declutter the mutual fund industry and improve investor choice, but instead they diverted inflows from <keyword id="419945" type="PERSON" weightage="20" keywordseo="small-cap">small-cap</keyword> companies by reducing the exposure of large-cap schemes to smaller stocks. </li><li>According to data from Prabhudas Lilladher, small-cap stock schemes recorded a net outflow of ₹220 million between January and June 2018, compared to a net inflow of ₹56.5 billion a year ago. </li></ul> When the Securities and Exchange Board of India (<keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword>) order the reclassification and rationalisation of open-ended mutual fund schemes <a href="https://www.sebi.gov.in/legal/circulars/oct-2017/categorization-and-rationalization-of-mutual-fund-schemes_36199.html">in October 2017</a>, its intentions were clear. It wanted to declutter the mutual fund industry by implementing procedures for standardisation and allowing investors greater ease in choosing and comparing schemes. Among the SEBI’s many rulings, one stood out. It made the categorisation of schemes into large-cap, <keyword id="71797" type="PERSON" weightage="20" keywordseo="Mid-cap">mid-cap</keyword> and small-cap stock schemes mandatory. This created a specific category for each scheme, which limited the exposure that each scheme had to other stock types. For example, large-cap stock schemes, which involve the shares of the top 100 companies by market capitalisation, had to be comprised of at least 80% large-cap stocks. Midcap schemes, which comprise the next 150 companies by market cap, had to be overwhelmingly weighted with stocks of mid-cap companies and so on. Fast forward to mid-2018, and the rules have had an unintended effect. They have led to a significant reduction in inflows to small-cap mutual fund schemes, comprising the shares of all other companies outside the top 250. Hence, the rules have shifted the power balance in favour of large companies. According to data from Prabhudas Lilladher, a brokerage house, small-cap stock schemes recorded a net outflow of ₹220 million between January and June 2018, compared to a net inflow of ₹56.5 billion in the same period of 2017. Meanwhile, large-cap and mid-cap schemes recorded a net inflow of ₹219 billion and ₹145 billion in the first six months of 2018. Why the focus on large and mid-caps? It all stems from an investor aversion to risk. 2018 represents a markedly different year from 2017, which was characterised by a booming stock market, an influx of cheap money and high investor optimism. However, this year, domestic <keyword id="31671" type="CITY" weightage="20" keywordseo="markets">markets</keyword> have suffered amid concerns of a trade war between the US and China as well as rising oil prices, a falling rupee and widening fiscal deficit. Hence, investors have sought to play it safe by redirecting their investments into larger companies. Small-cap stocks are considered to be more volatile and risky in these kinds of market conditions. The general rule of thumb is that larger companies are safer and better-capitalised to manage risk than smaller ones. Small-cap stocks might come with higher returns but that’s offset by higher risk. And yes, India’s markets have <a href="https://www.businessinsider.in/heres-what-led-to-the-indian-stock-markets-record-highs/articleshow/65161389.cms">had a bull run as of late</a>, but this has not extended to small-cap stocks. The Bombay Stock Exchange’s Small-Cap Index is down nearly 12% since the start of the year. If global market conditions pick up, and mutual fund houses start promoting small-cap schemes, there could be a resurgence in inflows to small-cap companies. The SEBI should keep an eye on the situation, and if necessary, reduce weightage and product restrictions for mutual fund schemes in the interest of diversification.

India’s securities regulator has hurt smaller companies with its recently-implemented mutual fund rules

New Delhi, Jan 3 () Mutual funds have added a whopping Rs 3.15 lakh crore to their asset base in 2019 on the back of robust inflows in debt schemes and measures taken by regulator Sebi for boosting investor confidence.
 The asset under management (AUM) of the industry rose by over 13 per cent (Rs 3.15 lakh crore) to Rs 26.77 lakh crore at the end of last month, up from Rs 23.62 lakh crore at the end of December 2018, as per the latest data available with the Association of Mutual Funds in India (Amfi).
 The AUM growth seen by the 44-member mutual fund industry in 2019 is significantly higher than 7.5 per cent witnessed in 2018. However, the growth was much more higher at 32 per cent in 2017, when the asset base expanded by over Rs 5.4 lakh crore.
 Industry experts said the double-digit growth is a positive sign given the negative sentiment about equity and fixed income securities. This growth should be primarily credited to inflows in debt-oriented schemes, steps taken by Sebi that boosted investor confidence, and to distributors for helping take the message of "mutual fund sahi hai" (mutual funds are right) to every nook and corner of the country.
 "Growth we now see in AUM is largely attributed to debt-oriented schemes. The inflows in debt-oriented schemes have been surprisingly high and saved the year 2019 from becoming a 'dark-dull year of investing', as the year saw Sensex at its record high, investors chose to book profits and drew themselves away from all the negative aura that was around markets.
 "While SIP (Systematic Investment Plan) inflows were impressive with around Rs 8,000-crore-plus, the overall equity excitement was missing. The positive side to this is that investors have not lost their complete faith in equity investments and trust the process of SIP," Quantum Mutual Fund CEO Jimmy Patel said.
 The year 2019 marks the seventh consecutive yearly rise in the industry AUM after a drop during the two preceding years. The AUM of the industry has grown from Rs 8.22 lakh crore in November 2009 to Rs 27 lakh crore in November 2019, indicating an over three-fold jump in 10 years.
 The year has also seen repayment issues and downgrades with certain companies, which affected investor sentiment. However, this has also resulted in investors becoming more aware about the overall risk involved with different categories of mutual funds and now choose funds based on their risk appetite.
 In terms of asset size, HDFC MF continued to lead the pack with an AUM of Rs 3,82,517 crore (excluding fund of funds) at the end of December 2019, followed by ICICI Prudential MF (Rs 3,61,506 crore) and SBI MF (Rs 3,52,632 crore).
 Going ahead, Patel said 2020 will be the year of SIPs, which will rule over lumpsum investments and millennials will start investing in mutual funds.
 "If the regulatory framework and the supportive infrastructure is conducive there may be investment by mutual funds in commodities. Overall in my view one could expect a marginal growth in the year 2020. However, mutual fund as an avenue for investment is here to stay," he added. SP ANU
ANU

Mutual funds add Rs 3.15 lakh cr to asset base in 2019

<ul><li>As Indian households embrace financial diversification and mutual funds become more popular, the cost per investor for fund managers is declining. </li><li>As a result, the <keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword> has decided to restrict the total expense ratio (<keyword id="2782242" type="PERSON" weightage="20" keywordseo="TER">TER</keyword>) for <keyword id="6354820" type="DEFINITION" weightage="20" keywordseo="mutual-fund">mutual fund</keyword> schemes as a percentage of assets. </li><li>The SEBI has also prohibited mutual fund promoters from paying upfront commissions to brokers, saying that they should follow a trail-commission approach instead. </li></ul>The board members of the Securities and Exchange Board of India (SEBI), the country’s securities regulator, know a thing or two about economies of scale. As Indian households embrace financial diversification and mutual funds become more popular, the cost per investor for fund managers should go down. Keeping this in mind, the SEBI has decided to restrict the total expense ratio (TER) for mutual fund schemes as a percentage of assets. For equity-oriented mutual fund schemes, the most prominent kind of scheme, the TER will be capped at 1.25% for closed-ended schemes and a maximum of 2.25% for open-ended schemes less than ₹5 billion - with a gradual reduction to 1.05% for schemes above ₹500 billion. The TER for index-tracking funds, a passive investment option, will be limited to 1% while the cap for fund of funds will be 2.25%. The SEBI has also prohibited mutual fund promoters from paying upfront commissions to brokers. This means that they can’t make direct payments to brokers from their books. Instead, they will have to pay distributors on a trail-commission basis, which is contingent on how long investors stick with a specific mutual fund scheme. The changes are expected to impact the overall revenues of the mutual fund management industry by ₹15 billion. However, demand for mutual fund schemes is likely to increase significantly. The rules come as the industry reached a record <a href="https://www.amfiindia.com/indian-mutual">₹25.2 trillion </a>of assets under management at the end of August 2018. This marks a four-fold increase from August 2008. Besides making mutual fund investments cheaper, the SEBI also reduced the period for listing shares following an IPO from six days to three and decided to open up the commodity derivatives market to foreign portfolio investors.

India, SEBI just made it a lot cheaper for you to invest in mutual funds

<ul><li>On April 28, <keyword id="35210" type="ORGANIZATION" weightage="20" keywordseo="sebi">SEBI</keyword> released a circular asking mutual fund companies to provide 20% of salary in <keyword id="44804" type="COUNTRY" weightage="20" keywordseo="MF">MF</keyword> units to key employees. </li><li>The move came after the <keyword id="74229" type="PERSON" weightage="20" keywordseo="Franklin-Templeton">Franklin Templeton</keyword> fiasco to align the interest of the key employees with that of investors. </li><li>The heads of several mutual fund companies are disappointed as the new rule by SEBI translates 20% of their salary into mutual fund units. </li></ul>On April 28, 2021, SEBI informed the asset management companies (AMC) to provide a minimum of 20% salary/perks/bonus/non-cash compensation of key employees in the form of a mutual fund unit. The idea was to align the interest of the key employees with that of investors. A mutual fund unit is a portion of one’s investment from the pool of funds set by the mutual fund company. The move came after the Franklin Templeton <a href="https://economictimes.indiatimes.com/mf/analysis/how-franklin-fiasco-happened-and-what-we-learnt-from-it/articleshow/82210625.cms">fiasco </a>wherein the fund house one day suddenly closed six debt mutual fund schemes overnight citing poor liquidity condition in debt markets due to the pandemic-induced crisis. This led to panic among investors who were unable to access their investment thereon. The new mandate by the market’s regulator is applicable for key employees including chief executive officer (CEO), chief investment officer (CIO), chief risk officer (CRO), chief information security officer (CISO), chief operation officer (COO), fund manager, compliance officer, sales head, investor relation officer (IRO), heads of other departments and dealers of the AMC. Direct reportees to the CEO (excluding personal assistant/secretary), fund management team and research team are also included in this list. “After the Franklin Templeton incident, there is no enthuthiasm among newcomers to join the industry. Basically, it is no more an attractive career opportunity with so many regulations in place. These professionals would prefer working in a private equity, PMS (portfolio management services), AIF (alternative investment funds), fintech company which has less regulatory complications. With this, top talents will have one more reason to not choose the mutual fund industry as a career option,” said the chief executive of one of the top mutual fund companies on condition of anonymity. There is complete misalignment of mandatory investment for employees with varied risk appetite and investment time horizon, he added. “The circular on skin in the game, while a good idea in spirit, is going to be extremely problematic in implementation. This circular applies to not just senior employees but junior research staff, dealers, and support function heads. These people don’t earn the kind of money CEOs and CIOs do,” said Radhika Gupta, managing director and CEO of <keyword id="222564" type="COMPANY" weightage="20" keywordseo="Edelweiss-Mutual-Fund">Edelweiss Mutual Fund</keyword> in <a href="https://twitter.com/iradhikagupta/status/1387433870623055880?lang=en">a tweet </a>on April 28, the day SEBI released this circular. “It is forcing them to lock 20% of their income for 3 years. It mandates how much one saves. For a guy earning ₹15-20 lakh [in a year], imagine how difficult it is to put away ₹3-4 lakh [per annum]. We are constraining employee cash flows. Just because I run a mid-cap fund doesn’t mean this is my risk appetite. And a liquid fund manager has to park money in liquid funds for 3 years,” she added. In simpler terms, why would a 30-year-old fixed income fund manager invest a significant portion of his salary in a debt scheme. The objective of a debt fund is to grow wealth in a stable manner with typically lower returns and low risk compared to equity funds. Further, the fund houses have addressed these concerns to SEBI through Association of <keyword id="6357979" type="UNKNOWN" weightage="20" keywordseo="mutual-funds">Mutual Funds</keyword> in India (AMFI). It expects some sort of relief from the regulator in terms of reducing the percentage of salary to be given in MF units and cutting some junior level employees from the initiative. Considering this, SEBI has deferred the implementation of the new compensation norms by three months to October 1, 2021. The new rules were supposed to come into effect from July 1, 2021. SEE ALSO: <a href="https://www.businessinsider.in/cryptocurrency/news/cryptocurrencies-exchanges-can-run-into-trouble-with-investors/articleshow/84205889.cms">Cryptocurrencies aren't all diamonds and roses — lawsuits from people who lost big are piling up with exchanges</a> <a href="https://www.businessinsider.in/business/auto/news/simple-energy-new-electric-scooter-promises-240km-range-on-a-70-minute-charge/articleshow/84164967.cms">This new electric scooter promises 240KM range on a 70-minute charge, could be priced under ₹1,20,000</a>

You Searched For "how to choose mutual fund scheme" and got 9 results

Here are 5 ways that will help you zero on the right mutual fund

Rajiv Raj

Investment series part 1: What is a mutual fund?

Guest Author

PPF Vs SIP: Which is better for investment?

BI India Bureau

If fund house takes a hit, your mutual fund will too get affected. Here’s how

BI India Bureau

A common mistake mutual fund investors make⁠ can be fixed through five simple steps

Guest Contributor

India’s securities regulator has hurt smaller companies with its recently-implemented mutual fund rules

Dilsher Dhillon

Mutual funds add Rs 3.15 lakh cr to asset base in 2019

PTI

India, SEBI just made it a lot cheaper for you to invest in mutual funds

Dilsher Dhillon

Getting a senior level job in a mutual fund company may not be so attractive after SEBI rule of giving 20% salary in MF units

Bhakti Makwana

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