There are different kinds of mutual fund options available in the market. Every mutual fund scheme you choose will have two options: growth or dividend option. You can differentiate them based on their Net Asset Value (fund’s per share market value). Always remember, the various factors such as the behavior, objective, fund manager are all the same but the performance and results delivered are different.
Under the growth options, you have to stay invested for a longer period to see the growth. The returns you earn are not realized immediately. You will not receive any payment in the form of dividends. The returns are realized only when you sell the units. The NAV on the date of the investment will be your cost price and the NAV on the date of sale becomes a selling price. The difference will be your returns.
The profit your funds make remains in the market and you get the benefit of compounding over the years. The number of units you buy remains the same, but the price or NAV keeps going up. It best suits for the investors who don’t need an income from their investments today but are targeting a corpus for future use.
The dividend options allow you to book profits periodically. This option is good for investors who need periodic income from their investments. The amount of dividend is not certain. When the NAV reaches a certain level, the fund house pays out the dividend. The dividend-reinvestment is different from your dividend options. In the dividend reinvestment option, profits are booked, but instead of declaring a dividend, the fund’s house buys more units at the current price. So your number of units goes up but the NAV remains the same.
This depends on factors like your investment objective and tenure. For Equity Mutual Funds, the growth option would be the best because you can make compounding earnings. If you plan to invest in the short term, Debt mutual funds will be the best. For short term investment in debt funds, you can go for a dividend option.
So start investing in Mutual funds to make your dreams come true.
Usually, when we place orders online we come across two products, those that don’t charge for delivery and the other that charges for the same. We normally opt or like the ones that are “Delivery Free”. Right?
The simple reason being we do not incur additional charges for our purchase and that reduces the burden of our expenses. Even Direct Plans and Regular Plans of Mutual Funds work on a similar concept.
Regular Plans are mutual funds that you buy through an intermediary such as an advisor, distributor or broker. These agents charge commission, trail or distribution fee for the service they provide, so the total expenditure for your investment is high. And not always do brokers or intermediaries intent to sell plans that suit your financial needs, their primary objective would be to push the scheme and earn their share of profit.
Usually, when we place orders online, we come across two products: those that don’t charge for delivery and the others that charge for the same. We usually opt or like the ones that provide “Free Delivery.” Right? The simple reason being we do not incur additional charges for our purchase, and that reduces the burden of our expenses.
Even Direct Plans and Regular Plans of Mutual Funds work on a similar concept. Let’s take a closer look.
Regular Plans are mutual funds that you buy through an intermediary such as an advisor, distributor, agent, or broker. These agents charge commission, trail, or distribution fee for the service they provide, thus increasing the expenditure for your investment. And not always do brokers or intermediaries intent to sell plans that suit your financial needs, their primary objective would be to push the scheme and earn their share of profit.
Now let’s look at funds that are like the delivery of free online products.
SEBI made new regulations with regards to Mutual Funds, which was made effective on January 1, 2013, i.e. Introduction of Direct Plans. Direct Plans are those mutual funds in which investors can directly invest with Asset Management Companies (AMC) who do not involve intermediaries and do not charge any agent or broker fees.
We are aware now what the difference between Regular and Direct plans. But what makes Direct plans more convenient for investments. Let’s find out:
Direct Plans offer 42.2 lakhs, which means the investor is entitled to 16.5% returns, whereas Regular plans help you earn 32.7 lakhs, which are approximately 15% returns. This is a clear example that the Direct Plan is more beneficial and hassle-free than Regular Plans.
Direct Plans = Higher Returns
However, each investor’s risk appetite is different, and so is their knowledge or expertise about Mutual Funds. So if you are a newbie to investing and have no prior knowledge of mutual funds, then you can opt for Regular Plans, initially. However, once you have gathered enough experience and expertise, it’s highly recommended that you quickly switch to Direct Plans for the above-mentioned reasons.
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“Someone is sitting in the shade today because someone planted a tree a long time ago.”
This phrase is so true when we speak about our Mothers. Mothers play such a significant role in our lives. The lessons they teach structure our lives beautifully. A woman has so many responsibilities to fulfill at various stages of her life, be it the role of a daughter, a sister, a wife, a mother and if you’re a working woman, then you’re even the bread earner of the family. As women, we know every nook and corner of our house and understand the needs of every family member; their favorite food, their outing spot, the gadgets they like and even their financial needs. We always want to protect our families from every trouble.
But what if we are not around our family? What happens when we cannot cater to their needs? What if we face an untimely death? Still, as mothers, we want our families to have a peaceful life after we have left them. For this, we need to prepare our families both mentally and financially. This arises the need for Women especially to have
Term Insurance is the purest form of Life insurance, wherein you need to pay a fixed amount as a premium to a certain amount known as Sum Assured. And in case of your unfortunate death during the policy term, your family receives the amount.
Women receive certain special benefits with term insurance such as:
Working women normally have a busy schedule, an easier way to handle finances would be to use digital platforms. MyWay Wealth – India’s most trusted app for Direct Mutual Funds, is one such digital platform that offers Term Insurance. All you need is a few minutes on your smartphone and you will be able to provide a cover of 1 crore to your family, with the same amount with which you get a Netflix monthly subscription.
You may delay but life will not, and lost time is never found again. Hence plan your Term Insurance on MyWay Wealth app today and be rest assured regarding your families well-being.
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