Name - Sreenivas Guvvala

AMFI Registered Mutual Fund Distributor

What are Index Mutual Funds?

Unlike other mutual fund schemes, index funds are not actively but rather passively managed.

An Index fund would track a particular index such as Nifty or Sensex.

To put it simply, index funds would invest in the same stocks as the index has.

In an equity mutual fund, the primary objective is to beat the benchmark but in an Index fund the primary objective is to match the performance of the Index.

The difference between fund performance and index is known as tracking error.

Lower the tracking error, the better.

Name - Sreenivas Guvvala

AMFI Registered Mutual Fund Distributor

India has historically had a deep affinity for gold since times immemorial.

India is one of the largest consumers of gold along with holding massive reserves of the same.

Gold is also seen as a hedge against inflation along with using it as a mortgage against loan.

Gold also holds cultural significance with it being seen as a sign of status symbol and wealth, even though it is demand throughout the year, it sees higher demand during certain festivals like Diwali and Akshaya Tritiya.

ARN Number - 143431

Name - Sreenivas Guvvala

AMFI Registered Mutual Fund Distributor

Mutual Fund House - Nippon India

Nippon Indian Small Cap Fund formerly known as Reliance Small Cap Fund is a very popular and old small cap fund.

It is one among the largest mutual fund schemes based on Assets under Management.

Due to its large aum, Nippon India fund house has restricted investments via the lumpsum mode although investments can be made via the sip and stp mode with restrictions.

The Indian stock market has had a somewhat sombre last 18-24 months.

The reasons are varying but the recent tariff rain down globally was the prime point of uncertainty.

Global markets do not take a liking for uncertainty, they prefer to know the state of things no matter how grim the situation.

The middle east has always been a melting point, the recent escalation of events is keeping in tune with the fragility of the region rather than it being an anomaly.

So, where does India figure amidst the ongoing pandemonium when geographically it is distant.

Whether you want to invest via SIP or a lumpsum amount, mutual funds provide a variety of perks from diversification to long term compounding benefits.

Your final choice of funds has to be preceded by several points like investment horizon, risk appetite, etc.

The longer you stay invested, the higher your chances of substantial returns but you may require the amount earlier or you may have short term goals.

Therefore you will need to prioritize the time horizon before selecting the funds.

No, the title is not incorrect.

It does seem a bit perplexing at first glance but read further and you will have your answers.

Motilal Oswal Mid Cap Mutual Fund has gained popularity in the recent past due to its returns.

This can be attested by the surge in its AUM.

Unfortunately retail Indian investors are still swayed by recent returns, a criterion which should be allotted less weightage. 

Unlike most mid cap mutual fund schemes, Motilal Oswal midcap fund follows a cyclical and focused approach as opposed to a buy and hold approach.

There’s also a hint of momentum investing in the mix.