A mutual funds scheme collects funds from different investors and further invests in a diversified portfolio ensuring long-term appreciation at a fairly lower risk and greater returns. Once customers initiate investing in mutual funds, then the funds are invested in various securities available for Indian investors, such as debts, money market, stocks, etc. Rather than opting for conventional investment options, mutual funds are considered as a better and smarter option. Conventional investment options, such as recurring deposit, post office savings schemes and fixed deposit provide returns almost equal to the current inflation rate.
For example, if the inflation rate of Indian economy is 7% and is the interest available on the saving is 9%, then the actual return for an investor will be just 2%. The mutual funds returns supersede the returns of other traditional instruments of investments.
IDBI Mutual Funds provides a wide range of mutual funds in the market. Currently, it is offering a total of 88 fund schemes and the AUMs for IDBI Mutual Funds is approximately Rs. 6774 Cr. You can choose to invest in a fund that best fits your requirements related to your long term investment goals from a wide range of options available in the market. Listed below are just some of the many advantages that investing in IDBI Mutual Funds can get you.
Advantages of IDBI Mutual Funds
- You can easily invest in IDBI Mutual Funds and redeem too
- Investment across a diversified portfolio to minimize the risk involved
- IDBI Mutual Funds includes some important features like Systematic Transfer Plan, investment planning, and the Systematic Withdrawal Plan. It allows you to switch between different funds like from equity funds.
- IDBI Mutual funds keeps complete transparency between its terms and investors and shares Portfolio and NAV regularly
- IDBI Fund Managers hold great experience in mutual funds industry, which offers safe investment options with greater benefits to its investors.
- Mutual Funds are managed by Securities and Exchange Board of India (SEBI) to ensure the interest of investors and their benefits.
- It provides tax exempted dividends. You don’t have to avail long-term Capital Gain Tax if it is held for over a year.
Types of IDBI Mutual Funds
Also known as stock funds, IDBI Equity funds’ primary objective is capital growth by investing a majority of the funds in stocks and investing the smaller fraction in notes, bonds, and government securities. It can be both open-ended and close-ended fund and allows investors to invest small fraction of investment in a diversified portfolio with the help of expert fund managers.
IDBI debt funds, is invested in a blend of debt and fixed income funds like Government Bonds, Treasury Bills, and Corporate Bonds. Usually, Debt Funds come with a pre-stipulated maturity date and provide investors with a fixed rate of interest.
Under IDBI Gold Fund, the investors can invests in various forms of gold including physical gold or gold bullions or in the stocks offered by gold mining firms. A study reveals that the category of gold funds has offered 15% returns.
IDBI Exchange-Traded Fund (ETF) is a fund, which is traded on stock funds. It is a security that is designed according to market trends, which keeps a track of an index, bonds, a commodity, or a set of assets.
Why Choose IDBI Mutual Fund?
- IDBI Open-Ended mutual funds can be liquidated within three working days on the basis of current NAV.
- The best part of IDBI mutual funds is that it has a strong management team that comprises a special risk management team that predicts market trends and helps you to choose the plan accordingly.