1. Month Ending October 2022
01 INVESTMENT GYAN 02 MARKET INDICATORS 03 INSPIRING STORY
Monthly Newsletter to manage your personal finances
We have received a lot of appreciation and many thanks letter from our regular readers
for our previous month Newsletter – “Remain Invested - Remain Calm”. When there was
a lot of negativity and bad news across the globe, we were strongly asking our
customers to Stay invested in Equity and Stay Calm; and you see the result! Nifty and
Sensex have shown a nice bull rally and have grown by more than 6% in just 30 Days.
Nifty started with a dull note at 16887, on 3rd October 2022 but closed at 18012 on
31st Oct 2022 (absolute Returns of 6.66%).
INVESTMENT KNOWLEDGE CENTER
2. I strongly believe that the next decade
belongs to India and there will be a lot of
wealth creation opportunities in
different Asset Class. As an investor you
should be focused on long-term
investing with proper Asset Allocation
Strategies. Me and my team is
dedicated to extract the best of all
opportunities coming in the next
decade of India growth story.
Hope our educative and informative
communications will help you in
managing your calm during interim
volatile periods and take the wise step
Money is always
eager & ready to
work for anyone
who is ready to
Mr. Vikash Didwania
3. Many people believe that Mutual Fund
is a product. But the fact is - it is just
a vehicle! A Vehicle which channelizes
investor's money to different asset
class as per pre-defined objective. In
this issue of our Newsletter, we are
sharing some basic knowledge about
Mutual Funds which could help you in
strengthening your trust & faith in
For many people, Mutual Funds can
seem complicated or intimidating. We
are going to try and simplify it for you
at its very basic level. Essentially, the
money pooled in by a large number of
people (or investors) is what makes
up a Mutual Fund. This fund is
managed by a professional fund
It is a trust that collects money from a number of investors who share a common
investment objective. Then, it invests the money in equities, bonds, money market
instruments and/or other securities. Each investor owns units, which represent a
portion of the holdings of the fund. The income/gains generated from this collective
investment is distributed proportionately amongst the investors after deducting
certain expenses, by calculating a scheme’s “Net Asset Value or NAV. Simply put, a
Mutual Fund is one of the most viable investment options for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost.
Chapter - 1 : Investment Gyan
Why Mutual Fund
4. Examples would be:
“Large Cap” funds which invest predominantly in companies that run large established
“Mid Cap funds” which invest in mid-sized companies. funds which invest in mid-size
“Small Cap” funds that invest in small size companies.
“Multi Cap” funds that invest in a mix of large, mid and small sized companies.
“Sector” funds that invest in companies that are related to one type of business. For e.g.
Technology funds that invest only in technology companies.
“Thematic” funds that invest in a common theme. For e.g. Infrastructure funds that invest
in companies that will benefit from the growth in the infrastructure segment.
Various types of Mutual Fund schemes exist to cater to different
needs of different people. Largely there are three types mutual funds.
Equity or Growth Funds:
These invest predominantly in equities i.e.
shares of companies.
The primary objective is wealth creation
or capital appreciation.
They have the potential to generate
higher return and are best for long term
2. Income or Bond or Fixed Income
3. Hybrid Funds
These invest in Fixed Income Securities, like
government securities or bonds, commercial
papers and debentures, bank certificates of
deposits and money market instruments like
treasury bills, commercial paper, etc.
These are relatively safer investments and are
suitable for income generation.
Examples would be liquid funds, short term,
floating rate, corporate debt, dynamic bond, gilt
These invest in both equities and fixed income,
thus offering the best of both, growth
Potential as well as income generation.
Examples would be aggressive balanced Funds,
conservative balanced funds, pension plans,
child plans and monthly income plans, etc.
5. Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds wherein one can
invest a fixed amount in a Mutual Fund scheme at regular intervals– say once a month or once a
quarter, instead of making a lump-sum investment. The installment amount could be as little as
INR 500 a month and is similar to a recurring deposit. It’s convenient as you can give your bank
standing instructions to debit the amount every month.
SIP has been gaining popularity among Indian MF investors, as it helps in investing in a disciplined
manner without worrying about market volatility and timing the market. Systematic Investment
Plans offered by Mutual Funds are easily the best way to enter the world of investments for the
long term. It is very important to invest for the long-term, which means that you should start
investing early, in order to maximize the end returns. So, your mantra should be - Start Early, Invest
Regularly to get the best out of your investments.
There are approximately 44 Mutual Fund companies in India which offer their schemes for
investments. We are an AMFI registered Mutual Fund Distributor and we distribute almost all
Mutual Funds in India.
How do you get the Returns in
Like other asset classes, Mutual Funds returns are calculated by computing appreciation in
the value of your investment over a period as compared to the initial investment made. Net
Asset Value of Mutual Fund indicates its price and is used in calculating returns from your
Mutual Fund investments. Return over a period is calculated as the difference in sale date
NAV and purchase date NAV upon purchase date NAV and converted to percentage by
multiplying the result by 100. Any net dividend* or other income distribution by the fund
during the holding period is also added to the capital appreciation while computing total
Capital appreciation in Mutual Funds is reflected by increase in NAV over time. This
happens because NAV of a fund is derived from stock prices of companies included in the
portfolio of the fund, and the prices fluctuate every day. Change in NAV of a fund over time
contributes to the capital appreciation or loss in your holding. View the return performance
of your investments in the account statement provided to you by the fund house. This
statement captures both your transactions and the return on your investments.
Note: *NAV of a Fund falls to the extent of dividend payout and statutory levy, if any.
What is Systematic
Investment Plan (SIP)
in Mutual Fund ?
Note : This is not a single scheme Fund Performance. This is an Avg. performance of all the funds in same
category across the MF Industry. However, performance may be different for different scheme under same
category. Please check with your advisor for the TOP performing funds in above category for the last one year.
Source - Morning Star as on 31st October 2022
10. Chapter - 3: Inspiring
Many people in Indian household invest larger part of their savings in Gold and Real Estate. Investing in Gold
is not bad but the allocation should be in proper proportion; ideally 5-10% of your portfolio should be in
Gold, if you wish to hedge your portfolio against any odds or uncertainty during rising inflation.
When we first met Keshav around 6 years back when he was aged 42 Years and earning a descent salary of
Rs 26 lakhs per annum. He received a performance bonus of Rs 10 Lakhs in 2016, which he decided to invest
for his daughters higher education and other expenses. Just like general household, Keshav also wanted to
allocate the funds among FDs and Golds.
After presenting lot of historic data and educating more about Financial Market, we convinced him to go for
investments in Equity and Equity related products. Looking at his longer tenure in hand, we presented him
few diversified Equity Funds.
Keshav finally chose to invest in 5 (five) Equity MF Schemes at the rate of Rs 2 Lakhs in each ! Much to our
conviction, his total investments of Rs 10 lakhs is already double in just 6 Years (see the table below) :
Had he gone for FD or Gold, this could have taken more than 10 Years to double.
Please see the chart below to see the performance of Gold, Silver, FDs and Equity in past 40 Years. Equity is
a clear winner over a longer period.
Who learnt this wisdom statement about Investments – “Gold
is not an investment for growth, it is a hedge against inflation”
Lesson of the Chapter: Equity is volatile but beneficial over a longer period ( > 3 Years). And
when it comes to choosing right equity shares – Mutual Funds Sahi Hai !!
Disclaimer : Mutual Fund investments are subject to market risks. Read all scheme related documents carefully. The
NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market
including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative
of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of
the schemes and the same is subject to the availability and adequacy of
Note : We are an AMFI registered Mutual Fund Distributors. We work closely with our customers to help them achieve
their Financial dreams by way of savings motivation, correct estimations and quick investment execution. We help you
select the SIP according to your risk profile and investment tenure.
Call us : +91-9830084878
www.shrambal.com | email@example.com
We provide complete support to you in terms of fulfilling all your investment objectives
or financial plans, by way of motivation - correct calculations and more !
Just call at 9830084878 and Fix a formal discussion
session with us we are here to help you.
25, Dwarik Jungle Road, Bhadrakali, Hooghly-712232 West Bengal.