Home Loans
Personal Loans
SME Loans
Business Loans - Udyog Plus 
Loan Against Securites
Loan Against Property
Mutual Fund
Stock and Securities
Wealth
Portfolio Management Services
Pension Funds
Life Insurance
Health Insurance
Wellness Solutions
Pay Bills
Pay for anything
Pay Anyone
Pay on Call
Payment Lounge
Credit Cards
1800-270-7000-
Our Products
-
Self Care
- Downloads
- Learnings
- About Us
-
More
-
Shareholders
-
Shareholders
-
Updates
-
-
Wealth Calculator
-
Shareholders
ABC Solution 
Loans
Insurance
AppStore
PlaystoreAditya Birla Sun Life AMC Limited
Aditya Birla Sun Life AMC Limited
How to Set Goals to The Next Level with a Smart Invement Choice? | ABSLMF Blog
Aug 07, 2018
5 mins | Views 356
The Indian Mutual Fund industry has had a phenomenal run in recent years, more specifically, the last year. The general awareness levels have also witnessed significant improvement ever since the Mutual Fund Sahi Hai campaign was run by the industry body AMFI which fortuitously coincided with one of the best years for the equity markets.
“SIP” found its way into everyday household conversations and is now synonymous with long term investing for one’s goals. As a result, investors from beyond the Top 15 cities nearly matched the investments of those from the Top 15, making SEBI’s focused efforts, in this direction, successful. This has encouraged SEBI to further the cause of MF penetration in the country and they have now advised to redefine the focus beyond the Top 30 cities.
Notwithstanding these positive developments, there are many more underutilized opportunities for investors to consider which can help them reach their chosen financial goals. Indian banks have a massive deposit base of Rs.109,000 bn out of which 60% is invested in term deposits or fixed deposits & 32% lies in savings bank accounts.
The irony of the situation is that these monies that represent the household savings of one of the fastest growing and large economies in the world are deployed inefficiently in financial assets like FDs and Savings Bank Account. The ROI on these Bank FDs for 1-3 years are currently ranging 6.75 – 7.25% p.a. and savings bank account rate is at 4% p.a. This base continues to grow while an alternate product like MFs etc. in the same duration bands or similar credits are having the potential to generate comparatively higher YTMs.
Largely this anomaly exists due to
This presents an imminent opportunity as fixed Income mutual fund schemes have historically offered a higher alpha across tenors. Yet, the banking system get flusher with more money for it’s ‘safety, liquidity and predictability’ around returns, especially more so post demonetization. What is surprising is that in Savings Accounts that offer a merely 3.5 – 4% p.a. one would imagine maximum parking of 1-3 months but the observed behaviour of the average aging of funds in savings bank accounts is over 6 months on an average. We believe that there should be creation of awareness and understanding amongst these saving pools of the FD and savings account holders.
The key message is that the same investment horizon has the potential for higher returns and can be achieved with money market linked risk and same or sometimes higher level of liquidity. Being one of the leading fund houses in the country, we bear upon ourselves the onus to enlighten investors on the availability of various other investment options in the market.
The investment landscape in the country has been gradually changing in the last few years. It is our opportunity now to #GoBeyondFixed and adopt this change to take our goals to the next level with a smart choice of investing in these debt funds after analyzing the risk reward trade-off.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Our Experts
Tools and Calculator
RSS News Feed
Archives
Close
Hover to Zoom
Thank You
Message will change according to your requirement.