Mutual Fund

Investing through mutualInvesting through mutual funds has become the most popular way of savings now-a-days. Mutual fund is a professionally managed scheme wherein they pool money from different numerous investors to be invested in bonds, stocks & other securities. Your investments done through MFs are safe as all the mutual fund operators are registered with SEBI & work within framework created to protect the investors. 

Advantages Of Investing In Mutual Funds  

Mutual funds have become a very popular investment option in India and this trend still continues with new funds and schemes being introduced in the market regularly. Some of the key reasons why people invest in mutual funds are outlined below.  

Professional management: Mutual funds are managed by fund managers of asset management companies. These managers employ their investment expertise to minimise risks and maximise returns to investors. Individuals often find it difficult to decide which assets to invest their savings in due to lack of financial knowledge. 

Diversification of risks: Since mutual funds invest in a number of securities, risk is diversified. The chances of all stocks performing badly at the same time is low. Losses suffered on some stocks are offset by gains made on others. This leads to minimization of risks. 

Affordable investment option: For those who don’t have sizeable amounts to invest in direct equity or other instruments that require a high initial investment, mutual funds make for an affordable investment avenue. Also, transaction costs are spread out over a number of investors thereby lowering individual costs. 

Focused investments: All mutual funds feature schemes clearly specifying which assets are targeted for investments, allowing investors to direct savings to different asset classes in an organised and focused manner. It also gives investors access to certain securities otherwise unavailable to them e.g. foreign sectors or foreign securities which cannot be invested in by individuals. 

Choice of assets: There are various types of funds e.g. equity funds, debt funds, money market funds, hybrid funds, sector funds, regional funds, fund of funds, index funds etc. giving investors a wide range of choice. 

Easy purchase and redemption: Fund units can be easily bought and sold at prevailing unit prices or NAVs. Unless there’s a lock-in period, it is easy for investors to buy into or out of a fund thereby providing liquidity. 

Tax benefits: A number of funds/schemes have been designed to act as tax-saving instruments e.g. ELSS or equity linked saving schemes. Investments made in these schemes qualify for income tax deductions. 

High returns: Mutual funds have been known to provide good returns on medium and long-term investments since investors can diversify risk to enhance overall returns. 

Regulated investments: All funds come under the purview of SEBI (Securities Exchange Board of India) which ensures dealings are as per regulations. This provides an element of safety to investments made. 

Easy to track: It can be hard for investors to regularly review their investment portfolios. Mutual funds provide clear statements of all investments which makes it easy for investors to keep a tab on. Hybrid or balanced funds provide investors an avenue to access both equity and debt funds at one go in a proportion of choice. 

SIP options: Systematic Investment Plans let individuals invest small amounts on a regular basis to avail benefits of rupee cost averaging. It’s an alternative to those who cannot invest lump sum amounts thereby appealing to investors across income levels. Mutual funds accept initial investments as low as Rs.500. 

Flexibility through fund switching: Many funds offer investors flexibility by letting investors switch between schemes or between funds to avail better returns

ICICI Lombard

At ICICI Lombard, customer centricity is the cornerstone of our culture. Stretching ourselves and going beyond the ordinary, for the satisfaction and smiles of our customers, is deeply embedded in our DNA. Whether our customers face an untoward incident due to the unpredictability of nature, suffer losses due to accidents or face medical challenges, we remain committed to be at their side and serve them in their hard times.

The 2015 Chennai floods affected the lives of hundreds of people and caused widespread damage. In the face of such unexpected events, our team continues to work towards our goals without losing focus. Reaching out and reassuring customers by going the extra mile, reinstating normalcy as fast as possible, we remained steadfast in reducing emotional trauma and the impact of loss. Fast, fair and friendly as always, we put our customers’ needs above all.

Our value proposition is driven by a promise to be the best partner for our customers. Simply put, it means providing unmatched services. This deep and unceasing commitment to our customers guides us to do things right, every time. It inspires us to evolve our services every day, from small modifications to major changes. For us, customer satisfaction is a promise to be lived every day, because our customers’ peace of mind is our greatest reward.

HDFC ERGO General Insurance Company Ltd

HDFC ERGO General Insurance Company Ltd. is a joint venture between HDFC Ltd., India’s premier Housing Finance Institution and ERGO International AG, the primary insurance entity of Munich Re Group. The Company offers complete range of general insurance products ranging from Motor, Health, Travel, Home and Personal Accident in the retail space and customized products like Property, Marine and Liability Insurance in the corporate space.

To make our vision a reality, we are committed to sow the SEED of our values and nurture it daily. Our ethical approach & high levels of integrity enable us to 'continue the tradition of trust' we have inherited from our parent company HDFC Ltd.

We ensure that it reflects in every task we perform, every decision we take. It helps us to work as a team towards creating and sustaining value for all our stakeholders, namely Customers, Business Partners, Re-insurers, Share-holders and most importantly, Employees.

Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz SE. Both enjoy a reputation of expertise, stability and strength.

Bajaj Allianz received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2nd May, 2001 to conduct various businesses (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.

As on 31^st March 2019, Bajaj Allianz continues to be one of the most financially robust insurers in the industry by maintaining its growth as well as profitability. The company has made a net profit of Rs. 780 crore. The company reported a revenue of Rs. 11,097 crore, which has grown by 17% compared to the last fiscal year.

Our Achievements

For the 12^thconsecutive year, Bajaj Allianz General Insurance has received iAAA rating from ICRA, indicating the highest claims paying ability and a fundamentally strong position in the industry. The first accreditation was received in 2005-06 and the company has maintained this rating since then. The organization's Operational Risk Management process is ISO 9001:2015 certified, which signifies our quality objective to proactively manage risks and to ultimately deliver & exceed customer expectations. The Company has embraced digitalization as a primary enabler and has been working continuously on automation and digitization of its service offerings. It offers real time solutions to its customers and partner via mobile applications and dedicated portals. The industry first initiatives by the company like cashless claim settlements, in-house health management team (HAT) and image based policy as well as claim processing, digital offices and mobile applications such as Eezee Tab and Insurance Wallet have set a benchmark in the industry.

NEW INDIA ASSURANCE CO. LTD

NEW INDIA ASSURANCE CO. LTD, founded by Sir Dorabji Tata in 1919, a Multinational General Insurance Company, today operates in 28 countries and headquartered at Mumbai, India. Our global business crossed Rs. 22,270 crores in March 2017.

We have been market leaders in India in Non-Life business for more than 40 years. Our Indian business crossed Rs.19,100 crores in March 2017. We are the only direct insurer in India rated A-(Excellent) by AM BEST Company since 2007. We have been rated AAA/Stable by CRISIL since 2014, indicating that the Company has the highest degree of Financial Strength to honour its Policyholder's obligations.

We have been leading the market, apart from premium, in reserves & net worth for many years.

Tata AIA Life Insurance Company Limited

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company, formed by Tata Sons Ltd. and AIA Group Ltd. (AIA). Tata AIA Life combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asian life insurance group in the world spanning 18 markets in the Asia Pacific region. Tata AIA Life has written retail new business weighted premium of INR 733 crores for the first half of financial year 2018-19. For the same period, the 13th month persistency of the company was at 83.5% and, the retail claims settlement ratio was 98%.One of the fastest growing companies in the Life Insurance sector, Tata AIA Life is now ranked at no. 5, based on individual weighted new business premium.

Corporate FD's & NCD's.

Corporate FD:

Company fixed deposits (FDs) are a very popular investment option amongst senior citizen investors as they give them assured returns, which are generally 1% to 3% higher than the interest rates being offered by banks for similar periods.

There are many company fixed deposit schemes which have an option to pay interest at monthly or quarterly intervals, and investors find it quite attractive to supplement their regular income from pension etc. The target segment for the company fixed deposit schemes is senior citizens, housewives, individuals in zero or low tax bracket, charitable/religious trusts, among others.

However, while company fixed deposits continue to lure investors, they also carry some risks and, therefore, one needs to tread with caution while putting one’s hard-earned money into such schemes. This is important particularly in view of the fact that many companies in recent years have been found delaying the payment of interest and principal on their FDs.

Company fixed deposits are tempting owing to the high rate of interest that they provide compared to the FDs offered by private and public sector banks. However, “if you fall in the 30% tax bracket, then post-tax returns from company FDs may not be attractive as the same may not beat the prevailing inflation. For such investors, debt mutual funds or tax-free bonds may be a better option,” says Anil Chopra, Group CEO & Director, Bajaj Capital.

Corporate NCD's:-

NCD issue means Non-Convertible Debenture public issue. NCD is a Secure and Redeemable Corporate Bond, a bond issued by a corporation to raise money from the capital market. Unlike equity shares, bondholders do not have any ownership interest in the company. They are also known as securities that do not have any equity element attached to it. NCD are tradable instruments. They are listed with major stock exchanges (BSE and NSE) in India.

When one buys a corporate bond, one lends money to the company. In exchange, the company promises to return the money on a specified maturity date along with a stated rate of interest.

Corporate bonds are debt securities. They are considered as a long-term investment option. The maturity period of these securities ranges from 1 year to 20 years. The NCD issue process is similar to the IPO process.

Investors apply for NCD shares through a broker. Based on the subscription, they receive the number of NCD shares. The NCD's are credited to the demat account and the money gets deducted from the trading/bank account.