Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
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FINANCE for DENTISTS – Part X
The Current Scenario
Author: Dr. Bhavdeep Singh Ahuja
Continued from WJASR Volume 2 Issue 5 – Sep–Oct 2019 Issue First Part September – October 2019 Issue – Second Part
DISCLAIMER: Although every effort has been taken to make sure that there are no mistakes, there might be still, some mistakes inadvertently crept in the article. Please notify the same @ author’s email: [email protected] or Call/Whatsapp: 98761-93039 and they will be corrected ASAP.
We had covered the introduction about mutual funds along with a basic terminology or nomenclature in the last issue. Let us continue ahead of that:
Mutual Funds – Modes of 1. Lumpsum Investment: It Investment refers to a one-time investment that an investor makes. If one Investors can invest in mutual has a large sum of disposable funds via two modes of investment, income in hand, coupled with a namely, Lumpsum investment or good risk appetite, he/she can Systematic Investment Plan (SIP). go for a lump sum investment. When investors consider investing 2. Systematic Investment Plan in mutual funds as a beginner, the (SIP): Systematic Investment first thought that comes to their Plan (SIP) is a mode of minds is whether to go for the investment in mutual funds former or the latter. that allows regular investment www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
of small amounts of money at How to Invest– in Mutual predefined intervals. This Funds? – DETAILS instills disciplined investment Or habits amongst investors who find it difficult to save. One What do you need to get started with Mutual Fund can also give Standing investing? Instructions (S.I.) to the fund house for auto debit of 1. To invest in a Mutual Fund, a installment amount from the potential investor needs to bank account. complete their Know Your Client / Customer (KYC) Mutual Fund Eligibility details. This is to make sure Anyone can invest in mutual that one understands the funds. The minimum investment possible risks and rewards can be as low as Rs 500. Both before registering in a Mutual resident Indians and NRIs (Non- Fund. resident Indians) can invest in 2. To start investing in a fund mutual funds. You can also invest scheme you need a PAN, in the name of your spouse or kids. Aadhaar and Bank Account and If your child is a minor (below 18), be KYC compliant. your details have to be mentioned 3. The bank account should be in while investing and you operate the the name of the investor with account till he or she turns 18. the Magnetic Ink Character Even partnerships, Limited Liability Recognition (MICR) and Indian Partnership firms (LLPs), Trusts Financial System Code (IFSC) and Companies can invest in details. These details are mutual funds. Investments in mentioned on every cheque leaf mutual funds can be made by a and it is common for an agent variety of investors such as or distributor to seek a individuals, partnership firms, cancelled bank cheque leaf. Qualified Foreign Investors (QFIs), 4. Moral – You can't invest with registered Foreign Institutional Black Money. Some people still Investors (FIIs), Persons of Indian are under this belief that they Origin (PIOs), Non-Resident Indians have 2 types of accounts – (NRIs), cooperative societies, Hindu White and Black or 1 No. and 2 Undivided Families (HUFs) etc. To No. Believe me if you think so, invest in mutual funds, applicants you are still living in a dream are required to be KYC compliant; land. Even, after November more on that below in the upcoming 2018, Hon’ble Supreme Court section. order of no mandatory Aadhaar-PAN Linking; No www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
Bank, be it nationalized or you start investing in– the systematic private opened account without investment plan (SIP), you need to the duo (except Jan-Dhan fill in two forms: Accounts) and as per RBI data, 1. One to open an account with almost 90% of bank accounts the mutual fund house. have already been linked with
the same before November 2018 and and the remaining 10% which
were or could not be linked 2. The other to specify your SIP were either dormant, deceased details such as frequency, or NRI (not exactly NRI, but monthly installment amount domestic people who went and date on which the SIP sum abroad and have been blocked is to be invested/deducted from for transactions anyways). account.
Documents required to be Investing for Minors submitted along with KYC 1. If you wish to invest in the application name of a minor, you need to 1. Recent passport size fill in a third-party declaration photograph form. 2. Proof of identity such as a copy 2. Only parents (not grand- of PAN card (mandatory now) or parents unless they are UID (Aadhaar) or Passport or guardian in case parents are Voter ID or Driving License. deceased) are allowed to invest 3. Proof of address –Aadhaar or on behalf of their children. Passport or Driving License or 3. Documents that establish the Ration Card or Registered parent's relationship with the lease/sale agreement of child should be submitted residence or latest bank A/C (Passport, Birth Certificate or statement or Passbook or Latest any other ID proof). telephone bill (only landline) or 4. If the child has no parents in latest electricity bill or latest case of an eventuality, then a gas bill, which are not older court-appointed guardian can than three months. invest, if necessary 4. If I simplify the above language documentary proof is submitted – Photograph, PAN, Aadhaar, to establish the relationship Cancelled Cheque between the minor child and the guardian Mutual Fund Application Form
Each mutual fund scheme has a The next MOST important form that the investors need to fill. If question is how? www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
their bookkeeping services– but other MODES to INVEST in Mutual than that, the AMC can not pay Funds them commissions or compensate There are two types broadly – them (at the cost of the investor) for Regular and Direct. selling direct plans. Even today, scores of Indians believe So, after direct AMC websites, CAMS that investing in regular mutual and Karvy came the MFU. The MFU funds via their banks or via certain opened the floodgates for direct portals or via their sales guy offering investment portal startups. door service is “free”. They believe Today I would estimate at least 25 that these agencies are paid such direct portals depend on the commissions from the fund houses. MFU for transactions like GROWW, They also believe that the ICICI Direct, Zerodha, Sharekhan commissions come from “elsewhere” etc. Their charges may vary. without understanding the vital fact One can invest online or offline or in that when you buy a regular mutual direct as well as regular plans. Like fund plan, commissions are everything else, each option has its removed from your current limitations and advantages, which investment value every day before vary for each investor. Let us just go the NAV is published. through all options presently When direct mutual funds were available: introduced in January 2013, the 1. Direct Plan: As I said above, only way you could buy them was since January 1, 2013, all “direct” with the AMC (Asset mutual fund houses have rolled Management Company). out a new plan under all of Then you could buy “direct” plans their existing fund schemes-the via the transfer agents – CAMS (& Direct Plan. These plans are and then Karvy). targeted at investors who do not Then, there came along a make their mutual fund transaction aggregation portal co- investments through owned by the AMCs – MF Utility distributors and hence, have a (MFU) in 2015/16 or so. lower expense ratio compared Direct with AMC and MFU have no to existing fund schemes of the middlemen explicitly involved and is AMC. You get higher returns the cleanest way to buy direct but only slightly. The direct mutual funds. Why I say that it is plans will not charge clean (& free) because we know that distribution expenses or the AMC charges a management fee commission, resulting in these which is also deducted every day plans having lower annual before the NAV is published. CAMS charges and eventually, a & Karvy will get compensated for www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
different (higher) NAV compared with the AMC. – to the regular plans. 4. Directly with the AMC: You 2. Through intermediaries: A can invest in a mutual fund wide variety of intermediaries scheme by investing directly like most banks, distribution through the AMC. The first time companies having national or you invest in any Mutual Fund, regional presence, some stock you may have to go to the brokers (including online AMC's office to make your brokers) and a large number of investment. Subsequently, individuals and small financial future investments in different advisory companies. All fund schemes of the same AMC intermediaries have to be can be made online (provided registered with the Association this facility is offered by the of Mutual Fund in India (AMFI), AMC) or offline, using the folio which also maintains a number linked with your name searchable online directory at and PAN. www.amfiindia.com. The 5. Through Online Portals: website also lists intermediaries Several third party online who have been suspended for portals are there, from where malpractice to protect investors you can invest in various from going back to them. So mutual fund schemes across before investing, check whether AMCs. Most of the portals have your broker is available on tie-ups with banks to facilitate www.amfiindia.com or not. easy fund transfer at the time The intermediary normally of investing. These portals brings the required mutual charge an initial fee to setup an fund application form, helps account and facilitate future you fill the forms, submit the smooth online access to invest forms and other documents to and redeem your investments. the Mutual Fund office and 6. Through your Bank: Banks are sometimes even brings in the also intermediaries who Account Statement but all distribute fund schemes of these services come to you for a different AMCs. You can invest fee. directly at your bank branch 3. Through IFAs: IFAs are into fund schemes that you Independent Financial wish to invest in. Advisors, who are individuals 7. Through Demat and Online who act as agents to facilitate a Trading Account: If you have a mutual fund investment. They demat account, you can buy help you fill the application and sell mutual funds schemes form and also submit the same through this account. www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
Purchasing mutual funds 1. After the KYC is– complete, one through demat account attracts can simply start investing in a charges annually and does not MF either through a broker or offer direct facility plus no directly visit the fund’s office advisory services. or thru any of 7 ways mentioned above. So these are the 7 ways, I hope it is not as difficult as some of you might 2. Nowadays, investors can also have thought initially. invest in MF online.
3. When you visit the fund s office What I prefer personally? ’ and apply directly for investing I prefer a registered knowledgeable in the MF or avail online broker or a registered intermediary services, you save on the Total out of all 7 (with whom I can discuss Expense Ratio, thereby, sometimes, my fears, assumptions increasing your Net Asset etc). Value (NAV). Why a knowledgeable broker is beneficial? 4. If you go through a broker, you I believe strongly, it should be a need to pay an additional fee Win-Win situation for everyone. If he which brings a reduction in is making you earn money, he your NAV (slightly). should also stand to take a cut as 5. Therefore, it is advisable to well, but the key word is ‘registered invest in MF directly through and knowledgeable’ or the other the fund s office provided way is intermediary who will always ’ (ONLY) if you have the have such intelligent people in confidence in your own abundance sometimes. You just financial decisions and have to find the guy who suits yours expertise to handle your sensibilities and can understand investments on your own. your unique situation (Dentists).
Don’t always expect free in life 6. When you do it online, the always, every thing comes at a cost entire KYC process is as there are no free lunches conducted online. Once your anywhere. The only thing that is free KYC is done, you need to select in this world is Mother's Milk. a mutual fund and submit a purchase request along with Summarizing the above Process – payment. When you do this Going direct always comes with a online, you keep paperwork condition mentioned at Point 5 and hassle to a minimum. below: Types of Mutual Funds in www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
India funds is relatively– high, the generated returns are equally Mutual funds in India are classified high. into different categories based on certain characteristics such as asset Based on Structure class, structure, investment 1. Open-ended Mutual Funds: objectives and risk. Let us see the Open-ended mutual funds have various categories in detail and the no constraints as far as the kinds of funds under each category: number of units that can be Based on Asset Class traded or the time period is 1. Equity Funds: Equity funds concerned. Investors are make investments mainly in allowed to trade and exit from stocks of companies. Equity the funds at their own funds are the most preferred convenience. investment options among the 2. Closed-ended Mutual Funds: majority of investors as these The unit capital that is to be offer high returns and quick invested in closed-ended growth. mutual funds is fixed and 2. Debt Funds: Debt funds chiefly therefore, it is not possible to invest in low-risk fixed-income sell more than the instruments such as predetermined number of units. government securities. Since The maturity tenure of the these funds come with a fixed scheme is fixed. maturity date and interest rate 3. Interval Funds: Interval funds these are ideal for investors can be bought / exited only at with low risk appetite. specific intervals as determined 3. Money Market Funds: Money by the company. These are open market funds invest in easily for investment for a certain accessible cash and cash period of time only. Usually, the equivalent securities and offer investors need to stay invested returns as regular dividends. for at least 2 years. These funds come with Based on Investment Objectives relatively lower risk and are ideal for short term investment. 1. Growth Funds: Growth funds 4. Hybrid or Balanced Funds: invest a large portion of their Balanced or hybrid funds invest capital into stocks of companies a certain amount of their having above-average growth. corpus into equity funds and The returns offered by these the rest in debt funds. Though funds are relatively high, but the risk involved with these the risk involved along with is www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
also quite high. delivered returns– are relatively 2. Income Funds: The corpus of low and the investors should income funds is invested in a remain invested for at least 3 combination of high dividend years. generating stocks and 7. Pension Funds: Pension funds government securities. These are great investment options for funds focus to offer regular individuals who wish to save for income and impressive returns retirement. These funds offer to investors investing for more regular income and are ideal for than two years. meeting contingency expenses 3. Liquid Funds: Similar to such as a child’s wedding or income funds, liquid funds also medical emergencies. make investments in money 8. Fixed Maturity Funds: Fixed market and debt securities. maturity funds make However, the tenure of these investments in money markets, funds usually extends to 91 securities, bonds, etc. and are days and a maximum amount closed-ended plans that come of Rs. 10 lac can be invested in with fixed maturity periods. The them. tenure of these funds could 4. Tax-saving Funds: Equity- extend from a month to 5 years. Linked Saving Schemes (ELSS) mainly invests in equity and Based on Risk Profile
equity-related instruments and 1. High-risk Funds: High-risk offer dual benefits of tax-saving funds are funds which carry a and wealth generation. These high level of risk but generate funds, usually, come with a impressive returns. These funds three-year lock-in period. require active management and 5. Aggressive Growth Funds: their performance must be Aggressive Growth funds carry reviewed regularly as these are a relatively high level of risk prone to market volatility. and are designed to generate 2. Medium-risk Funds: The level steep monetary returns. of risk associated with medium- Although these funds are prone risk funds is neither too high, to market volatility, they have nor too low. The corpus of the potential to deliver medium-risk funds is invested impressive returns. partly in debt and partly in 6. Capital Protection Funds: equities. The average returns Capital protection funds which offered by these funds range chiefly invest in debt securities from 9% to 12%. and partly in equities aim to protect investors’ capital. The www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
3. Low-risk Funds: The corpus of funds as this helps– in achieving low-risk funds is spread across diversification of portfolio. a combination of arbitrage 4. Foreign / International funds, ultra-short-term funds Funds: Foreign / international and liquid funds. These funds funds make investments in are ideal in times of unexpected companies located outside the national crisis or when the investor’s country of residence. rupee depreciates in value. These funds have the ability to 4. Very Low-risk Funds: These deliver good returns at times funds could be ultra-short-term when the Indian stock markets funds or liquid funds whose perform well. maturity extends from a month 5. Global Funds: Global funds to a year. Such funds are primarily invest in markets virtually risk-free and the across the world as well as in returns they offer are generally the investor’s home country. around 6% at the best. Global funds are universal and diverse in approach and carry a Specialized Mutual Funds high level of risk due to the
1. Index Funds: Index funds currency variations and invest in an index and rather different policies. than a fund manager managing 6. Emerging Market Funds: the fund, these replicate the Emerging Market Funds invests performance of the index. The in developing markets. These stocks in which investments are funds are risky investment done are similar to that of the options. Since India is also an corresponding index. emerging and dynamic market, 2. Sector Funds: Sector funds are these funds are susceptible to theme-based funds which market volatilities. invest their corpus in a specific 7. Real Estate Funds: Real estate sector to deliver impressive funds are special share funds returns. Since these funds which invest in high-quality real invests in a specific sector with estate directly or through a limited number of stocks, companies which purchase real these have a high risk profile. estates. Though these funds 3. Fund of Funds: Fund of funds have high associated risk these invest in a diversified portfolio offer long-term returns. and the fund manager invests 8. Market Neutral Funds: Market in one fund that makes neutral funds are great options investments in several funds for those investors who want to rather than investing in various be safe from unfavourable market fluctuations while also www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
sustaining healthy returns from 1. Identification –of Goals: Before their investment at the same you put your money into an time. investment vehicle, it is 9. Asset Allocation Funds: These important to identify your funds invest in equity financial goals. You must know instruments, debt securities how much money you wish to and even gold. These are highly invest in order to achieve your flexible in nature and can goals. In case you have short- regulate the distribution of term goals and require funds in funds into equities and debt say, two to three years, debt instruments. schemes would be the way to 10. Gift Funds: The investors can go. In case, you have long-term gift these funds to their family goals and require funds after in order to secure their financial say, five years or so, equity future. These can be used to schemes can help you achieve pay all portions or a part of your goals. Once you identify down payment or closing costs. your goals, choosing the right However, these can’t be used to funds becomes much easier. buy an investment property. 2. Understanding the Various 11. Exchange-traded Funds: These Schemes: There is a wide funds which are sold and variety of mutual fund schemes purchased on exchanges offer within the equity and debt fund exposure to overseas stock universe. In order to choose the markets and specialized right scheme, you will have to sectors. These may be traded in take into consideration your real-time and the prices can risk appetite, your investment increase/decrease many times a horizon and your financial day. goals. Compare different
schemes to find the ones that How to Invest in a Mutual are in line with your risk profile Fund in India and your investment horizon.
An increasing number of us 3. Approaching Advisors: If you (individuals) in India have taken to are investing in mutual funds investing in mutual funds, but a directly by yourself, a fund good percentage of the investors advisor can be of great aid in have no idea how to go about it. I helping you achieve your am mentioning a few tips below to financial goals. Experienced help you kick-start your investment advisors not only help in taking in mutual funds: care of the formalities, but they www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
also suggest schemes that can your financial objectives– to get help you generate returns. the most out of your Many advisors also tend to keep investment. Growth options are track of your investments, ideal for those who want a large thereby, enabling you to switch amount of money to meet their in case one of your investments financial objectives. Dividend is underperforming. options, on the other hand, are ideal for those who require 4. Keeping your Documents profits at regular intervals of Handy: All transactions made time. in the mutual funds domain
must be well documented. It is 7. Considering your Age: The necessary to be KYC compliant time-frame for achieving your when transacting with mutual investment objective must be funds, which is just a due finalized before you invest in diligence of certain personal mutual funds. As you grow information such as furnishing older and approach retirement your photograph, address age, your exposure to stocks proof, PAN and DOB certificate. must be limited as it will ensure Ensure that you have a PAN that your capital is preserved. A card as it is one of the professional fund manager can requirements for investing in help you better understand mutual funds. where to invest your money.
5. Considering the Risk Factor: 8. Past Performance of Funds: Considering the wide variety of The past performance of funds mutual funds on offer, make does not necessarily give you an sure you pick only those that insight into how it will perform cater to your risk appetite. The in the future. For example, IT higher the returns offered by a and Pharma funds were known scheme, the higher the risk for generating attractive returns associated with it, therefore, over the past five to ten years, making it important to ensure but have been underperforming that you choose your funds over the past year or so. The wisely. return accrued by funds in the past does not guarantee their 6. Plans and Options: Most excellent performance in the mutual fund schemes come future. However, their with options such as growth performance can be assessed and dividend. When choosing a when choosing a scheme as scheme and the options under schemes that have performed it, it is essential to consider www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
well in the past have better putting into a fund,– which is why potential to generate healthy picking the right fund is of utmost returns in comparison with importance. other funds. Studying a When you go for choosing a fund, scheme’s performance over should you go by personal needs or different market cycles will help market trends? you better understand which But, we know it that choosing the ones could help you achieve right fund has never been easy. profits. So, we adopted an easy way out and we all have been investing on So, how do you select a hearsay. Even seasoned investors mutual fund? struggle sometimes when making a
choice. It is understandable for a As I always say, the process begins new investor like some of us to be by asking your self a few questions. overwhelmed by the entire process. The only problem is that we are There are just way too many funds SPOILT for choices. There are way to choose from. too many mutual funds as I listed But the bottom line for this is that the various categories above. Being ‘Choosing your first mutual fund spoilt for choice isn’t always has more to do with your own self favorable for everyone. Studies have than the fund options in front of shown that the best decisions are you . made when there are fewer options ’ I am mentioning a few questions as to choose from. The paradox of to what you should ask yourself choice is what the supermarkets before you pick a fund: thrive on. They give you so many options to pick from that you end up Question 1: What am I investing buying more than what you need, for? often just to try things out. This You will make better investment must be sounding familiar to you decisions if you are investing for a like an impulsive buying in a mall or specific purpose or goal. This goal a big bazaar. could be the purchase of a new car In a similar vein, the mutual fund or house, saving for your child’s investor is also spoilt for choices, education or a vacation abroad. but when it comes to fund investing, Even investing in a mutual fund to an investor like us cannot afford to just be able to save and earn better “try” funds out. There is no room for returns than a savings account or error here. The performance of your fixed deposit can be a goal. With a investment is directly linked to the definite purpose in mind, you can goals you are investing for. It is your make an informed choice. hard-earned money that you are
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Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
Question 2: What is my investment primarily to the above– three (there horizon? are a few more secondary as well) On a very broad level, the longer you questions, you will be able to decide have to invest, the more risks you on the type of fund you need to can take. If your investment horizon invest in. is just a few years away, you should A few tips for this below: probably take fewer investment risks. This is why the number of 1. For non-negotiable short-term years is an important metric to goals, you should opt for debt consider when choosing a mutual mutual funds. fund. 2. If the goal is non-negotiable but
a few years away, you can begin Question 3: Is my goal negotiable or investing in an equity fund and not? gradually book profits as you Just to cite an e.g. here, a vacation come nearer to your goal. abroad can be a negotiable goal in 3. For negotiable long-term goals, the sense that if you don’t have the you can consider equity funds adequate amount, you can push the because they are best placed to vacation further by a few months. give you higher returns. But something like a child’s college 4. If the goal is negotiable but education is a non-negotiable goal. short-term, a balanced fund You have to pay the fees at a specific would be the best option. time and that is something you can not delay.
What fund types should my portfolio contain? Once you have the answers
(Image Courtesy: Google)
Once you have figured out the type should choose a fund that has a of mutual fund you need to invest long history of doing well over in–equity, debt or balanced, you different market cycles. This means www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X that a fund that has weathered done keeping – in mind one’s different economic conditions in the financial objectives. If you are past would be a sounder bet than a investing with the purpose of new fund that doesn’t have a history creating a huge corpus of to speak of. Of course, past wealth for retirement, performance does not guarantee children’s education, and any future returns, but it is a good other expenses that require indicator when making a choice. A large amounts of money, you simple way to do this is to look at can consider small-cap or mid- the top performing funds of a cap equity mutual funds for category over various time periods investment. They are risky in like 1 year, 3 years, 5 years and 10 the short run, but deliver high years. Among these funds, choose returns in the long run. If you the fund that appears in the lists for are looking for investment most time periods. You can also options to park your money for take the help of mutual fund expert a short term, you can opt for to give you fund suggestions based debt funds, which are on your goals and investment relatively less risky and offer horizon. more liquidity. This is how you can simplify the 2. Historic performance of the process of choosing a mutual fund. fund: After contemplating on Remember to be honest to yourself your financial goals and when you answer the questions choosing the best mutual fund mentioned above. You will make a category that is in line with better choice when you know your your goals, you need to select investment purpose and goal very the top performing mutual clearly. Before investing in mutual fund in that specific category. funds, individuals should have a Historic returns of mutual clear vision of their financial goals funds are one of the and how much they can invest out parameters to estimate future of their total income. Also, there returns. If the fund s 5 year are numerous factors to look at ’ annualized returns are better while selecting a mutual fund. than its peers and the Here is a list of further few benchmark returns, it is criterions apart from ones considered a good choice for mentioned above, investors should investment. consider before choosing the perfect mutual fund for 3. Assets Under Management themselves: (AUM): The higher the value of 1. Financial foresight: total assets under Investment in Mutual Funds is www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
management for a fund, higher mutual fund – category for is the chances of that fund to investment is also based on deliver substantial returns in investor’s risk appetite. If you the long run. The large size of are a conservative investor, it AUM indicates investors’ trust is better to opt for large cap in the fund and allows fund equity funds, debt funds or managers to make rational conservative hybrid funds. decisions without fearing large However, if you have a outflow of assets from the substantial risk appetite, you fund. can opt for small-cap equity funds, or aggressive hybrid 4. Risk Tolerance of the funds, to earn quality returns. investor: Picking up the right
(Series to be Continued)
(We shall continue this Article on Finance in the Part 11 of this Series in Volume 2 Issue 6 – Nov–Dec 2019 Issue – First Part with Mutual Funds)
REFERENCES: 1. http://www.alterdoctor.in 16. https://www.hdfcbank.com 2. https://www.bankbazaar.com 17. https://www.incometaxindia.go 3. https://www.blog.tax2win.in v.in 4. http://www.businessnewsthis 18. https://www.indiafilings.com/l week.com earn/cash-transaction 5. https://www.businesstoday.in 19. https://www.investopedia.com 6. https://www.cleartax.com 20. https://www.kevinmd.com 7. https://www.docplexus.org 21. https://www.livemint.com 8. https://www.economictimes.ind 22. https://www.mediqfinancial.co iatimes.com m 9. https://www.economictimes.ind 23. httsp://www.meethilassi.com iatimes.com/wealth/earn 24. https://www.moneycontrol.com 10. https://www.economictimes.ind 25. https://www.nytimes.com iatimes.com/wealth/plan 26. https://www.paisabazaar.com 11. https://www.economictimes.ind 27. http://www.pocketnewsalert.co iatimes.com/wealth/tax m 12. https://www.en.wikipedia.org 28. https://www.quora.com 13. https://www.ey.com 29. https://www.scroll.in 14. https://www.financialexpress.c 30. https://www.sec.gov/reportspu om bs 15. https://www.getwalnut.com 31. https://tax2win.in www.wjasr.in World J Adv Sci Res Vol. 2 Issue 5 September – October 2019 Pgs. 140 - 155
Dr. Bhavdeep Singh Ahuja: Finance for Dentists Part X
32. https://taxadda.com/restriction examples.html – s-cash-transactions 35. http://www.tennews.in 33. https://taxfull.com 36. https://www.tflguide.com 34. https://taxguru.in/income- 37. https://www.tomorrowmakers. tax/rs-2-lakh-cash-transaction- com limit-wef-01apr2017-details-
Dr. Bhavdeep Singh Ahuja graduated in 1998 from Punjabi University, Patiala. He has specialized in Implants from BioHorizons Inc. USA in 2004-05 & in Advanced Course from LACE-ICOI, USA in 2006. Apart from Dentistry, he holds a Triple M.B.A. in Hospital Management, Finance/Human Resources (dual) & Marketing from three premier Institutes/Universities of India viz. the IIMM Pune, IGNOU Delhi & Annamalai University, Chennai respectively. He also holds Post Graduate Diploma’s in Medical Law & Ethics (NLSIU - Premier LAW School of India), Clinical Research, Cyber Law, IPR's (Intellectual Property Rights), Disaster Management, Financial Management, Bioinformatics amongst many more from different Universities. He is a Certified Health Care Waste Manager from IGNOU & is qualified in Consumer Law as well. He is an academically oriented dentist & has more than 75 Original Scientific Publications to his credit in many International & National journals. He lectures all over India extensively on the topics of Practice Management, Medical Law, Ethics and Consent and Finance for Dentists and he is writing a series on these topics in multiple journals simultaneously. He has been the Past Editor-in-Chief, L.E.D. E-Journal & PAGE 3 OLA- D E-Newsletter, the twin Publications of IDA Ludhiana Branch. Presently, he is into his 21st Year of Clinical Private Practice in Ludhiana, Punjab.
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