Let's take a tour in mutualfunds
and how to invest in aliceblue mutualfunds.
What is Mutual Funds?
How to place order in Aliceblue Mutual Funds?
How to place SIP Order in Aliceblue Mutual Funds?
Overview of Dashboard.
Advantages of Aliceblue Mutual Funds.
Mutual fund is a kind of investment that uses money from investors to invest in stocks, bonds or other type of investment. A fund manager is available for each fund who decides how to invest the money. Mutual funds are usually “open ended”, means the new investors can join into the funds anytime. At this time, new units (like shares) are given to new investors.
It is an order collecting platform which helps you buy mutual funds online from around 39AMCs, with zero commission or brokerage directly from the asset management companies and stores it in your DEMAT account.
Anyone who is having Alice blue DEMAT account can able to login and purchase funds. Those who are not having Alice blue DEMAT account, can able to view the fund’s performance but can’t place the order.
It is the price at which the units of mutual fund are brought or sold. It is the market value of the fund after deducing its liabilities. The values of all units of a mutual fund portfolio are calculated on a daily basis, from this all expenses are subtracted. The result then divided by total no.of units and the resultant value is the NAV.
CAGR is the rate of return that would be required for an investment to grow from its beginning balance to its ending balance, assuming that the profits were reinvested at the end of each year of the investment’s life span.
CAGR = (Ending Balance/Beginning Balance)1/n - 1 ,Where: n - no. of years.
To calculate the CAGR of an investment: 1. Divide the value of an investment at the end of the period by its value at the beginning of that period. 2. Raise the result to an exponent of one divided by the number of years. 3. Subtract one from the subsequent result.
It is the return that the mutual fund house has given over a certain period of time. Whatever the returns/gains/losses that the mutual fund provides is the absolute return without comparing to any benchmark index.
Absolute Returns % = (current value-investment value)/investment value
For Example – If a mutual fund provides current value is Rs.10000 and Investment value is Rs.8000 then the absolute return is (10000-8000)/8000 which is 25% .
Exit load is a cost that an investor needs to bear if he or she sells the mutual fund units before a predefined time frame. Typically, equity mutual fund schemes levy an exit load of 1% if the units are sold within one year of buying. Simply put, it is a mechanism to deter investors from premature withdrawals.
Redemption price = (net asset value/ (1-exit load)). The exit load % is deducted from the NAV at the time of redemption.
Equity Linked Savings Scheme(ELSS) that allows an individual ,a deduction from total income of up to Rs.1.5Lacs under section 80C of the Income Tax Act 1961.Thus if an investor was to invest Rs.50,000 in an ELSS, then this amount would be deducted from the total taxable income, thus reducing the tax burden. These schemes have a lock-in period of three years from date of units allotment. After the lock-in period is over, the units are free to be redeemed or switched.
Certain period during which an investor is restricted from selling a particular investment.
All mutual fund schemes offer Direct and Regular plans.In a Direct Plan, an investor has to invest directly with the AMC, with no distributor to facilitate the transaction. In a Regular Plan, the investor invests through an intermediary such as distributor, broker or banker who is paid a distribution fee by the AMC, which is charged to the plan. Therefore, the direct plan has a lower expense ratio as there is no distribution fee involved, while the regular plan has a slightly higher expense ratio to account for the commission paid to a distributor to facilitate the transaction.
An asset management company (AMC) is a firm that invests pooled funds from clients, putting the capital to work through different investments including stocks, bonds, real estate, master limited partnerships, and more. Along with high-net-worth individual portfolios, AMCs manage hedge funds and pension plans, and—to better serve smaller investors—create pooled structures such as mutual funds, index funds, or exchange-traded funds, which they can manage in a single centralized portfolio.
Pending Order : Successfully placed orders are available under Executing Orders.Orders placed until 1:30PM of the working day displays with the status Pending Order.
Sent to Exchange : After 1:30PM (working day), orders will be sent to exchange. Status will change to Order sent to exchange
Portfolio : Once the units are allotted (purchased), it will be available in My Portfolio section.
In order to redeem the purchased fund, click the Redeem button in portfolio section of each fund purchased. Enter the number of units to redeem in the Redeem Request page. Confirm the redemption. Redeem request will be placed.
Note: Redemption order also sent to exchange after 1:30PM of the working day. Once the units are settled, amount will be credited to the user within number of T days depends on the AMCs.
SIPs in ABMF is not based on conventional model.Here we collect the order as SIP and push it to the exchange as Lumpsum order.
If the user wants to stop the SIP in between prior to the installment completion, click the Delete SIP button to delete the SIP.
Note: All the completed sip installments will be available in the portfolio until redeemed. No further allotment made if SIP is deleted.
SIP's history is available in with the status as Active/completed/Terminated.
It displays the user name, account balance, total investment made and cumulative profit and loss.
It displays the investments made in each category i.e., commodity, debt, equity, hybrid and other in a pie chart
It displays the user's most searched fund list.
It displays the overall most searched funds by all users.
All the orders (pending, allotted, redeemed, expired, deleted) everything is available in order history section of the user.
Investments made through ABMF (pronounced as Alice blue mutual funds) are absolutely free.
Zero Commission or Brokerage in ABMF. Since ABMF provides only direct plan, there is no commission need to be paid to the brokers or distributors like regular plan, which in turn reduces the expense ratio of direct plan as there are no commission expenses.
1800+ schemes of 39 AMCs collectively in one place along with daily updating NAVs.
All units in a DEMAT account which gives a single portfolio to view all the funds in one place.
Consolidated statement for investments made through ELSS funds,reference for claiming a tax deduction for ELSS Scheme as per Section 80C of the Income Tax Act, 1961.
Order tracking is absolutely easy. From placing order to allotment/ redemption, everything is present under user dashboard with category split.
User Portfolio which gives complete holdings of the allotments done through Normal (NRM) and SIP (Systematic Investment Plan).