• Systematic Investment Plan
    SIP is a smart & hassle-free mechanism for investing in mutual funds.
    Learn More
  • Systematic Transfer Plan
    Transferring a fixed amount from one fund scheme in to another scheme is known as STP.
    Learn More
  • Equity Linked Saving Scheme
    ELSS stands out as a smart and efficient way of saving tax and creating wealth.
    Learn More

Why Choose a Financial Advisor?

We at mutualfundwala ponder over this fundamental question every now and then. Why should an individual or a family trust their hard earned savings in the hands of an entity or an individual? This is all the more relevant today as Investors can invest directly and save a part of their expense.

In our close interaction with various individuals, from our family of over 5000 investors, this is what we figured out :

  • Investors are looking for ‘ An honest advice’.
  • While investing, investors need to be ‘educated on investments’.
  • Investors expect financial advisor to know the importance of savings and investment in middle class families.
  • Investors have little or no idea about financial objectives/goals, retirement planning, long term compounding, inflation, risk or adjusted return. They expect the financial advisor to educate them and factor all this (and more) in the investment plan.

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How is Mutualfundwala Different?

We take pride in calling ourselves “advisors to middle class Indians”. We are extremely conservative in our approach to investments. We know perfectly well that our 90% of retail investors lose money in stock markets. In last 13 years not a single investor has lost money investing through us.

We take an extremely calibrated approach to investing. We will look at several subjective & objective parameters before recommending a scheme or a product

Following are five factors that are looked at before recommending debt or equity scheme:

  • Age of the investor and risk appetite - Higher the Age, lower the risk and vice versa .
  • Number of members in the family and number of dependents - Generally higher the family income, higher the risk appetite. However, this is to be combined with certain other variables and looked at on a case to case basis.
  • Market conditions and interest rates - PE , P/BV,  and dividend yields  are the variables help us decide in 'favour of' or 'against equity'.
  • Political Global Factors - Political stability, geopolitics, international oil prices and domestic and international interest rates are given adequate weightage.

How to Get Rich by Investing in Mutual Funds

Equity Mutual Fundsare essentially vehicles which hold ‘shares’ (or part ownership) of various companies.Retail investors view mutual fundsas a ‘black box’. This “black box” is viewed with lot of scepticism and negativity. A layman would think mutual funds has a price (NAV) that may go up and down. Mostly down. Fear of losing money will keep investors at bay. As a result, total head count of investors in the Indian Mutual Fund space is barely 2 Cr. A penetration of less than 2%.

What are Mutual Funds, and more importantly how do they work?

Equity Mutual Funds (or Equity oriented Mutual Funds) are essentially vehicles which hold ‘Equity shares’ of various companies. As we know the ‘shares’ of these companies are listed (and traded) on various stock exchange, such as BSE or NSE. When you buy a unit of the mutual fund, the investors’ money is used to buy parts of these companies. The following illustration shows a Mutual Fund with the Top 10 listed companies. In India 80% of all equity mutual fund assets are spread across around 150 companies.

How does a Mutual Fund grow your money?

Mutual Funds tend to do well, if the companies they invest in do well. Performance of the mutual fund scheme is proportional to the growth in revenues and profits of the invested companies. Secondly, managers of the scheme, comprising, CIO, fund manager and analysts also play an important part. They decide what to buy, what to sell and when to buy and when to sell. How much to buy and how much to stay in cash etc. Lastly, macro-economic variables and sentiments also play a big part in share price movements and hence the performance of the fund.

Here’s the performance of some of the leading companies in India over the past decade. Hence, any equity fund owing these shares would have grown accordingly.

Indian economy is one of the fastest growing economies in the world, growing at close to 12% pa in nominal terms, and it is expected to grow at the same pace for years to come.The incremental growth in the economy in 2018 alone was equal to the size of the economy in 1996. This path of progress is here to stay.

If youWant to create wealth, start by owning great companies through mutualfunds.Mutual Funds as a vehicle for you to own ‘shares’ of some exceptional companies has done an exceptional job in wealth creation. You do not need to bother about what to buy or what not to buy. Let the fund managers do their job and you (as investors) will monetarily benefit by investing and sitting tight.

How Will Mutualfundwala Assist You

New to the world of mutual funds? This is what we can do for you….

Risk Profiling : Mutualfundwala, will access your risk appetite. This is the first step in suggesting a scheme or designing a financial plan. At time a retail investor has no realisation of his/her risk appetite. Let us illustrate: A working professional nearing 60, with no retirement planning feels that he has a high risk appetite. This thought process is a recipe for disaster. Another individual in the same age bracket with substantial alternate income (eg. Rental income etc) feels he is nearing retirement and has “zero” risk appetite. This too is factually incorrect. A hawkish look at an individual or family’s risk appetite is the starting point in looking at investment products.

State of Equity markets and the Economy: These are 2 extremely relevant factors for any investments for 3-5 years. Mutualfundwala will factor this in before recommending a product. Look at 2018. We have a situation wherein the economy isn’t doing too well. Oil is up. Interest rates are on the way up. Rupee is depreciating against the dollar. Macros don’t look good. And we have general elections in 8 months. In august 2018, stock markets seem overpriced. At this time, we recommend caution and patience for things to settle down and not get swayed by euphoria. Investors can start a sip or a 3 year STP and wait for the picture to get clear or things to settle down. Hence, Mutualfundwala will factor in the 2 related pieces (economy and stock prices) before recommending a Mutual Fund be it debt or Equity.

Tenure of investments and the objective of investment : These 2 variables determine if an individual needs to invest in debt or equity. Investors may invest in high risk equity with risk mitigation tools like SIP or STP. Let us explain; An individual who has saved money for his daughters marriage next year, need not use the equity route. Investment can conveniently go in debt instruments and generate 2-3% higher return than FD. Another investor who is 35 and needs to plan a retirement corpus can easily invest in equity and take the SIP route.

proactive monitoring of your investments: Once you have invested with Mutualfundwala, your RM will regularly monitor your investments and give you feedback at least once in 6 months. We will recommend changes and reasons for the same. This helps in beating the benchmark and generating a higher ROI.

Risk and Mutual Funds

We use the word “risk” very often, and have little idea as to what is Risk. Risk is defined as the possibility of losing something of value. Risk can also be defined as the intentional action that may lead to unpredictable results. Hence, when an individual (or an investor) exercises a choice or an action that may lead to “unpredictable and uncontrollable outcome” is called risk.

Now let us deliberate on what is risk in financial investments. More so, in equity or Equity mutual funds. We illustrate with an example. An investor, totally new to the word of investing, invests a lump sum amount in a small and mid-cap scheme. A year later he finds his investments down by 50%. Now when the investment decision was made a year earlier, it may have seemed a smart one. There may have been some convincing reasons why small and mid-caps will go up. This Investors financial advisor may have thought likewise. However, all this was done without considering risk. Hence it led to an “intentional action leading to unpredictable results”. This is a disappointing introduction to the world of investing. This is risk and unpredictable result as loss.

Risk can be mitigated on 3 fronts. Firstly, Intentional action is made wiser with investments in low or zero risk products. Secondly, unpredictable results can be made largely predictable. Lastly, dosage of risk is advised as per the investors risk appetite, market valuations and other macro-economic factors.

Existing Investments:

You may have already made some MF investments and may not be sure if the schemes are the ones for you. This is what Mutualfundwala can do for you :

  • We will check your paperwork, this includes PAN Card, or any correction thereof KYC (Know Your Client) compliance, FATCA etc.
  • A good look at your portfolio and your financial objectives and we can let you know if they are consistent with each other. We will structure your investments with your long or short term financial objectives.
  • We can do a portfolio health check and identify non-performing funds in your existing portfolio. We shall recommend weeding out of non-performing funds and replacing them with better ones.
  • You may let us know of a special requirement viz regular cash inflows etc. We will implement the same. For eg, you may build a regular stream of cash inflows by investment in various dividend schemes and also through SWP (Systematic Withdrawal Plans).
13

Years of Experience

5366

Investor

14

team strength

386

AUM

crore

Mitigation of Risk (in the above illustration) can be done in the following ways…

1. Investor is categorically made aware that results (returns) may come in 5-7 years. Hence, unpredictable outcome is made largely predictable by increasing the time horizon.

2. Investors are suggested not to take the lump sum route. STP (systematic Transfer Plan), minimum period of 24 months. Unpredictability or probability (and quantum) of loss comes down.

3. Small and Mid-caps are not recommended. Multi cap and large cap-oriented schemes are suggested. This will bring down the risk as the products in itself is low risk.

4. Lastly recommending a product after factoring in investors age, financial status, liabilities etc. Good example is a retired pensioner, leading a comfortable middle-class life. He may be suggested a “risk free (or negligible risk) product” with risk free returns of 8-9%. Hence, no unpredictable outcomes or unpleasant surprises.

We at mutualfundwala, will give more attention to “managing risk” then returns. We fully understand that no investor likes to see his capital being eroded. And protecting downside may easily lead to a higher upside.

Process Flowchart

  • Prospective Investor

    Initial meeting:
    • Fatca, KYC compliance.
    • Age of investor, number of earning members, number of dependents and age of dependends etc.
    • Discuss financial objectives ( not provided for retirement planning ).
  • Execution of Investment

    Recommends products after factoring in the following:
    • State of markets(PE, P/BV, Dividends yields etc.)
    • Tenure of investment.
    • Risk Appetite
    • Complete paperwork
  • 1 st Connect With Investor

    1st Phone Call Post Investment
    • Mail the login id and passwords.
    • Help to install the mobile app.
    • Encourage social media.
    • Educate on regular monitoring of investment.
  • Meeting Objectives

    The End Result
    • Monitoring to ensure and add or delete  financial objective as per  investor need.
  • Course Correction

    Recommending Changes
    • Recommending changes of scheme(s) due non performance or major changes in fundamental or political condition.
  • Monitoring of Investment

    Portfolio Analysis
    • Analyse the portfolio every 2 months and interact with client at least once every 6 month. Add this while maintaining logs of conversation (including  time  and date of conversation .)

Our Journey So Far

APRIL 2005

Started operations in April
2005 had 7 investors in
the first month

JAN 2008

Jan 2008, the peak of bull
run, had 285 investors and
assets of 7 cr.

MAY 2014

MAY 2014: Assets of
70 Cr, 1200 investors when
UPA II came in.

MARCH 2016

March 2016: AUM of
135 Cr and 3000
active investors

JULY 2017

July 2017: AUM over
300 Cr and over 4400 investors.
Employee strength of 14

AUGUST 2018

AUM of over 386 cr.
Over 5300 investors.

Professional Approach

to Manage Money

Regular Monitoring of Investment

Regular Monitoring of Investment

Goal Based Investing

Goal Based Investing

Update on New Product

Update on New Product

RM on Call

RM on Call

Buy and Sell Online

Buy and Sell Online

Deal Only in Mutual Funds

Deal Only in Mutual Funds

Latest News

Our Latest Articles, Tips & News

What is Mutual Fund ?

What is Mutual Fund ?

Mutualfunds are very popular in the western world but in India lot of people wonder what are Mutual Funds?? Are Mutual Funds sort of investments?? Are Mutual Funds risky??
Types of Mutual Fund

Types of Mutual Fund

An open-ended fund is a fund that is available for subscription and can be redeemed on a continuous basis. It is available for subscription throughout the year and investors can buy and sell
Comparison between SIP, PF and NSC

Comparison between SIP, PF and NSC

Retail investors are often confused between various names and various financial products. NSC, PF, PPF, FD etc all seem similar to them.

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