The African continent has always been one of the most favorable places for cryptocurrencies in the world. Despite the region has been facing lots of challenges from the regulators in the process of adopting cryptocurrencies, today the regulators tend to reconsider the industry as a result of the growing crypto usage. Today there are many countries especially in the Sub-Saharan region where crypto companies easily establish their business and gain success and Uganda is one of them.

Recently there has been a technological boom in Uganda and the main reason for this can be attributed to the thriving Fin-Tech industry in the country. Many companies started to use innovative technologies to enter some of the most profitable sectors of financial services to drive significant gains and raise financial inclusion which stands at just 58% in Uganda. This is why a great number of start-ups for a total of 550 small businesses in Uganda start to use a revolutionary technology of Blockchain that gives people the opportunity to transact money directly with each other without any need for intermediaries.

In general, technologies in Uganda have the potential to completely change some important segments of the economy and this is especially true when it comes to Blockchain. The country has successfully adapted to new technologies and developed new business models. And as cryptocurrencies are integrally tied to blockchain technology, it’s not really a surprise that the usage of cryptos has increased in the last few years and today this technology is widely used in both financial and non-financial applications within the country.

Why is the crypto landscape thriving in Uganda?
The blockchain and crypto industry in Uganda continues to raise and the main reason for this is the simplicity for crypto companies to establish a foothold in Uganda as the country is very friendly towards investment culture and this is because there are so many investors eager for having many opportunities and therefore, it was beneficial for crypto companies to enter the Ugandan market. In last years many crypto companies established their businesses in Uganda and which helped various industries in the country to succeed.

Furthermore, Ugandans already had a primary example of what trading could do for a person. The role model was Mukesh Shukla, one of the richest people in Uganda according to this article. He had gained most of his wealth through trading and later investments in the various sectors. Knowing that trading and speculation could bring such success, Ugandans were more than motivated to try their luck in these markets, even if Shukla hadn’t endorsed them.

Not surprisingly, traders involved in the foreign exchange market are the ones that enjoy the widening of the crypto landscape in Uganda the most. Having so many crypto-related opportunities helped thousands of traders and they will continue to do so well into the future. Therefore, forex trading plays a major role in the thriving crypto landscape because cryptos are mostly anonymous and transactions made in crypto are a guarantee that your personal information is secured from online scammers. This is why using cryptos is a great option for traders to transfer and receive money.

Blockchain-related regulation in Uganda
The growth of the crypto landscape pushed Ugandan blockchain associations and communities to organize various activities in the country that are related to the crypto market. In 2019 they hosted some blockchain conferences with official support from the government. Despite the fact that currently there is no regulatory framework for the Ugandan crypto market, the government and president have a positive attitude towards crypto companies.

This can be easily noticed if we take a look at the speech of Ugandan President Yoweri Museveni at the Africa Blockchain conference that was held in May 2019. AS he said, the government needs to enable things to move faster and clearly, he meant that the government must revise the law and provide regulations to the crypto market. After that there have been several cryptos to fiat currency exchanges in the country and among them are Coin Pesa, Binance, and BitPesa. After that, the popularity of cryptocurrencies grew so much that today even some restaurants, ordinary shops, and hotels accept payments in cryptocurrencies that makes Uganda stand out from other African nations.

However, still, the government hasn’t taken any further steps in this way and there is no certain regulation about cryptocurrencies in the Ugandan jurisdiction. Regulators and lawyers believe that this sector needs both traditional and digital payment methods and they try to provide some kind of a mix of both these methods. But this is just a part of a future plan and for now, Uganda lacks regulations. But the attempts of the government, president, and Ugandan lawyers must be praised as there is no other government on the whole African continent that has shown so much willingness to expand the use of blockchain technology. Unlike most other countries, the Ugandan government clearly understands the number of benefits this digital technology can bring to the country and how it can take part in the advancement of the Ugandan economy.

Possible changes in the policy
Now the government of Uganda in the process of revising policy and implementing new guidelines to encourage using blockchain technology. However, one more important thing for them is to take a good look at the existing Data Protection Bill that also requires some changes. For now, the personal information of the customers is not strictly confidential and this is why the regulation in the market is vital to ensure the safety of Ugandan people who use cryptocurrencies as a payment option. Also, the government is in the process of introducing a new tax system that will encourage the private sector as well to invest in blockchain technology. Doing so is essential for offering public-private partnership new opportunities.

Finally, we can say that Uganda is one of the most favorable destinations for crypto investors because the government tries hard to encourage more investment in new startups to support the growth of cryptos and boost the economy. Probably, thanks to the growing crypto landscape, in the next few years, Uganda will face enormous advancement in technological and economic fields.

Step 1: Register your account on Cryptocurrency & bitcoin exchange.

Step 2: Get a crypto wallet

Step 3: Withdraw BTC & other cryptocurrencies to your wallet instantly.

Buying Bitcoins (BTC) in India is easy through any of the cryptocurrency exchange platforms. This guide helps to buy bitcoin in India says that there are many crypto exchange platforms available in the country with a different fee structure, reputation, and limits. You can choose based on your budget and requirements to purchase bitcoin.

Factors to check before choosing the best cryptocurrency & bitcoin exchange in 2020:

� Geo-location and restriction policy.

� Transaction fees

� Security

� User interface

� Trading volume and liquidity

� Method of payments

� Transaction limits

� Customer support

All the above-mentioned factors should consider before choosing the best cryptocurrency exchange platform. Each platform can’t have all the factors at once, and there must be variations among each exchange. Moreover, traders and investors can invest their money in crypto exchanges before choosing the best one.

Where to buy Bitcoin in India?

If you are looking to buy, sell, and trade bitcoin in India then Koinbazar is the best crypto exchange marketplace that allows buying, sell, and trade bitcoin and other cryptocurrencies with more security.

Why Koinbazar?

Koinbazar – India’s safest cryptocurrency & bitcoin exchange platform with ultra-secure, professional, comfort and you can easily buy bitcoin, ethereum, and other crypto coins. This platform is designed for the people who are all beginners in the field and also suits experienced traders.

How to set-up your account?

Before starting your trading process, there is a procedure you have to complete it.

Steps to register your account:

The below-mentioned steps are to complete your account registration process,

Step 1: Visit the Koin Bazar website.

Step 2: Select signup and fill-up your the details required.

Step 3: Once you filled in the details, click create an account. An activation mail will send it through your registered Email-ID.

Step 4: Open it and click the activation link. And your account is successfully created.

Steps to Complete Your KYC Verification:

The below-mentioned steps are to complete your KYC verification process,

Step 1: Sign in to your account and select Account —> Profile

Step 2: Under the KYC section you need to complete the following prospects.

i. Choose your required ID proof.

ii. Upload your frontside and backside ID Proof.

iii. Take a selfie of your face for KYC identification.

Step 3: Click Save. And your KYC verification process will be completed shortly.

After the procedures get complete, you can legally deposit your funds by connecting your bank details or external wallets in your koinbazar account. So, start buying and selling your assets safely with us and enjoy a hassle-free trading experience.

Signup Rewards:

Once the above-mentioned process is completed you will get FREE 50KBC tokens instantly and get deposited into your wallet. Do sign-up with Koinbazar & Start Your Happy Trading!

When do we exactly introduce our kids to financial education? Is it when we let them keep the money they get from relatives? Or when they first plan to go out with their friends for dinner all by themselves?

It’s actually much before. The time they ask (cry…scream…yell) for a toy and we as parents have to then incentivize them to getting you do something more exciting for them. Also when they want to waste their food and we tell them it’s bought from the hard earned money and we shouldn’t waste. These small habits inculcate values since their childhood.

Ages 3 to 5

So, this is the time for you to first accept the fact that it’s about time for your child to get introduced to money matters. While this is the age where they are all cute and adorable, it is also the age when they understand the concept of “buying” and “money”. We need money to buy things, and we have to work to get money. This just becomes easy if you add some fun factor to this activity. Make a deal with them. They have to earn happy points with good behavior to get that big burger or that Disney princess dress. It could be 100 points for burger and 500 points for princess dress.

Money could be used to help them learn count.

Ages 6 to 12

They are already going to primary or secondary school. They need allowances. Their demands get bigger during this phase. Things around them will influence their choices too. The outrageous amount of pressure schools today put on parents to be ‘socially’ competitive to this will have its impact on the child as well. They might want branded clothes and expensive stationary. Make sure you take sensible decisions in their growing years by letting them understand the value of money.

Games like monopoly can make your task easy. Encourage such games and play with them.

This is a perfect time to open a bank account in your child’s name. Their own bank account will motivate them to save money.

Make them live a simple lifestyle. Remember success starts from humble beginnings. This will help them as adults, to manage their money better. Save more.

Ages 13 to 18

Teens!! This is the age where parents are either friends or foes for their kids. They are new to the world of fashion and gadgets and these are their best friends now. With such fancy hobbies, come significantly higher expenses. In order to make them financially wise, involve them when your family talks about finances. Ask them for their views.

At this age they are already preparing for their higher education. Discuss the finances with them. Explain cost of college fees, student loans and credit cards etc. This will bring awareness and make them financially vigilant.

This doesn’t end here. Going forward when they get their first pay cheque, a good investment advice from you will help them generate wealth for long term, even better, forever. Remember the quote – Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime, the man here is your CHILD.

Remember, starting early always helps, be it for investing or even educating your children about investing.

Investment in mutual fund is one of the most preferable options for various reasons. The foremost reason is professionalism. You may receive lot of noise when you are buying other assets mentioned at the start of this article however they may not bring professional advice. In case of investment in mutual fund, investors are provided with the services of an experienced fund manager who handles the financial decisions based on the performance and prospects available in the market to achieve the objectives of the mutual fund scheme, the advice backed by a dedicated research team. Above all, mutual funds are required to register with SEBI (Securities Exchange Board of India) which bring transparency and regulation in investment decisions. There are different types of funds available and investor can choose the best one as per his/her financial goals.

Types of mutual funds

Mutual funds are a one-stop shop for all your investment needs. Needs can range from wanting to purchase a car in the next one or two years or saving towards your child’s future education in the next 10 years or saving up for your retirement, or saving tax on your regular income. Investors ideally look for diversification, low costs, ease and flexibility of withdrawal, better tax efficiency etc. Investors can achieve all their short term and long term financial goals through the following types of Mutual Funds.

1 Equity funds: One of the most popular types of mutual fund are equity funds, where the fund manager invests in equity markets. Though it seems like a simple job, it is challenging and difficult. When to buy and sell shares is the most difficult decision which is based on the fund manager’s knowledge and experience.

2 Liquid / Debt funds: Liquid funds are an integral part of the fixed income or debt investments plan, primarily investing your money in money market instruments like certificate of deposits, treasury bills, commercial paper and term deposits having maturity of up to 91 days. The lower maturity period of these underlying assets makes them liquid, which means they can be easily converted to cash at a short notice, with minimal risk on capital loss. Liquid funds are one of the most suitable investment options for investors who prefer liquidity (immediate availability of cash) over returns. While, return on investment is always an important factor, liquidity takes priority in the case of liquid funds. These instruments are not subject to interest rate volatility as against other debt funds with longer maturity periods. However, this does not entirely mean that they are immune to interest rate risks.

3 Fund of Funds: According to Investopedia, a Fund of Funds (FOF) – also referred to as a multi-manager investment – is an investment strategy in which a fund invests in other types of funds. This strategy invests in a portfolio that contains different underlying assets instead of investing directly in bonds, stocks and other types of securities. The versatility offered by this fund is akin to a cricketer who is an all-rounder and is able to bat anywhere in the order. A Fund of Funds helps ease risk to a large extent by distributing investment across different funds. A Fund of Funds lowers the risk level of investments by investing fund in different kind of mutual funds. The taxation treatment of the fund is admittedly less than ideal. Broadly, equity and debt are the two major areas of investments in the mutual fund industry and both of them are taxed differently. All equity funds are in one tax bracket and all non-equity funds are in another tax bracket. Surprisingly, an equity fund of funds even one which has equity funds as a part of its portfolio – is taxed as a non-equity fund!

4 Gold Funds: If you are thinking of making an investment in gold, then Gold ETF is the best option. Gold is also valuable as a bulwark against a falling currency. By investing in a gold fund, a retail or institutional investor can gain exposure to this asset without the hassle of taking delivery of physical gold assets, which is often required in the commodities market. Above all, gold has the highest liquidity after cash in hand.

As discussed in our earlier article, entry and exit from your investments should not depend on the market level. You can start investing in the market at any time and have patience till the time your financial goal is achieved. You need to spend time on selection of the right fund which will be based on your financial goal. Markets will remain volatile however there is no reason to worry if you are a long term investor.

Quantum Mutual Fund has 10 different funds in all categories including equity, gold, debt and fund of the funds. You can click here to know more about funds and click here to start investing in mutual funds.

Cashback is also a credit or checks card firmness system that allows cardholders to set aside cash when purchasing goods or administration. It seems that such a statement fully characterizes this ability, but this is not the case. First of all, these are not restrictions for the bank’s accomplices. Besides, it has a lot of changes. Moreover, it is not just a structure for collecting and spending rewards, but also its embodiment. Therefore, it is important to understand in detail what cashback is, why credit institutions use cashback, and how to use it.

Why do banks provide Cashback -
Cashback is also a reliability framework for credit or check cards, allowing cardholders to reserve cash when purchasing products or managing them. This assertion seems to fully explain this ability, but it is not the case. First, these are not restrictions on bank complicity. Similarly, it has many changes. Moreover, this is not only a framework for collecting and using rewards but also its substance. Therefore, it is important to understand in detail what cashback is, the reasons why the credit base banks such as Capital one routing number bank use cashback, and how to use it.

The lower the frequency with which customers retrieve assets from records, the less demand there is to “fuel” ATMs. It should be noted that this technique is not as humble as it was at the beginning. Depending on the management of the classification, the distance between the gadget and the main unit, etc. The bank can pay up to 1.5% of the stack amount. Considering that most businesses set a standard cashback of all costs at around 1% while they have accumulated huge reserves and maintain a dark state of profitability.

With regard to the payment of commissions, we are now discussing measures to expand the granting of priority. They are clearly used for specific types of expenses. Among the vendors that lending institutions often have vendor agreements (TSPs) with, they allow customers to use their cards to pay a portion of the fees at these stores, service stations, taverns, etc.

Therefore, it turns out what cashback is. This is an arrangement for mutual funds. The bank Usaa routing number and other banks reduce the acquisition and classification costs by transferring a portion of these assets to the client, thereby encouraging him to withdraw cash from the card account in a manner consistent with a stable structure. Accordingly, the business structure has no skills. Not only she is the winner, but also her plastic case.

The cleverness of using Cashback -
Most banks can set certain boundaries to determine additional attention. There are three of them. They can be used separately or mixed. For example, include the second and third nuances listed below in your liability plan.

1. You can definitely blame the specific asset turnover rate. That is, customers can use these focal points only by paying a total of 10,000 bucks with the purchased card within one month. This limitation may vary from company to company. This is even more true when considering premium models and products.

2. Changes in Benefits Caused by Costs. Just like the previous options, but the client will never be left without a return. This subtlety lies in advertising cards. It often turns out that the remuneration is “up to 10%”, but in reality, the holders cannot receive the remuneration due to certain categories of turnover. For example, when a particular class spends no more than 5,000 dollars per month, 2% cashback will be credited. If these expenses reach 10,000 dollars, then the remuneration will be 5%. If the key payment method in installments is similar, for example, 20,000 dollars per month, the customer will receive 10% of the payment amount.

3. There is one of the most extreme discounts. It’s used everywhere. In other words, it defines a specific measurement of cash, or customers can use it as the basis for a refund.

To find out the accuracy of the cash back you need to use, contact the relevant bank. This can be achieved by calling the community. The phone number is often displayed on the plastic of a credit institution or on the website of an authorized organization. An employee who allows customers to find out their own information will determine the tariff for a credit or debit card and explain the details of the specified capacity.

Conclusion :

Cash-back is a useful and attractive feature that not only allows you to compensate some of the money spent but also allows you to pay extra for setting up the card. Sometimes this gives you a chance to benefit. But it’s okay. The main task is to select the program that offers the greatest discount to the well-known categories of future holders before the card is issued. Getting used to how to use Cashback effectively in a responsible bank is also very important.

Who is Eziway Salary Packaging?

For over a decade we’ve been at the forefront of developing systems and providing service offerings to the not-for-profit sector including charities, public health, community and disability service providers.

We developed an industry leading software and dedicated service model, which is designed to manage this complex tax arrangement.

Our cloud-based administration system, developed in-house, provides faultless salary packaging services. Organisations can tap into its power via our equally sophisticated online portal and app, which provides transparent, real-time data and interactive account functionalities.

What is Salary Packaging?

Salary Packaging, also known as Salary Sacrificing, is an ATO approved workplace benefits program, which serves as a value proposition for both employers and employees. As an Employer, Salary Packaging goes a long way to retaining your most valuable asset, your staff. As an Employee, Salary Packaging lets you minimize tax and maximize your income.

What can I Salary Package?

Salary Packaging is an ATO-approved method of restructuring your gross salary in order to pay less tax. As an employer, the ATO gives you generous tax benefits that you can then pass on to your employees.

The benefits available depend on your Employer’s Salary Packaging Policy and may include:

Mortgage repayments
Rent payments
Personal loans
Credit Card repayments
Portable devices
Novated Car Leases
Remote living costs
Entertainment expenses
Venue hire
What are the benefits of Salary Packaging?

Some of the benefits include being able to salary package certain lifestyle benefits or other various expenses such as your mortgage, rent, car or personal loan or credit card repayments.

With Eziway, our consultants can tailor a salary packaging arrangement based on each employee’s personal circumstances that aims to reduce their taxable income and increase their take home pay based on your organisation’s policy and industry.

Retirement Planning is a long term process whereby you should have a roadmap which will help you to meet all your life’s expenses post retirement. Investment in mutual funds is a preferred investment option for long term investing. Why? Because mutual funds invest your money in stock markets which has the potential to give you good returns in long term. In short term, markets have always been volatile which you may have observed many times. There are many ways you can invest in stock markets however investing in stock markets through mutual funds is one of the most preferred options. Why? 1. Mutual funds are managed by professional fund managers who track markets on a daily basis. 2. Mutual fund business is regulated by SEBI. 3. There are more than 1000 mutual funds available in the markets which are capable of meeting all your short and long term financial needs. You can take the help of your financial advisor and invest in the best suitable fund.

Plan your retirement with diversified Mutual Funds

Equity, debt and gold mutual funds are 3 major asset classes where you should invest for your retirement. You can invest in all 3 funds and keep changing your portfolio as per age, income and risk taking capacity. You can take high risk at a young age and investment in equity is the best option, however don’t invest only in equity funds and lock your money in one asset class.

Type of Mutual Fund: Equity Fund

Advantage: Potential to gain high returns

Disadvantage: Risk is higher for losing capital

Types of Mutual Fund: Debt/Liquid Funds

Advantage: Low risk of losing capital

Disadvantage: Low /average return

Type of Mutual Fund: Gold Fund

Advantage: Diversification, balanced portfolio

Disadvantage: Highest volatility to global risk

This is for illustrative purposes.

You should remain invested in debt and gold mutual funds as well which offer you diversification and make your portfolio balanced. The exposure to equity funds should go down as one gets older the risk taking capacity goes down with age.

The above investment allocation is not to be considered as an Investment advised / recommendation. Please seek independent professional advice based on your financial needs and your financial situation and arrive at an informed investment decision before making any investments in any mutual fund or when making a decision on investment diversification or asset allocation.

It’s not mandatory but advisable that you should remain invested in gold at all stages of life. Keep 10 % investment in gold during all stages of life as its offer diversification. To conclude, plan your retirement as early as possible and let your money grow over a span of 15-20 years. Don’t invest only in one type of mutual funds like equity. You should plan your retirement planning with all 3 asset classes which offer different set of advantages; diversification which is a must needed factor in long term investment like retirement planning.

To conclude, you should keep 3 major points in consideration while doing retirement planning 1. Start at young age 2. Invest in all 3 types of mutual funds, equity, gold and debt 3. Keep changing investment proration in these 3 funds with the help of financial advisor

A very simple and clear advice is to remain invested till the time your financial goal is not achieved.

Always remember that the decision of redemption should be connected to your investment objectives and not to market levels.

Fund Managers best to manage your money in such scenario

As a mutual fund investor, it is best not to worry about the market levels. Analyzing market trends and investing money accordingly is the fund manager’s job. When markets are at their peak, the need to redeem shouldn’t cross your mind. Fund managers are supposed to understand market trends better, sell the overvalued stocks and then deploy money as and when markets offer investment opportunities.

Your fund manager may have booked profits on investment and is now waiting for the next suitable opportunity for further investment. Therefore, it is probably better to hold for a while before taking the next step. Fund Managers spend most of their time in research, meeting with company promoters to understand their strategy and business plans which could have an impact on the performance of stocks or markets. In short, your fund managers are potentially in a much better position in understanding markets trends.

There is also a possibility of you not be able to reinvest your redeemed money and may lose out on opportunity which does not happen if you let the Fund Manager manage your money.

Investors who have profitable investments in hands due to recent highs in the markets and now thinking on redemption. We have a question for you! Will you able to be catch a good investment opportunity in the current market especially when interest rates on savings and fixed deposits are falling? Therefore, our advice is continuing your investments with this profit till the time you have not achieved your financial goal.

Redeem only if you have achieved your investment goal!

You may have two reasons for redemption. Either you are worried about the markets levels (markets are at all-time high so may fall down and better book some profit) or you have met your financial goal, investment objective.

If you are looking to book profits then, as we have explained earlier it is better the fund manager do that job.

In second case, if you have achieved your financial goal then you can redeem now. You can spend your profitable investment to fulfill your financial goal like higher education, marriage etc, thanks to outstanding markets performance. Now you can enjoy benefits of long term investments!

One of the best way to redeem your investment is by starting a Systematic Withdrawal Plan (SWP), by doing this you will minimize the risk of redeeming all your money on one day.

To conclude, if you have achieved your investment objective then you can set a new financial goal and start your next long term investment association with markets. If you have not achieved your financial goal, then you should continue with your investments till the time you have not achieved investment objective.

Yesterday, Nifty opened at a record high above 13,900 but witnessed profit booking and traded toward the day’s low of 13,860 in the initial two hours of the session. However, it posted a smart recovery of about 70 points off lows during the day and closed holding decent gains. Volume was lower than the previous session. The broader market underperformed compared with the general market. Midcap closed 0.1% lower, while smallcap closed flat for the day.

On the sectoral front, the mixed reaction was observed. Nifty Pvt Bank (+1.6%) advanced the most, followed by Nifty Bank and Fin Service, which were up 1.4% and 1.0%, respectively. On the flip side, Nifty Media (-1.5%) and Nifty Metal (-1.1%) were the top two decliners. Market breadth was skewed toward decliners. Of 2,247 stocks traded, 942 advanced, 951 declined, and the remaining were unchanged.

With leadership broadening and indices above relevant intermediate-term moving averages, we will continue to look for leadership-quality growth names to form entry points. If a pullback/consolidation happens, it will be crucial for Nifty to hold its 21-DMA. It is advised to closely review the existing positions and book profits in stocks that are extended from their moving averages and showing technical weakness. Also, tracking distribution days is crucial as rising in distribution days can halt the uptrend.

Key News

Glenmark Pharms. (Nse) launched a fixed-dose combination drug to treat type-2 diabetes in the country.

Lupin (Nse) launched Mycophenolate Mofetil tablets in the US. The tablets are used to help prevent the body from rejecting an organ transplant.

Iifl Securities will open its Rs 90 crore share buyback from today.

According to a report published by RBI, GNPA ratio of scheduled commercial banks decreased from 9.1% in March 2019 to 8.2% in March 2020 and further to 7.5% in September 2020.

O’Neil Market Condition Report

For the 24 emerging markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 80%; Rally Attempt, 4%; Uptrend Under Pressure, 16%; Downtrend, 0%.

For the 24 developed markets tracked by our institutional research team, the market status breakdown is as follows: Confirmed Uptrend, 70%; Rally Attempt, 0%; Uptrend Under Pressure, 30%; Downtrend, 0%.

Visit Marketsmith India to Read More About Indian Share Market News, Daily Market Tips, Model Portfolio etc.

It’s a challenge to choose a mutual fund scheme! The number of mutual fund schemes available in the market would drive any investor insane to zero down on a mutual fund of his/her choice. There is an endless list of checks necessary to be done before arriving at the one mutual fund scheme that meets your requirements and has potential to give decent returns.

Below are the various checks to keep in mind while comparing mutual funds:

Know your fund house:
Choosing a fund house in which you have sufficient faith to invest your money in is important before zeroing in on a scheme of your choice. Investors look for fund houses which can take care of their investments and can manage their money well. Objectives set by fund houses help investors to meet their goals thus securing their future. If the objectives are not met, investors lose faith in the fund house. A budding investor should ask these important questions like, “What are the fund houses’ investment objectives?”, and “How many schemes does the fund house offer to its investors?”, “Are the funds similar under different names?”, “Does the fund make sense to me?” It is equally important to know how the fund manager manages the funds under him/her. One needs to ascertain how schemes have performed during various market cycles managed by the fund manager. A good fund manager is not only important for the fund house but also for an investor.

Fund philosophy:
The next important check is to know the philosophy of the fund house. A set of guiding principles that inform and shape an individual’s investment decision-making process is termed as the philosophy of the fund. The fund house’s investment philosophy plays an important role in determining the performance of its funds in different market conditions. The selection of the funds, investment decisions are directly dependent on the fund philosophy.

Charges and fees:
An Asset Management Company (AMC) that spends on the upkeep of a mutual fund is measured as the expense ratio of a fund. The fees of the advisor, record-keeping, legal expenses, accounting, auditing fees etc. are what make up an expense ratio. Higher churning of portfolio leads to higher costs. It is an expense borne by the investor and is deducted from the investment. For example, if you have invested Rs. 100 and the expense ratio of the fund is 1.25, then your investment is Rs. 98.75. Lower expense ratio means that higher amount is available for investment.

Transparency:
In today’s world it is very important to maintain a good relationship with the customers, and to maintain a good relationship, there has to be a high level of transparency. This holds true even for mutual funds, as all mutual funds disclose the stocks they buy etc., through factsheets SEBI’s new rule, instituted October 1 2016, requires asset management companies to disclose all commissions paid to distributors in the Half-Yearly Consolidated Account Statements (CAS) they send to investors, all this in an effort to bring more transparency into the system.

It is only when SEBI brought the commission disclose rule that we have started paying trail commission to distributors in the Regular Plan effective April 1,2017 by letting you, our investor, know exactly where your money is going and that its serving your interests first.

So when it comes to long term wealth generation that puts the investor first, it may make sense to invest in a fund which focuses on transparency and controlling costs – rather than investing in a typical high-cost mutual fund that consciously uses big ads to attract your money!

Performance:
The last factor is return on investments. All the above factors are major drivers behind the performance of the funds. There are many other factors which have direct and indirect impact on performance of the funds; however, we have discussed the major factors above.

Moreover, it is important to understand that the performance of the funds can change over a period of time (positively as well as negatively), however, its philosophy, ethics, investment strategy are the main pillars. Don’t just only compare the performance of the fund in isolation.

To conclude, sound knowledge and research is very important before choosing a mutual fund to park your hard earned money. Following all the above steps might help you take right decision. However, you may consult your financial advisor before taking any investment related decision.