• A Mutual Fund is an investment product where money from different investors is pooled and invested into Shares, Debentures, and Government Securities to generate returns based on the objective as per the need of the Investors. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by the investors.
• What are the benefits of investing in a mutual fund?
• Expert Money Management, Professionally managed, Transparency and interactivity Low-Cost Investment, Accepts Small investments, Tax-Efficiency Spreading risk, Diversification and Goal-Based Investment Liquidity, Flexible Terms of Tenure, Flexibility to Switch Funds
• Any time is the Right time for starting an investment. The earlier the better. One can also invest small amounts monthly into Mutual Fund Schemes with ease through Systematic Investment Plans (SIP). KJMC is empanelled as a Distributor with all leading Mutual Fund Houses.
• KJMC offers online facility to register as a client, complete KYC and do transactions to buy / sell Mutual Funds units and monitor one's portfolio ONLINE.

Types of Mutual Funds

• EQUITY FUND:

Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. The aim of growth funds is to provide capital appreciation over the medium to long-term. These schemes provide different options like dividend option, capital appreciation, etc. to investors and investors may then choose an option that suits their preferences. Types of Equity Funds include

DIVERSIFIED EQUITY FUNDS

MID-CAP FUNDS

SMALL-CAP FUNDS

SECTOR SPECIFIC FUNDS

TAX SAVING FUNDS (ELSS)

ARBITRAGE FUND:

These funds generate income through arbitrage opportunities emerging out of mis-pricing between the cash market and the derivatives market. Arbitrageurs buy equity and sell equal volume of futures so that their net position (in terms of risk) is zero. They remain unaffected by price movements in their arbitraged scrips. Any upward movement will increase profits on their equity holdings and losses on futures positions and vice versa.

DEBT FUND:

The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected by changes in the interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short-run and vice versa.

GILT FUNDS

INCOME FUNDS

MIPs

SHORT TERM PLANS

• LIQUID FUND:

These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial papers, inter-bank call money, etc. Returns on these schemes fluctuate much less as compared to other funds. These funds are appropriate for corporate as well as individual investors as a means to park their surplus funds for short periods.

• HYBRID FUND:

These funds invest in both, stocks and bonds. Hybrid funds offer investors the opportunity to diversify their portfolio with a single investment vehicle. Based on the percentage allocation to stocks and bonds, these funds may be classified as equity or debt respectively. The ratio of stocks and bonds may remain fixed or vary over time. Balanced funds invest in both equities and fixed income securities which are in line with pre-defined investment objective of the scheme. The equity portion provides growth while debt provides stability in returns. This way, investors get to taste the best of both worlds.

• COMMODITY FUNDS:

In India, these funds invest into Gold metal via Gold ETF & Gold Funds. Performance of these funds depends on performance of Gold Metal traded in the commodity markets.

Types of mutual funds by structure

• CLOSE ENDED FUND:

A close ended fund or scheme has a predetermined maturity period (e.g. 5-7 years). The fund is open for subscription during the launch of the scheme for a specified period of time. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices or they are listed in secondary market.

• OPEN ENDED FUND, SCHEME:

The most common available for investment is an open-ended mutual fund. Investors can choose to invest or transact in these schemes as per their convenience. In an open-ended mutual fund, there is no limit to the number of investors, shares, or overall size of the fund, unless the fund manager decides to close the fund to new investors in order to keep it manageable. The value or share price of an open-ended mutual fund is determined at the market close every day and is called the Net Asset Value (NAV).

• INTERVAL SCHEME:

Interval schemes combine the features of open-ended and close-ended schemes. The units may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV related prices. FMPs or Fixed maturity plans are examples of these types of schemes.

Types of mutual funds by Investment Objective

• GROWTH OPTION:

• INCOME OPTION:

Also known as debt schemes, they generally invest in fixed income securities such as bonds and corporate debentures. These schemes aim at providing regular and steady income to investors. However, capital appreciation in such schemes may be limited.

• INDEX SCHEME:

These schemes attempt to reproduce the performance of a particular index such as the BSE Sensex or the NSE 50. Their portfolios will consist of only those stocks that constitute the index. The percentage of each stock to the total holding will be identical to the stocks index weight age. And hence, the returns from such schemes would be more or less equivalent to those of the Index.

DISCLAIMER : Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes.

• Over the years, Equity, as an investment avenue has gained wide prominence & acceptance across the world and is one of the best avenues to make a long term investment in the financial market place.

KJMC offers offline Trading facility to enable clients to deal in equities, index and equity derivatives , currency and commodity derivatives across leading exchanges like NSE, BSE, MSE & MCX.

Equity represents ownership in a company acquired through contribution of capital, which is required to set up or run a business. This capital is raised through issue of shares to the public or a group of private persons, where each share represents a proportion of the stake on the assets and profits of the company. These shares are either bought directly from the company through an offer, or traded (bought and sold) on the stock exchanges.

Despite the risk involved, investment in equities is known to offer investors high returns in the long run. Equities investment not only helps an individual in wealth creation over time, but also builds the nation’s capital in the process.

• For the investor, equity offers numerous benefits such as:

• Entitlement to company’s profits: The holder of a company’s equity or shares is entitled to a share of profit in the company. This share of profit is received through dividends.

• Profit through value enhancement: A shareholder can also make profits by selling the shares on the stock exchange at a price higher than the purchase price.

• High Returns: Even though equity is a risky asset, returns on investments in equity are known to beat inflation in the long-term, and thus help in wealth creation.

Futures and Options Basics

• What are Derivatives, Futures and Options?

A Derivative is an instrument which derives its value from the underlying asset. The asset can be equity, a commodity, a currency or even an index. Derivatives are usually in the form of a contract, where the buyer is under an obligation to buy or seller is under an obligation to sell the underlying asset at a specified price on a specified date in the future.

• Why invest in Derivatives?

Derivatives have traditionally been used by businesses to hedge against different types of risks, and have been in existence for decades. With well-planned strategies based on a thorough study of the markets, individual investors and traders can earn handsome returns through derivatives trading.

Investment in derivatives has the following advantages:

• HEDGING AGAINST RISK:

Derivatives are used for hedging against risk in price fluctuations of the underlying asset. Since the buy (or sell) price at delivery is specified in advance, the buyer/seller can protect his investment from deviation in price trend.

• LOWER TRANSACTION COST:

The investor needs to pay only margin for the contract, which is usually much less than the price of the underlying asset, thus offering a benefit of lower costs.

• LEVERAGE:

Trading in derivatives involves use of leverage through margin that is maintained with the broker. Hence, lesser cash is required to be paid at the time of trade.

Disclaimer: KJMC does not undertake any portfolio management itself and the services are purely advisory in nature focused on Investment solutions from 3rd party PMS Providers, Investment Advisors & Registered AIF's products

BENEFITS OF PMS PRODUCTS.

• Provides you professional support to manage your portfolio

• Ensures personalized management to generate higher returns in various investment cycles

• Enhances returns through timely decision & online monitoring of portfolio

• Fundamental research based investment ideas for investments

• PMS investments are discretionary in nature, where the fund manager executes transaction based on his, her analysis

• Investment Advisory is non-discretionary arrangements where the Investment transactions are executed by the clients, based on suggestions and advice provided by the Investment Advisory.KJMC has identified select leading PMS & RIA products for its clients.

• Bonds are debt instruments in which the authorized issuer owes the bond holders a debt. Depending on the terms of the type of bonds, the authorized issuer is obliged to pay interest and, or repay the principal at a later date upon maturity. In simpler terms, a bond is a formal contract to repay borrowed money with an interest at fixed intervals. Investment bonds are a way to raise money. When you purchase any type of bond (government, convertible, callable, etc.), you are lending money to the issuer which may be a corporation, the government or any other entity. In return, the issuer promises to pay a specified rate of interest during the life of the bond. The issuer also repays the face value of the bond upon maturity of the term.Some of the popular bonds are the tax saving bonds such as

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PFC 54 EC – Capital Gain Bonds

REC 54 EC – Capital Gain Bonds

IRFC 54 EC – Capital Gain Bonds

HDFC Bank Floating Form

• Company Fixed Deposit is a term deposit which is held over fixed period at fixed rates of interest. Company Fixed Deposits are offered by Financial and Non-Banking financial companies (NBFCs). The maturities of various company fixed deposits can range from a few months to a few years.
• Choose from multiple company fixed deposits options varying in tenures, interest rates and institutions to suit your investment needs. Avail stable returns and benefit from much reduced volatility through a wide range of AAA and AA-rated Company Fixed Deposits.
• Few of the Company Fixed Deposits currently available are as listed below

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• HDFC Ltd

• Bajaj Finance

• Mahindra & Mahindra Financial Services Ltd.

• PNB Housing Finance Ltd.

• LIC Housing Finance

• HDFC KYC FORM

• HDFC Non Withdrawable FD Rates

• HDFC Withdrawable FD Rates

• The primary market provides investor opportunities to buy shares of companies which are going for listing (IPO) or already listed (FPO) Investors can also invest in Debentures. Additionally sometimes retail investors also enjoy discounted rates while applying for IPO&aposs. Holding on to the shares also provide an opportunity to participate in the future success of these companies. Investors can apply online using UPI ID through ASBA (process)

• An unlisted public company is a public company, that can have an unlimited number of shareholders to raise capital for any commercial venture, but which is not listed on any stock exchange. These shares are not traded on the stock exchange hence there is a liquidity risk. Price discovery depends on demand supply in the unorganised market. These stocks are having the potential to list in the stock exchanges in the near future. They provide an opportunity to participate at a lower premium and to get in early

• Currently the following are a few of the good companies which are available in the unlisted category.

• Chennai Super Kings – CSK

• National Stock Exchange – NSE

• HDB Financials –HDB

• By using the latest technology we can give you a comprehensive view of your investments. Once you become one of our clients you will have the option to invest online and view all your existing investments and portfolio information in one location. This not only helps us to improve efficiency leading to cost savings for our clients, it also puts you in control of your finances.
• Here are a few advantages of our wealth platform:
• Products matching the Risk profile of Clients
• The ability to have a single consolidated view of your financial affairs.
• A simple, easy to understand tool that is designed to help you best understand what investments you hold, how they are performing against your goals.
• Convenient 24x7 online access.
• In brief we offer our clients information when and where they want it.