Myths and facts about the best mutual fund!

In today’s times, increasing work pressure and lack of time to follow what’s happening in the financial world often proves to be an impediment for choosing the correct mutual fund. We do not know where to start from, and are clueless regarding which mutual fund investment will prove to be the best mutual fund for us! Let’s have a look at where to start from, and how exactly to choose the top mutual fund.

Where should one start from? 

• Take referrals 

We are surrounded by relatives, friends, and colleagues who talk about the financial market day in and day out. While some of them prefer to keep their investments secretive and therefore don’t divulge much, there are many who will tell you about mutual funds in detail. Take references from them regarding which companies are suitable and which funds are working well.

• Use the internet 

Internet is possibly the best place you can resort to for finding out information. Internet is full of investors’ forums where people talk about good investment options and their experiences with certain mutual funds. You can ask your queries and get your doubts solved. People are ready to help out.

What should you look for in a mutual fund? 

• Your goal 

Every investor has a goal in mind. While some want to make income out of mutual funds, others want to invest for a long term without caring for immediate returns. Never invest in a plan that doesn’t suit your sensibilities. You will always have complaints with the mutual fund otherwise. Invest in a short term, medium term, or a long term investment depending on your personal goal.

• The risk/return adjustment 

You might have heard the famous line ‘Mutual fund investments are subject to market risk. Please read all scheme related documents carefully before investing’. This dialog, that we often tried to ape as teenagers, has a deeper meaning. The market is volatile, dynamic, and cannot be trusted. If you want to invest in a low risk fund, the returns will be limited. And so is the case the other way round! So calculate your risk/return adjustment and invest in a plan that’s suitable for you.

• Everything else 

There are various other factors that can determine which mutual fund is ideal for you. You need to know how qualified and experienced your fund manager is. Secondly, you need to know what fee is charged by the mutual fund. Thirdly, you should be aware about the investments being made by the fund manager on your behalf.

And remember, if you are planning for a long term mutual fund investment by keeping in mind your retirement, then keep a retirement savings calculator handy to see how much income you can expect.

What differentiates top wealth management companies from the rest?

A wealth management firm doesn’t reach the top position overnight. It is the result of years of continuous striving and dedicated efforts to ensure high level profitability of the customers that makes them reach a position where they are respected and revered. As a general audience and customer, there are a lot of things that you might not know about top wealth management companies. Here’s some inside information sourced from some of the best wealth management companies regarding their working!

1.     They target a specific market

A top wealth management firm reports that they do not chase every client. Each company is known for a specific list of customers segregated on the basis of their financial worth. There are ‘upcoming affluent’ investors whose worth falls in the category of Rs. 10 Lacs to Rs. 50 Lacs, there are ‘High net worth’ investors who have Rs. 50 lacs to Rs. 2 crores, and then there are people with ‘extremely high net worth’ of Rs. 2.5 crores and above.

2.     They focus on profitable clients
Every financial company has their personal agenda in mind too. They are running a multi-million crore organization because they want to profit from it. Yes, client’s profitability takes a center stage because unless the clients profit, they cannot. However, they identify clients on the basis of the ones who offer profitability and the ones who offer more risk by delaying payments or those who have unrealistic expectations. More the number of profitable clients more are the profit to all the customers.

3.     They have separate teams

A lot of financial advisory firms want their advisors and consultants to don a variety of roles. However, it is not possible for the same person to offer you the best retirement plans, and then tend to your grievances too! Top wealth management firms keep separate teams for everything. While one brings in new clients, another team offers them products and services, and yet another team attends to their problems and queries.

4.     They don’t hide their terms and conditions

A lot of us suffer because of hidden terms and conditions. This reminds me of an incident I had faced during the start of my career. I had purchased an insurance policy from an agent, and he had shown me the breakup of premiums that I’ll need to pay and what I’ll get at the end of 10 years. However, what he had shown on the life insurance calculator wasn’t the money I had received! It was pretty painful to lose money in such a scheme.

Top wealth management firms don’t hide terms and conditions from their customers. And they even communicate about their remuneration clearly without using double meaning terms or clauses. 

Financial Planners and Advisors need to be certified Professionals only

If you are looking to invest your capital in the stocks market then you should show due diligence in choosing your financial advisors . They should be certified professionals only. If you are consulting an amateur forecaster, or somebody who does not have the necessary certification, then you could be making the worst mistake in your life.

It is extremely necessary to choose some financial professional or advisor who has a lot of experience as a consultant. Still, if he is not a certified financial planner, then you will be ending in a pit of unsalable financial data. But the worst thing is that you could be losing loads of investment at the hands of a fool who does not understand the elementary knowledge of stocks.

How to search a reliable financial consultant?

·         Search the Stock Board’s online webpages:  Online web pages of the stock board can be used to search the best financial advisors in any region. The best thing is that you can search the best advisors from all the corners of the country. You can choose the best from advisors with all kind of experience with varied knowledge of various commodities.

·         Ask your accountant: Often accountants are knowledgeable about stocks and commodities. Many of them are regular investors in the stock Market. They are knowledgeable about contacts from a big inventory of contacts that they possess. You should take into account that the fields of financial advisors and certified public accountants intersect at some common points.

·         Explore the market: The market is the best place to unearth a lot of financial talent regarding the fact that you locate a lot of crowd who are knowledgeable on this front. They are seasoned veterans who understand the in-and-outs of the stock market. If you could tap into these financial advisors and planners, then you could make a lot of wealth by simply getting hold of the best financial strategies and vehicles.

·         Contact the Financial advisory’s directory: Directories are the best way to unearth a lot of financial data-whether it be in print or be online. Financial Advisory board has a big directory. If you can procure a copy or simply get access to such financial data, if you are acquainted with such professionals.

·         Join a forum of investment advisory board: Forums are another big pool of getting a lot of information. Forums are made for the convenience of customers. If you do not use it accordingly, then you are letting go of a beautiful opportunity which may be free or at a concession. It is my personal advice that you join a forum of financial planners and consultants.

Best Wealth Management Solutions in India

Wealth management solutions are not infinite in number. Yet these devices and vehicles take care of your future. After 1947, India staggered and rose to power. People indulged in wealth management by investing in real estate or commodities like gold. Since share market was an upcoming feature, not many people invested in it. But now the scene is changing.  Financial illiteracy has now been wiped out due to the guidance of certified financial planners. Due to this changing trend, people are now risking it out with various investment vehicles.

Retirement plans were supposed  

to be investments options which helped your money to grow slowly. Nowadays, each and every bank has a retirement plan. In the US, 401K plans are what help you after maturity. It is the best long term investment plan. In India, the retirement plan scene was very bad and it continued till the nineties. After that, financial institutions worked out ways to improve the scene. A diabolical change in the national banking policies changed the game led to popping up of various financial retirement schemes.

Mutual funds also became a secure player which can help your money grow. Wealth Management advisors swear by this method. In fact, management advisors know the way how your wealth moves. So, it is simply micro-managing your cash flow. Even public sectors like education and health have created avenues for investment and wealth management. What turned out to be an affair for improvement, has now become a regular core for Indian Investors and wealth management advisors.