Investment Ideas

Overview: Indian equity mutual funds pool investors & money and invest in a diversified portfolio of Indian companies. These funds provide exposure to India & top-performing companies and sectors such as Technology, Pharmaceuticals, Infrastructure, Consumer Goods and so on. SMSF has an option to invest in actively managed funds with a professional guidance as well as Index Fund ETFs for those looking for low-cost, broader-market exposure. There are options available to invest at one go or monthly through Systematic Investment Plan (SIP).

Why Consider It: Mutual Fund is a great way for SMSF to access a well-diversified portfolio in India & stock market without the need to cherry pick individual companies and keep monitoring it. These funds are managed by professional fund managers and tightly regulated by Securities Board and Exchange of India (SEBI) which is the Indian securities watchdog. The Assets Under Management (AUM) of Indian Mutual Fund Industry as on October 31, 2024 stood at ₹ 67,25,615 crore. The AUM of the Indian MF Industry has grown from ₹10.96 trillion as on October 31, 2014 to ₹67.26 trillion as on October 31, 2024 more than 6 fold increase in a span of 10 years!

Who can invest: Investments in Mutual Funds are allowed by SMSF having Corporate Trustee structure.

How to invest: We help SMSF to on-board in India and depending on the risk-return profile of individual case, we recommend investment in different categories of mutual funds scheme which may include a blend of:

• • Large Cap Fund
  • Mid Cap Fund
  • Small Cap Fund
  • Flexi Cap Fund
  • Sectoral or Industry-specific Fund

Overview: Indian bonds, whether government or corporate, offer a more stable and income-generating investment option for SMSFs. Indian government bonds are backed by the Indian government, while corporate bonds can provide higher yields from Indian companies.

Why Consider It: Bonds can be a less volatile investment compared to equities, making them suitable for SMSF investors with a lower risk tolerance. They also offer regular income through interest payments, which can be beneficial for retirement planning.

Who can invest: Investments in bond / debt mutual funds are allowed by SMSF having Corporate Trustee structure.

How to invest: We help SMSF to on-board in India and depending on the risk-return profile of individual case, we recommend investment in different categories of mutual funds scheme which may include a blend of:

• GILT Fund
• Long Duration Fund
• Medium Duration Fund
• Dynamic Bond Fund
• Corporate Bond Fund
• Fixed Maturity Plan

  SMSFs investing through FPI route are not allowed to invest in money market instruments having maturity of less than 1 year viz, overnight funds, liquid funds, money market funds, short term debt funds and ultra-short term debt funds.

Overview: These categories of mutual fund invest in a mix of different asset classes, such as equities stocks, bonds, and sometimes other securities like commodities or real estate. The goal of these funds is to provide a balanced and diversified portfolio to investors by combining the potential for higher returns from stocks with the relative stability and income generation of bonds.

Why Consider It: These mutual funds are an attractive option for SMSF investors who want a balance between risk and return. They are ideal for those who don’t want to pick individual stocks or bonds but still want exposure to both equity and debt markets. These funds are versatile and can be adjusted to meet the needs of SMSF investors at different stages of life, whether they seek growth, income, or stability.

Who can invest: Investments in hybrid mutual funds are allowed by SMSF having Corporate Trustee structure.

How to invest: We help SMSF to on-board in India and depending on the risk-return profile of individual case, we recommend investment in different categories of mutual funds scheme which may include a blend of:

• Aggressive Hybrid Fund
• Conservative Hybrid Fund
• Dynamic Asset Allocation Fund
• Multi Asset Allocation Fund
• Arbitrage Fund

Overview: SMSF investors can choose to directly purchase shares of leading Indian companies listed on major exchanges in India viz., Bombay Stock Exchange (BSE) or National Stock Exchange (NSE). Depending on the industry and company specific growth projections, SMSF can choose to invest in different companies in upcoming sectors such as Financial Services, Information Technology, Pharmaceuticals, Chemicals, Consumer Products and so on.

Why Consider It: For those who prefer to take a more hands-on approach, investing directly in individual companies allows for potentially higher returns if the right companies are selected. This method also provides the flexibility to tailor the portfolio according to individual preferences.

Who can invest: Investments in equity shares are allowed by SMSF having Corporate Trustee structure where non-NRI (Foreign Individual) holding is 51% or more. As per current FPI regulations, SMSF where Non-Resident Indians (including OCI holders) holding 51% or more are not allowed to invest directly in equity shares.

How to invest: We help SMSF to on-board in India right through including setting up PAN, Bank, Custody and Brokerage accounts. We recommend companies to invest and build a diversified portfolio of companies with varied exposure to different industry depending on growth projections. The investment portfolio is continuously monitored to ensure we stay invested in the better performing companies and weed out companies that are not performing well.