Top 50 Mutual Funds, Insurance, Markets, Taxation, Banking

- Himali Patel

Wealth Creation With Mutual Funds

From reintroduction of 10 per cent tax on long-term capital gains (LTCG) on sale of equities to SEBI’s decision to reduce the total expense ratio (TER) across mutual fund schemes, the regulatory changes that were brought in 2018 will directly impact the investment climate. Having said that, any investment decision always starts with asking the right kind of questions. And, most investment-related fiascos can be averted by finding the right answers.

As we step into 2019, Outlook Money got various experts across the financial sector to answer most common queries or concerns raised by investors.

1 Should I invest directly or through an agent?

It is each individual’s choice. As an industry, we have seen an increase in SIP investment being made directly. There are many online sites, blogs which demystify the concept of SIP. Investing is easy especially in a good market. It is only in times of volatility that an investor’s nerves are tested. And, it is in such times that we have seen SIP closures, which means direct investors stop buying when the markets are selling at low levels. On the other hand, an advisor will be there to handhold the investor, reason out the benefits of long-term investing and rupee cost averaging. In direct investment, chances are emotions may get the better of you to decide to discontinue SIPs.

Manish Mehta, National Head Sales and Distribution Alliances, Kotak Mahindra Asset Management

2 I have been investing in a SIP for two years and yet to see returns, should I continue?

SIPs diversify over time and meet the risk of timing cost. Benefit of rupee cost averaging kicks in over a period of time, especially when you get an opportunity to buy at lows. If an investor has started a SIP it is probably to achieve some long-term goal.