Mutual Fund is an excellent investment option if you’re looking for a professionally managed, diversified portfolio that offers the benefits of liquidity and transparency. Deutsche Bank AG, India offers you more than 600 funds from 29 Asset Management Companies in India. These companies have been selected through a comprehensive review process so you can choose to invest in funds that best fit your requirements.
An Equity-Linked Saving Scheme (ELSS) is a great investment option that offers the twin benefits of tax saving and capital gains.
It enables you to enjoy tax benefits of up to Rs. 33,600* under Section 80C of the Income Tax Act. Apart from that, ELSS has certain distinct advantages:
- Compared with all the tax planning schemes available today, ELSS has the shortest lock-in period (3 years) under Section 80C.
- As with an equity fund, ELSS funds invest a large part of the fund in equity. With the Indian economy possessing strong fundamentals and corporate earnings showing strong growth potential, equities as an asset class look set to provide attractive returns.
- Thanks to the 3-year lock-in period, ELSS allows the fund manager to build a portfolio for the long-term without worrying about everyday redemptions. Equity investments have proven to offer the best returns among various asset classes over a long term horizon.
- The profits on the sale of ELSS units are treated as long-term capital gains, and as per current tax laws, these are not subject to tax. Also, as per the current tax laws, there is no dividend distribution tax on equity investments and dividends earned are tax free in the hands of the investor
*The tax rate applied is 33.6%
Buying when the market is low and selling when the market is at its peak is easier said than done. A simple and powerful option of investing in this fluctuating market scenario is Systematic Investment Plan (SIP).
SIP is a method of investing a fixed sum, regularly in a mutual fund that allows purchases of units in a particular scheme on a given date every month / quarter. It provides benefit of investment without taking a call on what is the ‘right’time.
Benefits of investing in SIP:
- Helps you in making disciplined investment of disposable funds.
- Gives you the benefits of rupee-cost averaging
- Relieves you from trying to time the market
Advantages of investing in Mutual Funds through SIP:
- Convenience : Enables you to invest a pre-set amount of money in the scheme of your choice automatically. You can issue post-dated cheques or give standing instructions to Deutsche Bank and your investments will happen on the specified date in the specified scheme every month
- Less risky : It enables you to capitalise on periodic dips in the stock market and get more units at lower purchase price, thus reducing your average unit cost resulting in higher returns.
- Good savings discipline : It instills a good savings discipline as you are committed to invest a fixed sum regularly. Thus, you start investing before you spend.
- Easy on your pocket : You can decide how much to invest and how often depending on your capability.
- Compounding returns : The longer the period of your investment, the more wealth you accumulate, because of the power of compounding. The amounts invested early and regularly therefore helps in creating a substantial amount of wealth as returns over the years.
Click here for an illustration on how a small investment in SIP is beneficial compared to an one-time big investment.
Start an SIP today with a small amount every month.
Click here to see how a SIP can work to your advantage.
Fixed Income Funds
Fixed Income Funds attempt to generate a steady income while preserving investors’ capital. They invest exclusively in fixed-income securities like Bonds, Debentures, Government of India securities and Select Money Market Instruments. Fixed Income funds generate returns through Interest Income, Marked to Market Capital Gains / Loss.
Benefits of Fixed Income Funds:
- Low Risk of Capital Erosion
- Steady Rate of Return
- Tax efficient investment through mutual funds
- Potential for capital appreciation
- Liquidity better than Fixed Deposits
- No Lock in period
- Open ended
Outlook and Strategy
Reduced interest rate risk and inflationary pressure, high demand, slowing economic growth triggering more pre-activeness from RBI along with liquidity situation to be supportive.
Economic growth has become focus as even the Indian economic situation is fragile with significant domestic consumption slowdown apart from the expected fall in exports.
RBI has successfully handled the liquidity concerns.
India’s sovereign rating of Investment Grade retained by Fitch
Build exposure through Income and Gilt Funds.
Income Funds: The corporate spreads are reeling high around 300 basis points (for 5 year AAA spread). The softening of monetary policy stance by the RBI should lead to a fall in credit spreads as credit starts flowing to corporates and liquidity improves. There is an anticipation that the Income funds should do well as these spreads get narrower going forward.
Gilt Funds: Portfolio comprises of only sovereign papers. Good option in falling interest rate regime.
Purchase Mutual Funds online at a zero fee
While you can apply online for units of mutual funds you will also continue to receive comprehensive service from your Relationship Manager. Go on, invest and get more out of your wealth for less.
Benefits of purchasing / redeeming mutual funds online:
- Hassle-free application process: Paperless and hassle-free application process for purchase / redemption of your investments.
- Option to invest both in single and joint holding: You have an option to place order for mutual fund units both in single and joint holding modes. For this, you need to give a request form to your Branch / RM for creation of a Joint Investment Portfolio. Any orders placed in this portfolio would get executed in the joint name (in the same combination) mentioned in the request form. Click here to download the Joint Investment Portfolio form.
- Direct debit from your Deutsche Bank account: Purchase units of mutual funds at a click of a button directly debiting your Deutsche Bank Savings / Current Account.
- Deutsche Bank approved mutual funds: Get the list of mutual funds approved based on a quantitative methodology developed by CRISIL.
- Investment performance tracking and monitoring
* Deutsche Bank AG, India (“Bank”) is only a distributor of third party investment products and not an advisor in offering the db WealthPro and any information contained in Bank’s brochure or other material and otherwise communicated by the Bank shall not be construed as investment advice. All decisions to purchase or sell units / securities / insurance policy shall be on the basis of the personal judgement of the customer arrived at after due consideration and, if so deemed fit by the customer consulting his/her/their own external investment/insurance consultant.
Note: Terms and conditions apply. All investments in mutual funds are subject to market risks and business risks and there is no assurance or guarantee that the objectives of the products will be achieved. Market value of investments can go up or down depending on the various factors and forces affecting the capital and money markets. Yield or a fund’s past performance should not be considered as an indication or guarantee of future yield or results. The Bank is only a distributor of the mutual funds and is not related in any manner whatsoever in the investment / management of monies in such mutual funds. Offer document, terms and conditions of issue and risk factors of such mutual funds should be read and understood carefully by the investor before making any investment decisions. The decision to make investments in mutual funds is entirely owned and controlled by the concerned investor and the Bank shall not be responsible or liable for any matter connected with such investments.