Mutual funds are a sought-after investment tool for both small investors and large investors. The pooled in money from all the investors is managed professionally by the fund management companies. In the short or long-term, mutual funds give appreciation at a steady rate.
Before investing in a mutual fund it is important to compare the performance of the fund and the fee charges with the competitors before investing. It is also essential to research on the track record of the fund management
Among the companies with a good track record are Escorts Mutual fund and IDBI Mutual fund. The features and schemes of these funds are discussed in detail below.
Escorts Mutual Fund
Escorts Mutual fund has more than 20 years of service in India and has an acclaimed track record of portfolio management in India.
There is a wide range of schemes to invest in with Escorts Mutual fund. The following are some of the most preferred schemes provided by Escorts Mutual fund:
- Equity Shares Schemes- This scheme under the Escorts mutual fund makes the investment in the equity markets. The investors can access the dividends with share preferences. In this scheme, the investors share the profits and losses made by the company.
- Debt Fund- This Scheme by Escorts Mutual Fund involves investments in debt markets and money market instruments. As a part of this scheme, investors can trade their debt obligations.
- Money Market Fund- With money market funds by Escorts mutual fund, investments happen in certain fixed income securities. This scheme is for short-term investors and the maturity is quick and liquidity is high.
- Fixed Income Fund- This scheme by Escorts mutual fund, invests the shareholder’s money in fixed income securities. With this scheme, the investor gets a steady flow of income while he is a part of the plan. This amount is determined beforehand. On maturity, the principal income is returned to the investor.
- Sector Specific Fund- In this scheme by Escorts mutual fund, the investor’s money is invested in government bonds and securities. The investor can choose the sector for investment. The most popular choices are infrastructure, gold, energy, and power.
- Government Bonds and Security Fund- This scheme by Escorts mutual fund is one among the most rewarding schemes by the company. These funds are regulated by the Government of India and investment happens in only government securities and bonds. Investors are paid an interest and the principal amount can be withdrawn on maturity.
Reasons to Choose Escorts Mutual Fund
Among the many reasons to choose Escorts mutual fund, a few are listed below.
- Escorts mutual fund offers investments in many portfolios
- There are schemes to match every kind of risk appetite of the customers in Escorts mutual fund
- Escorts mutual fund provides a whole lot of tax benefits for its customers
- Escorts mutual fund also provides its customers good advice and prompt guidance to stay away from risks
- Escorts mutual fund with its various portfolios offers attractive returns on investment.
IDBI Mutual Fund
IDBI Mutual fund plans are close to 88 in number with the following schemes to invest in.
- Equity Scheme- In this kind of fund offered by IDBI Mutual fund, a large part of the investments happen in the stock market. A small part of the fund is also invested in notes and bonds. This fund can either be open-ended or close-ended.
- Gold Fund- The gold scheme under the IDBI mutual fund provides investment in various forms of gold. This category of IDBI mutual funds offers investment in either physical gold, bullions or in stocks of gold mining companies.
- Debt Scheme- This scheme of IDBI mutual fund offers investment in debt funds and also in certain other funds that give a fixed income. These funds by IDBI mutual fund give the investors a fixed interest rate.
- Exchange Traded Fund- This scheme by IDBI mutual fund provides investment in stock trading. The security of this fund depends entirely on the market trends.
Reasons to Choose IDBI Mutual Fund
Apart from providing many options in terms of the investment portfolio, there are a few other benefits of investing in IDBI mutual fund.
- IDBI mutual fund offers liquidity in a matter of a few working days based on the current net asset value of the investor
- IDBI mutual fund also offers professional advice to manage risks accordingly.
How to Choose between IDBI Mutual Fund and Escorts Mutual Fund
Before you choose the company of your investment like IDBI mutual fund or Escorts mutual fund, it is important to first choose the investment scheme. Though the past performance of the scheme counts, you cannot choose a product purely based on the past performance. The following are a few things to consider before you choose a scheme with a company such as Escorts Mutual fund:
- The overall charges to the AMC
- The downside risks of choosing the scheme
- The performance consistency of choosing the scheme
Never choose a scheme that has given high returns in a short time period without consistency. After choosing the scheme you would like to invest in, you can choose the asset management company (AMC) like IDBI mutual fund or Escorts Mutual fund based on the comparison. The following points are to be compared while choosing an AMC such as IDBI mutual fund or Escorts Mutual fund:
- The investing approach adopted by the AMC
- The expert advice and guidance offered by the company
- Growth prospects and the proficiency of the company to grow higher
- The performance of the AMC in the markets and their projected market growth.
All along, while choosing between funds and AMCs such as Escorts Mutual fund and IDBI Mutual fund, remember that comparison is the key.
