​Mutual Funds can be divided into four main categories.

Equity Funds

​The Equity Funds consist mainly of stock investments and can be invested globally, regionally or in single countries. Equity Funds mostly focus on a particular type of investment strategy, such as Growth, Value, Large Caps and Small Caps or are based around themes such as Property, Energy and Healthcare.

Income Funds

Income Funds, commonly known as Fixed-income Funds aim to provide current income on a steady basis by investing mainly in debt instruments including Government Bonds, Corporate Bonds or Mortgage-backed Securities. While fund holdings may appreciate in value, the primary objective of these funds is to provide a steady cash flow to investors. Though they also carry risks, these funds are likely to pay higher returns than certificates of deposit and money market investments.​

Money Market Funds

​Generally known as the safest, Money Market Funds seek to maintain a stable Net Asset Value by investing in the short-term, high-grade securities sold in the money market. These include Treasury Bills, Certificates of Deposit and Commercial Paper. Though they don’t offer great returns, there is also no risk of losing the principal.

Closed-end Fund vs Open-end Fund

​A Closed-end Fund is a publicly traded investment company that raises a fixed amount of capital through an Initial Public Offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.

​Open-end products may represent a safer choice than Closed-end Funds but the closed-end products might produce a better return, combining both dividend payments and capital appreciation. Of course, investors should always compare individual products within an asset class; some Open-end Funds may be more risky than some Closed-end Funds.

Hedge Funds

A Hedge Fund is an aggressively managed portfolio of investments that uses advanced investment strategies such as leveraged, long, short and derivative positions in both domestic and international markets with the goal of generating high returns (either in an absolute sense or over a specified market benchmark).​

​Legally, Hedge Funds are most often set up as private investment partnerships that are open to a limited number of investors and require a very large initial minimum investment. Investments in Hedge Funds are illiquid as they often require investors to keep their money in the fund for at least one year. Though they are privately owned and operated, Hedge Funds are subject to the regulatory restrictions of their respective countries.

Hedge Funds are often open-end and allow additions or withdrawals by their investors. A Hedge Fund’s value is calculated as a share of the fund’s Net Asset Value, meaning that increases and decreases in the value of the fund’s investment assets (and fund expenses) are directly reflected in the amount an investor can later withdraw.​

​Hedge Fund managers typically invest money of their own in the fund they manage, which serves to align their own interests with those of the investors in the fund.

Balanced Funds

These funds provide a balanced mixture of safety, income and capital appreciation and aim to invest in a combination of fixed income and equities.

Global and International Funds

While international funds invest only outside your home country, global funds invest anywhere around the world, including your home country.

Specialty Funds

These include sector, regional and socially-responsible funds and forgo broad diversification to concentrate on a certain segment of the economy.

Index Funds

An Index Fund replicates the market return and benefits investors in the form of low fees. It is said to provide broad market exposure, low operating expenses and low portfolio turnover.

A Mutual Fund can provide instant asset diversification without large amounts of cash needed to create individual portfolios. It allows you to buy a fund which invests in global equity and bond markets with lesser investment than usual. The investment risk potentially reduces the volatility of your portfolio because it is spread over many securities

A team of skilled, experienced investment professionals will be working to manage the funds on your behalf.

In general, you are able to sell your Mutual Funds in a short period of time without there being much difference between the sale price and the most current market value.

With Mutual Funds, you can buy in smaller denominations, enabling you to get in and start investing with minimum amount of capital. Smaller denominations of Mutual Funds provide Mutual Fund investors the ability to make periodic investments through monthly purchase plans while taking advantage of Dollar Cost Averaging.

The selection of Mutual Funds depends on your investment profile, i.e. appetite for risk and your investment goals.

We have tools available that help you generate your profile based on your responses to a set of questions. It helps us understand the type of investor you are, either cautious, moderate or adventurous and suggests a right solution for you.