Insights

Investment Ideas: A simple solution to your daily Investment needs

December 24, 2019

Investment Ideas: A simple solution to your daily Investment needs

The mutual fund universe in India is vast and has multiple levels at which an investor has to make choices before arriving at a single fund to invest in. Imagine having to choose one or even a few funds out of the 11,000+ schemes, spread over 40+ AMCs, 30+ sub-categories, with added nuances of open ended or closed ended, Dividend or Growth option, Direct or Regular plan etc. Even, if you have managed to shortlist a few funds, how will you make sure that they are the right ones for you!

For example, if you are a high risk taker looking to grow your wealth over a 5–7 year period, how would you pick the fund that will serve this purpose for you in the best way?

Keeping this in mind, Paytm Money had introduced ‘Investment Ideas’ last year to facilitate your investment decision process. Simply put, investment ideas are a collection of top mutual funds from most popular categories that help you fulfill your specific investment objectives based on your risk tolerance and investment holding period.

For illustration:

Suitable mutual funds

 

As shown above, if your goal is wealth creation over a 5–7 years and you have a high risk taking ability, then you can look at the ‘High Risk for High Return’ investment idea. This features top small and midcap funds which offer high growth potential over the long term but are volatile in the short term.

On the other hand, if you want to park your surplus cash for more than a week then you can take a look at ‘Better than Savings Account’ idea. Investing in these funds can potentially generate higher returns than your bank savings account while providing instant liquidity anytime.

Review & Update

Depending on the market scenario and changes in regulatory policies we would add or delete Investment Ideas at appropriate times.

Recently ‘Tax Efficient Regular Income’ idea was introduced, which is a filtered list of the monthly dividend plan of top arbitrage funds. This is useful for investors in the higher tax brackets who are looking for regular income over an investment horizon of at least 3 months.

We also constantly keep monitoring the existing ideas and the schemes that constitute these ideas. Whenever some material change happens, be it industry/category/scheme specific, we review it and update the list so that the investors are always presented with the best fund choices that are relevant and up to date.

Investment Ideas for every specific need

If you know your investment objective, time horizon to stay invested and the amount of risk you want to take, then there is surely an Investment Idea there for you! Each idea features the best funds based on relevant risk adjusted quantitative and qualitative parameters. Once you narrow down on a particular Idea, invest in 2 to 3 funds in that Idea so that your investments are diversified.

In summary, whatever be your investment need(s), one or more Investment Ideas will surely help in fulfilling those! Check it out today in the Invest section on the “Paytm Money” App and pick the funds that best suit you.