What is Mutual Fund ?

A Mutual Fund is a corporate body that pools the savings of a number of investors and invests the same in a variety of different financial instruments, or securities. The income earned through these investments and the capital appreciation realised by the scheme are shared by its unit holders or investors in proportion to the number of units owned by them. Mutual funds can thus be considered as financial intermediaries in the investment business who collect funds from the public and invest on behalf of the investors. The losses and gains accrue to the investors only. The Investment objectives outlined by a Mutual Fund in its prospectus are binding on the Mutual Fund scheme. The investment objectives specify the class of securities a Mutual Fund can invest in. Mutual Funds invest in various asset classes like equity, bonds, debentures, commercial paper and government securities

What Is An Asset Management Co ?

An Asset Management Company (AMC) is a highly regulated organisation that pools money from investors and invests the same in a portfolio. They charge a small fee for fund management.

 

What Is NAV ?

NAV or Net Asset Value of the fund is the cumulative market value of the assets of the fund net of its liabilities. NAV per unit is simply the net value of assets divided by the number of units outstanding. Buying and selling into funds is done on the basis of NAV-related prices. NAV is calculated as follows:
NAV= Market value of the fund's investments + Receivables + Accrued Income – Liabilities - Accrued Expenses
The performance of a particular scheme of a mutual fund is denoted by Net Asset Value (NAV) and it varies on daily basis. For example, if the market value of securities of a mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs.20.

How Often Is The NAV Declared ?

NAV is required to be disclosed by the mutual funds on a regular basis – on all business days or weekly – depending on the type of scheme. As per SEBI Regulations, the NAV of a scheme shall be calculated and published at least in two daily newspapers at intervals not exceeding one week. The NAVs are also available on the websites of mutual funds. All mutual funds are also required to put their NAVs on the website of Association of Mutual Funds in India (AMFI) www.amfiindia.com and thus the investors can access NAVs of all mutual funds at one place.

 

What Is Entry Load ?

The non refundable fee paid to the Asset Management Company at the time of purchase of mutual fund units is termed as Entry Load. Entry Load is added to the NAV (purchase price) when you are purchasing Mutual Fund units.

What Is Exit Load ?

The non refundable fee paid to the Asset Management Company at the time of redemption/ transfer of units between schemes of mutual funds is termed as exit load. It is deducted from the NAV(selling price) at the time of such redemption/ transfer.

What Is Purchase Price ?

Purchase price is the price paid by you to purchase a unit of a mutual fund scheme. If the fund levies an entry load, then the purchase price would be equal to the sum of the NAV and the entry load levied.

What Is Redemption Price ?

Redemption price is the price received on selling units of open-ended scheme. If the fund does not levy an exit load, the redemption price will be same as the NAV. The redemption price will be lower than the NAV in case the fund levies an exit load.

What Is A Switch ?

Some Mutual Funds provide the investor with an option to shift his investment from one scheme to another within that fund. For this option the fund may levy a switching fee. Switching allows the Investor to alter the allocation of their investment among the schemes in order to meet their changed investment needs, risk profiles or changing circumstances during their lifetime.

What are the factors that influence the performance of Mutual Funds?

The performances of Mutual funds are influenced by the performance of the stock market as well as the economy as a whole. Equity Funds are influenced to a large extent by the stock market. The stock market in turn is influenced by the performance of the companies as well as the economy as a whole. The performance of the sector funds depends to a large extent on the companies within that sector. Bond-funds are influenced by interest rates and credit quality. As interest rates rise, bond prices fall, and vice versa. Similarly, bond funds with higher credit ratings are less influenced by changes in the economy.

What is KYC and how to get KYC verified ?


KNOW YOUR Client (KYC) NORMS (w.e.f January 01, 2012) 

SEBI, based on feedback from investors, found that though certain basic requirements have been prescribed for Customer Due Diligence (CDD) or Know Your Client (KYC) for various SEBI registered intermediaries such as Mutual Funds, Portfolio Managers, Collective Investment Schemes and Venture Capital Funds, no specific KYC format had been prescribed. As a result, these intermediaries used different KYC formats and supporting documents. Thus, in order to bring uniformity in the Know Your Customer (KYC) process in the securities market and develop a mechanism for centralization of the KYC records and also to avoid duplication of KYC Process across the intermediaries in the securities market; SEBI vide Circular No. MIRSD/SE/Cir-21/2011 dated October 5, 2011, SEBI (KYC Registration Agency) Regulations, 2011 and Circular No. MIRSD/ Cir-26/ 2011 dated December 23, 2011 introduced the concept of KYC Registration Agency (KRA) effective January 01, 2012. 

Below process needs to be followed for Individuals and Non-Individuals: 

  1. Fill the new KYC application form:
  2. Documents evidencing Proof of Identity and Proof of Address to be provided
    (List of requisite KYC documents for individuals and non-individuals are mentioned in the revised KYC Application Form)
  3. In-Person Verification (IPV):
    • Complete IPV from any of the following:
    • Any SEBI registered intermediary (including ICICI Prudential Asset Management Company Limited
    • NISM/AMFI certified distributors who are KYD compliant
    • Scheduled Commercial Banks (in case of any applications received directly)
    • CAMS (Registrar and Transfer Agents) employees.
  4. Submit the KYC form along with necessary documents at the nearest Investor Services centre or any other intermediaries of KRA's as mandated by SEBI. Upon receipt and verification of the above documents, a KYC acknowledgement will be issued to each applicant.

Please Note: 

  • Investor(s) must note that KYC compliance is mandatory at the time of submission of each subscription request with the designated Official Points of Acceptance.
  • Applications by investors without valid KYC are liable to be rejected.
  • It is strongly recommend all our Investors to be KYC Compliant by completing the KYC formalities, in accordance with applicable KYC rules in force from time to time, at the earliest so they can continue to invest with us smoothly.

Completing KYC and PAN formalities:W.e.f 1 January 2012 

  1. ICICI Prudential Asset Management Company Limited (The AMC) shall perform the initial KYC of its new investors and upload the details of the investors on the system of the KYC Registration Agency (KRA). Registrar and Transfer Agent (RTA) of the Fund may also undertake the KYC of the investors on behalf of the AMC.
  2. KRA shall send a letter to the client within 10 working days of the receipt of the initial/update.
  3. KYC documents from the AMC, confirming the details thereof. However, an investor can start investing with the Fund as soon as the initial KYC is done and other necessary information is obtained while the remaining process of KRA is in progress.
  4. The AMC and the distributors, who comply with the certification process of National Institute of Securities Market (NISM) or Association of Mutual Funds in India (AMFI) and have undergone the process of 'Know Your Distributor (KYD)', can perform the IPV for the investors of the Fund. However, in case of applications received by the Fund directly from the investors (i.e. not through any distributor), the AMC may also rely upon the IPV (on the Common KYC form) performed by the scheduled commercial banks.
  5. Once the investor has done the KYC with a SEBI registered intermediary, the investor need not undergo the same process again with another intermediary including Mutual Funds. However, the AMC reserves the right to carryout fresh KYC of the investors or undertake enhanced KYC measures commensurating with the risk profile of investor.
  6. The existing KYC compliant investors can continue to invest as per the current practice. However, existing investors are also urged to comply with the new KYC requirements including IPV as mandated by SEBI. Investors are requested to take a note of the same.

 

Who Is Welcare Wealth  Management Co?(WWM)

Welcare Wealth Management (WWM) is a private wealth management firm, in business for over 10 years. WWM offers investment management and wealth planning solutions.  WWM is owned by Dharmesh Mehta, with 10 years of investment and investment management experience. The relationship with our clients is that of a trusted advisor, not a broker or so-called advisor. We, maintain a fiduciary responsibility, working in the best interest of each client, eliminating potential conflicts associated with commissions or proprietary investment products.

 How Can I View My Investment Performance And Holdings?

You may view your accounts and performance at any time via online secure client portal.

 What Is Your Firm’s Overall Mission?

Our mission is to deliver unbiased advice, while building client loyalty through extraordinary personal service. We give you confidence for life.

Do You Use Index Funds Or Etfs?

 Yes. We incorporate them when they are the best available option.

How Often Will I Get Account Statements?

Your account(s) custodian sends you monthly statements and trade confirmations either by mail or email.  WWM also provides a comprehensive customized quarterly report to you by mail. 

How Does Your Firm’s Investment Philosophy Differ From Online Investment?

A dynamic and proactive investment strategy, which is designed to be flexible and adaptive to prevailing market conditions.  We strive to protect you during inevitable market declines, navigate your portfolio smoothly through rapidly changing investment environments, and capitalize on current investment opportunities.

Your investment portfolio with WWM,  is not Buy and Hold. It's Actively Managed for upside potential, current income and a disciplined risk management strategy in down Markets.  All based on your goals, objectives and risk profile. 

Disciplined Rules-Based Investment Strategy, Disciplined Risk Management in Down Markets, Active Investment Management for Upside Growth Potential and Current Income.

We reject the use of a “set it and forget it “ approach used by many brokers, financial planners.  We find a Buy and Hold approach disastrous to your wealth and your retirement. 

Am I Locked-in? Are There Termination Penalties?

There are no barriers to exit a relationship with Welcare Wealth Management. The relationship is terminable on written notice, at any time, without any penalties. There are no forced liquidations, termination fees, back-end loads, redemption fees or other charges associated with the termination of an advisory relationship with our firm.

 Who Are Your Clients?

Our private client group consists predominantly of individuals ranging in age from 25 to 80 years old. Our clients are   pre-retirees and retirees. 

They don’t have the time or interest to manage their own investments effectively.

They may not have the knowledge to manage their own assets but they want someone to do it for them.

      

How Frequently Do You Review My Investments And Account?

All of our investments and portfolio models are monitored daily. We continuously review changes in market, industry sector and asset class conditions.  If we find it appropriate to make a tactical change to your asset allocation model, we can grab this  opportunity on client’s call.

What Are Your Fees ?

We charge nominal management fee based upon percentage of the total value of the asset we managed. The whole idea is to focus on performance  rather  than fees.