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. Office 1 – 9/A , 1st Floor, Janta Market , Bartand Dhanbad – 826001
. Office 2 – 204, New Market, Bank More, Dhanbad – 826001
. Office 3 – B19, Chandra Vihar Colony, Dhaiya Road, Dhanbad
Ph – 7004524847, 9835185930
Ajay Lal Yadav
Thank you Ruia Associates for helping us firm up our wandering thoughts at a crucial point in time. We were decided, then undecided on the way forward. Now, as you know, we have chosen our path with your guidance and gentle encouragement.
We can’t say enough about the excellent counsel and professional advice we received from Ruia Associates! Their genuine concern for our family’s welfare, and caring, thoughtful approach to our financial planning is what impressed us most. Their quality of service is above all.
Thank you Ruia Associates for this awesome advice. My funds are invested in a great profit returning scheme and they got doubled within months. The best part about working with the people at RA is the personal connection: during our interactions, we always felt awesome.
Knowing that your affairs are being managed efficiently, in your best interest and a cost-effective manner. What’s unique about this firm is their menu of services…and that their fees are based on time spent – not on what product they can sell you or on the size of your portfolio.
We appreciated your blunt, wise, practical advice. Your direct, no soft-shoe analysis and advice recalibrated our entire direction. We are now in a position of financial security and peace of mind. There is a confidence that comes working with Ruia Associates.
Desclaimer : Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.
FAQ’s from our Customers
What is a Mutual Fund?
A mutual fund is a mechanism for pooling money by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in the offer document.
Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is diversified because all stocks may not move in the same direction in the same proportion at the same time. Mutual funds issue units to the investors in accordance with
the quantum of money invested by them. Investors of mutual funds are known as unitholders. The profits or losses are shared by investors in proportion to their investments. Mutual funds normally come out with a number of schemes that are launched from time to time with different investment objectives. A mutual fund is required to be registered with the Securities and Exchange Board of India (SEBI) before it can collect funds from the public.
How is a mutual fund set up?
A mutual fund is set up in the form of a trust, which has sponsored, trustees, Asset Management Company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like a promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unitholders. AMC approved by SEBI manages the funds by making investments in various types of securities. Custodian, who is required to be registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund.
SEBI Regulations require that at least two-thirds of the directors of trustee company or board of trustees must be independent i.e. they should not be associated with the sponsors. Also, 50% of the directors of AMC must be independent.
All mutual funds are required to be registered with SEBI before they launch any scheme.
What are Tax Saving Schemes?
These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues, for example, Equity Linked Savings Schemes (ELSS) under section 80C and Rajiv Gandhi Equity Saving Scheme (RGESS) under section 80CCG of the Income Tax Act, 1961. Pension schemes launched by mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme.
What is expense ratio?
The expense ratio represents the annual fund operating expenses of a scheme, expressed as a percentage of the fund‟s daily net assets. Operating expenses of a scheme are administration, management, advertising related expenses, etc. An expense ratio of 1% per annum means that each year 1% of the fund‟s total assets will be used to cover expenses. Information on expense ratio that may be applicable to a scheme is mentioned in the offer document. Currently, in India, the expense ratio is fungible, i.e., there is no limit on any particular type of allowed expense as long as the total expense ratio is within the prescribed limit. For limits on expense ratio, refer to regulation 52 of the SEBI (Mutual Funds) Regulations, 1996.
What should an investor look into an offer document?
An abridged offer document [known as Key Information Memorandum (KIM)], which contains very useful information, is required to be given to the prospective investor by the mutual fund. The application form for a subscription to a scheme is an integral part of the offer document. SEBI has prescribed minimum disclosures in the offer document. Mutual fund investments are subject to market risks. An investor should carefully read all the scheme related documents. Due care must be given to portions relating to main features of the scheme, risk factors and recurring expenses to be charged to the scheme, loads, sponsor‟s track record, educational qualification and work experience of the key personnel including fund managers, the performance of other schemes launched by the mutual fund in the past, pending litigations and penalties imposed, etc.
How much should one invest in debt or equity oriented schemes?
An investor should take into account his risk-taking capacity, age factor, financial position, etc. As already mentioned, the schemes invest in different types of securities as disclosed in the offer documents and offer different returns and risks. Investors may also consult financial experts before taking decisions.
As a unit holder, how much time will it take to receive dividends/repurchase proceeds?
A mutual fund is required to dispatch to the unitholders the dividend warrants within 30 days of the declaration of the dividend and the redemption or repurchase proceeds within 10 working days from the date of redemption or repurchase request made by the unit holder.
In case of failures to dispatch the redemption/repurchase proceeds within the stipulated time period, Asset Management Company is liable to pay interest as specified by SEBI from time to time (15% at present) for the period of delay.
Can a mutual fund change the nature of the scheme from the one specified in the offer document?
Yes. However, no change in the nature or terms of the scheme, known as fundamental attributes of the scheme e.g. structure, investment pattern, etc., can be carried out unless written communication is sent to each unitholder and an advertisement is given in one English daily newspaper having nationwide circulation and in a newspaper published in the language of the region where the head office of the mutual fund is situated. The unitholders have the right to exit the scheme at the prevailing NAV without any exit load if they do not want to continue with the scheme. Mutual funds are also required to follow a similar procedure while converting the scheme from a close-ended to an open-ended scheme.
How will an investor come to know about the changes, if any, which may occur in the mutual fund?
There may be changes from time to time in a mutual fund. The mutual funds are required to inform any material changes to their unitholders. Apart from it, many mutual funds send quarterly newsletters to their investors. At present, the Scheme Information Document (SID) is required to be revised and updated at least once a year. In the meantime, new investors are informed about the material changes by way of addendum to the offer document till the time the offer document is revised and reprinted.
How to know where the mutual fund scheme has invested the money mobilized from investors?
The mutual funds are required to disclose full portfolios of all of their schemes on a monthly basis on their website. Portfolio disclosure on a half-yearly basis is published in the newspapers. Mutual funds may also send the disclosure of half-yearly portfolios to their unitholders. The scheme portfolio shows investment made in each security i.e. equity, debentures, money market instruments, government securities, etc. and their quantity, market value and % to NAV. These portfolio statements are also required to disclose illiquid securities in the portfolio,the investment made in rated and unrated debt securities, non-performing assets (NPAs), etc
Is there any difference between investing in a mutual fund and in an initial public offering (IPO) of a company?
Yes, there is a difference. Initial Public Offering (IPO) is offered by a company to directly raise money for the company as per the stated objective. In the case of mutual funds, the money garnered is used for investing in eligible securities such as equity and debt instruments of companies, money market instruments, gold, etc. Thus, a mutual fund acts as an intermediary between investors and companies.