NirmalBang

Market Performance

  • About Mutual Fund
  • KYC & FATCA
  • Enrollment Process
  • Account Opening
  • Payments
  • General

About Mutual Fund

1.What are MF?

A mutual fund is a pool of money managed by a professional Fund Manager. It is a trust that collects money from a number of investors who share a common investment objective and invests the same in equities, bonds, money market instruments and/or other securities. And the income / gains generated from this collective investment is distributed proportionately amongst the investors after deducting applicable expenses and levies, by calculating a scheme’s “Net Asset Value” or NAV. Simply put, the money pooled in by a large number of investors is what makes up a Mutual Fund.

2.What are the types of Mutual fund schemes?

Mutual Fund schemes could be ‘open ended’ or close-ended’ depending on its.maturity period.OPEN-ENDED AND CLOSED-END FUNDS An open-end fund is a mutual fund scheme that is available for subscription and redemption on every business throughout the year, (akin to a savings bank account, wherein one may deposit and withdraw money every day). An open ended scheme is perpetual and does not have any maturity date.A closed-end fund is open for subscription only during the initial offer period and has a specified tenor and fixed maturity date (akin to a fixed term deposit). Units of Closed-end funds can be redeemed only on maturity (i.e., pre-mature redemption is not permitted). Hence, the Units of a closed-end fund are compulsorily listed on a stock exchange after the new fund offer, and are traded on the stock exchange just like other stocks, so that investors seeking to exit the scheme before maturity may sell their Units on the exchange.

3.How is a Mutual Fund setup?

A mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset Management Company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like 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.

4.What are Equity Funds?

An equity fund is a mutual fund scheme that invests predominantly in equity stocks. In the Indian context, as per current SEBI Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65% of the scheme’s assets in equities and equity related instruments.Under the tax regime in India, equity funds enjoy certain tax advantages (such as, there is no incidence of long term capital gains tax on equity shares or equity funds which are held for at least 12 months from the date of acquisition). As per current Income Tax rules, an “Equity Oriented Fund” means a Mutual Fund Scheme where the investible funds are invested in equity shares in domestic companies to the extent of more than 65% of the total proceeds of such fund.An Equity Fund can be actively managed or passively managed. Index funds and ETFs are passively managed.Equity mutual funds are principally categorized according to company size, the investment style of the holdings in the portfolio and geography.The size of an equity fund is determined by a market capitalization, while the investment style, reflected in the fund's stock holdings, is also used to categorize equity mutual funds.Equity funds are also categorized by whether they are domestic (investing in stocks of only Indian companies) or international (investing in stocks of overseas companies). These can be broad market, regional or single-country funds.Some specialty equity funds target business sectors, such as health care, commodities and real estate and are known as Sectoral Funds.

5.What are the different categories of Equity Funds?

There are different types of equity mutual fund schemes and each offers a different type of underlying portfolio that have different levels of market risk. Large Cap Equity Funds invest a large portion of their corpus in companies with large market capitalization are called large-cap funds. This type of fund is known to offer stability and sustainable returns, over a period of time.Large Cap companies are generally very stable and dominate their industry. Large-cap stocks tend to hold up better in recessions, but they also tend to underperform small-cap stocks when the economy emerges from a recession. Large-cap tend to be less volatile than mid-cap and small-cap stocks and are therefore considered less risky.Mid-Cap Equity Funds invest in stocks of mid-size companies, which are still considered developing companies. Mid-cap stocks tend to be riskier than large-cap stocks but less risky than small-cap stocks. Mid-cap stocks, however, tend to offer more growth potential than large-cap stocks.Small Cap Funds invest in stocks of smaller-sized companies. Small cap is a term used to classify companies with a relatively small market capitalization. However, the definition of small cap can vary among market intermediaries, but it is generally regarded as a company with a market capitalization of less than ₹ 100 crores. Many small caps are young companies with significant growth potential. However, the risk of failure is greater with small-cap stocks than with large-cap and mid-cap stocks. As a result, small-cap stocks tend to be the more volatile (and therefore riskier) than large-cap and mid-cap stocks. Historically, small-cap stocks have typically underperformed large-cap stocks during recessions but have outperformed large-cap stocks as the economy has emerged from recessions.The smallest stocks of the small caps are called micro-cap stocks. While the opportunity for these companies to experience extreme growth is great, the risk to lose a large amount of money is also possibleMulti Cap Equity Funds or Diversified Equity Funds invests in stocks of companies across the stock market regardless of size and sector. These funds provide the benefit of diversification by investing in companies spread across sectors and market capitalisation. They are generally meant for investors who seek exposure across the market and do not want to be restricted to any particular sector. They invest in companies across different market caps and hence reduce the amount of risk in the fund. Diversification helps prevent events that could affect a single sector for affecting the fund, and hence reduce risk.Market capitalization (commonly known as market cap) is calculated by multiplying a company’s outstanding shares by its stock price per share. A company’s stock price by itself does not tell much about the total value or size of a company; a company whose stock price is say ₹500 is not necessarily worth more than a company whose stock price is say, ₹250. For example, a company with a stock price of ₹500 and 10 million shares outstanding (a market cap of ₹5 billion) is actually smaller in size than a company with a stock price of ₹250 and 50 million shares outstanding (a market cap of ₹12.5 billion). Thematic Equity Funds: These funds invest in securities of specific sectors such as Information Technology, Banking, Service and pharma sector etc., which is specified in their scheme information documents. So, the performance of these schemes depends on the performance of the respective sector. These funds may give higher returns, but they also come with increased risks.EQUITY LINKED SAVINGS SCHEME (ELSS):Equity-Linked Savings Scheme (ELSS) is an equity mutual fund investment that invests at least 80 per cent of its assets in equity and equity-related instruments. ELSS can be open-ended or close ended. Investments in an ELSS qualify for tax deductions under Section 80C of the Income Tax Act within the overall limit of ₹1.5 lakh. The amount you invest in ELSS is deducted from your taxable income, which helps you lower the amount of income tax you are liable to pay. Investments in ELSS are subject to a three-year lock-in period and the returns from the scheme, i.e. dividends and capital gains, are tax-freeInvesting in equity mutual funds comes at slightly higher risk as compared to debt mutual funds, but they also give your money a chance to earn higher returns. Now that you know more about different types of equity mutual funds, what are you waiting for? Contact your investment advisor today.

6.What is Debt Fund?

IF YOU WANT TO AVOID THE MARKET FLUCTUATIONS OF EQUITY STOCKS AND ARE RISK-AVERSE, CONSIDER INVESTING IN DEBT-ORIENTED MUTUAL FUND SCHEMES.A debt fund is a mutual fund scheme that invests in fixed income instruments, such as Corporate and Government Bonds, corporate debt securities, and money market instruments etc. that offer capital appreciation. Debt funds are also referred to as Income Funds or Bond Funds.

7.What are the different type of schemes in Debt Fund category?

There are various types of schemes in the debt fund category, which are classified on the basis of the type of instruments they invest in and the tenure of the instruments in the portfolio, as explained below:Liquid & Money Market Funds Savings bank deposits have been the retail investors’ preferred investment option to park surplus cash. Most investors regard these as the only avenue while some believe parking surplus cash elsewhere can erode their capital and does not provide liquidity. CRISIL’s recent study draws attention to a more attractive option – Liquid Fund / Money Market Mutual Funds. The analysis underlines that surplus cash invested in money market mutual funds earns high post-tax returns with a reasonable degree of safety of the principal invested and liquidity.Liquid Funds, as the name suggests, invest predominantly in highly liquid money market instruments and debt securities very short tenure and hence provide high liquidity. They invest in very short-term instruments such as Treasury Bills (T-bills), Commercial Paper (CP), Certificates Of Deposit (CD) and Collateralized Lending & Borrowing Obligations (CBLO) that have residual maturities of up to 91 days to generate optimal returns while maintaining safety and high liquidity. Redemption requests in these funds are processed within one working (T+1) day.Income funds They invest primarily in debt instruments of various maturities in line with the objective of the funds and any remaining funds in short-term instruments such as Money Market instruments. These funds generally invest in instruments with medium- to long-term maturities.Short-Term funds Short-term debt funds primarily invest in debt instruments with shorter maturity or duration. These primarily consist of debt and money market instruments and government securities. The investment horizon of these funds is longer than those of liquid funds, but shorter than those of medium-term income funds.Floating Rate funds (FRF)While income funds invest in fixed income debt instruments such as bonds, debentures and government securities, FRFs are a variant of income funds with the primary aim of minimising the volatility of investment returns that is usually associated with an income fund. FRFs invest primarily in instruments that offer floating interest rates. Floating rate securities are generally linked to the Mumbai Inter-Bank Offer Rate (MIBOR), i.e., the benchmark rate for debt instruments. The interest rate is reset periodically based on the interest rate movement. The objective of FRFs is to offer steady returns to investors in line with the prevailing market interest rates.Gilt FundsThe word ‘Gilt’ implies Government securities. A gilt fund invests in government securities of various tenures issued by central and state governments. These funds generally do not have the risk of default, since the issuer of the instruments is the government. Gilt funds invest in Gilts which have both short-term and/or long-term maturities. Gilt funds have a high degree of interest rate risk, depending on their maturity profile. The longer the maturity profiles of the instruments, the higher the interest rate risk. (Interest rate risk implies that there is an effect on the market price of debt instruments when interest rates increase and decrease. Market prices of debt instruments rise when interest rates fall and vice-versa.)Interval FundsInterval fund is a mutual fund scheme that combines the features of open-ended and closed-ended schemes, wherein the fund is open for subscription and redemption only during specified transaction periods (STPs) at pre-determined intervals. In other words, Interval funds allow redemption of Units only during STPs. Thus between two STPs they are akin to closed-ended schemes and therefore, compulsorily listed on Stock Exchanges. However, unlike typical closed-ended funds, interval funds do not have a maturity date and hence open-ended in nature. Hence, one may remain invested in an Interval Fund as long as one wishes to like any open ended schemes. Hence, in a sense, interval funds are akin to Fixed Maturity Plans (FMPs) with roll-over facility, as they allow roll over of investments from one specified period to another.Interval funds are typically debt oriented products , but may invest in equities as well as per the scheme’s investment objective and asset allocation specified in the Scheme Information Document.Interval funds are taxed like any other mutual fund, depending on whether the underlying portfolio is pre-dominantly invested in equities or debt securities. If the fund invests 65% or more of its corpus in debt securities, it is taxed like a non-equity fund. Likewise, if the fund invests 65% or more in equities, it is taxed like an equity fund.Multiple Yield FundsMultiple yield funds (MYFs) are hybrid debt-oriented funds that invest predominantly in debt instruments and to some extent in dividend-yielding equities.The debt instruments assist in generating returns with minimum risk and equities assist in long-term capital appreciation.MYFs invest predominantly in debt and money market instruments of short-to-medium-term residual maturities.Dynamic Bond FundsDBFs invest in debt securities of different maturity profiles. These funds are actively managed and the portfolio varies dynamically according to the interest rate view of the fund managers. Such funds give the fund manager the flexibility to invest in short- or longer-term instruments based on his view on the interest rate movement. DBFs follow an active portfolio duration management strategy by keeping a close watch on various domestic and global macro-economic variables and interest rate outlook.Fixed Maturity Plans (FMPs)FMPs, as the name indicates, have a pre-determined maturity date (like a term deposit) and are close-ended debt mutual fund schemes. FMPs invest in debt instruments with a specific date of maturity, lesser than or equal to the maturity date of the scheme, also enjoy the status of debt funds. After the date of maturity, the investment is redeemed at current NAV and the maturity proceeds are paid back to the investors.The tenure of an FMP may range from as low as 30 days to 60 months. Since the maturity date and the amount are known beforehand, the fund manager can invest with reasonable confidence, in securities that have a similar maturity as that of the scheme. Thus, if the tenure of the scheme is one year then the fund manager would invest in debt securities that mature just before a year. Unlike in other open ended funds, where one can buy and sell units from the mutual funds on an ongoing basis), no pre-mature redemptions are permitted in FMPs. Hence, the units of FMPs (being close ended schemes) are compulsorily listed on a stock exchange/s so that the investors may sell the units through stock exchange route in case of urgent liquidity needs.Monthly Income Plans (MIPs)MIPs are hybrid schemes that invest in a combination of debt and equity securities, but are typically debt oriented mutual fund schemes, as they invest pre-dominantly in debt securities and a small portion (15-25 per cent) in equities.MIPs offer regular income in the form of periodic (monthly, quarterly, half-yearly) dividend pay-outs. Hence MIPs are preferred option for investors seeking steady income flows. Under MIPs, monthly income or regular dividend is neither assured nor is it mandatory for mutual funds to pay at stated intervals, because in a mutual fund scheme, the dividend is paid at the discretion of the mutual fund and is subject to availability of distributable surplus from realised gains.Due to the equity exposure, MIP returns can be volatile and may suffer losses, making dividend pay-outs irregular - both in quantum and frequency or even skip dividend payment. In spite of this, MIPs have a history of providing higher returns after adjusting for tax and hence can be a better option.Investors wary of fluctuating income from MIPs' dividend option can opt for Growth Option and a systematic withdrawal plan, or SWP, which allows regular redemption of a pre-determined amount. An SWP under an MIP can work as a regular source of income for investors. SWP works better when a person invests a large sum.

8.What are Liquid Funds?

Liquid Funds, as the name suggests, invest predominantly in highly liquid money market instruments and debt securities of very short tenure and hence provide high liquidity. They invest in very short-term instruments such as Treasury Bills (T-bills), Commercial Paper (CP), Certificates Of Deposit (CD) and Collateralized Lending & Borrowing Obligations (CBLO) that have residual maturities of up to 91 days to generate optimal returns while maintaining safety and high liquidity. Redemption requests in these Liquid funds are processed within one working (T+1) day.The aim of the fund manager of a Liquid Fund is to invest only into liquid investments with good credit rating with very low possibility of a default. The returns typically take the back seat as protection of capital remains of utmost importance. Control over expenses in the form of low expense ratio, good overall credit quality of the portfolio and a disciplined approach to investing are some of the key ingredients of a good liquid fund.Most retail customers prefer to keep their surplus cash in Savings Bank deposits as they consider the same to be safest and they could withdraw the money at any time. Liquid Funds and Money Market Mutual Funds provide a more attractive option. Surplus cash invested in money market mutual funds earns higher post-tax returns with a reasonable degree of safety of the principal invested and liquidity.Liquid funds are preferred by investors to park their money for short periods of time typically 1 day to 3 months. Wealth managers suggest liquid funds as an ideal parking ground when you have a sudden influx of cash, which could be a huge bonus, sale of real estate and so on and you are undecided about where to deploy that money. Investors looking out for opportunities in equities and long-term fixed income instruments can also park their money in the liquid funds in the meantime. Many equity investors use liquid funds to stagger their investments into equity mutual funds using the Systematic Transfer Plan (STP), as they believe this method could yield higher returns.Liquid Funds typically do not charge any exit loads. Investors are offered growth and dividend options. Within dividend option, investors can choose daily, weekly or monthly dividends depending on their investment horizon and investment amount. Redemption payment is typically made within one working day of placing the redemption request. With mutual funds going online, individual investors with small sums can look at Liquid funds as an effective short-term investment option over their savings bank account.

9.What is Balance Funds?

A balanced fund combines equity stock component, a bond component and sometimes a money market component in a single portfolio. Generally, these hybrid funds stick to a relatively fixed mix of stocks and bonds that reflects either a moderate, or higher equity, component, or conservative, or higher fixed-income, component orientationThese funds invest in a mix of equities and debt, giving the investor the best of both worlds. Balanced funds gain from a healthy dose of equities but the debt portion fortifies them against any downturn.Balanced funds are suitable for a medium-term horizon and are ideal for investors who are looking for a mixture of safety, income and modest capital appreciation. The amounts this type of mutual fund invests into each asset class usually must remain within a set minimum and maximum.Although they are in the “asset allocation” family, balanced fund portfolios do not materially change their asset mix. This is unlike life-cycle, target-date and actively managed asset-allocation funds, which make changes in response to an investor's changing risk-return appetite and age or overall investment market conditions.EQUITIES AND INFLATIONInvestors who have dual investment objectives favour Balanced Funds. Typically, retirees or investors with low risk tolerance prefer these funds for growth that outpaces inflation and income that supplements current needs. While retirees generally scale back risk as age advances, many individuals recognize the need for equity exposure as life expectancies increase. Equities prevent erosion of purchasing power and help ensure long-term preservation of retirement corpusINCOME NEEDSThe bond component of a balanced fund serves two purposes: creating an income stream and moderating portfolio volatility. Investment-grade bonds such as AAA corporate bonds and Money market instruments interest income from periodic payments, while large-company stocks offer dividend payouts to enhance yield. Retired investors may take distributions in cash to bolster income from pensions and personal savings.Secondarily, bonds hold much less volatility than stocks. Bondholders have a claim against assets of a company while stocks represent ownership, bearing all inherent risk if bankruptcy occurs. Hence, debt security prices do not move in lockstep with equities, and their stability prevents wild swings in the share price of a balanced fund.TAXATIONEquity-oriented Balanced funds have a larger portion of their corpus (at least 65%) invested in stocks and qualify for the same tax treatment as equity funds. This means any capital gains are tax-free, if the investment is held for more than one year. However, these funds are more volatile due to the higher allocation to stocks.Debt-oriented balanced funds are less volatile and suit those with a lower risk appetite. However, they offer lower returns and the gains are not eligible for tax exemption. If the investment is held for less than three years, the capital gains are treated as short term and taxed at the normal rates. But if the holding period exceeds three years, the gains are considered as long term and are taxed at 20% after indexation benefit, which can significantly reduce the tax.

KYC & FATCA

1.What is KYC?

KYC is an acronym for “Know Your Customer” and is a term used for Customer Identification Process as a part of Account Opening process with any financial entity. KYC establishes an investor’s identity & address through relevant supporting documents such as prescribed photo id (e.g., PAN card) and address proof and In-Person Verification (IPV). KYC compliance is mandatory under the Prevention of Money Laundering Act, 2002 and Rules framed there under, read with the SEBI Master Circular on Anti Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT) /Obligations of Securities Market Intermediaries.A standard Account Opening form (AOF) is generally divided in 2 parts:Part I contains the basic and uniform KYC details of the investor as prescribed by the Central KYC registry (Uniform KYC) to be used by all registered financial intermediaries and Part II additional KYC information as may be sought separately by the financial intermediary such as a mutual fund, stock broker, depository participant opening the investor’s account (Additional KYC).

2.What is Central KYC Registry?

Central KYC Registry (CKYCR) is a centralized repository of KYC records of customers in the financial sector through an entity substantially owned and controlled by Central Government to receive, store and safeguard the KYC records of a client in digital form. This is to implement uniform KYC norms and inter-usability of the KYC records across entities in the financial sector with an objective to reduce the burden of producing KYC documents and getting those verified every time when the customer creates a new relationship with a entity.Government of India has authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), to act as, and to perform the functions of the Central KYC Registry.

3.Why Uniform KYC and How Does it Benefit Investors?

Uniform KYC has been prescribed in order to bring uniformity in KYC process and eliminate the requirement for investors to undergo the KYC process multiple times when opening accounts with different financial intermediaries like mutual funds, stock brokers, depository participants etc. The CKYCR has prescribed uniform KYC guidelines and a standard KYC form and the supporting documents to be obtained by all registered financial intermediaries. Financial intermediaries shall use this standard KYC form as Part I of their Account Opening Form. The financial intermediary, as part of their account opening process, shall upload the KYC information contained in Part I and documents with CKYCR.Thus, an investor has to undergo a Uniform KYC process only once and the KYC details are shared by the CKYCR with other financial intermediaries with whom the investor may open accounts subsequently. However, any changes in the KYC information provided earlier need to be updated with any of the intermediaries with whom the investor is maintaining an account.

4.What is the process of KYC in case of Minor?

In case of investments in respect of a minor, the Parent/Legal Guardian who opens the account on for the minor needs to complete the KYC process.

5.What should be done, when Minor becomes Major?

When a minor becomes a major on attaining 18 years of age, she/he has to undergo and complete KYC process in his/her own capacity and notify each of the concerned Mutual Funds/Financial Intermediaries by filling up a prescribed ‘Minor Attaining Majority form’ in order to be able to transact further in his/her folios/accounts.

6.What is FATCA?

“FATCA” or Foreign Account Tax Compliance Act is a United States (US) law aimed at prevention of tax evasion by US citizens and residents (“US Persons”) through use of offshore accounts. FATCA obligates foreign financial institutions (FFIs), including Indian financial institutions to provide the US Internal Revenue Service (IRS) with information on the accounts of to report accounts held by specified US Persons. Since domestic laws of sovereign countries, including India, may not permit sharing of confidential client information by FFIs directly with US IRS, the U.S. has entered into Inter-Governmental Agreement (IGA) with various countries.The IGA between India and USA was signed on 9th July, 2015, which provides that the Indian FIs will provide the necessary information to Indian tax authorities, which will then be transmitted to USA automatically. The IGA between India and USA has become operational effective August 31, 2015.The impact of FATCA is relevant not only at the point of ‘on-boarding’ of investors, but also throughout the life cycle of the investor account or folio. Any event which impacts customer tax status or change of key information may trigger impact under FATCA. Further, FATCA due diligence is to be directed at each investor (including joint investor). Once a given investor is identified as a reportable person/ specified US person, all his folios will have to be reported – including those where he may be a joint holder. Notably, in case of folios with joint investors, the entire account value of the investment portfolio will be attributable under each such reportable person.

7.Why Am I Being Asked to Provide FATCA Declaration?

FATCA obligates every Indian financial institutions/mutual funds to provide required tax related information to Indian Tax authorities of accounts held by specified US Persons. Therefore when you open a new account with mutual fund you need to provide information regarding your tax status. In case you are not a tax resident of any other country outside India, you will have to submit a declaration confirming the same.

8.Is Every Investor Required To Submit FATCA/CRS Declaration?

Yes, every customer who opens a new account with any mutual fund is required to give FATCA/CRS self-certification. For your convenience both these have been merged into one and you need to provide one set of information which will suffice for FATCA as well as CRS. If a self-certification is not provided by an account holder or the reasonableness of a self-certification cannot be confirmed, the account is treated as reportable to the Indian tax authorities, who in turn are obligated to pass on the information to the tax authorities in the respective US/G20/OECD countries.

Enrollment Process

1.How can I Associate with Nirmal Bang?

The first criteria is to get Mutual Funds Advisers Certification.To get the Mutual Fund Distributors certificate you have to be registered with AMFI and should have an ARN I.e(AMFI Registration Number) only then you can advise Mutual Funds.To get registered with AMFI one has to register and successfully clear for the NISM Series V Mutual Fund certification only then one can apply for ARN.

2.How do I get registered for NISM examination?

Link to direct the individual to NISM instruction page or PDF file link

3.How is Nirmal Bang going to help me get the Mutual Fund Advisers Certification?

Nirmal Bang will provide One day training for NISM exams. A Soft copy of the exam preparation material will be provided. We will also help to get enroll for NISM examination.

4.What is the difficulty level of NISM examination?

Nirmal Bang training will help you clear all the doubts about examination and make it easier. The online mock tests are also available to increase your confidence in clearing the exam. 2-3 hours of study for 6 to 8 days would certainly help and make it a cake walk.

5.How is the structure of the examination?

Mutual Fund examination is conducted online by NISM through BSE/NSE. Duration of exam is 2 hrs. Examination consists of total 100 questions of 1 mark each.

6.What is the validity period of the certification?

As per the current regulation validity of the certification is 3 years.

7.When can I start my business after passing the examination?

Once you clear the exam you have to apply for the ARN. As soon as you get the ARN, you can get empanel with Nirmal Bang after completing the joining process and signing up the agreement. This is an Online process which will help you get empanel easier and quicker.

8.After getting associated, how is Nirmal Bang going to help me achieve my goals?

You will get all sort of Marketing Support from Nirmal Bang, which will have your own branding. Online platform to all associate and their clients to keep a track on the portfolio. Simple transaction and payment process. Backoffice support to check multiple reports.

9.Are there any training programs for associates on how to deal with clients?

Yes. We do have such programs at regular intervals to keep all our associates updated about the current market conditions.

Account Opening

1.What documents are required for Account Opening?

NBWS account opening process is simple, paperless and instant. You just need to keep below three documents handy:- 1) Aadhaar Card 2) PAN Card 3) Cancelled Cheque

2.Is there a minimum balance required for account opening?

No. No minimum balance required for account opening.

Payments

1.Do you charge for investing in Mutual Funds?

No. We do not charge for investing in Mutual Funds

2.Do I have to pay taxes on Mutual Fund withdrawals?

For withdrawals within 1 year of investing, STGC tax is payable at 15%. For withdrawals after twelve months of investing, 10% LTCG tax is payable when the capital gain is more than Rs. 1 Lakh. (This will be different for Equity mutual funds and Debt Mutual Funds- for equity mutual funds the above statement is correct but for debt funds it will be different- For debt funds: For withdrawals within 3 years of investing, tax on profits will be as per applicable tax slab and post 3 years it will be 20% after indexation) No tax on dividend in the hands of investor.

3.Why should you empanel with Nirmal Bang Wealth Solution

This question will be applicable to sub brokers/associates: And the answer can be same as why choose NB wealth solutions (on the website- we can mention the pointers only)

4.What are the payment options in Nirmal Bang

Is this for clients?? Like how they can pay for mutual funds that they want to buy?- Online and offline both options are available. Cheque/NEFT/RTGS/Net banking/NACH mandates

General

1.What are Mutual Funds?

Mutual Fund is an assurance that pools the reserves of a no. of investors who have common financial goal; reserves can be in the form of shares, securities, debt, money market equities or a mixture of these. The securities are competently managed on part of unit-holders, and every investor hold a pro-rata division of the total invested portfolio i.e. characterized to any profits while some of the securities are sold, although can also be subject to any loss in the value. The income acquired through these types of investments and the appreciation of funds is united by its unit owner in proportion to the number of units owned. Therefore, a Mutual Fund shall be the most convenient investment option for a common man as it gives a chance to invest in completely diversified, expert managed basket of securities at comparatively low cost.

2.Which all investors can invest their money in Mutual Funds?

Residents - Indian Companies, Charitable Institutions/ Indian Trusts, Banks, Non-Banking Finance Companies, Provident Funds, Banks, Individuals (HNIs/Retail Investors/Small Investors), Non-Residents, Non-resident Indians (NRIs), Other Corporate Bodies (OCBs), Foreign Entities, FIIs registered with SEBI

3.What entities are involved in proper functioning of a Mutual Fund?

For a Mutual Fund, it is necessary to be registered with the Securities and Exchange Board of India (SEBI). Following entities are involved in proper functioning of a Mutual Fund:Trust, Sponsor,Asset Management Company,Custodian,Registrar and Transfer Agent,Fund Manager,Distributor,Collecting Banker,Fund Accountant

4.Who is a Fund Manager?

They calculate the NAV simply by collecting the information from the each scheme by going through their assets and liabilities. (not proper) (for e.g. What is a Fund Manager: A fund manager is responsible for implementing a fund's investing strategy and managing its portfolio trading activities. A fund can be managed by one person, by two people as co-managers, or by a team of three or more people. Fund managers are paid a fee for their work, which is a percentage of the fund's average assets under management (AUM).

5.Is it safe to invest through Nirmal Bang?

Yes, it’s safe to invest through Nirmal Bang because we are in compliance with rules and regulations under the guidance of AMFI and mutual funds investments are in electronic form where your holdings are safe and secure.

6.Why do you need SMS permission?

SMS access allows us to automatically track your expenses for you reading the transaction messages you receive from merchants and banks. We do not access your personal messages which is received from a 10 digit mobile number. Also, Nirmal bang will never give out your data to any third parties.

7.Can Nirmal bang access my email?

Not at all. Nirmal Bang does not have this level of access. There is no way we can view, edit or manage absolutely anything in your email.

8.Is my information secure?

Yes,Nirmal bang has bank grade security integrated to always protect your information. We use advanced encryption techniques for your information and we take extra security measures to protect your information. Our internal systems are constantly audited and approved by independent auditors who work with the established and reputed banks and NBFCs.

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