Examples of Extra Gains

Equity Mutual Funds

Equity mutual funds invest your money for a share in profits of well performing companies.  They are offer higher growth and beat inflation making good long term bets.

Equity Fund example – Direct Plan vs Regular Plan

Broker is taking away र 1000 out of a possible profit of  र 1900. You make only र 900.

Equity Fund example – Direct Plan vs ULIP

Broker is taking away र 2000 out of a possible net profit of र 1900 (after inflation). You do not make anything and actually lose र 100, which is taken out of your original investment.

Never mix insurance with investment. You must always buy protection as a ‘pure term insurance policy’.

Debt Mutual Funds

Debt funds invest in bonds and other fixed income products that generate interest income.

Debt Fund vs Bank Savings Account vs Bank Fixed Deposit

When compared to FD, Liquid fund gives you upto र 2500 more for a 1 year period; and upto र 12,121 more for a 3 year period.

The three options shown above can be understood better by seeing this comparison on Value Research. You will notice that there are liquid/debt funds that give 8% to 10.5%;  your broker or app might be pushing  a fund where he makes a high commission. But they do NOT promote funds that give higher returns.

At Jama, we have no such ‘incentive’ or ‘bias’ and we will only recommend a fund that gives you higher returns.