Sahara Asset Management Co. Pvt. Ltd is the parent company that manages all Sahara Mutual Funds. Sahara Asset Management has established itself as a renowned name in the mutual fund sphere. With the help of an asset management company like Sahara, one can make their wealth grow through investments made into a variety of investment options. Since, mutual fund is a pool of money created by contribution of various investors, there is a substantial amount of money available to the fund managers for making investments in instruments which will yield potentially returns.
Why Mutual Funds?
Most of us save money in one form or another. While there is nothing wrong with saving money, not letting it grow is where the problem arises. When one saves money in bank accounts or using other fixed income investment techniques, the invested capital does not usually see good appreciation due to low interest rates and inflation pressures. However, if one invests the same in mutual funds he/she can see wealth grow right in front of their eyes. The presence of a lot of categories of mutual funds ensures that investors will find one that suits their needs. Here are some advantages of investing in a mutual fund.
Investing in mutual funds is quite easy these days. And given the fact that these funds in turn invest in various financial tools, an investor gets access to a bouquet of investments without even having to worry about it. All the asset management companies have online presence and with the click of few buttons, investors can invest their money in a mutual fund.
Professional fund managers are responsible for investing the fund’s money into different instruments. What this means for investor, is that they can invest without having to do all the analysis and research steps required before investing in a specific instrument. Investors thus get access to professionally managed portfolios at cheaper costs than what they would have paid to do so individually. And since the investments range across multiple segments, investors also get a balanced and diversified portfolio to invest in.
A fund manager looks into a series of investment instruments available to him/her before taking a call. A single portfolio can contain a combination of different instruments, thus giving investors a diversified portfolio. A diversified portfolio also ensures that investors are not over-exposed to a specific sector.
Why Sahara Mutual Funds?
Apart from the above benefits, investors also have the convenience of investing anytime and from anywhere when they opt for Sahara Mutual Funds. Investors can choose and buy their preferred Sahara Mutual Fund online without even having to talk to any agents or visiting an office. What’s more, depending on which category of mutual funds one picks, the investor also gets a great degree of liquidity. Higher liquidity essentially means is that one can withdraw their funds almost instantaneously at a fair price. Barring a few investments that have a lock-in period, the investor can redeem other funds without losing out on investment benefits. Here are some of the benefits of investing in a Sahara Mutual Fund.
- Potentially good and consistent returns over a longer time frame.
- Access to a diversified portfolio with various risk profiles for better management.
- The company offers flexible investment options including systematic investment plans and systematic withdrawal plans.
- Tax saving mutual funds can also help investors with tax planning efforts.
Mutual funds are split into various categories based on different parameters. While some aim at providing short term benefits, other focus on capital appreciation over a longer time frame. Depending on specific requirements and need, the investor will be able to choose a Sahara Fund of his/her choice. The following are some categories in which Sahara offers their mutual funds.
Equity based mutual funds are synonymous with growth. Funds under this category largely focus their investments around equity and equity derivatives. As the investment is mostly in the capital market, it allows investments to grow at a faster rate if given a long enough time frame. Equity based mutual funds are thus ideal for individuals who are looking to invest for a longer period of time. Since the assets are mostly related to the capital markets, the risk factor is also a bit higher in this fund type.
Debt based mutual funds are often synonymous with income funds. All funds that are featured under this category invest in debt based instruments, securities, bonds and debentures. As the investments are on the above instruments, the funds are much more stable than their equity counterparts. These funds are ideal for individuals who do not want to take high risk and want potentially stable returns.
Apart from the above fund types, there are a couple of broader categories that all mutual funds belong to.
- Open Ended Mutual Funds
Open ended mutual funds do not have any restrictions when it comes to purchase of units. There are no hard time-based requirements or upper cap on the number of units one can purchase if a fund is open ended.
- Closed Ended Mutual Funds
A close ended fund on the other hand has time frames for purchase and redemption of the units. Depending on the fund type, one might even face some caps on the number of units that an investor can purchase.
Popular Sahara Mutual Funds
Here are some of the most popular mutual funds managed by Sahara Mutual Funds AMC.
- Sahara Tax Gain Fund
Sahara Tax gain fund is an open ended mutual fund that belongs to the ELSS or equity linked saving scheme category. The aim of the plan is to provide its investors with immediate tax relief. The plan also helps investors in the appreciation of their capital in the long term.
The fund has done well over the years, beating its benchmark on a consistent basis. It is ideal for individuals who want to stay invested for the long term in the equity market. The fund has a moderately high risk and thus suitable for people who avoid risk elements in their portfolio.
Since the fund is of ELSS category, the investor gets tax benefits up front and later during redemption as well. Money invested in the fund is deductible under Section 80C. Since the fund primarily invests in equity and its derivates, capital gain tax is not applicable for the same as the investment period is over 3 years. If the laws remain as they are now, an investor does not have to pay any taxes on the profits that they make on this fund.
Investors can purchase this fund with a minimum investment of Rs.500 and the subsequent installments have to be in multiples of Rs.500. Investors can opt for the SIP option with this fund as well. The minimum investment amount to start a SIP is Rs. 500 or its multiples. Investors usually opt for a SIP on monthly basis. However weekly or quarterly SIP may also be available.
When redeemed after the lock-in of three years, there is no exit load.
The fund is pitted against the benchmark of S&P BSE 200 and Sahara provides the fund with both growth and dividend options.
- Sahara Liquid Fund
Sahara Liquid Fund is an open ended mutual fund belonging to the debt category. The main objective of investing in this fund is to preserve capital and generate returns that are reasonable for a low risk investment. Investment in debt and money market instruments ensure that the fund has low risk associated with it. As the investments are in the money market, the fund provides very high liquidity.
Sahara Liquid fund is ideal for individuals who seek some form of regular income when the time-frame in question is short term to mid-term. It provides its investors with steady returns over the mentioned time frame. The fund was launched on 19th of February 2002 does not have any entry or exit loads.
If one wishes to purchase Sahara Liquid fund, he/she will have to pay a minimum of Rs.1000. The subsequent purchase requests can be in the multiples of Rs.1000. Sahara also lets investors opt for SIPs with this fund type. An investor can either opt for monthly SIPs that require a minimum installment of Rs.1000 or quarterly installments that require Rs.2500 as the minimum amount.
Sahara liquid fund can be purchased through either Direct plan or Regular plan. Under these plans an investor can either go for the growth option or dividend option.
- Sahara Super 20 Fund
Sahara Super 20 Fund aims at providing capital appreciation to investors seeking a long term investment option. The open ended scheme belongs to the equity large cap category and primarily invests in equity and its derivates. The fund gets its name from the fact that assets are invested in stocks of 20 companies selected from the list of the top 100 large cap companies featured on Indian stock indices.
The fund being a large cap equity investment has moderately high risk associated with it and the same must be considered before investing. If investors are looking for a fund that will allow their capital to grow a bit aggressively and they are willing to take some risks, this fund is apt for them. As the fund deals with equity and equity derivates, capital gains tax is applicable to the same. Thus, as per the current laws, an investor will not have to pay any taxes on the profits generated from investments from this fund if the investor holds it for more than a year.
It is advisable to hold the fund for a year, otherwise the investor will end up paying an exit load of 1% in addition to the applicable Short Term Capital Gains tax. Should the investor choose to redeem or switch post the completion of a year, he/she is not liable to pay any exit loads.
The fund, which was initiated on 31st July, 2009 requires a minimum investment of Rs.5000 for lump sum amounts. The subsequent installments can be of any amount in multiples of Re.1. One can invest in Sahara Super 20 Fund with the help of SIPs as well. The minimum installment amount for an SIP is Rs.1000 or its multiples. Individuals who wish to do SIPs on a quarterly basis, would need to shell out a minimum of Rs.2000.
Sahara lets investors purchase the fund either with Direct plan or Regular plan. These plans further make way for growth or dividend options.
- Sahara Classic Fund
Sahara Classic Fund is an open ended debt based mutual fund. The fund is designed for investors looking for steady income when it comes to short term, mid-term or long term time frames. Sahara Classic Fund invests mainly in debt and money market instruments. A small portion of the fund is also invested in equity and equity based instruments.
It’s the combination of debt and equity which gives this fund a balanced approach. But at the same time, it also increases the risk profile of the fund to moderately high risk. An investor can use the fund for both regular income as well as an appreciation of capital.
The fund was initiated on 1st of February 2008 and does not have any exit loads. Sahara Classic Fund can be included in a portfolio with a minimum investment of Rs.1000 for growth option and Rs.5000 for dividend option if lump sum investments are opted for. For SIPs, the investor needs to invest a minimum of Rs.1000 on a monthly basis. Should an investor opt for quarterly SIPs, he/she would need to pay a minimum of Rs.2000.
Sahara Classic Fund is available as either Direct plans or Regular plans. Furthermore each plan can be availed as either the growth option or dividend option.
A direct plan lets investors purchase mutual funds directly from the fund house or from selected other outlets. The NAV value is slightly on the higher side for a direct plan, whereas the expense ratio is slightly lower. This means that while the investor will be able to buy fewer units with their money, the returns will be a bit on the higher side in the long term.
This is the most widely selected option in Sahara Mutual Funds. The lower NAV allows an investor to make the most of the money invested. The expense ratio for such plans is a bit on the higher side as well.