Industrial Skill – Based Training/Apprenticeship (BBA 116)

REPORT

Submitted in Partial Fulfilment of the requirement for the

Award of the Degree of

BACHELOR IN BUSINESS ADMINISTRATION

Submitted by

Name: Kanak Sehrawat Enrollment No.:

01459301724

BATCH: 2024 – 2025

MBS COLLEGE
Affiliated to Guru Gobind Singh Indraprastha University
Delhi PSP-1, Sec-9, Dwarka, New Delhi – 110077
 DEPARTMENT OF BUSINESS ADMINISTRATION

CERTIFICATE

I, Ms. KANAK SEHRAWAT, Roll No. 01459301724 certify that the

Internship Report (Paper Code: BBA 116) entitled “Industrial Skill – Based
Training / Apprenticeship” is done by me and it is an authentic work carried
out by me. The matter embodied in this has not been submitted earlier for the
award of any degree or diploma to the best of my knowledge and belief.

Student Signature

This is to certify that Project Report entitled “Industrial Skill-Based

Training/Apprenticeship” which is submitted by
_____________________________ in partial fulfillment of the requirement
for the award of degree Bachelor in Business Administration to MBS College
Affiliated to Guru Gobind Singh Indraprastha University, PSP-1, Sec-9,
Dwarka, New Delhi – 110077 is a record of the candidate own work carried
out by him under my supervision. The matter embodied in this report is
original and has not been submitted for the award of any other degree.

Signature of the Guide

Name of the Guide:
Designation:
 ACKNOWLEDGMENT

- Acknowledgment of support from the institution, trainers, and any

other significant

- Contributors

Formatting Guidelines
1. Font & Spacing:
- Font: Times New Roman, Size 12.
- Line Spacing: 1.5 lines.

2. Section Headings:
- Use bold and uppercase for main headings.
- Use bold and sentence cases for subheadings.
 Table of Contents

S.No. Item Description Page No.

1. Executive summary

2. Organizational profile

3. Description of the Internship Program

4. Work Description

5. Learning Outcome

6. Relevance and Application

7. Conclusion

8. References

Appendix

Executive Summary
Internship Duration
Internship Start and
End Dates
Type of Internship
Field of Internship
Organisation

Skills/ Tools/
Technologies used
during the internship
Skills/ Tools/
Technologies learned
during the internship
Project/ activities
completed during the
internship
Overall Impact and
Application

Conclusion
 VINTAGE FINVEST
SERVICES PVT. LTD.
Vintage Finvest Pvt. Ltd. is a boutique financial services firm. They serve the
financial needs of multi-generational families, business owners, endowments,
retirees, and individuals. The holistic approach enables them to create an
investment strategy aligned with your unique goals. They embrace solutions
leveraging the latest in technology as well as a more traditional investment
experience. They also provide treasury management and financial counselling
services to NGO’s, charitable institutions, start-ups, SMEs, individuals, families,
and organizations. They build with you, and empower you to build beyond finance
to a more fulfilling life.

Vintage Finvest Services Pvt. Ltd. is a financial services firm and a family office.
Their principals are stalwarts of the financial services industry with a collective
experience of over seventy-five years. Their clients include high net-worth
individuals, business families, senior bureaucrats, CxOs, academicians, and
corporate treasuries.

They have built Vintage Finvest around a “client first” approach. At Vintage
Finvest, the interest of clients comes first always and every time. With this simple
philosophy in mind, they have nurtured a capable team of support staff that forms
the backbone of their company.

At Vintage, every client is unique, and every relationship is important. If you

choose Vintage Finvest to help you with your financial needs, they promise you a
happy and long term relationship. With them, you can expect a continuity of
relationship. In other words, your relationship manager will not change every other
year. They are steadfast in their commitment towards their clients and transparent
in their approach. They only do what is best for you.
They offer a wide range of financial and home-office services. Investment
planning and multi-generational wealth management are their capstone services.
They are one of the oldest mutual fund brokers in India. Personal tax planning,
liability planning, estate planning, and treasury management other services offered
by them. They also provide corporate insurance brokerage and stock brokerage
services. With Vintage by your side, you do not need to look elsewhere for your
financial service’s needs.

Vintage has a dedicated in-house research team. This team is responsible for
keeping a close eye on portfolios. It also maintains a “white list” of investment-
worthy mutual funds and other investment opportunities. The separation of
concerns between the sales team and the research team ensures that their service
offerings are independent of personal biases. The experience of their principals
complements the research team. Their research team remains at the top of things
by regularly interacting with fund houses and portfolio managers.

Their customer support team is friendly, proactive, and is always eager to help you.
The customer service team is responsible for providing the last mile of support to
their customers. Their customer support team is process-driven. They have
painstakingly improved their customer service processes over two decades, which
has made them very easy to work with. Their customer service team will ensure
that you never have to pick up your phone or write them an email. In rare cases
where you do, they work hard to delight you.
 SERVICES
Vintage Finvest offers a wide range of financial products and services.

PORTFOLIO ANALYSIS AND INVESTMENT PLANNING :

They deal in Mutual Funds, PMS, Bonds, Private Equity/AIF, Real Estate using strategies that
are appropriate to the client’s needs and consistent with their investment objectives, risk
tolerance, and time horizon among other considerations.

PERSONAL TAX PLANNING AND LIABILITY PLANNING:

Analysis of financial situation and efficient planing for taxes, loan repayments, retirement,
education of children and a host of other solutions.
ESATE PLANNING:

Cater to client’s needs for estate and sucession planing through the creation of wills/trusts. Guide
clients on what would be the most hassle free and costefficient way to bequest their assests to
their heirs. Formulate family and business constitutions/charters for smooth running of the
business.

MULTI – GENERATIONAL WEALTH MANAGEMENT:

Multi-generational wealth management helps ensures that a family’s wealth and legacy are
managed suitably and passed from one generation to the next, providing a healthu financial
picture for the younger generations.

TREASURY MANAGEMENT:

Cash flow management for organisations including SMEs and startups. Generating maximum
returns from surplus funds available in organisations without affecting immediate requirements.

PHILANTHROPY AND CHARITABLE PLANNING:

Tie ups with various NGO’s and organisations in the social sector to further the cause of charity
for their clients.

MISSION
At Vintage Finvest, we put the client first. Our team,
with a collective financial services experince of over
100 man years, is committed to developing lasting
client relationships rooted in trust, integrity, mutual
respect, and exceptional service.
 JOINT BUSINESS
TEAM MEMBERS

ASHWIN KARMARKAR :
Ashwin is a veteran of the mutual fund industry. He is an alumnus of
Delhi University and FORE School of Management. Ashwin started his
career in 1995 when the mutual fund industry in India was just two years
old. Even back then, Ashwin believed in a transparent approach and
sterling service. He quickly acquired clients, most of whom still work
with him.
Ashwin clients are high net worth and ultra-high net worth individuals,
senior bureaucrats, business families, and CXO level executives.
His clients also include young achievers from India’s premier institutes
like IITs and IIMs. Ashwin likes to work closely with his clients. He
helps them identify their financial goals and assists them in developing a
comprehensive financial plan. He also has a string commitment towards
a high-touch and relationship-oriented approach.
His grasp of financial markets and his philosophy of keeping clients’
interest above everything else has moved his practice from strength to
strength over six major financial crises.
When not working with clients, ashwin studies the global finncial
markets and maccroeconomic trends.
VINEET BHASIN :
Vineet is a seasoned professional with over twenty-five years of
experience in banking and financial services. He started his career with
ANZ Grindlays Bank (later Standard Chartered Bank) in 1992. He then
went on to join ICICI Prudential Asset Management Company, where he
discovered his passion for capital markets and Mutual Fund distribution.
In his last assignment, he was heading the Investment Services for North
with RBI as Investment Services Head helped him succeed and excel in
this role.
In a career spanning over twenty-five years, VIneet has been
instrumental in advising high net-worth, ultra high net-worth individuals
as well as clients in desigining their investment portfolio. As Head of
Investment Service, Vineet was responsible for creating awareness and
training his team on various investment products. He and his team were
responsible for managing the investment portfolio of clients from around
50 branches of the Bank. Vineet is passionate about keeping his clients’
above everything else. As a business leader, he nurtured many young
bankers and is cited by his colleagues as someone who leads from the
front. Vineet is a graduate of the University of Delhi. He has done his
MBA in Marketing from Amity University.

AJAY BAJAJ :
For Ajay Bajaj, comprehension of the power of investments sprouted as
early as a school-going teenager. In the past 35 years, he has persistently
honed this passion for investments into a fine-turned craft, creating
wealth for his cherished investors.
Ajay started his professional journey woth R R Financials before
moving to SMIFS Capital Markets, BNP Paribas – Retail Banking, and
Bharat Bhushan and Company. He gained invaluable insights in
financial planning while serving a wide array of investors, from HNIs
and bureaucrats to corporate houses and foreign services professionals to
institutions.
Along with customized investment portfolios bespoke to the investment
objectives of each investor, be it a SIP commitment of Rs.1000 per
month of a young professional or a tranche of Rs. 50 crore of a
corporate, Ajay has also accumulated astute knowledge on taxation to
increase the efficient returns on hard-earned money.
With his meticulous succesion planning, he assists his clients in creating
generational wealth. His association with his valued clients runs into
decades. His gratification is rooted in investors realizing their financial
goals and creating wealth.
Since the inception of private sector mutual funds in India, he has been
closely associated with the industry and has evoloved symbiotic
relationships.
He is a firm believer in “You work hard for Money, Let your Money
work harder for YOU”.
The stock market has been Ajay’s ‘karmabhoomi’ since the Sensex was
at 500 to now, as it majestically touches 60,000 through six significant
crashes and multiple rallies, for meeting his investors’ financial
objectives.
 MUTUAL FUNDS
A Mutual Fund is a body corporate registered with the Securities and
Exchange Board of India (SEBI) that pools up the money from
individuals/corporate investors and invests the same on behalf of the
investors/unit holders, in equity shares, Government securities, Bonds,
Call money markets etc., and distributes the profits. In other words, a
mutual fund allows an investor to indirectly take a position in a basket of
assets.
Unit Trust of India is the first Mutual Fund set up under a separate act,
UTI Act in 1963, and started its operations in 1964 with the issue of
units under the scheme US64.
Securities Exchange Board of India (SEBI) is the regulatory body for all
the mutual funds mentioned above. All the mutual funds must get
registered with SEBI. The only exception is the UTI, since it is a
corportion formed under a separate Act of Parliament. SEBIis the
regulatory authority of MFs. SEBI has the following board guidelines
pertaining to mutual funds:
1. MFs should be formed as a Trust under Indian Trust Act and
should be operated by Asset Management Compaines (AMCs).
2. MFs need to set up a Board of Trustees and Trustee Companies.
They should also have their Board of Directors.
3. The net worth of the AMCs should be at least Rs. 5 crore.
4. AMCs and Trustees of a MF should be two separate and distinct
legal entities.
5. The AMC or any of its companies cannot act as managers fr any
other fund.
6. AMCs have to get the approval of SEBI for its Articles and
Memorandum of Association.
 7. All MF schemes should be registered with SEBI.
8. MFs should distribute minimum of 90% of their profits among the
investors.
9. There are other guidelines also that govern investment strategy,
disclosure norms and advertising code for mutual funds.

A mutual fund is just the connecting bridge or a financial intermediary

that allows a group of investors to pool their money together with a
predetermined investment objective. The Mutual Fund will have a fund
manager who is responsible for investing the gathered money into
specific securities (stocks or bonds). When you invest in a mutual fund,
you are buying units or portions of the mutual fund and thus on investing
becomes a shareholder or unit holder of the fund.
Mutual funds are considered as one of the best available investments as
compare to others they are very cost efficient and also easy to invest in,
thus by pooling money together in a mutual fund, investors can purchase
stocks or bonds woth much lower trading costs than if they tried to do it
on their own. But the biggest advantage to mutual funds is
diversification, by minimizing risk and maximizing returns.
 MUTUAL FUND AN INVESTMENT
PLATFORM:
Mutual Fund is an investment company that pools money from small
investors and invests in a variety of securities, such as stocks, bonds and
money market instruments. Most open-end Mutual funds stand ready to
buy back (redeem) its shares at their current net asset value, which
depends on the total market value of the fund’s investment portfolio at
the time of redemption. Most open-end Mutual funds continously offer
new shares to investors. It is also known as an open-end investment
company, to differentiate it from a closed-end investment company.
Mutual fund invest pooled cash of many investors to meet the fund’s
stated investment objective. Mutual funds stand ready to sell and redeem
their shares at any time at the fund’s current net asset value: total fund
assets divided by shares divided by shares outstanding.

In Simple Words, Mutual fund is a mechanism for pooling the

resources by issuing units to the investors and investing funds in
secutities in accordance with objectives as disclosed in offer document.
 Investments is securities are spread across a wide cross-section of
industries and sectors and thus the risk is reduced. Diversification
reduces the risk because not all stocks may move in the same
direction in the same proportion at the same time. Mutual fund
issues units to the investors in accordance woth quantum of money
invested by them. Investors of mutual fund are known as unit
holders. The profits or losses are shared by the investors in
proportion to their investments. The Mutual funds normally come
 out with a number of schemes with different objectives which are
launched from time to time.

ADVANTAGES OF MUTUAL FUND :

Suit your financial goals

Liquidity

Quick and painless

Diversification process
ADVANTAGES
Expert Management Tax – efficiency
OF MUTUAL
FUNDS Invest in smaller
Less cost for bulk
denominations
transactions
Safety
Cost – efficiency
Systematic or one-time
Automated payments investment

1. LIQUIDITY :
Unless you opt for close-ended mutual funds, it is relatively easier to buy
and exit a mutual fund scheme. You can sell your units at any point (where
the market is high). Do keep an eye on surprises like exit load or pre-exit
penalty. Remember, mutual fund transactions happen only once a day after
the fund house releases that day’s NAV.

2. DIVERSIFICATION :
Mutual funds have their share of risks as their performance is based on the
market movement. Hence, the fund manager always invests in more than one
asset class (equities, debts, money market instruments, etc.) to spread the
 risks. It is called diversification. This way, when one asset class doesn’t
perform, the other can compensate with higher returns to avoid the loss for
investors.

3. EXPERT MANAGEMENT :
A mutual fund is favoured because it doesn’t require the investors to do the
research and asset allocation. A fund manager takes care of it all and makes
decisions on what to do with your investment. He / She also decide on
whether to hold them or not and for how long.
Your fund manager’s reputation in fund management should be an essential
criterion for you to choose a mutual fund for this reason. The expense ratio
(which cannot be more than 1.05% of the AUM guidelines as per SEBI)
includes the fee of the manager too.

4. LESS COST FOR BULK TRANSACTIONS :

You must have noticed how price drops with increased volume when you
buy any product. For instance, if a 100g toothpaste costs Rs.10, you might
get a 500g pack for, say, Rs.40. The same logic applies to mutual fund units
as well. If you buy multiple units at a time, the processing fees and other
commission charges will be less compared to when you buy one unit.

5. INVEST IN SMALLER DENOMINATIONS :

By investing in smaller denominations (SIP), you get exposure to the entire
stock (or any other asset class). This reduces the average transactional
expenses – you benefit from the market lows and highs. Regular (monthly or
quarterly) investments, as opposed to lumpsum investments, give you the
benefit of rupee cost averaging.

6. SUIT YOUR FINANCIAL GOALS :

There are several types of mutual funds available in India catering to
investors from all walks of life. No matter what your income is, you must
make it a habit to set aside some amount (however small) towards
investments. It is easy to find a mutual fund that matches your income,
expenditures, investment goals and risk appetite.

7. COST – EFFICIENCY :
 You have the option to pick zero-load mutual funds with fewer expenses
ratios. You can check the expense ratio of different mutual funds and choose
the one that fits in your budget and financial goals. Expense ratio is the fee
for managing your fund. It is a useful tool to assess a mutual fund’s
performance.

8. QUICK AND PAINLESS PROCESS :

You can start with one mutual fund and slowly diversify. These days it is
easier to identify and handpicked fund(s) most suitable for you. Tracking
mutual funds will not take any extra effort from your side. The fund
manager, with the help of his team, will decide when, where and how to
invest. In short, their job is to beat the benchmark and deliver you maximum
returns consistently.

9. TAX – EFFICIENCY :
You can invest up to Rs. 1.5 lakh in tax-saving mutual funds which is
covered under Section 80C of the Income Tax Act, 1961. Though a 10% tax
on Long-Term Capital Gains (LTCG) applicable for returns above Rs. 1 lakh
after one year, they have consistently delivered higher returns than other tax-
saving instruments like FD in recent years.

10. AUTOMATED PAYMENTS :

It is common to forget or delay SIPs or prompt lumpsum investments due to
any given reason. You can opt for paperless automation with your fund
house or agent. Timely email and SMS notifications help to counter this
king of negligence.

11. SAFETY:
There is a general notion that mutual funds are not as safe as bank products.
This is a myth as fund houses are strictly under the purview of statutory
government bodies like SEBI and AMFI. One can easily verify the
credentials of the fund house and the asset manager from SEBI. They also
have and impartial grievance rederssal platform that works in the interest of
investors.

12. SYSTEMATIC OR ONE-TIME INVESTMENT :

 You can plan your mutual fund investment as per your budget and
convenience. For instance, starting a SIP (Systematic Investment Plan) on a
monthly or quarterly basis suit investors with less money. On the other hand,
if you have surplus amount, go for a one-time lumpsum investment.

DISADVANTAGES OF INVESTING
THROUGH MUTUAL FUNDS :

Costs to DISADVANTAGES Lock – in

manage the OF MUTUAL periods
mutual fund FUNDS

Dilution

1. COSTS TO MANAGE THE MUTUAL FUND :

The salary of the market analysts and fund manager comes from the
investors. Total fund management charge is one of the first parameters to
consider when choosing a mutual fund. Higher management fees do not
guarantee better fund performance.
2. LOCK – IN PERIODS :
Many mutual funds have long –term lock – in periods, ranging from five
to eight years. Exiting such funds before maturity can be an expensive
affair. A specific portion of the fund is always kept in cash to pay out an
investor who wants to exit the fund. This portion cannot earn interest for
investors.

3. DILUTION :
While diversification averages your risks of loss, it can also dilute your
profits. Hence, you should not invest in more than seven to nine mutual
funds at a time. As you have just read above, the benefits and potential of
mutual funds can undoubtedly override the disadvantages, if you make
informed choices. However, investors may not have the time, knowledge
or patience to research and analyse different mutual funds. Investing with
Clear Tax could solve this as we have already done the homework for
you by handpicking the top-rated funds from the best fund houses in the
country.
 CATEGORIES OF
MUTUAL FUNDS:

Mutual funds can be broadly classified into:

1. Arbitrage fund
2. Debt fund
3. Equity fund
4. Hybrid fund
5. Liquid and ultra-short fund

1. ARBITRAGE FUND :
Arbitrage funds are equity-oriented hybrid funds that leverage arbitrage
opportunities in the market. These can be a pricing mismatch between two
exchanges, different pricing in the spot and futures market, etc. The fund
manager of an arbitrage fund buys and sells the shares at the same time and
earns the difference between the selling price and the buying price of the
share.
This is fundamentally different from any other form of investing,, where you
purchase an asset and wait for it to grow in value before selling it.
In an arbitrage fund, the fund manager invests in equities only when he finds
a definite opportunity to earn returns. If there are no arbitrage opportunities
available, then the fund invests in short-term money market instruments and
debt securities. The important thing to note here is that the price difference is
 usually very small. Therefore, the fund manager has to make several trades
in one day to book a reasonable profit.

FEATURES:
The major features of an arbitrage fund are:
1. EQUITY – ORIENTED :
Equities and equity-related products must account for at least 65% of the
portfolio.

2. PROVIDE HEDGED EXPOSURE:

The portfolio will primarily contain hedged exposures.

3. LOW – RISK FUNDS:

These funds have the potential to outperform non-equity-oriented funds
in terms of post-tax returns.

4. SUITABLE IN UNSTABLE MARKETS:

Such funds are the only low-risk investment that thrives in a volatile
market.

SHOULD YOU INVEST IN ARBITRAGE MUTUAL FUND?

You may avail of the listed benefits by investing in these funds-
1. LOWER RISKS:
Arbitrage funds typically have a minimal amount of risk for the investor.
Because each security is bought and sold at the same time, there is
essentially no risk associated with longer-term investments. Arbitrage funds
may also invest a portion of their capital in debt instruments, which are
generally seen as fairly stable.
When there is a scarcity of attractive arbitrage deals, funds increase their
debt exposure. This makes this form of investment particularly enticing to
investors who have a low-risk tolerance.
2. TAXATION:
Although such funds generally invest in equities, they are technically
balanced or hybrid funds because they invest in both debt and equity. As a
result, they are taxed as equity funds because long accounts for at least 65%
of the portfolio on average.

2. DEBT FUND:
Debt funds invest in securities that generate fixed income, like treasury bills,
corporate bonds, commercial papers, government securities, and many other
money market instruments.
All these instruments have a pre-decided maturity date and interest rate that
the buyer can earn on maturity-hence the name fixed-income securities. The
returns are usually not affected by fluctuations in the market. Therefore, debt
securities are considered to be low-risk investment options.

FEATURES:
The major characteristics of these funds:

1. SUITABILITY:
Debt funds usually diversify across various securities to ensure stable
returns. While there are no guarantees, the returns are usually in an
expected range. Hence, low-risk investors find them ideal. These funds
are also suitable for short-term investors and medium-term investors.

2. RETURNS:
Debt mutual funds offer lower returns than equity funds. Also, there is no
guarantee of the returns. The NAV of these funds falls and vice-versa.

3. RISKS:
Debts funds fundamentally carry three types of risks:
a. Credit Risk – which is the default risk of the issuer not replaying the
principal and interest.
b. Interest Rate Risk – which is the effect of changing interest rates on
the value of the scheme’s securities.
 c. Liquidity Risk – which is the risk carried by the fund house of not
having adequate liquidity to meet redemption requests.

WHY SHOULD YOU INVEST IN A DEBT MUTUAL FUNDS?

The main reasons that drive investment in debt funds are:

1. PROFESSIONAL EXPERTISE AND RETURNS:

Investing in a debt fund allows you to earn interest as well as capital gains
on debt. It gives retail investors access to money markets and wholesale debt
markets, both of which they cannot invest in directly.

2. INVESTMENT OPTIONS:
These funds are offered throughout the whole maturity and credit risk
spectrum. Short-term funds produce consistent and predictable income.
Longer-duration funds earn interest as well as capital gains and are
appropriate for investors who can tolerate higher NAV volatility.
Overnight funds, liquid funds, corporate bond funds typically invest in the
most secure debt securities. To deliver better returns, ultra-short and short-
duration funds may be constructed to take on credit risk.

3. LOW RISKS:
Since debt mutual funds are less risky than equity funds, allocating a portion
of an investment portfolio to the best-performing debt funds minimizes risk
and adds stability. Tactical investments in these funds are effective for
capitalizing on short-term yield opportunities.

4. LIQUIDITY:
These funds are extremely liquid and can be redeemed fast, usually within
one or two working days of the redemption request being made. There is no
lock-in or fixed period, unlike bank fixed deposits or recurring deposits.
While a few funds may levy a minor exit cost for early withdrawal, in
general, there are no penalties for withdrawing a mutual fund investment.
3. EQUITY FUND:
As the name suggests, Equity Funds invest in the shares of different
companies. The fund manager tries to offer great returns by spreading his
investment across companies from different sectors or with varying market
capitalizations. Typically, these funds are known to generate better returns
than term deposits or debt-based funds. There is an amount of risk associated
with these funds since their performance depends on various market
conditions.

FEATURES:
An equity mutual funds will typically carry the below-mentioned
characteristics:

1. RETURNS:
Equity mutual funds are among the most high-return funds from the
mutual fund spectrum. Since these funds are concentrated on equities,
they come with the highest return rates.

2. TAX BENEFITS:
You can gain tax benefits with the investments in these funds.

3. RISK:
The risk factor of equity funds is high. Since the majority of this fund is
invested in equities, it is highly associated with market fluctuations.

4. EXPENSE RATIO:
These funds also tend to have a higher expense ratio than their
counterparts, given the requirement of constant management.

5. LONG – TERM INVESTMENTS:

 These funds are suitable for long-term investors, given that they perform
well in the long term.

WHY SHOULD YOU INVEST IN AN EQUITY MUTUAL FUND?

Equity funds, unlike other low-risk funds, give you a greater return percentage. It
comes with a high potential for your wealth creation journey and to diversify your
portfolio.
These mutual funds can also help you in several other ways, such as being an
investment for hedging against inflation, beating economic growth, outperforming
fixed-return investment plans, and much more.

4. HYBRID FUND:
It can be said that hybrid funds are a combination of equity and debt
investments that are designed to meet the investment objective of the
scheme.
Each hybrid fund has a different combination of equity and debt targeted at
different types of investors.

FEATURES:
The major characteristics of a hybrid fund are explained below:

1. MIXTURE:
In its investing strategy, it has a wide portfolio that includes both equities
and debt, as well as other assets. Through a single fund, you can invest in
multiple asset classes.

2. ALWAYS BALANCED:
Hybrid funds have a well-balanced portfolio that allows them to take
advantage of the best of all asset groups. It strives to provide larger
returns with lower risks while also assisting you in meeting both your
 short-term and long-term financial objectives. Equity components
contribute to long-term wealth generation, and debt securities protect
against market swings.

3. THE INVESTMENT COMBINATIONS DIFFER:

Different types of hybrid funds have different equity-debt combinations.
They are intended to fulfil the financial demands and investing objectives
of various types of investors. It also caters to large-scale investors’ risk
tolerance, which ranges from conservative to moderate to aggressive.

4. KNOWN TO PERFORM WELL IN THE LONG TERM:

The hybrid fund investment is appropriate for investors who can commit
to holding the units for at least three to five years.

WHY SHOULD YOU INVEST IN A HYBRID MUTUAL FUND?

Some of the benefits offered by Hybrid Fund so you can start investing in them
are:
Hybrid funds are considered to be riskier than debt funds but safer than equity
funds. They tend to offer better returns than debt funds and are preferred by many
low-risk investors.
Further, new investors who are unsure about stepping into the equity markets tend
to turn towards hybrid funds. This is because the debt component offers stability
while they test the equity waters.
Hybrid funds allow investors to make the most out of equity investments while
cushioning themselves against extreme volatility in the market.

5. LIQUID AND ULTRA - SHORT FUND :

Ultra short term funds invest in debt securities and money market
instruments so that the Macaulay duration of the fund’s portfolio is
between three and six months. Hence, conservative investors with a 3-6
month investment horizon find these funds ideal.
 These funds are best suited for investors who want to meet certain
financial goals in 6 months. The average returns of these funds range
between 7% and 9%.

FEATURES:
The major characteristics of an Ultra Short Mutual Fund:

1. LOW RISKS:
They are intended to be low-risk investing solutions. Their principal
holdings are high-quality debt instruments and money assets. These
investments are less risky because of their credit quality.

2. LOW TENURE:
The concentration on short timescales is what distinguishes these
funds. The securities owned in these funds typically have maturities
ranging from 3 to 6 months. When compared to funds with longer
investment durations, this shorter term serves to reduce the impact of
interest rate changes while providing stability.

3. RETURNS:
While these mutual funds take a conservative approach, they aim to
provide somewhat higher returns than regular savings accounts. These
returns are mostly derived from interest income earned by the
underlying securities, as well as capital appreciation.

WHY SHOULD YOU INVEST IN ULTRA SHORT FUNDS?

The major benefits of choosing ultra-short term debt funds are:
1. SHORT TERM:
These are ideal for investors who want to park their capital for a short period
of time – a couple of weeks or a few months.
2. LOW RISKS:
If someone invests for less than three months, the loss and risk involved are
often less.

3. BETTER THAN FDs:

The returns from these funds are similar to the bank’s fixed deposit of the
same investment tenure.