MUTUAL FUNDS

North East Small Finance Bank Limited is an AMFI Registered Mutual Funds Distributor with ARN 266403

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.

Benefits of Mutual funds

  • Professional Management — A mutual fund is managed by full-time, professional money managers who have the expertise, experience and resources to actively buy, sell, and monitor investments.

  • Risk Diversification — Buying shares in a mutual fund is an easy way to diversify your investments across many securities and asset categories such as equity, debt and gold, which helps in spreading the risk - so you won't have all your eggs in one basket. Thus, risk diversification is one of the most prominent advantages of investing in mutual funds.

  • Liquidity — You can easily redeem (liquidate) units of open ended mutual fund schemes to meet your financial needs on any business day (when the stock markets and/or banks are open), so you have easy access to your money.

  • Low Cost — An important advantage of mutual funds is their low cost. Due to huge economies of scale, mutual funds schemes have a low expense ratio. Expense ratio represents the annual fund operating expenses of a scheme, expressed as a percentage of the fund’s daily net assets.

  • Well-Regulated — Mutual Funds are regulated by the capital markets regulator, Securities and Exchange Board of India (SEBI) under SEBI (Mutual Funds) Regulations, 1996. SEBI has laid down stringent rules and regulations keeping investor protection, transparency with appropriate risk mitigation framework and fair valuation principles.

  • Tax Benefits — Investment in ELSS (equity linked savings scheme) up to ₹1,50,000 qualifies for tax benefit under section 80C of the Income Tax Act, 1961.

  • Equity funds: An equity scheme is a fund that primarily invests in equities and equity related instruments. These schemes are suitable for investors with higher risk appetite and longer investment horizon.

  • Debt funds: A debt fund (also known as income fund) is a fund that invests primarily in bonds or other debt securities. Debt funds invest in short and long-term securities issued by government, public financial institutions, companies. Debt funds have the potential for income generation and capital preservation.

  • Hybrid funds: Hybrid funds invest in a mix of equity and debt securities. They seek to find a balance between growth and income by investing in both equity and debt.

  • Solution-oriented funds: These mutual fund schemes are for specific goals like building funds for children’s education or marriage, or for your own retirement.

  • Other funds: Index funds invest based on certain stock indices and fund of funds are categorized under this head.

  • Systematic Investment Plan (SIP) – SIP allows an investor to invest regularly where they can put in a small amount every month that is invested in a mutual fund at pre-defined intervals like Daily/Weekly/Monthly/Quarterly or Annual. The SIP instalment amount could be as little as INR 500 per month. SIP is similar to a recurring deposit where you deposit a small /fixed amount every month.

Benefits of SIP
  • Power of Compounding – Compounding is when the interest or income that is earned is reinvested in the original corpus and the accumulated corpus continues to grow.
  • Rupee Cost Averaging – Rupee Cost Averaging is one of the primary benefits of investing in SIP. It helps the investor to buy more units when markets are low and buy less when markets are high, thereby averaging out the cost.

Before investing in a mutual fund scheme, whether through online mode or via conventional paper based mode, one must first complete the KYC process by filling up the prescribed KYC form.

At this point of time we offer the various schemes of the following fund houses-

  • Mahindra Manulife Mutual Fund
  • Nippon India Mutual Fund
  • ICICI Mutual Fund
  • HDFC Mutual Fund
  • DSP Mutual Fund

Commissions On Mutual Funds

As per SEBI circular: SEBI/IMD/CIR No. 4/ 168230/09, following are the details of the comparative commission earned by North East Small Finance Bank Limited (AMFI Registered Mutual Funds Distributor) from various fund-houses, whose products are being distributed. This is on a best effort basis, rates are updated as, and when actual rates are received from AMCs.


SID/KIM/SAI

You can refer the scheme information document (SID)/Statement of Additional Information (SAI)/Key Information Memorandum (KIM) of the respective AMCs by clicking on the following links-




DISCLAIMER: Mutual fund investments are subject to market risks, please read all scheme related documents carefully before investing. The contract will be between the investor and the asset management company and not between investor and bank. North East Small Finance Bank Limited will only act as a distributor of mutual funds. North East Small Finance Bank Limited only offers regular plans in mutual funds.