Exit of Mr. Gautam Sinha Roy & its impact on Motilal Oswal Multicap 35

Mr. Gautam Sinha Roy & Mr. Snigdha Sharma has resigned from his service with the Motilal AMC, with effect from 17th May 2019.Mr. Akash Singhania & Mr. Siddharth Bothra will continue as a fund manager.

Mr. Gautam Sinha Roy was a key person for Motilal Oswal and was acting as a co-fund manager for Motilal Oswal Multicap 35, Motilal Oswal Long Term Equity, Motilal Oswal Dynamic Equity Fund & Motilal Oswal Focused 25 Fund. He was there with these funds since inception.

Performance Scorecard – Mr. Gautam Sinha Roy

Oswal funds

During his time, except Motilal Oswal Midcap 30, every other fund has generated more than ~12% returns. Among those Motilal Oswal Multicap, 35 was a big hit. At present, the fund is going through its rough times if we compared to its peers & at the same time resignation of Mr. Roy will create a huge impact.

We are still skeptical about the new fund manager who is Mr. Akash Singhania as he is managing Motilal Oswal Midcap 30 fund which has not performed to the expectations and lagging the race within its peers.

We understand, Motilal as an AMC has a good track record and will do well, but still, we are keeping our stance neutral as of now and suggest investors hold for now. We are not recommending anyone to start a fresh SIP in this fund till the time we are not forming a conviction on the new fund manager.

If you have any concern, please write to us at ask@finity.in or call at +918048039999, we would be happy to answer your query.


Hot NFO Alert: ICICI Prudential MNC Fund

Global is the new local!

Multinational corporations(MNCs) are typically associated with stability, growth and market leadership & this is not without reason.

MNCs are known for features like high competitive advantage, strong & clean balance sheets, technology edge & strong governance all of it primarily led by comfortable cash flows & global presence.

ICICI Prudential’s MNC Fund seeks to offer investor portfolios an exposure to high-quality MNCs (Indian, India-listed & global) which are expected to deliver consistent and risk-optimal returns in a sustainable fashion.

Investors can benefit from the diversification by allocating 7%-10% of their portfolio to this fund – could be higher or lower though basis the investor & investment profile.

Having said that, the funds hold quite some promise in terms of insulating the portfolio during domestic headwinds.

ICICI Prudential MNC Fund – Open-ended Equity Scheme
NFO Period: 28 May 2019 to 11 June 2019

Click here for detailed product note.

If you have any concern, please write to us at ask@finity.in or call at +918048039999, we would be happy to answer your query.

Mutual fund

Why should I shift from Regular Plans to Direct Plans Mutual Funds?

Usually, when we place orders online we come across two products, those that don’t charge for delivery and the other that charges for the same. We normally opt or like the ones that are “Delivery Free”. Right?

The simple reason being we do not incur additional charges for our purchase and that reduces the burden of our expenses. Even Direct Plans and Regular Plans of Mutual Funds work on a similar concept.

Regular Plans are mutual funds that you buy through an intermediary such as an advisor, distributor or broker. These agents charge commission, trail or distribution fee for the service they provide, so the total expenditure for your investment is high. And not always do brokers or intermediaries intent to sell plans that suit your financial needs, their primary objective would be to push the scheme and earn their share of profit.


Modi 2.0: Your Money & The Promised Land

Almost 72 years since independence and 16 Lok Sabha elections later, India seems to have identified the chosen one who will lead the country to glory (read as economic progress & social development)! This is perhaps the only time since independence that a governing party has been re-elected and rewarded with a clean sweep majority.

Major economies around the world are grappling with a variety of issues right from trade wars to Brexit ramifications, crude prices while the biggest impediment for India was uncertainty stemming from political instability. With this uncertainty out of the way, the road ahead offers more clarity.

I’m taking this opportunity to substantiate the euphoria & highlight India’s growth story potential that will help you decide and build your financial future here.


— Piggybacking the robust economic growth —

“We will sustain a growth of 7.5 to 8 percent per year” Modi was quoted saying while delivering a keynote speech at the Shangri La dialogue last year.
India is, in fact, poised for an economic turnaround on the back of improved capital flow, pick up in manufacturing, depth of global engagements and improving control on domestic macro-economic factors.


The key takeaway from the above graph is that independent India took over 60 years to enter the trillion-dollar economy club but only 7 years to double-up! The future beholds a $4 trillion economy and every Rupee invested in this economy is expected to grow in a similar trajectory.

Let’s make this more about you and less about the economy

I’ve been interacting with quite a variety of investors since years and can now confidently say, I DON’T understand investors! This election season only validated my situation where the more I know, the less I understand.Here’s the paradox I observed this election season –


Nobody wanted to invest since they believed that markets were too volatile & in a “correcting” phase. There were also concerns that the impending election results would erode their wealth.


Nobody wants to invest because everything went well, and markets touched all-time highs before they got a chance to enter – will wait till volatility resurfaces and markets correct.

Here’s what you can do as an investor to make the most of this new-found political stability & imminent economic spurt – don’t think, start doing. As long as you have long-term financial goals and have the right portfolio construct, the market level at which you enter does not really matter. While entering at current levels may entail a probability of minor loss in the short term but hopping onto the fence entails a definite loss of time & opportunity.

As an investor, it is recommended you design a portfolio with apt asset-allocation & high-quality funds and deploy it in the right way. While the mobile app takes care of all these parameters, you must reach out to our team in case there’s any concern or query that’s stopping you from participating in the Indian growth story.

Finity Weekly Update (Issue #33): TsuNaMo 2.0, the road ahead, your game plan & more

TsuNaMo 2.0 swept the elections clean with BJP securing 298 seats to become the single largest party with a complete majority. The nation seems to have caught on the saffron rage over the years – the below exhibit reflects the NDA wave expanding over the years.

TsuNaMo 2.0

But, as quoted by the kid-Avenger Spiderman, “With great power comes great responsibility”. While the nation has conferred power upon the chosen one, it’s time to discuss responsibilities.


What are Mutual Funds and how do they work?

Mutual Funds

Mutual funds give people the sense that they’re investing with the big boys and that they’re really not at a disadvantage entering the stock market.

-Ron Chernow


Everyone is an investor one way or another. When it comes to investing our time, it is best to do so in things we love. Energy is best spent trying to accomplish something great in life. When it comes to money we earn it and spend it. What about investing in it? Investing is done to store up the idle cash into a safe place and get something at the end. Mutual Funds are the best way to do that. The award-winning writer, Mr. Ron Chernow said it right, with mutual funds you don’t invest in the mediocre accounts but rather in between the bulls and bears in the market.

Let’s look at all the obvious questions you might have for a Mutual Fund:

  • What is a Mutual Fund?

    It is a vehicle of investment which allows investors to collectively invest in various avenues like equity, debt, and gold; it is collected and managed by a Professional Fund Manager. There are various kinds of schemes for different investors based on his/ her level of risk appetite and objective. There are two ways of making an investment: Systematic Investment Plan (regular installments) or a one-time Lump Sum payment.

  • Why should you invest in a Mutual Fund?

    A mutual fund allows a person to trade with the big-time investors in the stock market without the need of actually entering that place. It creates access to the investor to a wide range of assets, allowing the diversification of risk. This way, one or two assets may perform poorly but you will still earn a substantial return. Adding to that, your funds are professionally managed by expert fund managers giving you less to worry about.

  • Where can things go wrong?

Market conditions fluctuate drastically. Today you’ll see the green arrows smiling at you and just twelve hours later those red arrows are grinning at you. So in situations like this, the best practice is to stay put and remain invested. The Fluctuations in the market will settle. Remember, the market that is down would have to rise again. The simple logic is to hold on to your investments when the market is low so that you can hold more units of the stock and when the market performs well, one can consider selling the stock.

  • Who is in charge of your scheme?

As mentioned before your investment is handled by the qualified Fund Managers. They pursue a fund’s success by actively trading assets with the money invested in the fund. The fund manager is required to trade in accordance with the structure and objectives put forth by the investors for their investments.

  • How does it work?

You must consult a financial professional to determine what funds are best suited for your needs. You can then go directly to the AMC or just use an investment app like Finity to start trading. You choose from the variety of funds like equity funds, fixed income funds, money market funds or hybrid funds. The fund manager then trades the pooled assets to provide the investors with the highest returns on their investments.

So now that you know all the answers about the essentials of Mutual Funds start investing!


Be fruitful and Multiply your investments!

Why choose Mutual Funds over Equity?

Mutual Funds over Equity

Ever wondered what those sophisticated people with a suit and tie talk about on the news. All the haste about bulls and bears taking over the stock market that we really need to know about. Doesn’t it sound curious that a boy named Warren Buffett of 11 years started to trade in a stock market and 77 years later has a net worth of  $84 billion (as of December 2017)? amber

This is the equity market that fascinates and terrifies us at the same time. The true secret to any investment is patience. Imagine you want to have a pizza. Now in a stock market, the investor gets it done like a homemade pizza. He’ll take his time, go purchase all the right ingredients and work on making it on his own. A trader, on the other hand, would just look for immediate returns, like a person who likes the frozen pizza. But for a pizza cooked in a restaurant by a professional, one which took time having all the best topping suited to your liking. That’s a Mutual Fund!

A Mutual Fund is a great way for an investor to participate in the stock market and buy shares with the diversification of his risks. It collects funds from various investors and channels it to various investments based on qualified decisions of a professional fund manager. The risk is diversified and hence is decreased to a minimum, while the returns, on the other hand, is almost equivalent to that of equity trading.

Whereas, equity is the ownership of a business in terms of money. Companies from all over the country come together and sell shares of their business to the public in exchange for money, with which they can run or expand their company. After a while, they earn a substantial amount of profits and distribute these to their shareholders as dividends. The stock exchange has worked to build tremendous amounts of funds for business and also helped many individuals to profit from investing. However, there are a lot of dangers lurking around.

The Stock Market is totally unstable and unpredictable. There are many ways of calculating future values, but no one can anticipate every foreseeable circumstance. To make matters much worse the market is primarily influenced by people’s mindset. So that means, even an upcoming election can hit the stocks hard.

It is vital to the country that many people participate in the stock market. But how can one do so with the fear of losing a huge chunk and with no prior knowledge? The answer was given in 1963 when an initiative by the RBI brought a wonderful world of Mutual Funds. This bold investment vehicle was made accessible to everyone after digitization with apps like the Finity app to help budding investors or individuals looking to earn big bucks to invest in Mutual Funds!

Hope this article helped you in differentiating between Mutual Funds and Equity. Remember it is your investments, hence it is advisable that you assess your risk appetite before you make significant decisions regarding your investments.


Think Smart. Think Finity!

SIP vs Lump sum

The story goes like this. There were two bachelors living in the city of Bengaluru. One was getting his income monthly and gave the landlord a portion as rent. Whereas the other gave a whole deposit for the accommodation for a fixed time of stay. Now what does the two have in common and what do they have in distinction? Who has the better deal? This is the same as choosing on to take a lump sum investment or a SIP (Systematic Investment Planning) in a Mutual Fund investment.


How to plan your retirement?


“Old age is like everything else. To make a success of it, you’ve got to start young.”

-Theodore Roosevelt

In India, the most common beverage consumed is a cup of hot tea. It is served in the house, every morning, evening and sometimes even at night. A cup of hot tea is comforting and each person has their own way of making tea depending on their tastes. Such is the case of saving money. Many people do it in a different way. Now one of the most mundane of all saving is that of retirement. When approached with the subject people wave it off saying they’ll probably never retire or they will be well taken care of by their dependents. But like they say, your parents are not your emergency fund and your children are not your retirement fund. That’s why planning for your savings is crucial for maintaining your lifestyle even after you retire at that time.

So how does a person begin to plan for retirement? Well, there are two important points to keep in mind:

  • Your Spending

Every person’s individual spending habits vary. Some spend on food while others spend on clothes, some spend on their trips to exotic places while others spend on furnishing their dream home. One of the most important things to remember is that what you spend now will only increase in the years to come thanks to the constant inflation. So, in order to plan for what you spend after you retire to take a hard look at how much you spend these days. Try and anticipate how it will grow over the years while taking into consideration the inflation in the market. An easy way to do this is using the Rule of 72 which states that if you want to know how long it will take to double your money at 6% interest(inflation), divide 72 by 6 and get 8 years. Knowing this will instantly give a clear picture on what you need to do rather than leaving it up to chance to figure it out.

  • Your Saving

Now it comes down to how much a person must save. Many already have savings like FDs and Provident Funds so it can vary in terms of that. But when it comes to stocking up for your retirement there is a formula that will work wonders for you. Based on the age you are you save up that percentage of your income (after taxes). If you are 25 you should put away 25% of your income, if you are 30 you must put away 30% of your earnings. This should begin as early as you start to earn right until you are 55 or 60 years old.

Say you are 65 when you finally give yourself a break and want to sit back and take the load off. You will have children who take care of you and dependants that are always with you. Would it be better to still be standing on your own and do whatever you want rather than be totally dependant on others? You can use the money to pay your bills, go on that trip you planned for, buy your dream house, even pay for your dependent’s emergency needs at times.

Retirement isn’t just another option, it’s a need. So don’t delay, choose a way to save up for your retirement. The money you save today is like a bag of tea that is stored up until the right time. When you finally retire you can have a hot cup of strong tea. However, if you don’t plan for it and save up, you will have only a weak tea that gives no energy or comfort whatsoever.

Benefits of Mutual Funds

“It’s not your salary that makes you rich, it’s your spending habits.”

-Charles A. Jaffe

Mutual Funds

Spending money is not an easy task as you grow. It requires caution and most people tend to create a list of pros and cons before spending money on anything. So it’s only right for you to know how to invest your money and where it is best to do so.

A mutual fund is like taking a train. It gives you all the great benefits of traveling around with the least amount of risk. That’s one of the biggest concerns. The risk involved is a nagging feature of every investment we make. But apart from risk, there are other features that will help you make a well-informed decision. So here are a few highlights of investing in Mutual Funds:

  • The Conductor:

In a mutual fund, your investments are taken care of by Professional Fund Managers. They collect funds from several different investors and trade in securities to earn a substantial return. They are always backed by expert research teams with real-time access to crucial market information.

  • The Tracks:

The money you invest in Mutual Fund schemes is distributed over a range of instruments having a distinctive nature of risk and returns. Your portfolio will include equities, debt, and commodities like gold. The diversification of your funds will decrease your overall exposure to risk.

  • The Breaks:

You can easily invest in Mutual Fund with your bank or even through an app like Finity. But the more important thing to remember is that an investor can withdraw any time he wants. You can even choose to invest affordably through Systematic Investment Plans (SIP) or through on shot payments in Lump Sum, depending on your convenience.

  • The Ministry:

The Mutual Funds are a well-regulated market. Industry rules and regulations are continuously reviewed and refined by SEBI to protect the investors. Many people fear the scams that hit the markets in the past, but it only resulted in a more strictly managed structure.

  • The Tickets:

The Mutual Funds gives access to large ticket options. Specific schemes allow you to invest in Governments Bonds and International stocks.

  • The Destination:

The outcome of every investment is the returns. The high returns an investor gets in Mutual Funds is almost equivalent to that of equity (extremely high) without the disadvantage of actually entering the market.

So there you have it, a few great benefits of investing in Mutual Funds. There are some more advantages like tax benefits, cover against inflation, low exit fee, etc. So instead of taking a car on your own to the stock market, take a train to a Mutual Fund company for a wonderful investing journey!