Trigger facility in Mutual Funds - How to make use of it?

Invest In Tax Saving Mutual Funds Online

Download Tax Saving Mutual Fund Application Forms

Buy Gold Mutual Funds

Call 0 94 8300 8300 (India)

 

 

THE trigger facility offered by several mutual funds proves very useful for investors as it ensures that they are able to complete the sale of their units smoothly and without any disruption. Most important is the fact that investors would not miss out on any opportunity and their goals would be easily achievable. Here are some details related to the trigger facility and what investors should actually do.

Nature:

The trigger facility is a feature where the mutual fund allows the investor to set specific limits wherein a certain transaction would be executed.

This could be something like a limit that can be set for the sale of units, where when the limit is reached then a certain transaction would be executed. A simple example of this is the sale of units for an investor when the price rises 20 per cent from the cost.

This is a way in which investors can actually ensure that they are able to lock in the benefits that they are earning automatically. This feature is the most useful one in the whole list of facilities offered by mutual funds because the entire transaction is executed by the mutual fund without any interference from the investor and hence this does not require any extra effort.

Easy to implement:

The best part about the entire transaction is that this is easy to implement in the sense that the action from the investor has to take place just once. This would be done when they are going about setting the trigger limit because what would happen here is that they would fix the details and the limit and then this would be sent to the fund.

Whenever the limit is reached, the fund would implement this automatically. There is no need to keep following the fund and its changes in the net asset value and hence, this saves a lot of time and effort on the part of the investor. It is also something that anyone and everyone can use and hence, this would be a feature that can also be used when required.

Not all funds:

The question for the investor is whether they will actually be able to use this feature because not all mutual funds offer this facility.

Only when this is present would the investor be able to choose the option. Investors should first check the details to see whether this facility is actually present. Then the next question would come about the time and place when this would be used. It need not be used by everyone but if you are someone who does not have the required time to track the investments then it would be better to make use of the choice that is given by the fund.

Specific goals:

The best use of the trigger facility is when this is actually linked to the goals of the individual. The goals would require that money have to be made available at a certain point of time.

In this case, the trigger facility can ensure that the goals are being achieved and the targets in the investments are being met.

This would lead to a proper match of the two figures and the end result would be that the entire planning process would be on a better footing as compared to one where this is not implemented.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

1. ICICI Prudential Tax Plan Invest Online
2. HDFC TaxSaver Invest Online
3. DSP BlackRock Tax Saver Fund Invest Online
4. Reliance Tax Saver (ELSS) Fund Invest Online
5. Birla Sun Life Tax Relief '96 Invest Online
6. IDFC Tax Advantage (ELSS) Fund Invest Online
7. SBI Magnum Tax Gain Scheme 1993 Invest Online
8. Sundaram Tax Saver Invest Online
9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

1. Largecap Funds Invest Online
1. DSP BlackRock Top 100 Fund
2. ICICI Prudential Focused Blue Chip Fund
3. Birla Sun Life Front Line Equity Fund
2. Large and Midcap Funds Invest Online

1. ICICI Prudential Dynamic Plan
2. HDFC Top 200 Fund
3. UTI Dividend Yield Fund
2. Mid and SmallCap Funds Invest Online

1. Reliance Equity Opportunities Fund
2. DSP BlackRock Small & Midcap Fund
3. Sundaram Select Midcap
4. IDFC Premier Equity Fund
3. Small and MicroCap Funds Invest Online

1. DSP BlackRock MicroCap Fund
4. Sector Funds Invest Online

1. Reliance Banking Fund
2. Reliance Banking Fund
5. Tax Saver MutualFunds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
3. DSP BlackRock Tax Saver Fund
4. Reliance Tax Saver (ELSS) Fund
6. Gold Mutual Funds Invest Online

1. Relaince Gold Savings Fund
2. ICICI Prudential Regular Gold Savings Fund
3. HDFC Gold Fund