Wealth Management - Why Do Wealth Managers Recommend Multi Cap Mutual Funds?

Article 1 - Why do wealth managers recommend multi cap mutual funds?

1. What is a multi-cap fund as per the new regulatory definition?

Multi-cap funds are diversified equity mutual funds, which can invest in stocks across market capitalization. As per regulatory mandate, these funds need to have a minimum investment in equity and equity-related instruments of 65%. Their portfolio comprises of large-cap, mid-cap and small-cap stocks. They maintain an extensively diversified portfolio consisting of stocks of different market capitalization and sectors.

2. Who should invest in multi-cap funds?

Many wealth managers believe investors going for long-term SIPs of above 10 years can opt for multicap funds. Multi-cap funds can be ideal wealth creators as compared to plain large-cap funds. Because of their dynamic investment strategy, these funds may accumulate larger wealth for achieving long-term financial goals like retirement or higher education. Investors looking to stagger their investments through systematic investment plans.

Link - https://economictimes.indiatimes.com/wealth/plan/investing-in-good- health-at-young-age-can-help-secure-retirement-heres- how/articleshow/70616213.cms?from=mdr

Article 1 - Investing in good health at young age can help secure retirement.

1. How can investing in good health at young age can help secure retirement?

According to a study conducted by fitness device platform Goqii, Indians under the age of 45 saw a rise in the incidence of lifestyle diseases in 2018 compared to 2017. Incidence of diabetes rose to 5.1% from 3.6%, high blood pressure to 9.4% from 4.9%, high cholesterol to 12.1% from 5.4% and thyroid to 6.1% from 4.4%. A Cigna 360 wellbeing survey this year found that close to 82% of Indians suffer from stress, with work, health and finance-related issues being the major causes.

The earlier you start, the higher your chances of being in a healthier state over the long-term. “It is never too late to start, but as your body clock keeps ticking, you will have to invest more effort to extract the same amount of benefit,” says Shah. Much like investing in equities, it pays to start early, be systematic, dig in your heels and stay put over the long-term instead of looking to invest a lump sum closer to retirement.

2. Is health really wealth?

Insurers like Manipal Cigna, Max Bupa and Aditya Birla Health offer products that monitor and incentivize fitness activities. “These benefits range from simple health check-ups that help you take precautionary measures to rewards and discounts that enhance coverage or reduce premiums,” says Mohit Agarwal, MD, Employee Health, Benefits and Affinity, Marsh India.

According to experts, constant monitoring and proactive action can postpone the onset of lifestyle diseases. “Today, many individuals are diagnosed with diabetes at the age of 25-30. It can be easily delayed by 10-20 years and in