As part of the learning cycle, School of Management (ASM), Dwarka recently organised a guest lecture for second-year PGDM students. The session was conducted under the subject of Financial Markets, Services, and Fintech course. The session was conducted by Ms. Radhika Saxena, Regional Head of ICICI Bank, who offered invaluable insights into mutual fund schemes and their applications for different financial goals. This engrossing session was facilitated by Dr. Pooja Chaturvedi Sharma from Apeejay School of Management.
Ms. Saxena opened the lecture by introducing mutual funds as a diversified investment tool, allowing investors to spread their risk across multiple asset classes. She discussed various types of mutual fund schemes, such as equity, debt, hybrid, index, and sector-specific funds, highlighting each category’s unique features, risk levels, and expected returns. Her explanation helped students grasp the complexities of each type, fostering a deeper understanding of how these funds can align with distinct investment strategies.
Throughout the interactive session, students engaged actively, particularly when Ms. Saxena delved into the tax implications of mutual fund investments. She clarified the tax treatment for both short-term and long-term capital gains in equity and debt mutual funds, addressing several tax-related queries. Her explanation simplified the often complex taxation rules, equipping students with the knowledge to understand the tax benefits and obligations of different mutual fund options.
Ms. Saxena also emphasised the importance of selecting mutual fund schemes based on investor profiles, guiding students in assessing their financial goals, risk tolerance, and investment timelines. She stressed how these factors can help in choosing the appropriate mutual fund, reducing risks while maximising returns. Additionally, she dispelled common misconceptions about mutual fund investments, urging students to conduct thorough research before making decisions. She also advised on the psychological aspects of investing, especially during volatile market periods, and how long-term strategies can mitigate risks.
Key Takeaways from the Lecture:
- Mutual Fund Categories: Ms. Saxena’s detailed discussion of various mutual fund schemes provided a clearer understanding of their risk-return profiles, crucial for informed decision-making.
- Taxation of Mutual Funds: Her explanation of capital gains taxation rules helped students better comprehend the tax implications for equity and debt mutual funds.
- Investor Suitability: The session underscored the need to align mutual fund investments with financial goals, risk tolerance, and time horizons to optimise returns effectively.
The session concluded with a lively Q&A, leaving students more confident about their future roles in financial decision-making.