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Privacy Policy

Welcome to Miles Wealth, registered as Miles Financial Services Private Limited, owning the domain mileswealth.in ("we," "our," or "us"). We are committed to safeguarding your privacy and ensuring the security of your personal information. This Privacy Policy outlines how we collect, use, disclose, and protect your information when you use our investment platform.

Information We Collect

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  1. Personal Information: We may collect personal information that you provide directly, such as your name, email address, phone number, PAN card, Aadhaar, and other identification information required by regulatory authorities.  

  2. Financial Information: To facilitate your investments, we may collect financial information such as your bank account details, income levels, and other relevant data needed to assess your risk appetite and investment preferences.  

  3. Usage Information: We collect information about your interactions with our platform, including device information, IP address, geo-location, cookies, browsing history, and usage patterns to enhance your experience and our services.  

  4. Third-Party Data: We may also collect data from third-party sources like KRA (KYC Checks) or regulators to verify your identity and comply with Know Your Customer (KYC) norms.


How We Use Your Information


We may use your information for various purposes, including but not limited to:  

  • Facilitating mutual fund investments.  

  • Providing personalized investment recommendations based on your financial goals and risk tolerance.  

  • Communicating with you regarding your account, investments, and product updates.  

  • Complying with legal, tax, and regulatory obligations.  

  • Analyzing usage patterns to improve platform functionality and user experience.  

  • Preventing fraud and securing your information.  

  • Marketing our services or new features, subject to your communication preferences.


Information Sharing


We may share your information with the following entities, only to the extent necessary:  

  • Asset Management Companies (AMCs): To process mutual fund investments and transactions on your behalf.  

  • Regulatory Authorities: To meet legal or regulatory obligations, such as submitting reports to SEBI, AMFI, or other financial oversight bodies if required.

  • Service Providers and Partners: To help us with operational tasks such as customer support, cloud storage, payment processing, KYC verification, or data analytics. These third parties are bound by strict confidentiality agreements and must comply with data protection laws.  

  • Legal Proceedings or Investigations: If required by law or legal proceedings, we may share your information with law enforcement agencies, courts, or other authorities.  

  • Business Transfers: In the event of a merger, acquisition, or sale of assets, your information may be transferred as part of the transaction, subject to the same privacy protection outlined here.


Your Choices and Rights


You have the following rights regarding your information:  

  • Access & Rectification: You can request access to or correction of your personal information at any time.  

  • Deletion: You may request deletion of your data, subject to our legal obligations to retain certain records for compliance purposes.  

  • Communication Preferences: You can opt in or out of marketing communications through your account settings or by contacting us directly.  

  • Withdraw Consent: Where you have provided consent for data collection, you can withdraw it at any time, but doing so may limit your use of our services.


Security
We employ robust security measures to protect your data from unauthorized access, disclosure, or misuse. These measures include:  

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  • Encryption: We use SSL technology to encrypt all sensitive information during transmission.  

  • Access Control: Your data is accessible only to authorized personnel and service providers who require it to perform their duties.  

  • Regular Audits: We conduct regular security audits to identify and address potential vulnerabilities.

 

While we take extensive steps to safeguard your data, no security system is entirely foolproof. Therefore, we cannot guarantee absolute security and are not liable for any breaches caused by unauthorized third parties.

Cookies and Tracking Technologies
We use cookies and similar tracking technologies to enhance your experience on our platform, track user activity, and improve our services. You can manage your cookie preferences in your browser settings.

Data Retention
We retain your personal and financial information only for as long as necessary to fulfill the purposes outlined in this policy, or as required by law. Once data is no longer needed, we will securely delete or anonymize it.

Limitation of Liability
While we prioritize your privacy and take steps to protect your data, we are not responsible for any damages, losses, or claims arising from unauthorized access, misuse, or disclosure of your information caused by third parties or external circumstances beyond our control.

Privacy Policy Updates
We may update this Privacy Policy from time to time to reflect changes in our practices or regulatory requirements. Please review this page periodically for updates. Your continued use of the platform constitutes your acceptance of any changes made to this policy.

Contact Us
If you have any questions, concerns, or requests regarding this Privacy Policy or your personal information, please contact us at support@mileswealth.in.

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MILES WEALTH

Miles Financial Services Private Limited

WeWork Galaxy, Bangalore - 560025.

AMFI Registered Mutual Fund Distributor

ARN - 280456

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Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully.

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MILES WEALTH

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All Mutual Funds | Mutual Fund Overview | Mutual Fund Companies | Asset Category | Performance | Mutual Fund Basics | Asset Management Companies

What are mutual funds?

  • A mutual fund is a popular investment option where money from multiple investors is pooled together to invest in a variety of assets such as equities, bonds, government securities, gold, real estate etc. These investments are managed by a professional fund managers, who leverages their expertise and market knowledge to build and manage the portfolio strategically.

  • Mutual funds offer small investors the opportunity to own a diversified portfolio of professionally managed securities. The main types of mutual funds include equity funds, debt funds, and hybrid funds, categorized based on the asset class they invest in. Additionally, mutual funds can be classified by their investment strategy, structure, and other factors.

  • It’s important to note that mutual fund performance is influenced by market volatility. Funds investing in equities, for instance, tend to be more volatile than those focused on debt securities. While mutual funds are a great way to build wealth over time, they do carry some level of risk.

  • In terms of taxes, returns on mutual funds are taxable according to the investment holding period. Short-term capital gains (STCG) and long-term capital gains (LTCG) are taxed differently, with the rate depending on the asset class. For example, equity funds are taxed uniformly under mutual fund taxation rules.

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How Does a Mutual Fund Work?

Mutual funds offer a simple and accessible way for retail investors to enter the financial markets. However, understanding how mutual funds work is essential before making any investment decisions.

  • The Role of Asset Management Companies (AMCs): Mutual funds are managed by Asset Management Companies (AMCs), also known as fund houses. When an AMC launches a new mutual fund, this process is called a New Fund Offering (NFO). The AMC outlines the fund’s investment objective in the prospectus, and investors whose goals align with this objective can invest in the fund. The fund manager is responsible for making decisions about where to invest the pooled money, whether in stocks, bonds, or a combination of both.

  • Transparency and Portfolio Disclosure: Once the fund collects money from investors, the fund manager allocates these assets according to the stated objective—be it in equities, bonds, or a blend of asset classes. Mutual funds are regulated by SEBI (Securities and Exchange Board of India), ensuring transparency for investors. Key metrics such as Net Asset Value (NAV), expense ratio, assets under management (AUM), and the portfolio composition are disclosed regularly, allowing investors to track performance.

  • Investment Options: Lumpsum vs SIP: Investors can choose to invest either through a one-time lumpsum payment or via a Systematic Investment Plan (SIP). SIPs allow for periodic investments (monthly, quarterly, etc.) directly from the investor’s savings account. The auto-debit facility simplifies this process, making it easier to grow investments over time. SIPs are ideal for those looking to invest consistently, without the need to time the market.

  • Net Asset Value (NAV) and Returns: Investors in mutual funds receive units based on the amount they invest. The value of these units is determined by the Net Asset Value (NAV), which reflects the market value of the fund’s holdings. When the NAV increases, the value of the investor’s portfolio rises, generating positive returns. Conversely, if the NAV decreases, the portfolio may experience a loss. Mutual fund returns are directly tied to the fluctuations in the NAV.

Mutual funds simplify the investment journey by offering diversification, professional management, and the flexibility to invest in a way that suits your financial goals. Whether you’re looking for long-term wealth creation through equity funds or more stable returns via debt funds, mutual funds are a robust tool to achieve your financial aspirations.

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Types of Mutual Funds​

Based on Investment Strategy

  1. Active Funds: Active mutual funds are designed to outperform the market by continuously seeking better returns. Fund managers in active funds actively research and select stocks, making adjustments based on market conditions and their expertise. The goal is to generate higher returns than the benchmark index, offering the potential for greater gains, though they may come with higher risk and fees due to the active management involved.

  2. Passive Funds: Passive mutual funds, on the other hand, aim to mirror the performance of a specific market index. Instead of trying to beat the market, these funds invest in the same stocks and in the same proportion as the index they track. Examples of passive funds include index funds and Exchange Traded Funds (ETFs). Since passive funds follow a set strategy with less frequent trading, they typically come with lower management fees and provide a simple way to match market performance.

Based on structure

  1. Open-Ended Funds: Open-ended mutual funds offer flexibility for investors, allowing them to buy and sell shares at the current Net Asset Value (NAV) at any time. The NAV of these funds is updated daily, and there are no restrictions on the number of units available. This structure provides high liquidity, making it easy for investors to enter and exit the fund whenever they choose. Open-ended funds are ideal for those who value accessibility and want to react quickly to market changes.

  2. Closed-Ended Funds: Closed-ended funds have a fixed number of shares and a predetermined asset base, creating a distinct investment structure. Unlike open-ended funds, their NAV does not fluctuate daily; instead, it is determined based on market demand and supply. Investors can only purchase shares during a New Fund Offer (NFO), and once the NFO closes, no new investors can join until the fund matures. Existing investors also cannot redeem their shares until maturity, but to maintain liquidity, these funds are traded on stock exchanges. An example of a closed-ended fund is a fixed maturity plan, which is designed to invest for a specific duration and return the principal at maturity.

Based on investment option

  1. Growth Option: Under the growth option, any dividends or profits generated from mutual fund investments are automatically reinvested back into the fund. This strategy allows investors to benefit from compound growth over time, as their investment continues to grow without interruption. The growth option is ideal for investors seeking long-term capital appreciation and who are not dependent on immediate income from their investments.

  2. Dividend Option: The dividend option provides unit holders with regular distributions of profits earned by the fund. These dividends can be paid out monthly, quarterly, or annually, depending on the fund’s policy. This option is suitable for investors looking for a steady income stream from their investments while still participating in the potential growth of the fund. The dividend option allows investors to enjoy the benefits of both income generation and potential capital appreciation.

Based on asset class

Equity

Equity funds in India invest at least 65% of their total assets in stocks. While these funds are associated with a significant level of risk due to their focus on equities, they also have the potential to generate substantial returns over the long term. Equity funds can be further classified based on their category and investment objectives. Below are the various types of equity mutual funds:

  1. Large Cap Funds: Invests at least 80% of its assets in large-cap stocks, which are typically well-established companies with a stable performance.

  2. Mid-Cap Funds: Invests a minimum of 65% in mid-cap stocks, focusing on companies with the potential for growth while maintaining a moderate risk profile.

  3. Large and Mid Cap Funds: Allocates at least 35% of its assets in large-cap stocks and 35% in mid-cap stocks, providing a balanced exposure to both segments.

  4. Small Cap Funds: Invests at least 65% in small-cap stocks, which can offer high growth potential but also come with higher volatility.

  5. Multi Cap Fund: Invests a minimum of 65% in equity and equity-related instruments across various market capitalizations, allowing for diversification.

  6. Thematic/Sector Funds: Focuses at least 80% of its investments in stocks of a specific sector or theme, targeting concentrated areas of growth.

  7. Equity Linked Savings Scheme (Tax Saver Funds): Invests at least 80% in stocks in accordance with the Equity Linked Saving Scheme, 2005, providing tax benefits under Section 80C.

  8. Index Funds or Exchange Traded Funds (ETFs): Allocates a minimum of 95% to securities of a particular index, aiming to replicate the performance of that index.

  9. Focused Funds: Concentrates on a limited number of stocks (maximum 30), with at least 65% in equity and equity-related instruments, allowing for a high conviction strategy.

  10. Value Funds: Employs a value investment strategy, with at least 65% in stocks that are considered undervalued relative to their intrinsic value.

  11. Contra Funds: Follows a contrarian investment strategy, investing at least 65% in stocks that are currently out of favor but have the potential for future appreciation.

  12. Dividend Yield Funds: Primarily invests in dividend-yielding stocks, with at least 65% in stocks, aiming to provide a steady income stream alongside capital growth.

Explore best equity mutual funds: Here

Debt:

Debt mutual funds in India primarily invest a significant portion of their assets in debt or fixed-income instruments. These include government securities, corporate bonds, debentures, and money market instruments such as treasury bills, commercial papers, and certificates of deposits. Debt mutual funds generally invest in high-rated securities, offering lower risk levels compared to equity funds. Below are the types of debt funds:

  1. Overnight Funds: Invest in overnight securities with a maturity of just 1 day.

  2. Liquid Funds: Invest in debt and money market securities with maturities of up to 91 days.

  3. Ultra Short Duration Funds: Invest in debt and money market instruments with a Macaulay duration of the portfolio between 3 to 6 months.

  4. Low Duration Funds: Invest in debt and money market instruments with a Macaulay duration of the portfolio between 6 to 12 months.

  5. Money Market Funds: Invest in money market instruments with maturities of up to 1 year.

  6. Short Duration Funds: Invest in debt and money market instruments with a Macaulay duration of the portfolio between 1 to 3 years.

  7. Medium Duration Funds: Invest in debt and money market instruments with a Macaulay duration of the portfolio between 3 to 4 years.

  8. Medium to Long Duration Funds: Invest in debt and money market instruments with a Macaulay duration of the portfolio between 4 to 7 years.

  9. Long Duration Funds: Invest in debt and money market instruments with a Macaulay duration of the portfolio greater than 7 years.

  10. Dynamic Bond Funds: Invest across various durations, adjusting the portfolio based on market conditions.

  11. Corporate Bond Funds: Invest a minimum of 80% in corporate bonds that are rated AA+ and above.

  12. Credit Risk Funds: Invest a minimum of 65% in corporate bonds rated AA and below, targeting potentially higher yields with increased risk.

  13. Banking and PSU Funds: Invest a minimum of 80% in debt instruments of banks, public sector undertakings, public financial institutions, and municipal bonds.

  14. Gilt Funds: Invest a minimum of 80% in government securities (G-secs) across various maturities.

  15. Gilt Funds with 10-Year Constant Duration: Invest a minimum of 80% in G-secs, ensuring that the Macaulay duration of the portfolio equals 10 years.

  16. Floater Funds: Invest a minimum of 65% in floating rate instruments, which can help mitigate interest rate risk.

Hybrid Mutual Funds

Hybrid mutual funds in India invest in both debt and equity, previously known as balanced funds. Some hybrid funds may also include other asset classes like gold and real estate. By investing across various asset classes, these funds attract investors with moderate risk tolerance. Below are the types of hybrid funds:

  1. Conservative Hybrid Funds: Invest 10% to 25% in equity and equity-related instruments and 75% to 90% in debt instruments.

  2. Balanced Hybrid Funds: Invest 40% to 60% in equity and equity-related instruments and 40% to 60% in debt instruments.

  3. Aggressive Hybrid Funds: Invest 65% to 80% in equity and equity-related instruments and 20% to 35% in debt instruments.

  4. Dynamic Asset Allocation or Balanced Advantage Funds: Invest 10% to 25% in equity and equity-related instruments and 75% to 90% in debt instruments, adjusting allocations based on market conditions.

  5. Multi-Asset Allocation Funds: Invest in at least three asset classes, ensuring a minimum allocation of at least 10% in each asset class.

  6. Arbitrage Funds: Follow an arbitrage strategy, with a minimum of 65% investment in equity and equity-related instruments.

  7. Equity Savings Funds: Invest a minimum of 65% in equity and equity-related instruments, along with a minimum of 10% in debt instruments and derivatives, as specified in the Scheme Information Document (SID).

Explore:

Advantages of Investing in a Mutual Fund

There are a variety of mutual funds in the market, each with different investment objectives. The minimum investment amount can be as low as INR 500, making investing accessible to everyone. You can select a fund whose investment objective aligns with your financial goals.

  1. Diversification: One of the primary advantages of investing in mutual funds is diversification. Mutual funds invest in multiple instruments and companies, particularly in equity. This approach helps create a well-diversified portfolio that is subject to less volatility compared to direct stock investments. Mutual funds also mitigate risk by investing across various sectors and asset classes.

  2. Liquidity: Mutual funds are highly liquid investments. Investors can enter and exit these investments at any time. Unlike fixed deposits, mutual funds have a flexible withdrawal policy. However, it’s essential to consider exit loads and lock-in periods, especially for Equity Linked Savings Schemes (ELSS).

  3. Professional Management: Not all investors are equipped to make informed investment decisions. Experienced fund managers manage mutual funds, pooling money from various investors and making strategic investments across different assets. Their decisions are backed by thorough research and analysis, which helps generate significant returns for investors.

  4. Small Investments: You can start investing in mutual funds with as low as INR 500. This encourages investors to initiate small savings through Systematic Investment Plans (SIPs). Mutual funds cater to all types of investors, allowing them to choose their investment amount and frequency for SIPs based on their convenience.

  5. Easy Investing: Investing in mutual funds has never been easier. You can quickly invest online by directly visiting the asset management company’s (AMC) website or using online platforms that facilitate investments. Miles Wealth is one such platform that enables hassle-free, paperless investment in mutual funds, allowing you to invest from the comfort of your home.

  6. Safe and Transparent: The Securities and Exchange Board of India (SEBI) regulates mutual funds, ensuring that all fund houses adhere to its guidelines. SEBI’s fund categorization helps investors understand the funds’ objectives and associated risk levels. All AMCs regularly publish fact sheets detailing fund holdings, assets under management (AUM), and other relevant information, making the investing process safe and transparent.

Disadvantages of Investing in Mutual Funds

  1. Risk: Mutual funds invest in equity and debt, which are not risk-free investments. Equity mutual funds are subject to market risks, while debt funds carry credit and interest rate risks. It’s essential to understand the fund before investing. However, mutual funds diversify their investments across multiple assets, resulting in lower volatility compared to direct stock investments.

  2. Lock-in Period: The Equity Linked Savings Scheme (ELSS) is the only mutual fund type with a lock-in period. ELSS investments come with a three-year lock-in period and offer tax benefits under Section 80C of the Income Tax Act. Investments up to INR 1,50,000 per annum are tax-deductible. However, ELSS has the shortest lock-in period among all investments qualifying for tax exemption under Section 80C.

  3. Over-Diversification: It is advisable not to invest in too many mutual funds simultaneously. Over-diversification can lead to diminished returns, as spreading investments too thin may dilute potential gains.

Who Should Invest in Mutual Funds?

Mutual funds cater to a wide range of investors, making them suitable for almost everyone. Here’s a breakdown of who can benefit from investing in mutual funds:

  1. Risk Tolerance: Mutual funds offer schemes that accommodate both low-risk and high-risk investors. Whether you prefer a conservative approach or are open to taking on more risk for potentially higher returns, there’s a mutual fund option for you.

  2. Investment Duration: Investors can choose funds based on their investment horizon—long, medium, or short duration. This flexibility allows you to align your investments with your financial goals, whether you’re planning for the long term or seeking short-term gains.

  3. Experience Level: Both first-time investors and seasoned veterans can find value in mutual funds. They offer an accessible entry point for newcomers while providing diverse options for experienced investors looking to diversify their portfolios.

  4. Investment Method: Mutual funds facilitate investments through both lump-sum and Systematic Investment Plans (SIPs). This feature allows small investors to start investing regularly, making it easier to build wealth over time.

  5. Tax-Saving Options: For those looking to save on taxes, Equity Linked Savings Schemes (ELSS) provide a great opportunity, offering tax benefits under Section 80C of the Income Tax Act.

  6. Long-Term Financial Goals: Investors aiming to achieve long-term financial goals—such as retirement, education for children, or marriage—should consider equity funds. Investing for the long term helps average out market volatility and has the potential to yield higher returns.

  7. Alternative to Fixed Deposits: Mutual funds serve as a strong alternative to fixed deposits, often generating higher returns compared to traditional savings accounts or fixed deposit schemes. They can be particularly attractive for short-term investments.

While mutual funds offer a pathway to growth and wealth accumulation tailored to your needs, it’s essential to remember that they are subject to market risks. Therefore, investors should exercise caution and conduct thorough research before making investment decisions.

 

Things to Remember Before Investing

Before investing in mutual funds, it’s essential to consider the following factors:

  1. Investor Profile: Understand your investment profile, including age, financial goals, income, and risk tolerance. This information is crucial for selecting the right mutual funds. If you are working with a financial advisor, they will take these factors into account to recommend suitable investment options.

  2. Performance: While past performance is not indicative of future results, it’s vital to review a fund’s historical performance. Analyze how the fund has performed under various market conditions and compare it to its benchmark and peer funds to gauge its relative performance.

  3. Risk: Investing in mutual funds entails risk, although they generally exhibit lower volatility than direct stock investments. Since mutual funds invest in equity and debt instruments, it’s important to understand the associated risks, including market volatility for equities and credit and interest rate risks for debt securities.

  4. Lock-in Period: Most open-ended funds do not have a lock-in period, except for Equity Linked Savings Schemes (ELSS), which have a three-year lock-in period. Closed-end mutual funds may have a fixed lock-in duration. If liquidity is a priority for you, consider the lock-in terms of the funds you are interested in.

  5. Expenses: Every mutual fund charges fees known as the expense ratio, which covers the costs of managing the fund. Some funds may also have entry and exit loads. High expenses can erode your overall returns, so it’s essential to evaluate these costs carefully before investing.

  6. Portfolio Manager and AMC: The experience and expertise of the portfolio manager (fund manager) play a significant role in a fund’s performance. It’s also wise to research the reputation of the Asset Management Company (AMC) to ensure they have a track record of effective management.

  7. Taxation: Mutual funds are subject to different tax treatments based on the type of fund and holding period:

  • Equity Mutual Funds: Short-term capital gains (STCG) tax applies to gains on holdings of less than one year, taxed at 15%. Long-term capital gains (LTCG) on holdings over one year are taxed at 10% for gains exceeding ₹1 lakh in a financial year.

  • Debt Mutual Funds: STCG applies to holdings of less than three years, taxed according to the individual’s income tax slab. Long-term gains for investments held beyond three years are taxed at 20% with indexation benefits.

  • ELSS Funds: Investments up to ₹1.5 lakh qualify for tax deductions under Section 80C of the Income Tax Act, subject to the three-year lock-in requirement.

  • Dividends: Taxable in the hands of the investor at their applicable income tax slab rate. Dividends over ₹5,000 are subject to a TDS of 10% (effective from FY 2020-2021)

  •  Professional Advice: Seeking guidance from a financial advisor is highly recommended, especially for new investors. Although there may be a cost associated with hiring an advisor, their expertise can help you navigate investment choices and manage your portfolio effectively. For instance, platforms like Scripbox offer advisory services, portfolio monitoring, and assistance with tax documentation at a minimal fee, ensuring a comprehensive investment experience.

 

Ways to Invest in Mutual Funds

When it comes to investing in mutual funds, you have several options to choose from, each with its own advantages and considerations:

1. DIY (Do It Yourself) Investing

You can take the initiative to research and select mutual funds independently. This approach involves:

  • Researching: Browsing through thousands of mutual funds available in the market.

  • Knowledge & Expertise: Having a solid understanding of investment strategies, market trends, and asset allocation to make informed decisions.

  • Platforms: Investing directly through platforms like Groww, Coin, or directly via Asset Management Companies (AMCs).

Considerations: DIY investing requires significant time and expertise. It may not be suitable for everyone, especially those who are new to investing.

2. Registered Investment Advisors (RIAs)

If you prefer a more guided approach, you can work with Registered Investment Advisors (RIAs):

  • Advisory Fees: RIAs typically charge annual fees plus a percentage of profits generated from your investments.

  • Ideal for: This option may not be cost-effective for individuals with lower savings, as the advisory fees can be relatively high.

Considerations: While RIAs provide personalized advice and portfolio management, the costs can add up, making it less accessible for some investors.

3. Miles Wealth

Miles Wealth combines the benefits of DIY investing and professional guidance:

  • No Extra Fees: There are no additional charges for using our platform. You don’t need to pay anything out of your pocket.

  • Expert Guidance: We help you select mutual funds that align with your financial goals and risk tolerance, without requiring extensive research or expertise from your side.

  • Regular Mutual Funds: We offer access to regular mutual funds, where we earn a small commission (around 0.5-0.75%) from AMCs for guiding you to the right funds. This commission is included in the expense ratio of the mutual funds, which is slightly higher than direct plans.

  • Considerations: By choosing Miles Wealth, you gain professional support without the burden of high advisory fees, making investing more accessible and tailored to your needs.

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