Taurus Ethical Fund for Ethical Equity Growth Invest Now

If investors are interested in investing in an equity mutual fund that abides by the Islamic investment principles, they might want to consider investing in Taurus ethical fund.

In this blog, we will discuss the Taurus ethical fund, Regular Plan Growth, investment strategy, performance, risk, costs and Regular Plan vs. Taurus ethical fund direct growth.

What Is Taurus Ethical Fund?

This is an equity mutual fund based on ethical and Shariah investment principles.

Overview of Taurus Ethical Fund Regular Plan Growth

The Regular Plan Growth option is for those who invest in this distribution plan. In the Growth option, the scheme retains returns within the investment instead of paying them out as regular IDCW income.

The fund house launched the scheme on April 6, 2009, and the scheme uses the BSE 500 Shariah TRI as its benchmark. Taurus Mutual Fund now rates the scheme as a very high-risk equity fund.

If you want to invest through a mutual fund distributor (or financial intermediary) and you like having an investment expert helping you, the Regular Plan may be applicable.

Key Fund Details at a Glance

Investment Objective of Taurus Ethical Fund

The main aim of this fund is to offer capital appreciation and the distribution of income to the unit holders by investing in an array of equities that are diversified, which are Shariah compliant.

The fund’s goal is to invest in the growth of the equity markets while adhering to its stated ethical investment framework, in simple terms.

But, there is an important distinction to note, an objective for investing is not a forecast. Stock markets tend to swing widely up and down. Even a well managed fund can have its down years.

Therefore it is advisable to consider this fund as a long-term investment and not as a method of quick money-making.

Taurus Ethical Fund Regular Plan Growth

The Regular Plan Growth option may be appropriate for investors who wish to stay invested for wealth and wishes to take the regular plan path.

The Growth option is not the same as a conventional fixed income product for which a specific payout is guaranteed. Rather, the worth of your investment fluctuates based on the price of the investment fund’s NAV and the performance of its underlying holdings.

Equity mutual funds operate more or less in a similar manner. Dips in short time periods can be uncomfortable, but the underlying businesses can have more time to expand in a longer time period.

What Does Regular Plan Growth Mean?

A Regular Plan normally includes intermediaries like mutual fund distributors. The Growth option, on the other hand, is geared toward capital appreciation within the scheme, instead of payouts in the form of IDCW.

This is important because an investor can sometimes equate ‘growth’ with ‘return’. It is not.

Growth is just the choice for the returns to be kept invested in the scheme in accordance with the fund’s performance and rules.

Always review the most recent scheme documentation and taxing regulations before investing – do not assume that the Growth option will provide a specific return.

Taurus Ethical Fund Direct Growth Explained

The keyword Taurus ethical fund direct growth is related to Direct Plan Growth option of the ethical scheme.

A Direct Plan is offered to those investors who invest in a mutual fund directly without going through a distributor. The documents of the scheme clarify the lower cost of the Direct Plan due to the differences of the distributor’s commission or distribution expenses in the Direct Plan versus the Regular Plan.

The disparity may impact compounding over the long-term.

The same general principle would also be true for the difference in expenses among mutual funds.

The plan can either be regular or direct.

Regular Plan vs Direct Plan

Expense Ratio Difference

According to Taurus Mutual Fund (as reflected in the fund information published), the expense ratio of the fund in the latest available information on the fund’s scheme page stood at 2.10% for the Regular Plan and 0.90% for the Direct Plan.

The amounts may change and investors are advised to check the most current expense ratio before investing.

Generally, the Direct Plan is less costly than the Distributed Plan, due to the lack of distributor-related expenses in the Direct Plan. In the long run, reduced costs may free up additional residual income from the investment to go back to the investor.

Distribution and Investment Route

The Regular Plan may seem to make sense for investors who appreciate the help of a distributor. You might get assistance in choosing a scheme, making the investment and dealing with some of the requirements associated with your investment.

The Direct Plan, however, is designed for investors who invest directly, and are confident in making their own mutual fund choices.

Both paths are not necessarily the “best” for all investors. The right option depends on the individual’s preference of using professional distribution support and the preference to self-manage investments.

Is Taurus Ethical Fund Suitable for Long-Term Investment?

For investors who prefer to have equity exposure with a Shariah perspective and willing to accept extremely high risk in the market over a medium- to long-term period may consider this fund.

The difference it has over other products is not just that equity market returns are possible. It is the integration of equity investing and ethical and Shariah based investment approach.

Investors who choose the distributor route might find the Regular Plan Growth to be a better option, while those who can handle investing directly and managing their own mutual fund options might find Taurus ethical fund direct growth to be more appealing.

Conclusion

The Taurus ethical fund is an equity scheme that follows a unique approach in a manner that has a combination of market participation and a Shariah compliant and ethical investment approach.

For those who wish to invest with assistance from the distributor, the Regular Plan Growth can be beneficial. For those who wish to invest directly with the fund, the Taurus ethical fund direct growth can be more suitable, with lower fees.

FAQs

1. What is Taurus Ethical Fund?

Ans) This is an equity mutual fund that follows a Shariah-based and ethical investment approach.

2. What is the risk level of Taurus Ethical Fund?

Ans)Taurus Mutual Fund presently rates the scheme as Very High Risk  investment.

3. What is Taurus Ethical Fund Direct Growth?

Ans) Taurus ethical fund direct growth refers to Direct Plan growth, the option that investors can take part in directly without having to go through a distributor.

4. What is the minimum investment in Taurus Ethical Fund?

Ans)The fund’s scheme details provide that the minimum application is ₹500 and the multiples are at ₹1.

5. Is Taurus Ethical Fund suitable for long-term investment?

Ans)It might be suitable for investors who want equity exposure according to the Sharia principles, have a medium to long term investment horizon and are comfortable with very high market risk.