Blog about Financial Education, Advisory & Planning
Direct Plan in mutual funds were introduced on 1st January 2013 & since then within five years their share has grown to 40% of the industry’s total AUM. With consistent push from various stakeholders, direct plans contribute 14% of the total AUM held by individual investors. Product awareness campaigns by various market participants have consistently increased …
With so many fund houses, so many fund categories & so may fund options in each category selecting the right fund to invest can itself be a humongous task. Knowing these fund evaluation parameters in layman’s terms & understanding their relevance will help you invest wisely. The following are applicable to all funds: Sharp ratio: …
Providing a nominee may be a simple but important step in making a mutual fund investment. The importance of this step comes in when a nominee or legal heir has to claim the investment proceeds after the death of a mutual fund investor. A joint-holder, nominee or legal heir can claim the proceeds. The process …
Importance of nominee in a mutual fund investment Read More »
A debt mutual fund holds debt instruments, and these instruments pay a particular coupon (interest). An accrual strategy is holding a bond, earning the interest due, collect the principal at maturity and reinvest it in fresh bonds. Liquid funds, ultra-short term funds, short-term debt funds, income funds and credit opportunity funds primarily follow an accrual …
Debt Mutual Fund: Duration Funds vs Accrual Funds Read More »
The current rally in Indian market is fuelled by strong liquidity from domestic investors. With low bank fixed deposit rates, subdued real estate market (with high transaction cost) and stagnating gold prices, equities seems to be the most viable domestic investment avenue for investors. Thus in spite of the markets reaching all-time highs & rich …
Equity savings fund is a new variant in the equity mutual fund basket. They had emerged after the Union Budget 2014 increased the holding period for debt mutual funds to qualify as a long-term capital asset from one year to three years. The funds aim to generate returns from equities, arbitrage trades, and fixed income …
‘Balanced funds’ fall in the hybrid category of mutual funds and invest more than 65% of the corpus into equities, while the rest is allocated among fixed income instruments. Older retired investors are considering investing into such equity focused funds. They seem to be pretty impressed with the monthly dividends being generated by balanced mutual …
Balanced funds for monthly dividends- Temporarily Regular… Read More »
The Indian markets have been consolidating over the last month with NIFTY/SENSEX hitting new highs of 9532/30712 on 17th/19th May 2017. Investor sentiments are buoyed towards a further upside over the next year. There has been very strong DII buying in the last 12 months. The number of SIPs in the mutual fund industry has …
One of the initial investment decisions that one has to make is what proportion of assets to invest in equities & what proportion in debt. One of the basic thumb rules used over the years to decide on equity allocation is the 100 minus age allocation. The risk taking capacity of a person is maximum …
Timing the market is the most difficult thing to do as no one can really say when the market is bottoming out or hitting the top. Thus the best way to put your money into mutual funds would be in a staggered manner through systematic investment plan (SIP) or through systematic transfer plan (STP) after …
Using SIP & STP for investing & SWP while redeeming… Read More »