Tax saving schemes are mutual fund schemes that qualify for tax deductions under Section 80C of the Income Tax Act.
The net asset value or NAV of a mutual fund is the price you pay for a unit of a scheme.
Most retirees look for guaranteed, tax-free returns. Once they find out that there are not many tax-free avenues, the next one is to look for guaranteed returns.
It is true that many actively-managed large cap schemes struggled in the last two years, whereas their passively-managed counterparts topped the return charts.
To stop MF SIP, investors can log in to the mutual fund website using login credentials or folio details. Else, the investor can also login to the online transaction platform of the R&T agent or the distributor and click on ongoing SIP instructions.
Debt funds invest in fixed income securities such as bonds and deposits issued by the government, companies and institutions which typically pay a fixed amount of interest at a prespecified rate and frequency.
With increased data and development in machine learning and AI, quant funds can become groundbreaking in years to come. In India there are a few fund houses offering quant funds like Tata, Nippon and DSP.
To be able to invest in a liquid fund, the investor should have KYC formalities completed with a KYC registration agency. A KYC form needs to be filled up and documents (address and IDproof) should be submitted, with originals for this purpose.
Bharat Bond ETF will be the first corporate bond debt ETF to be launched in India. The details of companies in the ETF are yet to be finalised.
Many mutual fund houses are coming up with new fund offers and financial planners believe that investors should consider them only if the scheme offers something new. However, an NFO is different from an IPO.
Many investors, especially new ones, get excited whenever a new new fund offer is launched. But is it a wise decision to invest in them?
Indexation refers to recalculating the purchase price, after adjusting for inflation index, as published by the Income Tax authorities. Since the purchase price is adjusted for inflation, the capital gain gets reduced.
Focused mutual funds have larger exposure to individual stocks, making them rather volatile. This makes it more risky compared to a diversified equity fund.
There are many instances in life, when there is an urgent requirement of funds. To take care of those needs, investors need to build a small kitty of their own.
The more concentrated a portfolio is, the higher the chance for its returns to deviate significantly from the benchmark, either positively or negatively.
Many conservative mutual fund investors want to invest a small part of their investments in equity to enhance their returns. However, their apprehensions about the higher risk and volatility in equity mutual funds prevent them from proceeding with their investment plans.
Hybrid schemes, as their name suggests, invest in a mix of equity and debt. The aggressive ones invest more in equity, whereas the conservative hybrid schemes invest more in debt instruments.
It is very difficult for many individuals to manage their own money. It is tough to study and analyse companies and transact to buy /sell different securities on one’s own.
Many mutual fund investors, especially the new 'direct’ or DIY investors, are worried about the performance of their mutual fund investments in the last one or two years.
Most of the ups and downs in key benchmark indices are point-to-point returns. That means the data doesn’t capture your periodic investments through SIPs. For example, one-year return might be positive because it is looking at the movement of the index from one year ago. However, your SIP returns might be negative during the same period because you have been investing every month. The opposite scenario also could be true.
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