Mid Cap Funds provide an able alternative for investors to derive benefit from mid cap stocks over the long term.
Large Cap Funds are those that only invest in the top 100 listed companies, across sectors to acquire the benefits of diversification.
Focused Funds, as the name suggests, concentrate only on high conviction quality stocks which have the potential to create wealth in the long term.
There are different types of mutual funds in India depending on their structure, nature of investment, tax benefits, category of the scheme and investor goals etc.
Diversification is one of the most important aspects, if not the most important aspect of financial planning and portfolio management. We will see how you may use mutual funds to diversify your investment portfolio.
Over the past two weeks, investors who follow markets on the web or social media may have come across the term, “Inverted Yield Curve”. In this article we will discuss, what yield curve inversion is and what are implications on markets.
While awareness about Exchange Traded Funds (ETFs) is quite low in India, these funds are gaining traction amongst investors over the last few years. In the last 5 years, the mutual fund industry assets under management (AUM) in ETFs have grown at a CAGR of more than 100%. In the developed markets, ETFs and index funds are hugely popular with investors.
Mutual funds, on the other hand, are one of the most tax friendly investment options available to Indian investors.
Mutual fund is a financial instrument which pools the money of different people and invests them in different financial securities like stocks, bonds etc. Each investor in a mutual fund scheme owns units of the fund, which represents a portion of the holdings of the scheme.
SIP is a method of investing a fixed amount, regularly – monthly or quarterly in a mutual fund scheme. SIP allows you to buy the units of your selected scheme on a date chosen by you. An investor can invest a pre-determined fixed amount in a chosen scheme every month or quarter, depending on his convenience through post-dated cheques or through ECS (auto-debit) facility.heme owns units of the fund, which represents a portion of the holdings of the scheme.
Snapshot of Tax rates specific to Mutual Funds
The cost of higher education in India has been growing in double digits (in percentage terms) over the last 20 years. The cost of 4 year engineering education (B.Tech/B.E) in the top Government institutes is around Rs 9 – 10 lakhs. In some of the top private institutes, cost of engineering education can be as high as Rs 15 – 20 lakhs. The cost of medical education is similar, if not a little higher. In the next 10 years, applying an inflation rate of 10%, the cost of engineering or medical education may be in Rs 25 – 45 lakhs. MBA from one of the top institutes will cost you around Rs 20 lakhs. 10 years from now, you should be prepared to fork out Rs 50 lakhs for your child’s MBA.