1. Asset Management Company and how it works
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 owns units of the fund, which represents a portion of the holdings of the mutual fund. Let us now understand how asset management companies raise money from the investors Read More
2. 5 benefits of investing in Equity Mutual Funds
Historical data shows that, equity is the best performing asset class over a long investment period. In the last 20 years, the BSE Sensex has given 10.8% annualized returns, while gold has given 8.6% and fixed deposits have given 7.8% annualized returns respectively. Rs 1 lakh invested in the Sensex 20 years back would have grown to Rs 7.8 lakhs, while the same amount invested in gold and fixed deposit would have grown to Rs 5.2 lakhs and Rs 4.4 lakhs respectively. Read More
3. 5 reasons to buy Liquid Mutual Funds
Liquid fund invest primarily in money market instruments like treasury bills, certificate of deposits, commercial papers and term deposits, with the objective of providing income to investors and high liquidity. Liquid funds usually invest in money market securities that have a residual maturity of less than or equal to 91 days. A variant of liquid funds, known as ultra-short term debt funds, invest in money market securities that mature in 6 to 12 months. In this article, we will discuss 5 reasons to buy liquid mutual funds. Read More
4. 6 things to know before starting a SIP
A SIP or Systematic Investment Plan enables you to invest a fixed amount at regular intervals (monthly, quarterly or annually) in mutual fund schemes, which in turn invest in the markets. Being a flexible instrument, SIPs help us build long term wealth and instils the habit of saving even in the most undisciplined of us. The major benefit of investing in SIPs is the power of compounding, rupee cost averaging and compounding benefits. Read More
5. ELSS Mutual fund can help you with both: tax saving and retirement planning
For many of us tax saving is usually a once in year investment exercise to save up to Rs 46,350 in taxes under Section 80C of Income Tax Act 1961. However, tax saving investments can also help you meet your long term financial goals like retirement planning. If you look at the various investment options under Section 80C, you can find that many of these investments can serve your retirement planning needs in addition to saving taxes. Employee provident fund, public provident fund (PPF), life insurance policies, National Pension Scheme (NPS) and mutual fund Equity Linked Savings Schemes (ELSS Mutual Funds) are all investments in Section 80C that are in some ways or other associated with long term financial planning, including your retirement. Read More
6. What are Gold Funds
Gold is a very important asset class for investors. Gold not only has an important cultural significance in India, but since it has been used traditionally as store of value all over the world, over a long period of time, gold is seen as a hedge against inflation. Also, based on historical data, gold prices have a negative correlation with equity prices. So gold can also be used as a hedge against equity risks. Read More