Liquid funds have emerged in the past few years as a perfect alternative for liquid bank savings accounts. Liquid funds are a category of debt mutual fund which invests in money market instruments such as commercial paper, treasury bills, certificate of deposits etc. Since they invest in short term instruments they have all the advantages
During last 5 years stock market in India was buoyant. Indices Nifty and Sensex made new lifetime highs with Nifty crossing 11000 mark and Sensex crossing 40000 mark. Midcap index too recorded new highs. Many individual stocks have been wealth creators. Many people invested in Mutual funds and earned during this period. But do you
A mutual fund is a collection of stocks, bonds and other such investment funds owned by a group of investors that are managed by professional money managers. It depends upon the mutual fund’s investment objective as to what type of securities it would buy. A mutual fund in India focuses on specific types of investments.
If you are a beginner and just beginning to start on mutual funds, here is what you need to know about mutual fund schemes. They have become one of the most popular with individual investors because of the benefits they provide. Some important factors that drive investors to mutual funds are as follows You can
Formula to calculate NAV for growth and dividend plan are exactly the same. The only difference is that in case of the dividend plan, the total dividend is deducted from the NAV of the Growth Plan. For example, assume that at the end of the first, the NAV of an equity fund’s growth plan and
What exactly are fund of funds? They are essentially hybrid mutual funds that invest in other funds. For example, an international fund is typically structured as a fund of fund, wherein the Indian fund will invest in mutual funds issued by its global counterparts. For example, Templeton offers an international FOF where domestic investors can
Gilt edged securities are those low risk securities issued by the government of a country. In India, the government issues securities of various maturities to raise money for their development agenda. What should investors prefer since direct investment in G-Secs can be quite complicated and institutional. There are two options to participate in government securities;
Comparing index mutual fund and ETF is similar to apple versus apple comparison. We shall compare index mutual funds and ETFs since both are essentially passive strategies to invest in the markets. But what exactly is passive investing? As the name suggests, the very purpose of passive investing is to remain passive and just mirror.
ULIPs have been in the news for all the wrong reasons. They were often sold (or rather mis-sold) as assured return products when they were not. There were occasions when they were sold as mutual funds when they also had an insurance component to them. All these factors forced the IRDA to clamp down heavily
Barring a few hiccups notwithstanding, India is heading for lower interest rates on Bank Deposits for years to come, if not for decades. If one steps out of their economic comfort zone into the real life of savers, a huge amount of damage will already be done. A measly 2 to 3.5% on the savings