Think Profits? Think Long Term! We all must have definitely come across the term ‘long-term investment’. But are we really aware of what exactly “long-term investments” mean? Or do we at least know how long these long-term investments are of? When it comes to the financial world, an investment that has been held for 5
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.
Mr Rahul Arora, an Indian born US citizen wanted to invest in an Indian mutual fund scheme and was looking at various brokers and firms online and offline. He was told off that fund houses do not accept investments from Non resident people who reside in the US. The NRI trading community is clueless and finding it
ICRA had downgraded some of the debt funds of HDFC, Birla and UTI due to their large exposure to a subsidiary of IL&FS. The problem was quite unique. The IL&FS subsidiary was not exactly a cash-crunched company but had enough cash flows in its books. However, it sought protection in the blanket immunity given to
When you select an equity or debt fund to invest in, there is also a choice between growth and dividend plans. There is also the dividend reinvestment plan but that is not too popular. The choice is normally between a growth plan and a dividend plan. For example, if a fund has a NAV of
In the last Board meeting of the Securities and Exchange Board of India (SEBI), the concept of Side-pocketing was permitted for the first time. What exactly is side pocketing and how does it help mutual fund. Typically, debt funds hold an array of debt securities in their portfolio which include government debt, state government paper,
Mutual funds have always been emphasized as a wealth creator in the longer run. Above all, mutual funds combine the best of simplicity, professional management, liquidity, wealth creation potential and the tax efficiency which is not available in most of the other financial products. Above all, mutual funds are extremely flexible and they can be
Mutual fund is a vehicle to mobilize money from investors, to invest in different markets and securities, in line with the investment objectives agreed upon, between the mutual fund and the investors. In other words, through investment in a mutual fund, a small investor can avail of professional fund management services offered by an asset