Past performance is no guarantee that the future performance will be good of the mutual fund scheme. The same holds good for rating and ranking.
Investors should first take a look at the fund where they have put their money and the nature of the fund.
SIP not only allows you to invest in a phased manner, but also will help you use the bear markets to your advantage.
One must follow due process to get the units transferred in the name of the survivors. It is better to nominate when you invest.
While some expenses such as exit loads are known, there are some such as expense ratio and dividend distribution tax may be hidden.
Taking exposure to low rated bonds mean high credit risk. Such bonds can impact the liquidity of the portfolio. Also in case of default, the permanent capital loss cannot be ruled out.
Systematic withdrawal plan can help you take home a fixed sum of money in a tax efficient manner.
There is a broad market risk that all investors face. Also they are exposed to risks associated with individual investments held in their portfolios.
JP Morgan mutual fund recently announced split of units. This does help investors protect liquidity of units at fair price that houses standard assets.
MF SIP can build wealth for you in long term. However, one should overcome some of the myths surrounding MFSIP.
Biggest advantage of sip is they allow investors to benefit from rupee cost averaging in long term.
Balanced funds are good for average investors looking to invest in shares.
SIP allows you to benefit from the rupee cost averaging in the long term.
Asset allocation funds allow investors to buy both debt and equity and thereby reduce portfolio volatility.
Tax-saving funds have three year lock in. However, you need not necessarily sell them after completion of three years.
In an attempt to reduce risk and enhance returns, mutual funds have come out with hybrid products that offer more than debt fund returns, but still maintain equity tax treatment.
A fall in stock market does offer some mouth watering opportunities for savvy investors. At the same time it frightens novice investors. In volatile times the emotions typically rule the actions of investors. Hence it is a must to be careful with one‘s actions.
Higher SIP amount helps investor to tackle inflation in the financial goals. Also with the rising income levels, it is relatively easy to increase the mutual fund SIP.
Debt funds are not risk-free investment vehicles. Understand the risk-reward associated with each scheme and invest only if it caters to your requirements.
Systematic transfer plan allows investment at regular interval without keeping the funds idle in saving bank account.
Mehrab Irani, general manager of Tata Investment Corporation explains why a systematic investment plan works for the investor.
Banking sector funds are betting too much on two stocks - HDFC bank and ICICI Bank. These schemes' fund managers should allocate more to other opportunities in banking sector.
In an interview with CNBC-TV18, says Brijesh Ved, Senior Portfolio Manager at BNP Paribas AMC says that despite current volatility in equities markets, mutual funds are witnessing inflows.
Contrary to popular belief that MIP offers regular income, these mutual fund offerings may not help you to get regular income. Also exposure to equity and debt bring in different risks.
You have to define your financial goals first. Then you have to select the right schemes and rebalance your exposure from time to time till you redeem your investments.