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Last Updated : Oct 20, 2018 03:01 PM IST | Source:

Personal finance this week: Invest wisely in a volatile environment this festive season

If you are keen to build your portfolio now or want to take some corrective actions, you should first evaluate your risk profile

Vijayadashami is an occasion to celebrate the victory of good over bad. Dalal Street saw the bears overpowering and they painted the town red. That further eroded portfolio valuations of many investors. If your portfolio does not allow you to sleep peacefully, it is time to take a hard look at your investments. If you are keen to build your portfolio now or want to take some corrective actions, you should first evaluate your risk profile. Your asset allocation arrived at after carefully analysing your risk profile can help you construct a portfolio that will let you achieve your financial goals over a period of time. You can read our story on asset allocation here.

If you are new to investing in mutual funds, here are a few types of hybrid MFs you must avoid at any cost. It is better to pick the schemes after taking into account the asset allocation they use to invest and the tax treatment they are subject to. All debt-oriented hybrid funds are taxed like debt funds. Returns on short term funds (less than 3 years) are taxed in line with applicable income tax slabs, while those over 3 years (long term) are taxed at 20 percent after indexing the cost.

MFs are volatile in nature. But if you build a diversified portfolio of such schemes, then there is a high possibility that you will be able to reduce portfolio volatility. It is better to diversify across investment styles and investment managers. Here we explain how you can build a diversified portfolio.

If you are keen on investing in a good MF scheme, you can also consider reading more about Parag Parikh Long Term Equity Fund.

Despite all the volatility in financial markets, the festive season has begun. It is the time to splurge, but do not go overboard. Swipe your credit cards carefully. Here is a story that deciphers how credit limits work in the entire credit profile of an individual.

If you are keen to buy some gold, here is what you should expect from it. Despite a fall in the rupee as compared to the dollar, gold has not delivered spectacular returns for investors. If you are keen to invest in gold through sovereign gold bonds, then here are 10 things you must know. The SGB series two for the current year closed on Friday. The next series will open on November 5 and close on November 9.

If you are looking for a home insurance, here are five major categories of risks that you should look at.
You can now invest in mutual funds with moneycontrol. Download moneycontrol transact app. A dedicated app to explore, research and buy mutual funds.
First Published on Oct 20, 2018 03:00 pm

tags #Planning

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