When the instrument matures after a month or two, or when the fund gets fresh subscriptions, that quantum is invested at the then prevailing yield levels.
With the reclassification of mutual funds, there will be a change not only in basis of arriving at performance ratings by rating agencies, but also in the method of analysis to be adopted by the investors while reviewing the performance of the schemes for making investment decisions.
One should always plan their tax related investments in advance and invest through SIP route in ELSS to get the benefit of rupee cost averaging.
The main distinction between capital gains tax and DDT is that DDT is paid by the fund house and not by investors, whereas capital gains tax is paid by the investor
If there is an open-ended bond fund that is passively managed with maturity roll-down, investors may opt for it to gradually reduce interest rate risk
Your parents have done their best to secure your future and well-being at every step of the way. It is time you take responsibility for their future & wellbeing too.
Close-ended mutual funds do not have any track record and aren’t open to investors post their initial offer period
A recent report from HSBC Global Research sees two policy rate hikes of 25 basis points each in 2018
Asset allocation refers to how much of your money is to be parked in different assets: equity, real estate, gold and so on.
Use your time productively and become financially independent again.
There are many benefits of investing in mutual funds, whose importance can be portrayed in the two crucial phases of retirement planning
When parents start investing early through SIPs, they allow more time for their corpus to grow. Also, monthly outgo in the form of SIPs is lower than those investing late for the same amount of corpus
For most funds, it is about fitment to one of the new categories, with or without a change in the name of the fund.
Imagine a platform for investments where you do not need to worry about whether the market or the MF office is still open.
In this article, we will explain the categorization of debt funds in brief and its features & impact.
Dynamic asset-allocation funds factor in market valuations before investing in various assets.
With sector funds, the timing of the investment and the health of the concerned sector is very crucial.
If the realized inflation for next year is closer to the expectations policy makers then won’t be in a hurry to hike interest rates as real rates will be around 1.5% which is reasonable to support economic growth.
Market reaction, in terms of yield level, has been decisively positive
As direct plans do not incur distribution expenses, the savings made in total operating expenses remain invested with the fund, which then start generating returns.
Bond prices are inversely linked to interest rates. When interest rates go up, bond prices fall and vice versa.
You can start an SIP in multiple mutual funds with varying amounts.
A debt fund carries low risk in comparison to the equity oriented mutual fund, but they are not totally risk free as many people think.
Earlier, in the absence of any standard definition of MF categories, mutual fund companies and research & advisory firms came up with their own methodologies of categorizing funds.
For the past two to three quarters, the debt market has been more volatile than equity, but for the recent equity market correction in February.