Of the total financial savings and assets in the country, the share of MFs has increased in the last three years to 14% in March this year from 10% in 2016
You should never make an ELSS allocation decision in isolation. It should be part of your overall financial plan.
While selecting a scheme for investment or while deciding whether to continue with a current investment, a fund’s performance track record does play a critical role and returns usually take precedence over other important factors that are considered while investing
It is rightly said that if you don’t know where to go, then it doesn’t matter which path you take.
By investing in AAA oriented portfolios, you are that much better off, but you cannot avoid credit risk completely.
If we take a step back and take a look at our portfolios, in all probability we’ll find that our investments are concentrated in Indian mutual funds and stocks.
The markets have reacted to macroeconomic factors which are out of the reach of both the government and central banks, which makes it even tougher to control such situations
Mutual funds can provide you products that can meet your financial goals with relatively lesser risk.
The amount of capital gains tax to be paid on mutual funds depends on the type of investment (equity / debt) and the duration of time for which the investment is held
You need to know that there is no such thing as a "perfect mutual fund portfolio". There can be numerous reasonably good portfolios, and there's no one-size-fits-all.
As compared to other havens available under Section 80C of the Income Tax Act, ELSS has the shortest lock-in period
In case of mutual funds, a differential rate of taxation is applied across fund categories.
Longer maturity bonds or bond funds may be volatile for some more time.
SWP makes you financially self-dependent. This feature helps you live with dignity without compromising on your needs.
It is expected, though not desirable, that credit-related incidents may happen
You can build a portfolio of mutual fund schemes based on your risk profile.
The expense ratio of a direct plan is usually around 0.5-1% lower than the regular plan of the same mutual fund.
If your rationale for choosing a balanced fund is the marginal tax efficiency over a focused allocation, where the debt component gets taxed as debt fund, it is not a decisive criterion and the tax efficiency is not huge
The imposition of 10 percent tax on LTCG earned on mutual funds could be a trigger for ULIPs
International funds are those mutual fund schemes which invest in foreign markets
Here are a few factors involved to locate a fund which will fulfill your savings requirement in a holistic manner.
ELSS are diversified equity mutual funds that invest a major chunk of your money in equity and equity-related securities.
Don't worry if your SIP in equity mutual funds over the past 8-12 months is showing negative returns. This could be the best thing that ever happened to your portfolio
Which of these categories are an option they should explore further and which one of them is good to give a miss?
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.