indexation benefit on mutual funds

All that you should be aware of Indexation benefit

As per the tax structure of our country, an investor gets the benefit of indexation on the long term gains from debt mutual funds 

Given below are the details of indexation on mutual funds in India.

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Mutual fund investment in the name of minors

How can you invest in Mutual Funds in the name of a Minor?

Mutual fund investments are fast becoming popular in India. As an increasing number of people learn about mutual funds and understand their benefits, there is also a growing inquisitiveness about investing in the name of a minor (that is, a child under 18 years of age). This is because many parents wish to invest for their child’s future in avenues that can generate stable returns. The idea is that the investment grows as the child grows. Mutual funds are one such avenue that is being increasingly preferred as a tool for meeting long-term goals such as children’s future education.

Here, we will explain the possibility, merits, demerits, and also the process of investing in mutual funds on behalf of minors. (more…)

Weekly SIPs in mutual - should you opt for them

Weekly SIPs in mutual funds – Should you opt for them?

Systematic Investment Plan (SIP) in mutual fund investments are preferred by investors due to its many benefits ranging from cultivating the discipline of regular investments to averaging the cost per unit. They are considered the most effective form of mutual fund investment. SIPs are automatically deducted as per the predetermined limit since these are linked to the investor’s bank account. SIP investments are mostly set to a default of one month, which means the amount of investment is deducted every month.

Most investors prefer monthly SIPs for their investment portfolio.

Did you know, SIPs need not be restricted to a month and these can also be weekly or fortnightly?  This means, instead of a monthly investment, an investor can invest every 7 or 15 days. This brings us to the question, should an investor choose a weekly or monthly SIP investment? To answer this, let’s deep dive into the concept of Weekly SIPs and understand how they work.  (more…)

Index funds vs Actively managed funds

Can index funds be better than actively managed mutual funds?

In the past few years, India has witnessed a significant shift from actively managed mutual funds to passive funds such as Index funds. Experts believe that the rationale behind such a shift is that the idea of actively managed funds outperforming their benchmark is not necessarily true. Thus, investors feel it makes little sense to pay comparatively higher expenses towards actively managed funds, and opting for index-tracking funds can reap greater benefits in the long run. 

In this blog, we will highlight the key features of both mutual funds and index funds for investors to make an informed investment decision. (more…)

mutual fund myths

Top 7 myths around mutual fund investing debunked

In today’s complex financial markets, Mutual funds remain one of the most trusted investment options for those looking to create wealth. However, like any area of investment, mutual funds have their share of misunderstandings or myths among investors. These tend to build an unrealistic image of mutual funds in the eyes of investors. As more investors in India are considering mutual funds as a good investment alternative, it is important for experts to debunk some of these myths to help create a positive investment environment.

Here, we present some common myths around mutual funds that investors should not believe in and why. (more…)

Sip with insurance

Insurance cover with mutual fund investments. Should you opt for it?

Only a person living under the rock may not have heard about mutual funds today. We have grown up hearing about mutual funds especially that they are ‘subject to market risk’. Mutual funds have been a popular investment product for a very long time. It is an easy investment product that allows the investors to gain potentially higher returns at relatively lower costs. There are many types of mutual funds in the market for the investor to choose from like equity mutual funds, debt mutual funds or hybrid mutual funds. 

Apart from this, the investors now are getting the option of adding an insurance cover to their investment.

We discuss the details of such insurance cover that comes with a  mutual fund investment. The pros and cons of the same as well as its need.  (more…)

Stocks Vs Equity Mutual funds

Where should you invest? Stocks or Equity Mutual Funds?

When we talk about investment in the stock market, the majority of investors relate it to equity alone. But there are many options for the investor to invest in stock markets. Among the most favored or rather popular ones for quite some time have been mutual funds. Mutual funds are further of many variants like equity mutual funds, debt mutual funds, and hybrid mutual funds. But for an average investor, it is often difficult to decide which is a better investment among stocks and mutual funds. While making an investment, investors have to look at many options and select the one based on their needs, investment goals, budget, returns, expenses or risks associated with the investment, etc. 

Given below are the meaning and differences between stocks and equity mutual funds that will help the investors make better investment decisions. (more…)

Looking to invest in International companies? Learn all about it

A smart investment strategy requires choosing a good mix of various asset classes, which can match up to individual financial goals. Equally important are an investor’s risk profile and the time horizon for which he/she wants to stay invested. Any financial advisor would recommend investors ensure diversification through asset allocation. This is because investment in a wide range of asset classes ensures portfolio diversification and also offers a healthy risk-reward balance.

Every Indian investor must design his/her portfolio by considering these factors and also look at international investment to broaden the investment horizon. So why does international investment matter? 

Let’s find out! Here is everything that an investor needs to know about international investing. (more…)

Taxes on Mutual fund investments- How do they work?

The current generation has grown up listening about mutual funds. The most common thing anyone knows about then is that they are subject to market risks. Mutual funds are an easy and effective way of investment for all age groups. But when it comes to taxes on mutual funds not many are aware of how they are taxed and that’s when the investor has to bear the tax brunt. 

We bring you all the details that you need to know about how your mutual fund investments are taxed. We advise you to bookmark 🔖this page for your reference. 

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Demystifying the New Mutual Fund Riskometer

In recent times, mutual funds have undergone many regulatory changes. The primary motive behind most of these changes is to make mutual fund investments more transparent and safe for investors. One of the noteworthy changes that are being implemented by SEBI is the introduction of risk levels attached to all mutual fund schemes.

SEBI announced the introduction of a new riskometer back on October 5, 2020. This has come into effect on January 1 2021. Accordingly, all mutual fund houses have been instructed to notify investors about the risk level of their schemes. The risk levels must have a six-stage scale ranging from “Low” to “Very High”.

 Are you curious about what this means for you as an investor and how it could help you invest better? Let’s have a look at some important aspects to note about the new mutual fund riskometer.  (more…)