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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KYC- Know your customer

What is KYC? Why is it important?

Financial markets today face a larger threat of suspicious activities that have a significant negative impact. As financial crimes continue to deeply impact financial markets across the globe, there is a growing need to implement stricter procedures while collecting information on customers. 

As a move towards protecting institutions against financial threats, the Reserve Bank of India made it mandatory for all financial institutions to ensure complete verification of details of all customers transacting with them. Thus, to complete the verification, all individuals are required to follow the KYC procedure of the financial institution that they deal with.

Here, we will demystify KYC for new investors and explain why it is important for all those engaging in any form of financial activity.

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Debt mutual funds

Best Debt Funds

Mutual funds are fast becoming one of the most preferred investment options for new and also seasoned investors. Investors look for diversification and the regular returns from mutual funds. One of the preferred mutual fund types is debt mutual funds. These primarily invest in fixed-income securities such as bonds, treasury bills, Government Securities, money market instruments, etc. 

Debt funds can further be categorised depending upon factors like investment horizon, instruments selected maturity, etc. Here, we will explore the different debt mutual fund options available for investment in India.

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Close-ended funds

What are Close-ended funds? How do they work?

Mutual funds provide an easier and safer investment mode in the stock market to millions of investors. It is a better mode of investment on account of reduced costs as compared to investing in individual stocks as well as higher returns than the market. Mutual funds are classified based on various categories. Mutual funds classified based on structure are classified into three categories namely, open ended funds, closed ended funds and interval funds.

Read on to know more details regarding close ended funds.

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commodity mutual funds

Commodity Mutual Funds

Modern day trade and commerce practices have shaped our lives in multiple ways. Commodities have been enabling trade practices since times unknown. Although a large population doesn’t directly take part in commodity trade, almost everyone is at least an indirect participant in it. 

Commodity focused stock funds or commodity mutual funds provide investors an opportunity to participate in the commodities trading and help them achieve certain financial goals. Today, many smart investors aim to achieve diversification in their investment portfolios by investing across various asset classes, however, commodities are often ignored because of lack of knowledge on commodities trading.

Here, we will explain some basics of commodity focused stock funds and share information around these that all new investors must know.

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low risk funds

Best low-risk mutual funds

Mutual fund investments come in many formats, from short duration to long-term and even low-risk to high-risk options. Depending on individual preference and investment goals, one can opt for a mutual fund investment to generate appropriate returns. Here, we will explain the concept of low risk mutual funds and different types available within this category. 

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Multicap Funds

Best Multicap Funds

Most new investors are in a fix while selecting the right mutual fund to invest in. Whether they should opt for large-cap or mid-cap or small-cap? Are multi-cap or sectoral funds ideal for investment? These are the questions that new investors may face when they begin to explore the world of mutual fund investments. 

As a first step, investors must know about each of these categories along with some of their basic advantages and disadvantages. Important aspects like large-cap funds offer better stability to an investment portfolio, small-cap funds can provide exceptionally high returns while being risky, etc can be learnt before investing. 

One fund category that needs to be explored by investors is multi cap funds. These offer considerable flexibility since they are diversified equity funds investing primarily in stocks of companies with varying market capitalizations. Here are some of the important details around multi cap funds to aid investors in their investment related decision-making process.

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High Risk funds

High-Risk Mutual Funds

Many new investors often tend to link mutual fund investments to a high amount of risk. However, mutual funds could have varying degrees of risk depending on the portfolio composition and fund objective. Investors can choose a mutual fund depending on their risk appetite. 

Those who prefer higher returns may have to choose a high risk mutual fund investment. High risk mutual funds are schemes that primarily depend on the market movement forecasts. These mainly comprise equity funds and are ideal for aggressive investors who have some level of knowledge on stocks and market functioning. Here, we will explore high risk funds in detail and share some of the top performing high risk mutual fund recommendations.

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mutual funds terms

Mutual Fund terms explained

We all have heard a lot about mutual funds over the years. They have also become a go to investment product and are part of almost all the portfolios of individual investors. Despite this, there are many investors that may not know the meaning or relevance of all the terms associated with a mutual fund.

Given below are a few terms that are associated with investing in mutual funds that can help in increasing investors’ awareness.

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Medium risk funds

Mutual fund investments have varying degrees of risk depending on the portfolio composition and fund objective. While investing in mutual funds, investors are often not aware of the risk they are taking. To protect the interest of investors, the Association of Mutual Funds in India (AMFI) has categorised risk exposure of mutual funds as high, moderately high, moderate, moderately low, and low.

Every individual has a different risk appetite and therefore may choose low-risk, medium-risk, or high-risk mutual funds, fund houses must compulsorily specify the level of risk exposure an investor has while investing in a particular fund.

Here, we will discuss medium-risk mutual funds in detail and highlight some of the top-performing medium-risk fund recommendations in India.

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