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Is it a Good Time to Invest in Mutual Funds?

“I can’t recall ever once having seen the name of a market timer on Forbes’ annual list of the richest people in the world. If it were truly possible to predict corrections, you’d think somebody would have made billions by doing it.” – Peter Lynch Introduction Bulls versus Bears Returns in Bulls and Bears in India Conclusion INTRODUCTION When BJP came into power at the…

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Pros and Cons of Investing in an Index Fund

Introduction Pros Cons Conclusion Introduction In our everyday conversation, we hear people saying “The market is 2% up today” or “The market is 5% down in the last 2 months”. What do they mean when they say “the market”? The market refers to an index which is representative of the overall market. An index consists of a group of stocks and the values of these…

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Mutual Funds vs ULIPs

Mutual Funds Term Insurance ULIPs Comparison Conclusion Mutual Funds Mutual funds are investment products available to investors through which they can invest in a professionally managed equity or debt portfolio. Investors who may not want to invest directly in financial markets may instead get exposure to the same securities through a mutual fund. A mutual fund may offer multiple schemes or funds, each catering to…

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Factors Besides Returns One Should Consider While Selecting A Mutual Fund

Liquidity Risk Fund Manager Cost of Fund Size of Fund Fund Portfolio Everyone has seen the warning in mutual fund brochures – “Past performances is not indicative of future returns”. Along with returns of a mutual fund, various other factors need to be taken into consideration before investing in a mutual fund. 1. Liquidity Investing is very subjective and people with same finances and same…

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Advantages of Investing in an ELSS Mutual Fund Scheme

What is an ELSS mutual fund scheme? Benefits of investing in an ELSS scheme Conclusion What is an ELSS mutual fund scheme? The Income Tax Act allows deduction from income for investments made in equity funds with certain conditions. Mutual funds launched in order to claim this benefit are known as Equity Linked Savings Schemes. These are primarily diversified equity funds that offer tax benefits…

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Dos and Don’ts of Investing in Sector Funds

Sector funds are mutual funds that invest in companies of the same sector for eg. a Banking and Financial Services Fund will invest in banks, insurance companies, NBFCs, Home Finance, Asset Management Companies etc. Some examples of Sector funds are – Canara Robeco Infrastructure Fund, Aditya Birla Sun Life Infrastructure Fund, Reliance Banking Fund, UTI Banking Sector Fund Sector funds tend to be cyclical funds….

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When Should You Invest in a Short-term Debt Fund

Short term debt funds invest in securities with tenors of one-three years. On account of the short tenure to maturity, risk of significant changes in the value of the securities due to interest changes. They can invest in a mix of short-term instruments like commercial paper, certificates of deposits to medium- and longer-term instruments corporate debt scrips and government securities. These funds are a better…

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Effects of Interest Rate Hike on Various Categories of Debt Funds

What does a debt fund invest in? How is these instruments dependent on interest rate changes? Effects of Interest rate changes on different categories of debt funds Interest Rate announcements in India in 2017 Conclusion What does a debt fund invest in? Debt funds invest in securities offered by government and corporates. The issuer of the security pays an interest at a specific rate for…

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Effects of Long Term Capital Gains Tax on Mutual Funds

The incumbent government in their latest budget has introduced the long-term capital gains (LTCG) tax on assets in the capital markets. The rate applicable is 10% on gains of Rs. 1 Lakh and higher. It shall apply to investments in listed equity shares and equity mutual fund units. The introduction of this tax will affect mainly corporates and individuals. They account for 93% of the...

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