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...
Should You Invest in a Closed-end Fund?
– What is a closed-end fund? – Examples of closed-end funds and their performance – When to invest in a closed-end fund? What is a closed-end fund? Closed-end mutual funds are funds that have a fixed maturity. Units of this type of a fund can only be bought during the period of its New Fund Offering (NFO). Outside of the NFO period, units of closed-end…
When Should You Invest In A Liquid Fund
Liquid funds are short-term debt funds which can be used as an alternative to a bank savings account. Savings accounts typically give a 4-6% interest depending on the bank in which you hold a savings account whereas liquid funds give a return of 6-8%. There is no exit load charged at the time of redemption irrespective of your investment holding period in a liquid fund…