Showing posts with the label Mutual Funds

Top 3 Global Funds to invest - 2020

Top 3 Global Funds to invest - 2020 Investors in the stock market should understand the risk and invest only their Surplus money. Avoid the Speculation and Gambling on Trade is important. Those who have Financial goals can make a good return in the long term through SIP(Systematic Investment Plan) investing which is available in Mutual Funds. It is better to avoid the Direct Equity exposure for the Financial Goals and stick with the Funds in the long run. On the Other hand, Direct Equity is good for building the Wealth. So, don't test with the penny stocks for your goals. One can't become quick rich through stocks, as it takes time to compound and make to create the Real Wealth. Interest rates in banks have been declining over the past few years. There are two reason for this - Inflation and Economic Growth. Interest rates are generally lower in Developing and Advanced Economies. In the future, the interest rates available for Bank Deposits will not be high or more than inflati

Best 5 Funds to invest in 2020 - Children's Gift Mutual Funds

Best 5 Funds to invest in 2020 - Children's Gift Mutual Funds While preparing for a Financial Planning, setting a Goal is essential for any investments. The Financial goal may be Short, Mid term or Long term. However it should be planned with a Goal Name like Retirement Planning, Child Education, Marriage, Buying a Home or Emergency Fund. Nowadays we cannot predict the value of Education and Medical Expenditure. This is why when it comes to getting Health Insurance for the Family to cover medical expenses and it benefits everyone in the family. When it comes to Child Education, most of us fail to plan it properly. We need to plan ahead to cover the cost of Children's Higher Education. When planning for the upbringing of children, we must keep in mind that it is a long term goal. For example, if the age of child is about One year, then we have a period of 16 years to achieve the Goal like Higher Education. So with that in mind, it is better to have a returns that goes beyond inf

India's Mutual Fund Investments - Till Date - November 2019

India's Mutual Fund Investments - Till Date - November 2019 The Indian Mutual Fund Industry has attracted a total inflow of Rs. 1.33 Lakh Crore in the month of October 2019. At the end of October 2019, India's Mutual fund industry manages the Average Asset Under Management (AAUM) worth Rs. 26.33 Lakh Crore. Let's look how the Mutual Fund Investments in India had done Since April 2019, For the month of April 2019, there is an outflow of Rs. 5,005 Crore in Equity investments. On the other side, the Debt market attracted investments worth Rs. 49,973 Crore. From the month of May 2019 to October 2019, both the Equity and Debt Market made a positive inflow for the Indian Capital Market. The Equity Investments for the month of May, June and July are Rs. 4,809 Crore, Rs. 6,538 Crore and Rs. 14,846 Crore respectively. In the month of August 2019, the Equity investments got from Mutual Funds worth Rs. 18,305 Crore, which is seen as the highest equity investment for this Financial yea

How to use SIP Investing effectively ?

How to use SIP Investing effectively ? The Great Mistake in SIP Investing that most of the people are not investing continuously until the end of the Financial Goal(s). Thus we may not be able to achieve the expected Target Amount or Proper Destination. This mistake can also affect or change our Family's Financial Position. It's like we just setting a Goal and do nothing in a series of work. For instance, If you need Rs. 1 Crore Corpus in 15 years, then you have to invest a monthly SIP (Systematic Investment Plan) of Rs. 14,800 /- if the expected rate of return is 15 Percent. If the expected rate is 7 Percent, then you have to invest a monthly contribution of Rs. 31,400 /- and if the rate of return is just 11 Percent, the SIP will be Rs. 21,800 monthly. If you think that your monthly investment is high or not fair with your regular income, then you can extend your deadline say 20 Years Plan. Otherwise, you can start the SIP with a little and then increase the SIP amount by ever

How to repay your Home Loan Smartly ?

How to repay your Home Loan Smartly ? If buying a Home is a dream, then getting a Home loan and paying the EMI(Equated Monthly Installment) for the next 30 Years is a disturbing moment. A Home that you bought through loan is not an Immediate Asset. Until you get into the loan of 30 years, it's a Liability - but not as an Asset. It is good to have a single home on Needs. It is not good while trying to buy 2 or 3 houses, buying a home for Tax Savings through EMI. Don't forget that it can also lead to a Debt Trap. If you have too much money on cash and planning to enter into the Real Estate business - Buying and Selling Property, Rental Property for generating higher Passive Income, then it's your choice. The Majority of the Middle class people are in Financial trouble, due to their loans, which is more than 50 Percent of their Regular Income. Home Loan, Personal Loans, Car Loan are long listed. However we should get out of the Debt soon. Here, we can take an example about how

What is a Debt Funds and how it works ?

What is a Debt Funds and how it works ? Debt Funds are referred as Bond Funds, it is a Mutual Fund Scheme which invests the money in Fixed Income Securities like Government and Corporate Bonds, Treasury Bills. Generally, it comes with Short term and Long term Bonds. Those who do not wish to invest in Equity related Funds which is said as High Risk (Volatility), can choose these Debt Funds, which is seen as Low Risk Investment Avenue. This means in the Medium to Long term, one can get better returns than Bank Deposits and benefited to Tax Indexation. Debt Funds is a Duration based Schemes, there is a maturity on every purchase of Bonds, so that an investor can get the varied returns in a period. There are Seven Duration based Schemes available in Debt Funds through Mutual Funds route. Overnight Fund: It comes with a maturity period of one or Less than One day. The money will be invested in Overnight Securities, it is an open ended scheme in Mutual Funds. So, there is less impact on I

How to utilize Mutual Funds instead of Bank Deposits ?

How to utilize Mutual Funds instead of Bank Deposits ? At the last Monetary Policy Committee (MPC), the Repo rate for for Banks was reduced by 25 Basis Points. Currently, the REPO rate is at 5.15 Percent. It is noteworthy that the REPO rate has been reduced five times this year. Usually, when the interest rate decreases, the bond yield increases. Similarly when the interest rate increases, then the Bond rates will decrease. So if one consider this situation and invests it, can get significant income. SBI (State Bank of India) had also cut its savings rate for its customers to 3.25 Percent, earlier it was 3.5 Percent. Interest rates for Bank Deposits are also below 7 Percent for One year term and below 9 Percent for a period of Five years. Mutual Funds Schemes can be used as an Alternative for Bank Savings and Deposits. For Cash related transactions like Salary, Money Transfer, Paying EMI, one may rely on a bank savings account. But investing in Mutual Funds Schemes that offer slightly

How to prepare for Birthday Party Fund ?

How to prepare for Birthday Party Fund ? Celebrating the birthday of the Kids can be a personal delight for Every Parents. At the same time, the cost of a Birthday Party can have little impact on the Financial head of the Family. The Birthday Celebration of their Kids is much more important than anything else for some Parents. In this situation, when a cost is incurred as a Birthday Celebration, it will affect the Budget for a Family in the near term. However, this is a positive thing if we plan ahead of time. Planning for the Celebration and save for it one year before is worth a lot. For example, the proposed expense (Budget amount) for your Kid's Birthday Celebration is Rs. 15,000 (Lets assume). Time Horizon: 12 Months If you are starting with a monthly SIP of Rs. 1200/- in Bank Recurring Deposits or Mutual Funds, and the expected return is 7 Percent, then you will achieve the Target of Rs. 15,000 for the Kid's Birthday Celebration. So, we can named it as ' Birthday Part

Positive Inflows in the Indian Mutual Funds Industry - Economy Slowdown

Positive Inflows in the Indian Mutual Funds Industry - Economy Slowdown For the Mutual Fund Industry in India, the AMFI (Association of Mutual Funds in India) is dedicated to develop this industry by professional, ethical lines and maintain standards with a view to protecting and promoting the interests of Mutual Funds and their Investors - Unit Holders. As per AMFI website, currently there are 44 AMCs are registered with SEBI, are its members. AMFI publishes its Mutual Fund industry data about New Schemes and Asset Under Management (AUM), Funds mobilized by every month. Last August 2019, the total amount invested in the Indian Mutual Fund Industry was Rs. 1.02 Trillion which is said here as Net Inflow. In the previous month of July 2019, it was stood at Rs. 87,000 Crore. The AUM as on 31st August 2019, stood at Rs. 25.47 Lakh Crore, earlier it was seen as Rs. 24.53 Lakh Crore in the month of July 2019. In the July of this current year, there was no investment made in the Gold ETF Sche

EMI vs SIP - Which is best for you ?

EMI vs SIP - Which is best for you ? Suppose, i want to buy a beautiful Smart Phone. It costs around Rs. 16,000/- in the Market. The Smart phone have the various features, but the money on my hand is a little less to buy it now. Otherwise, i have to wait for my next month paycheck. Impulsive buying is a Character, it tempts to buy the Smart phone immediately. At that moment of thinking, there is an advertisement related on Smart phone. Yes, Lucky advertising. There is an offer comes by the Advertisement for the Smart phone, which i was intended to buy. What a Surprise ! I can pay just Rs. 1,000/- as an upfront payment and can take it to home. I can pay the rest of it through Monthly installment - Absolutely with Equated Monthly Installment (EMI). EMI (Equated Monthly Installment): As per Investopedia website, It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to payoff both interest and principal each month, so that over a

5 Reasons to choose Mutual funds than Bank Fixed Deposits

5 Reasons to choose Mutual funds than Bank Fixed Deposits We don't need to forget the Old things. It is a record book of our past. There is nothing wrong with selecting the old things, but we must go forward in Technology and Economy today. Even in the economy, i often hear this developmental shift. I have heard my friends too. When our Income, Taxes and Prices are climbing, then why should we put so much depend with our old Deposits(Bank Deposits) ? The Interest rates of Bank Deposits are declining every quarter. It's not the bank's problem on Interest rates. This is the decision of Central Bank will take based on Inflation Data. If we think that the Bank Deposits are safe investment avenues, how many times have we tried this safe avenues in our life and would have benefited ? If any other avenues apart from Bank Deposits are Risky and Volatile, then why should we be interested in buying Golds ? As our Income grows, Our Bank Fixed Deposits often tends to pay more Tax on Ma

Mutual Funds Taxation - Simply Explained

Mutual Funds Taxation - Simply Explained Generally, there is no TDS (Tax Deducted at Source) applicable for the Mutual Funds and Shares in India. One should declare these type of income as 'Other source of income' while filing the Income Tax returns. For the Mutual Fund schemes, the Taxation is divided into two categories - Debt Funds and Equity / Hybrid Funds. Hybrid Funds (Earlier Balanced Fund) is a combination of both debt and equity based funds. In case of Investing in Debt oriented funds, the holding period of a funds will tells the taxation rate. As you can see in the below table, If an investor redeem his money from the debt fund with in three years from the time of investment, then he or she will be taxed as per the Income Tax Slab. If the holding period is more than 3 years and the redemption is happening, then the Tax rate would be 20 percent with Indexation Benefit. For instance, Rs. 1 Lakh will be invested in a Debt Fund Scheme of a particular AMC (Asset Management

25 Years of Historical Data for the Foreign Institutional Investors / FPIs in the Indian Market

25 Years of Historical Data for the Foreign Institutional Investors / FPIs in the Indian Market Foreign Institutional Investors' (FIIs) equity participation in the Indian Stock Market is increasing day by day. FPI (Foreign Portfolio Investors) / FIIs  have increased their investments substantially in the month of March 2019. Although the Domestic Institutional Investors have made their profits in the equity market through Mutual Funds and Financial Institutions, where the FII had a strong come back on its investments in India. The Bank Nifty and the banking sector had also increased more than 20 percent from the mid of February to March end 2019. This is happened due to the weightage of Foreign Investors. Still, the Automobile, Mid cap and small cap have the opportunity to raise its side in the upcoming days. In the month of March 2019, the FIIs investments were large as compared to the previous month - February 2019. On that period, the FIIs were the net buyers and the DII stood a

Top 5 Long term Equity Mutual Funds to invest in 2019

Top 5 Long term Equity Mutual Funds to invest in 2019 The Rise of Indian Stock Market - India's Trade deficit is in favor of the Market as the imports were decreased in the month of February 2019. Moreover the market lifted by the Dollar-Rupee Change in the recent weeks. As a Emerging economy, the Gross Domestic Product (GDP) rate is also satisfying, the Indian stock market has long gone towards good income growth. At the same time, some of the rating agencies have indicated that the Indian Market is at high or overweight. In the current situation, the market is likely to meet a small correction, and the growth will be healthy in the coming period. Exposure to Market growth will be revealed in the shares of Good valued companies. All kind of stocks are likely be bullish in the Bull Market. However, in the long term the valued stocks will only benefit the Investor inn the Stock Market. Stocks have long been a good source of income and the prospect of Adding Wealth. Moreover, the Fin

Physical Gold vs Gold ETF - A better comparison on Investment

Physical Gold vs Gold ETF - A better comparison on Investment Which is a better Investment - Physical Gold or Gold ETF ? The prices of gold varies day by day due to the import on Dollar-Rupee conversion. As gold prices were increased in the last year and the demand for Gold was increased in the face of Festival Seasons. Last January, the Import of Gold in India were at 46 Tonnes. This is 64 percent growth on gold import as compared to the Previous year's January 2018. In the year of 2013, the gold price rose by Rs. 35,074 per 10 grams in the Benchmark Gold Futures of Bombay Stock Exchange. On February 2013, the gold price of 10 grams was traded at Rs. 33,646 /-. It is noteworthy that the price is currently trading at the same rate. The reason for increase in the Gold prices in India, due to the domestic demand and related to the import on Dollar value. Generally, the import of Gold will increase the Fiscal deficit for a Country. As far as the Government is also concerned to decrea

5 Best & Top performing Tax Saving - ELSS Funds - 2019

5 Best & Top performing Tax Saving - ELSS Funds - 2019 There are nearly 50 days to complete this current financial year 2018-2019. The date of Income tax filing will start from the April 1,2019 for the FY2018-19 (Assessment year 2019-20). Tax Rebates and Standard Deduction amount increased in the interim budget of this year, will apply for the next financial year 2019-20. There is no change on Income tax slab and its rate in the recent budget. Most of us, using the Section 80(C) of Income Tax act during the last minute to get the tax exemption for their Taxable income. So, they are impatient and doing their tax saving investments between January and March every year, it's not a good thing. The best time to start to invest for tax saving is at the start of the Financial year and it must be related on your Financial Goals. Under Section 80C of Income tax act, one can save up to Rs. 1.5 lakh in a Financial year. It is also not good to put your whole money in an insurance product f

Why i have to invest in Mutual Funds ? Simple Reason

Why i have to invest in Mutual Funds ? Simple Reason Today, we are in the stock market world - Yes, obviously. The interaction between the people, companies, and the Government simplifies by using the Technology, it's also a part of Globalization. There are only 2 - 2.5 percent of Population in India, investing in stock market as retail investors . There are two depositories in India for depository services, called NSDL (National Securities Depository Ltd) and CDSL (Central Depository Services India Ltd). These are the two keep every ones Demat account and its holding. According to NSDL, the active demat clients were at 1.77 Crore (Demat accounts) and 1.60 Crore investor accounts in CDSL, Total of 3.37 Crore Demat accounts in India Whether you are going to the direct equity market (Stock market) or not - but there is an opportunity to beat the inflation and fulfill your financial goals by investing in Mutual Funds. I am not saying you would get rich through mutual funds, but one ca

Top 5 Large Cap Funds to Invest - 2018

Top 5 Large Cap Funds to Invest - 2018   Indian Stock Market is at it's high. Traders are eagerly continued for the Bull and the investors are awaiting for the market correction. Recent quarterly results are for most of the companies. Indian market beats on every expectations - Greece Crisis, Brexit, North Korea, US rates, Trade war. So on every panic, the market simply boosting itself to the upward. The upcoming week have also some sentiments like Trade war, Dollar - Crude movements, and the expectation of quarterly results. As a participators in the Financial market, we even don't know why this happening and the why the other countries expecting India in the market. But, it's an opportunity cost for everyone who utilized too. Market gives a great opportunity with a different aspect called, 'Mutual Funds'. So anyone can participate in the market who not knowing anything about the Market analysis. But again, i am telling you Mutual funds will not reduce or protect f