ESG Funds : What Are They and Two ESG Funds to Consider
ESG stands for Environmental, Social and Governance. Any company which is doing well today and hopes to sustain this progress in the future will be mostly compliant with ESG. ESG funds are portfolios that invest in equities, bonds of companies that are assessed on environmental, social and governance factors. These companies or shares pass through stringent […]
How Much Of Your Salary Should You Invest In Mutual Funds?
Off late we have been receiving several queries from our investors regarding the ideal amount a salaried individual should typically invest each month. While this depends on several components, there is certainly a way to arrive at this number. In this article, I will attempt to breakdown the process and elaborate upon the factors that […]
What Is Alpha And Beta In Mutual Funds?
In the financial market, the two most commonly used instruments are alpha and beta. These instruments quantify the performance, response, and interaction of a Mutual Fund in the stock market. There are several other measures or methods instrumental in gauging a fund’s performance, namely Standard Deviation, Sharpe Ratio, P/E Ratio, and R-Square. These measurements, along […]
A Major Reason Why SIP Can Make You Rich
Over the years, the Systematic Investment Plan has emerged as a popular investment mode and has attracted the attention of a majority of investors. Though a lot has been claimed about the plan’s benefits and performance, most tend to skip the part that talks about the importance of SIP in wealth creation. In this article, […]
A Beginner’s Guide To Asset Allocation : Everything You Must Know
Asset allocation is a technique that helps you manage risk and diversify your portfolio in the most optimum way possible. With so much to choose from, investing can become quite overwhelming leading to a state of eternal confusion and indecisiveness. When you step into the world of investments, you are bombarded with options like mutual […]
Active Vs Passive Portfolio Management : What’s The Difference?
With the investment market in India, there are two ways in which the money and portfolio can be managed. Depending upon how actively you are involved in your portfolio, there are two strategies that you can employ to manage your funds- Active Management and Passive Management. In a nutshell, active portfolio management is one that […]
Total Return Index Vs Price Return Index : How Do The Two Differ?
Post SEBI’s update regarding the benchmarking of mutual funds and measuring their performance, the benchmark has shifted from Price Return Index to Total Return Index. The process has shifted since February 2018 and has brought about a lot of transparency, With PRI focusing only either on the capital gain or loss leaving aside the dividends, TRI […]
How Are Mutual Funds Taxed In India ( 2019)
One of the reasons why people invest is to accumulate wealth in the form of capital gains, dividends, and interest income. However, this income or profit which you generate from all such activities is taxable in the hands of the law. The tax that is required to be paid on the gains depends on the […]
10 Rules To Keep In Mind To Secure Your Child’s Future Financially
Bringing a new life into the world comes with a lot more responsibilities as well as financial liabilities. When it comes to securing their child’s future, parents need to plan everything out in advance. Only the best child plan would cover several aspects. It would also take into account the various phases of a child’s […]
What Is Investor Inertia And How To Overcome It?
Remember the class XI physics class? The first few words that would come to your mind are velocity, quantum, motion, gravity etc. Inertia is one of these not so simple terminologies of physics. For those of you who did not read physics in class XI, inertia is basically a tendency of doing nothing or remain […]
What Is The 15*15*15 Rule In Mutual Funds?
What if I say that you can accumulate Rs 1 crore by investing Rs 15,000? You must be thinking it isn’t possible. But, no, it isn’t so. You can amass a massive corpus of Rs 1 crore if you invest only Rs 15K per month. In this blog, I will discuss the rule of 15x15x15 […]
What Are The Advantages and Disadvantages Of Investing In ELSS Mutual Funds?
Equity-linked savings schemes are specialized mutual funds dealing in equity instruments, providing specific tax benefits on both dividends and capital gains earned. ELSS schemes primarily invest in equity instruments of all kinds, depending upon the asset management company. However, the corpus of the same holds 65% or more equity tools. A combination of large-cap, mid-cap, and […]
SIP or Lumpsum : Which Is Better For ELSS Investment?
ELSS, or Equity Linked Savings Scheme, is one of the most sought-after Mutual Fund schemes in the Indian financial market. It can act as an excellent capital boosting investment other than being eligible for substantial tax benefits as per Section 80C of the Income Tax Act of India. Moreover, one can easily invest in ELSS; […]
Liquid Funds Vs Fixed Deposits : Which Is A Better Option?
Before starting a fresh debate on ‘liquid funds VS FDs’, let me differentiate the two. A Fixed deposit (FD) is a secured investment scheme offered by financial institutions and serve as one of the easiest investment avenues for individuals. Fixed deposit interest rates are mostly higher than that of any savings account. Such financial tools […]
How to Calculate Your Tax Liability in Debt Mutual Funds With Indexation?
Debt mutual funds are becoming the popular choice among investors looking for alternative low-risk options other than bank fixed deposits. The main advantage of these funds is the ability to make profits under capital appreciation as well as annual dividend earnings, which are also adjusted for indexation, unlike FDs. Due to a lower risk associated […]
What Should You Keep In Mind While Building An Investment Portfolio?
Investing in mutual funds has gained popularity over time. With digital marketing reaching the next level, there is rarely a chance of an individual spared from the ‘Mutual Fund Sahi Hai’ campaign. And to everyone’s benefit, these campaigns have been highly productive with people flocking in to buy mutual funds, extensively and as the primary […]
How Much Should You Invest in Mutual Funds to Get ₹1 Crore?
While looking for investment options to achieve a particular amount, there are several questions that you must ask yourself. Firstly, decide the time frame within which you want to achieve your target. Secondly, understand your risk profile. Your fund selection strategy will also be dependent on whether you can take high risks to get high […]
How Does A Systematic Withdrawal Plan Work : All You Need To Know
Every individual has a different financial need. Hence, every investor has a unique investment plan. While some investors prefer investing in a lump sum, some others like to stagger their investments and use a systematic investment plan (SIP). While some investors seek capital growth, some others want regular income from their investments. There are many […]
Open Ended Vs Close Ended Mutual Funds : Why Are They Majorly Different?
There are hundreds of mutual fund schemes available to investors. To help them make informed decisions, these schemes are classified based on the risk profile of the scheme, investment philosophy, etc. Based on the structure, a mutual fund can be differentiated as an open-ended fund or a closed-ended fund. The core difference is the ease […]
How To Build An Emergency Fund In 2019
An emergency fund is essentially an amount of money that one keep aside for emergencies. This fund can access at the hour of crisis or for unexpected and unplanned scenarios, and not for meeting your routine expenses. So, you must design it specifically to meet unexpected financial shortfalls that you may face from time to time. […]