Equity funds are risky but debt funds are safe. Isn’t that what most of us think? That is clearly not the case. Debt funds carry risk too, something that is ignored by many investors. Many argue for debt mutual funds as replacement for replacement for bank fixed deposits. In fact, I have written a post comparing debt mutual funds and fixed deposits and how debt mutual funds … [Read more...] about Don’t ignore the Risk in Debt Mutual Funds
I came across a Whatsapp message recently that a prominent balanced fund was offering dividend of 1% per month. And those seeking monthly income could consider these funds. In January 2016, HDFC AMC fixed the frequency of dividend distribution for HDFC Prudence Fund to monthly i.e. dividend will be paid out every month. Quantum of dividend cannot be guaranteed … [Read more...] about Do not rely on Dividend from Equity or Balanced funds for regular income
Zerodha, the discount brokerage house, has launched a mutual fund platform (Coin) for investment in direct plans of MF schemes. This is yet another portal for investing in direct plans of mutual fund schemes. Let’s look at some of the aspects that you must consider before deciding if you should sign up for Coin. What is the cost involved? The cost is quite attractive. You … [Read more...] about Zerodha launches Coin- A Mutual Fund Direct plan Investment Platform
I have already covered the most aspects in my earlier post on Bank Fixed Deposits vs Debt Mutual Funds. In this post, I will discuss a very specific case when you need to withdraw money before 3 years. In such a case, which investment product should you choose? Debt MF or a Fixed Deposit? Taxation of Fixed Deposits and Debt Mutual Funds Interest income from fixed deposits … [Read more...] about Bank Fixed Deposits Vs Debt Mutual Funds : Part II
A Perpetual SIP, as the name suggests, continue as long as you are around. Typically, when you are filling up a form (paper or online), you have to specify start and end date for SIP. If you select Perpetual option, the end date is typically for the year 2099. That is as good as forever. So, should you go for perpetual SIPs? To be honest, this is an aspect I do not hold a … [Read more...] about Should you start a Perpetual SIP?