Last week, I came across an advertised from SBI Mutual Fund in ET Wealth where the AMC extolled the virtues of Systematic Withdrawal Plan (SWP) from an equity mutual fund. Through an illustration, SBI AMC tried to demonstrate how a SWP from an equity fund is a better choice than fixed deposit for regular income. One of the excerpts in the ad was “Traditional Saving … [Read more...] about How SBI Mutual Fund is misleading Investors through its Advertisements?
With mutual funds, you can take exposure to equity markets (both domestic and foreign), debt investments, gold and now even real estate and at the same time have your money managed by professional managers. You do not need big upfront amount to start investments. You can start small with even as low as Rs 500 per month. You do not need any special investment expertise. You can … [Read more...] about Why I prefer Mutual Funds over other investments?
There is a BIG difference between financial planning for retirement (accumulation phase) and financial planning during retirement (decumulation phase). Let’s look at what I mean. In this post, I will limit the discussion to investments. Financial Planning for Retirement (Accumulation Phase) During this phase, you are trying to accumulating funds for retirement. Quite … [Read more...] about Financial Planning For Retirement vs. Financial Planning During Retirement
One of the few things that I remember from induction training on the first day of my professional career many years back is a quote from a presenter that Expectation reduces Joy. From the perspective of a large software company, it was important to have employees with not too high expectations. However, even as an employee, it made a lot of sense. Your expectations about … [Read more...] about The Problem lies not with the Investment but with Investor Expectations
I have been getting many queries about the portals/websites/app investors should use to invest in direct plans of MF schemes. Good to see that the awareness about direct plans is increasing. And why not? It is foolish to invest in regular plans if you are a do-it-yourself investor. You are compromising on returns for no hint of advice. Even for those who need assistance, it … [Read more...] about List of Online Mutual Fund Direct Plan Platforms in India
There is no reason why a Do-it-Yourself (DIY) investor needs to invest in regular plans of mutual fund schemes. There are so many online direct plan platforms around that convenience is no longer an excuse for investing in regular plans. Therefore, it is almost criminal for a DIY investor to invest with say ICICIDirect. Even for those who need assistance in portfolio … [Read more...] about How to switch from Regular plan to Direct plan of a MF scheme?
If you are investing in regular plans of mutual fund schemes from a single aggregator portal, you can have an easy way of looking at your consolidated mutual fund portfolio. By the way, there is no reason why you should be investing in regular plans of MF schemes if you are a Do-it-yourself investor. However, if you are investing in direct plans of MF schemes from AMC … [Read more...] about Looking for a better way to analyze your Consolidated Mutual Fund Portfolio?
SEBI, in a press release on April 26, 2017, issued guidelines for instant redemption from liquid funds and investment in mutual funds from digital wallets such as Paytm. Let’s look at what such guidelines mean for you. Instant redemption in Liquid Funds By instant redemption, I mean that the money will be available in your account in a seconds after you press Redeem button … [Read more...] about Instant Redemption in Liquid Funds and MF invesments through e-wallets
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