How many funds do you have in your portfolio? 2, 4, 10, 20 or even more? Is that a problem? What is the problem with too many funds in the portfolio? With fine MF software at disposal, analysing or dissecting a portfolio with too many funds is not that complicated. But a bigger problem is decision-making. A portfolio with many funds is difficult to manage. It makes … [Read more...] about How to Reduce the number of funds in the portfolio?
The Union Budget 2020 changed the way how dividends from mutual funds will be taxed. The following are the changes. Till FY 2020, dividend from mutual funds was exempt from tax in the hands of the investor. However, before paying the dividend to you, AMCs used to deduct Dividend Distribution Tax (DDT) before paying such dividend to you. The effective impact of DDT was 11.46% … [Read more...] about Mutual Funds: With Tax on Dividends, The Choice between Growth and Dividend?
If you are an investor in debt mutual funds, do keep an eye on the size of your fund scheme. It is a red flag if the size of your debt fund scheme has gone down sharply. If your fund scheme has experienced sharp outflows, you need to investigate. What is the problem if the size of my debt fund scheme has gone down sharply? If your fund scheme is experiencing fund … [Read more...] about A Sharp Decline in Debt Mutual Fund Size is a Red Flag
I regularly write against mixing investments and insurance. I highlight issues in the cost structures of various investment and insurance combo products. Regular readers would know that I like mutual funds for investments. However, I must concede that the mutual fund companies do not really smell of roses. I have written about many issues with their intent and communication to … [Read more...] about Mutual Funds: The Expense Ratio Trick
You have decided to invest in mutual funds. You have selected the best mutual funds for you. You have also decided whether you want to invest lumpsum or through Systematic Investment Plans (SIPs) or STPs. There is one decision that you are yet to make. Which investment option to select? Growth or dividend or dividend re-investment? In this post, we will … [Read more...] about Mutual funds: Growth or dividend? What should you choose?
As a non-resident, you may want to take exposure to Indian equity markets. Picking up stocks on their own is not everybody’s cup of team. Such non-resident investors may take exposure to equity markets through equity mutual funds. In this post, I will discuss answer basic queries that an NRI investor may have about mutual fund investments in India. I will also discuss the … [Read more...] about How can NRIs invest in mutual funds in India?
Budget 2018 proposed long-term capital gains tax on equity investments. The very next day, the insurance companies were out with advertising campaigns highlighting the tax advantage of ULIPs over mutual funds. Well, mutual funds and ULIPs compete for investor money. And it is not unfair on the part of insurance companies to highlight any demonstrable advantage that they may … [Read more...] about After tax on LTCG, are ULIPs better than Equity Mutual Funds?
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?
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?
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 a replacement for bank fixed deposits. In fact, I have written a post comparing debt mutual funds and fixed deposits and how debt mutual funds can … [Read more...] about Don’t ignore the Risk in Debt Mutual Funds