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 lump sum 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 discuss the … [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 replacement for bank fixed deposits. In fact, I have written a post comparing debt mutual funds and fixed deposits and how debt mutual … [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
If you were to convey to a new investor that mutual fund investments are risky and you can lose your capital if you invest in equity mutual funds, which disclaimer will be better? Don’t come crying to us if we lose all your money Mutual Fund investments are subject to market risk. Please read the scheme information and other related documents carefully before … [Read more...] about Don’t come crying to us if we lose all your money
Many of us are familiar with Systematic Investment Plans (SIPs), where you invest a fixed amount every month in mutual funds in order to generate a corpus over the long term. However, not many are aware of a closer cousin Systematic Withdrawal Plans (SWP). SWP is the opposite of SIP. In SIP, you invest small amount every month to create a corpus. Under SWP, you systematically … [Read more...] about PFP Primer: All you need to know about Systematic Withdrawal Plans
You can hold your MF units in two ways: Statement of Account (SOA) Demat Account Under Statement of Account that you get from the AMC (the mutual fund house) or R&T agents (CAMS and Karvy), all your investments with the AMC are listed down. The Statement is merely for information purpose and is not any kind of legal document. You can think of it as your bank … [Read more...] about You don’t need a demat account for your Mutual Funds Investments