SIP involves investing a fixed amount periodically, making it an accessible and disciplined way to build long term wealth. Its popularity stems from its ability to create wealth over long investment horizon by investing in a disciplined way from your regular savings.
Investors often think equity, when it comes to mutual funds. While equity is highly suitable for beating inflation in the long term and wealth creation, fixed income is a very important part of asset allocation. As per RBI's report on Household Savings, traditional fixed income investments like Bank deposits and Government small savings schemes comprises more than 54% of an average household's financial assets.
Indian equities are one of the brighter corners of sunshine in the global markets. The Nifty 50 has surged by 29%, the Nifty Midcap 100 by 60%, and the Nifty Smallcap by 70% over FY23-24. The standout performer, however, has been the BSE PSU Index, which soared by a staggering 92%, particularly noteworthy given its lacklustre performance over the past decade.
On 24th March 2023, the Finance Minister proposed an amendment to the Finance Bill 2023, whereby she proposed that the long term capital gains tax benefit for non equity schemes be removed. As per the provisions of Income Tax Act before this amendment, long term capital gains (holding period of 36 months or more)...
Systematic Withdrawal Plan (SWP) and Systematic Transfer Plan (STP) are mutual fund facilities which offer solutions to different investment needs. SWP provides fixed cash-flows to investors. STP enables investors to transfer fixed amounts at regular intervals (e.g. weekly, monthly, etc.) from one scheme (usually low...
There has been lot of debate in digital and social media about the pros and cons of old versus new tax regime after the proposed changes in direct taxes in 2023 Budget. Many people are arguing that below the income slab of Rs 15 lakhs or more, the tax rates for different income tax slabs are lower in the new regime...
As we approach the end of FY 2022-23 / AY 2023-24, you should ensure that you complete the tax planning for this year by 31<sup>st</sup> March 2023 for availing the tax benefits available under various sections of Income Tax Act, 1961. If you are unable to complete the tax planning before the deadline set by your company...
Asset allocation refers to diversification of your investments in more than one asset class. Asset allocation for most investors means diversifying into equity and fixed income or debt. In our blog post, How can multi asset allocation work for you?, we had discussed the benefits of diversification across 3 or more asset classes. We...
Many mutual fund investors may be familiar the term ?Value Investing?. This term is often associated with the famous investor, Warren Buffet. However, the term value investing is not understood very well by many investors. In this article, we will discuss about value investing and value funds. Before we delve into value...
Balanced advantage funds, also known as dynamic asset allocation funds, are a type of hybrid mutual funds which invests in debt, equity and arbitrage strategies. The asset allocation of these funds is managed dynamically based on an asset allocation model that changes asset allocation depending on market conditions. SEBI has not...
Target maturity funds are open ended passive debt mutual fund schemes, which track an underlying bond index and have defined maturity dates. You will get the principal along with accrued interest on maturity of the fund. Target maturity funds (TMFs) can be in the form of Exchange Traded Funds (ETFs) or Index Fund. You need demat and trading...
Mutual funds are market linked investments. The prices of the underlying securities e.g. stocks, bonds etc of a mutual fund scheme can go up or down depending on market movement. The Net Asset Value (NAV) of a scheme reflects the market value of the underlying securities. Accordingly, the NAV of a scheme can go up or down...
