Investors can stagger their equity mutual fund investments using the systematic transfer plan (STP) facility given by mutual funds. To use this system, investors can put in a lump sum amount in one scheme (typically a liquid or ultra short term fund) and transfer a pre-defined amount into another scheme, typically an equity mutual fund. The scheme that is supposed for lump sum investment is called the ‘source scheme’ or [...]
Systematic Investment Plan or SIP is a mode of investing money in mutual funds. There are multiple benefits of investing in mutual funds. SIP investment is a strategy to invest a certain amount of money at regular periods. Investing in this makes it easy for investors to buy equity mutual fund or debt mutual funds regularly on a particular date of the month, in order to build substantial wealth quickly. [...]
Mutual funds are categorized according to various characteristics, such as the nature of the investment, risk profile and investment philosophy. Apart from these, the funds are distinguished based on their structure - open-ended and closed ended mutual funds. The difference between the two depends on the flexibility of the sale and purchase of fund units. Open-Ended Mutual Fund Open-ended funds are mutual funds. These funds do not trade in the [...]
A diversified fund invests in equities and equity-related instruments irrespective of their market capitalization or sectoral association. A diversified fund has the flexibility to increase or decrease its exposure to large caps, mid-cap and small-cap investments depending on the fund manager’s knowledge of the market conditions and future market expectations. In this article, we present to you the top-diversified funds of 2019. Meaning of Diversified Equity Mutual Funds Diversified Equity [...]
What is close-ended mutual fund? In close-ended mutual fund investments a fixed amount of units that are sold and purchased on the stock exchange. They have a fixed maturity period. It works much more like an exchange-traded fund than a mutual fund. They are driven via NFO to gather money and then exchanged in the open market just like a stock. Though the value of the fund is based on [...]
Overview of Folio Number A folio number is a connected concept in the dictionary of Mutual Funds. Like a bank account number, it is a solitary number to identify your holdings with the particular mutual fund. The unique number differs from fund house to fund house. Only an existing investor is considered to have a folio number, not the new ones. While filling the form, a new investor should ignore [...]
Understanding SIP Systematic Investment Plan or SIP is a mode of investing money in mutual funds. The other way to invest in a lump sum or a one-time payment. In SIP, a fixed amount of money is invested in a mutual fund of your choice every month. The set up is such that the money is automatically debited from your bank account to know what amount of monthly SIP you [...]
Mutual Fund schemes in India have evolved over the years. As a result, the top-performing best dividend-paying Mutual Funds in the market keeps on changing. There are different rating methods in place to assess a mutual fund scheme, namely CRISIL, Morning Star, ICRA. These systems evaluate a mutual fund by various parameters like past returns, Standard Deviation, information ratio, etc. Remarkable rating systems also recognize the qualitative and quantitative factors [...]
Top balanced advantage funds are Mutual Funds that invest more than 65% of their assets in equities and the remaining assets in debt instruments to generate sufficient overall returns. The assets invested in equities and stocks give market-linked returns while the assets invested in debt instruments give fixed returns. Being a mixture of both Equity and Debt, investors should be very concerned when investing in these funds. The investors are recommended [...]
Retirement planning involves financial planning and the process of determining retirement income goals and deciding the necessary means to achieve those goals. The long-term nature of retirement planning makes Mutual funds a good fit for meeting retirement income goals. However, tactical plays like sector or thematic funds cannot work because of high volatility risk. Nor can narrowly define funds such as large-cap funds work because of limited growth. Instead, you [...]
