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Big Mistakes Mutual Fund Investors Make

Mutual Funds have gained huge popularity in recent years as evident from the fact that between 1st April 2016 and 31st March 2018, 2.32 crore folios have been added by mutual funds. The Assets under Management (AUM) of the industry increased from Rs 14,21,952 crore to Rs 21,36,036 crore during this period. That is a growth of 50% in two years, no mean achievement!
A number of steps taken by the regulator, SEBI as well as by the industry body AMFI and by the various Asset Management Companies and the distributor community have played a great role in the growth of the industry. One can safely say we have reached a point where most people with investible surplus have started considering mutual funds as a serious investment option. In this context, it is important to keep in mind some of the common mistakes that investors make while investing in mutual funds.
It is All About Equity: Many people have the mistaken belief that mutual funds are all about equity. The…
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How to Build good Credit Score with credit card

Using your credit card for regular spends and ensuring timely and full repayment of outstanding dues helps in building a good credit score.Using a credit card is equivalent to taking a loan since it's the card issuer who pays for you and you repay the amount. Being a credit, credit card transactions are reported to credit bureaus who then use it to evaluate your credit score. Given that credit score reflects your credit worthiness and repayment behaviour, how you handle credit cards is what ultimately determines its impact on your credit score.Using your credit card for regular spends and ensuring timely and full repayment of outstanding dues helps in building a good credit score. "Make sure your credit utilisation ratio doesn't exceed 30-40% of your credit limit regularly. Lenders usually hesitate to lend to borrowers who frequently breach this mark. You may also consider increasing the credit limit for lowering your credit utilisationHere are 5 things you need to follow…

You Can claim Income Tax Deduction on rental payment to Parents

Best SIP Funds to Invest Online



If you are employed and are in receipt of house rent allowance (HRA) from your employer, you can generally claim an exemption in respect of rental payments made by you against such HRA. While rental payments to a parent are not specifically prohibited, rent paid to relatives may be more prone to scrutiny and litigation and the genuineness of the claim can be questioned.You will need to submit documentation evidencing the rent payments, such as a rental agreement executed between you and your father, your father's PAN (permanent account number), proof of payment of the rent, along with other documents that your employer may call for (for example, letter to society intimating about tenancy, bank statements, etc.). If the amount of rent per month exceeds ₹50,000, you will be liable to deduct tax of 5% of the annual rent and deposit it with the Indian treasury by 30 April following the financial year, as per the current law in f…

Overseas Travel Insurance

While travelling can be relaxing, it can turn harrowing because of any unforeseen circumstances. Travel insurance can cover against unexpected situations such as medical costs abroad, loss of luggage, cancellation or delay of flights, etc. A comprehensive travel insurance will cover many aspects of your travel and protect your family from any financial or medical emergency. Travel insurance is mandatory for trips to the UK, the US, Austria, Greece, Portugal, Spain, France and Germany (Schengen). Even where it is not mandatory, it is always beneficial to get one for travelling abroad. If you are planning to take more than two holidays a year, take an annual policy which will be cheaper than a single trip policy. Insurance companies offer a wide range of specialised travel insurance plans such as family floater, senior citizens, students and multiple trips plans for business travelers. The premium depends on the age of the insured, number of travellers, country of …

How to Get Rich with Mutual Funds during Stock Market Volatility

Should investors invest in Mutual Funds at this point in time?
Equity investors should not get panicky during high market volatility and market corrections. It is a normal phenomenon, which usually happens at regular intervals. Such corrections in structural bull markets are good as it helps in removing the froth from the stock market. Also, these volatile situations create an opportunity to buy a number of stocks at a cheaper price. Those who are invested in equity mutual funds should remain invested for a long term.What sort of funds should you get into? Should you be aggressive and get into mid-caps or should you stick to the safety of large-caps?Investors in the current market scenario can consider equity investments whether it can be a large-cap or a mid-cap that aims to generate income by investing in blue-chip companies or emerging companies to get higher returns. But, you should ideally go for capital appreciation through moderate exposure to equity, that is through balanced eq…

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index.

What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents.

Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark.

Shrinking outperformance

With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds outperf…

Invesco Large Cap Fund

Invesco Large Cap Fund Fund manager: Amit GanatraThe scheme largely focuses on business leaders across sectors. This gives it a large-cap bias. Ganatra selects companies based on their competitive advantage. For manufacturing companies, he focuses on return on capital employed or Return on Equity. For banks, it is net interest margin and for commodity companies it is about cost leadership. Keeping these factors in mind, Ganatra have created a portfolio of well-placed large—sized companies which have delivered compounded annual growth rate of more than 15% in the past 10 to 15 years. Since there has been high interest in large-sized companies in the year-to-date period, the scheme has benefited immensely from it. Companies such as HDFC Bank, TCS, Infosys, and Reliance Industries have boosted the scheme's performance between the two peaks of the Nifty.


SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous W…
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