Mutual Fund basics
- Diversified Equity Mutual Fund Schemes – Invest in Diverse companies and the investments are low risk when compared to other equity schemes.
- Sector Funds or Thematic Funds – i.e. Pharma Fund, power sector Fund etc. This fund has the highest level of risk as it depends on purely the performance of any particular sector. Any bad news can impact the stocks and the funds.
- Passive Funds or Index Funds – The fund manager will invest only in the stocks present in the index. This will be done...
Types of Mutual Fund Schemes:
- Equity Mutual Funds
- Balanced Mutual Funds
- Debt Mutual Funds
Equity Mutual Funds:
- They invest 65% of the funds in Indian Equities.
- The objective of these funds are to generate high returns i.e. 30% to 40%
- The investments made are of high risk.
Balanced Mutual Funds:
- They invest in Equity, Equity Related Instruments, Debt and Debt Related Instruments.
- Less risk to...
Every one of you wants to invest some money anywhere so that would be helpful for you in future or might be for your children’s marriage or education. Let us take this situation where you want to invest your money for your children’s education and marriage expenses and how do you plan your investments in mutual funds accordingly? Here are some suggestions for the same.
Let us consider that you are a young unmarried or a newly married person. This stage in which if you start your investment, it is called as “Accumulation Stage”.
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Investors prefer to invest in mutual funds when compared to the equities, because of risk involved in investing in the equities. It is really safer to invest in mutual funds as the fund manager who has much experience in handling the funds, would do a proper study before investing in any share. Here are some tips to choose a right mutual fund scheme.
Past Performance of the Scheme:
You must have heard of this
“Mutual Funds investments are subjected to market risk, please read the offer document carefully before investing”.
...Advantages of Investing in Mutual Funds:
Low Risk:The fund managers invest in more companies which results in portfolio diversification.
Liquidity:You can withdraw the money very easily and fast.
Convenient Payments: You can invest in mutual funds either through monthly installments or bulk investments or through small savings.
Transparency:You can get the details of the fact sheets, expenses of the mutual funds, the list of companies in which they invest from the...
I got some enquiry mails from my readers regarding SIP Plans. So I thought let me give a brief regarding SIP Plans in my next post.
“Systematic Investment Plans” are called as SIP Plans. This type of investments is similar to investing in a recurring deposit or a post office savings where you deposit a small amount of money every month.
You should invest a minimum amount of Rs 500 every month in most of the mutual fund schemes. But some mutual funds like reliance Mutual funds, SBI Chotta SIP Scheme has a minimum amount of Rs 100 per month. This is targeted to attract more...
