Now that investors are waking up to mutual funds, they should understand a few intricacies of making the best use of that vehicle
Where are interest rates expected to go from here? What should the new home buyers do? What should the existing home buyers be aware of?
In this article, we analyse the performance and prospects of various infrastructure related sectors, including petroleum and natural gas. We have left the real estate sector out of the current analysis
Modern Portfolio Theory argues that to take on risks without having adequate returns from an asset is irrational and wasteful. What you need to be aware of is that you are not committing this folly in designing your portfolio.
The gain in the value of the rupee has been beneficial to the foreign investor. If you invest in the assets of a currency that appreciates (as the rupee has done) then you benefit.
The popularity of the instrument lies in that it converts an illiquid asset -- the house -- into liquid cash flows for the owner, typically a senior citizen.
Whether you invest in short-term securities or long-term securities, the interest rate that you will get on either is similar. Which should you choose? Should you invest in short term debt or invest money for a long period?
When you take a loan, always look at your ability to repay: never stretch beyond your limits. Always maintain a buffer for unexpected turn-of-events.
The answer needs to be answered after taking into account several factors and drawing a robust financial plan. Here are some starting points.
SIP is very helpful in a volatile market. Since you invest a fixed amount, you buy more of the security when its prices fall and less when it is more expensive.
Remember two things: dividend is your own money back to you and it may not be tax-free, and never choose the dividend reinvestment option.
The biggest risk of investing in a mutual fund is one of underperformance.
Here's why you would want to invest in them.
Equity funds like to identify newer avenues of investment and hence they create products around those new avenues. In the second part of this series, we look at the styles and themes of MFs.
Here is the first part of a series of articles to understand mutual funds.
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