When everyone around you is losing his head, it's a good time to keep yours
It is important to note that the 'right time to redeem' does not mean that there is a timing element involved over here.
Building an investment portfolio requires the investor to put in a fair degree of thought and time
Over the past few years, when equity markets rose almost secularly, the investment scenario became rather skewed. Any fund that took on above-average risk was capable of delivering a superlative performance. As a result, some prudently managed funds ended up looking rather mediocre and some mediocre funds managed to pitch in noteworthy performances.
If your risk appetite permits investing in a tax-saving fund, now is the time to scout for one and start off an SIP.
All you need is a well-defined investment objective and a plan to get there.
Many a time, investors get carried away by the high returns offered by a particular offering. Out of sheer ignorance most investors do not bother to question the authenticity or the transparency of the examples/illustrations that have been used to project the high returns.
The financial planner is someone who can help you invest across investment avenues based on your risk profile and investment objectives
As if any proof was needed, the spate of Cash Reserve Ratio hikes clearly underlines the Reserve Bank of India's intention to clamp down on inflation before the situation deteriorates any further.
The constraints of managing funds that invest in a select few sectors can often prove to be demanding for fund houses. As a result, it isn't entirely uncommon to find a sector/thematic fund changing/expanding its investment objective/style in due course. This bears testimony to the intrinsic inadequacy of a sector/thematic fund in terms of sustainability over the long-term. Nonetheless sector/thematic funds continue to be launched at regular intervals.
In recent times, 'inflation' has emerged as a buzz word of sorts. Simply put, inflation is a situation wherein too much money chases a limited number of goods. This leads to a fall in the value of money. Inflation is often expressed as a rise in the price level. For example, a product that costs Rs 100 now, would cost Rs 105 a year hence, assuming that prices rise at 5 per cent annually.
Of course, not all AMCs use such marketing schemes; certain AMCs have told us that they would have preferred to keep an arm's length from these tactics, but their hand was forced by other AMCs. The bottom line is that investors/agents are regularly bombarded with rewards/incentives by AMCs and core factors like the fund's investment proposition and track record are conveniently pushed to the background.
Over the tenure of US64 Bonds, the investment scenario has changed radically. Mutual funds (equity funds in particular) have come of age and found greater acceptance among investors. So it should come as no surprise, if you find yourself being persuaded from all quarters to invest the redemption proceeds of US64 Bonds in equity funds. For example, investors in US64 Bonds have received letters urging them to invest the redemption proceeds in equity funds from UTI Mutual Fund.
It's not like we are against NFOs for the sake of it. Our view on this subject is if the NFO offers something truly unique (i.e. distinct from existing funds) and can aid the investor significantly in achieving his long-term goals, he can consider investing in the NFO. Failing this, investors are better off investing in existing mutual funds with proven track records across time frames and market phases.
Following some rather elementary tips can go a long way in not only saving money, but also deriving maximum benefit from it. Perhaps it's the demanding nature of our everyday chores that make us overlook these tips. In this article, we discuss 4 tips that will help you make the most of your money.
Following some rather elementary tips can go a long way in not only saving money, but also deriving maximum benefit from it. Perhaps it's the demanding nature of our everyday chores that make us overlook these tips. In this article, we discuss 4 tips that will help you make the most of your money.
But when markets collapse like they did earlier this year, many of these 'great' investments suddenly start appearing like great mistakes. Nonetheless, there are lessons to be learnt from falling markets and we have a 4-step strategy on how you can ace falling markets.
Within the domain of investments, two options that investors regularly grapple with are stocks (i.e. direct equity investing) and mutual funds. Both have their advantages, although this note does not get in to that debate. Instead, in light of the present discussion about investing being a full-time activity, let's see how stocks and mutual funds face off against one another.
Mid cap stocks (and subsequently mid cap funds) have been the worst hit in the recent stock market crash. Investors who added mid cap investments to their portfolios without understanding their true nature are a dismayed lot. Typically, mid caps are presented as an opportunity to make quick money; sadly, investors are rarely made aware of the higher risk involved. While there is no doubt that if identified correctly, mid caps can contribute significantly.
When it suits them, fund houses promote a star fund manager to draw investors. The star fund manager's track record in identifying stocks/trends is publicised extensively. NFOs (new fund offers) are launched on the premise that the star fund manager will repeat his stellar performance and give investors a good enough reason to invest in the NFO.
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