For far too long, individuals have been at the receiving end of unfair practices from various entities in the financial services industry. Now it's time to stand up and be counted!
Speaking of fund houses, it is quite disappointing to note that not all fund houses have taken the 'no load on direct investments' regulation in the right spirit.
Investors fail to realise the potential of tax-saving investments in contributing towards wealth creation. As a result, it is vital that tax-planning be considered as a part of the investor's overall financial planning and not in isolation.
The key to successful investing is not blindly participating in every trend
Investors must have predetermined investment objectives and plans before they start investing; also, they must invest in line with the same at all times.
Magnum Multicap Fund, an offering from SBI Mutual Fund is a flexicap fund
The tax benefits on SCSS and the restored maturity bonus on POMIS will make the investments more attractive.
Setting an objective should be the first step in the investment process. You should be unambiguously aware of what you want to achieve; the goal could range from buying a car to providing for your retirement.
While few would dispute the utility that an SIP can offer, there is a flipside to the same as well. In this article, we discuss the pros and cons of SIP investing.
So far in December 2007, various Asset Management Companies have filed offer documents for twelve new equity-oriented fund offerings. All of them are either thematic or sector funds. If one were to go by just this fact, then yes, diversified funds are dead.
Index funds are typically associated with lower costs; this phenomenon is prevalent both globally and in the domestic mutual funds industry as well. The notification issued by Sebi will mean that now there is a regulation in place to ensure the aforementioned.
Don't get swayed away by the convenience of new age investing. The hidden costs could be a bit more than what you bargained for.
So far in December 2007, various Asset Management Companies have filed offer documents for twelve new equity-oriented fund offerings. All of them are either thematic or sector funds. If one were to go by just this fact, then yes, diversified funds are dead.
On a downside, investors are often guilty of considering various parameters in isolation and ignoring the bigger picture. For example, a fund that fares well on the SD and SR parameters, alongside returns may yet not be the right fund simply because it failed to adhere to its stated investment mandate. The fund could well be a professed large cap fund that contravened its mandate and invested in mid cap stocks to benefit from an upturn in that segment.
A fixed deposit probably ranks as the most conventional investment avenue for domestic investors. More importantly, given its offering, it makes an apt choice for risk-averse investors.
Simply put, asset allocation entails holding a portfolio comprised of various asset classes like equity and debt, among others. Over longer time frames, asset allocation can help investors protect their portfolios on the downside and create wealth as well. Powered by investments in both equity and debt, balanced funds qualify as asset allocation tools. The debt component in balanced funds can insulate the investor's portfolio from the volatility in the equity markets.
Investors must adhere to their risk appetite at all times and should do well for themselves over the long-term.
The negative consequences of regularly churning the portfolio are undeniable. The onus to not get carried away by 'motivated' sales pitches of the investment advisor and make an informed investment decision lies with you.
In conclusion, the financial planner's role in helping you achieve your financial goals is undisputed. And you would do well to take due care before engaging the services of one.
Given the contribution that a financial planner can make in helping you achieve your financial goals, you would do well to engage the services of a competent, honest and experienced financial planner.
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