In a strong bull run, a VCA plan often produces mathematically infinite returns.
How much do you pay for your electricity bills? Let's assume an average of Rs 5,000 every month. What if you could cut it down by half? Over the life cycle of your building (50 years), the savings invested in a systematic investment plan at 12 per cent amounts to Rs 9.86 crore, if other factors remain constant. Not a bad investment.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
'As China's reopening euphoria fizzled out on the back of some disappointing economic data, we saw inflows coming back to India with full force in the past 3-4 months.'
UTI, SBI, Reliance MF promote SIPs with low threshold. However, there are several hurdles. Mutual fund investments require the investor to have a PAN -- a big deterrent when it comes to tapping small and marginal investors. A big fear is that given the fickle nature of the stock market, rural investors might easily get scared when there is a downturn in the market.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
'In the short term you keep your return expectations very, very low; in the medium term be prepared to invest and in the long term growth will come and your returns from stocks will be high.'
'Given the worries about sluggish growth, rising interest rates and likely volatility, it's quite logical to infer that the SIP route could be the preferred way of investing.'
Equity investing is still fraught with peril and is riddled with sink holes that investors need to be wary of
Smaller stocks have emerged as Dalal Street's favourites in 2023 that has turned out to be a "great year" for equities, rewarding investors with big gains, driven by optimism over the country's macroeconomic fundamentals and heavy retail investors participation. Experts said equity markets are experiencing a prolonged bull run and it is during this time that the midcap and smallcap segments tend to outshine their larger counterparts. Till December 22 this year, the BSE smallcap gauge has jumped 13,074.96 points or 45.20 per cent while the midcap index has surged 10,568.18 points or 41.74 per cent.
rediffGURU and financial planning expert Colonel Sanjeev Govila will answer your personal finance-related questions.
2023 could be another volatile year for Indian equity markets, according to BofA. In a report, the brokerage pointed out that the Nifty50, at present, is trading at 20.7x against its long-term average of 18.8x one-year forward earnings of current Nifty constituents. Plus, India is trading at a 98 per cent premium to its emerging market (EM) peers against its long-term average of 45 per cent.
Rebalance your portfolio in case it has become overweight on equities vis-a-vis your strategic asset allocation.
Mutual fund houses do have several challenges ahead to win more investors.
The SIP route suits the salaried class, by matching their income flows with investment frequency.
Equity mutual funds attracted Rs 8,898 crore in July, a 43 per cent decline compared to the preceding month as markets continued to remain volatile amid concerns over inflation and rate hike expectations. For the 17th straight month, equity mutual funds witnessed inflows in July. The net inflows in July were lower compared to Rs 15,495 crore seen in June, Rs 18,529 crore in May and Rs 15,890 crore in April, according to data released by Association of Mutual Funds in India (Amfi) on Monday.
Don't opt for a SWP when you have a regular cash flow. During such times, opt for a SIP.
One of the mistakes most homemakers make while thinking about financial planning is looking at immediate goals, says Amar Pandit.
In the third of the series, Suren Kochchar offers six pointers to help women achieve financial goals. An International Women's Day Special.
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Investors continue to back-up equity mutual funds in June as such schemes attracted a net inflow of Rs 15,498 crore on strong flows from systematic investment plans despite volatility in the stock market and relentless selling by Foreign Portfolio Investors (FPIs). This also marked the 16th straight month of positive inflow in equity schemes. Inflows into equity mutual funds in June was lower compared to the net inflow of Rs 18,529 crore seen in May, data from the Association of Mutual Funds in India (AMFI) showed on Friday.
Two equity funds at the opposite ends of the risk matrix - small-cap and arbitrage - bucked the 'low inflow' trend in May this calendar year 2023 (CY23) to receive the highest net inflows in recent years. The Rs 3,280-crore net inflows into small-cap schemes in May was the highest for the category since the mutual fund (MF) industry started releasing fund-wise inflow data in April 2019. Arbitrage schemes raked in a net Rs 6,640 crore - the highest since July 2021.
Money saved is money earned, and cutting down your expenses could well be the single-most important step towards an organised financial life. Naval Goel shows you how to keep your finances organised.
'Continue with your SIPs to get the benefit of lower average prices in this challenging market environment.'
Undeterred by the stock market volatility, uncertainty due to the Ukraine-Russia war and high inflation, equity mutual funds continue to remain attractive choice for investors for the 15th straight month, registering a net inflow of Rs 18,529 crore in May on robust SIP numbers. This was higher than Rs 15,890 crore net inflow in April, data from the Association of Mutual Funds in India (AMFI) showed on Thursday. Equity schemes have been witnessing net inflow since March 2021, highlighting the positive sentiment among investors.
India's mutual fund (MF) industry had barely any retail footprint when it completed 50 years in 2013. MFs had Rs 7 trillion in assets under management (AUM) in March 2013, of which around Rs 5 trillion was in institution-focused debt funds. By comparison, bank deposits in the country stood at Rs 67.5 trillion around the same time.
Given the prevailing uncertainties, investors must maintain a 10-15 per cent allocation to gold in 2023.
When the subscriber reaches superannuation or the age of 60, 60 per cent of the total corpus accumulated in NPS can be withdrawn as a lump sum.
Like the billionaire investor Rakesh Jhunjhunwala, Gautam Gambhir, the tenacious former opener-turned-coach, also seems to be governed by instincts while picking unheralded players and turning them into match-winners, points out Vishal Menon.
Returns in Systematic Transfer Plan are consistent as money invested in debt mutual fund schemes earns interest till the time the whole amount is fully transferred to equity fund, says Vishwajeet Parashar, Sr VP and Group Head -- Marketing, Bajaj Capital
Retail investors should not invest for bonus or dividend because in order to make money over the long term.
Begin by creating a household budget. Involve all family members in the exercise and cut costs wherever possible.
Apart from SIPS and STPS, value- averaging can help investors make more money, says Devangshu Datta.
The 44-player industry logged assets under management of Rs 26.33 lakh crore in October-end, as compared to Rs 27.04 lakh crore by November end, representing a growth of 3 per cent. Among debt-oriented schemes, overnight funds received flows worth about Rs 20,650 crore, the highest among the fixed-income segment last month.
Do you have financial planning queries? Ask rediffGURU Kirtan A Shah.
Flow surge in equity schemes is an important reason why Indian stock market did not crash.
rediffGURU Ramalingam Kalirajan answers your personal finance queries.
Stocks offering attractive dividends contain downside better when the markets correct, advises Sarbajeet K Sen.
