-
Benefits of Investing through SIP.
Over the last two decades Mutual Funds have proved to be one of the best investment instruments for all age groups and classes of investors. The Assets under management of Mutual Fund schemes have grown from a few thousand crores rupees in the 1990s to over 17 lakh crores today. The tremendous and ever increasing…
-
Types of Mutual Funds.
A Mutual Fund is an investment instrument which pools the investments of several investors and invests the monies as per preset objectives. Every Mutual Fund scheme has a pre-defined objective to achieve one or more goals. The funds of the scheme are invested to achieve these goals. This article tries to elaborate on the various…
-
Mutual Funds.
A Mutual Fund is an Investment instrument which pools the savings of Investors and invests it in Equity Shares and Debt Instruments. The Equity shares are of companies listed on a Stock Exchange. The Debt Instruments include Bonds issued by Government of India, State and Local Government bodies, Public sector companies as well as the…
-
Strategic and Tactical Asset Allocation.
Strategic Asset Allocation refers to allocation of funds in various asset classes based on Investor’s risk profile and financial goals. Tactical Asset Allocation refers to allocation of funds in as per the trend or anticipated price movement in an asset class. While investing according to Strategic Asset allocation strategy, one invests from a long term…
-
Types of Debt Instruments.
Debt refers to borrowings by Government of India, Public Sector Organizations and the Private sector companies to raise capital for their long term and short term needs. Debt instruments are segregated as Government debt and Private sector debt. Also as short term and long term debt. Indian Government borrows money every year from the public…
-
Large Cap Mid Cap and Small Cap.
Market Capitalization of a company is defined as the market price of one equity share of the company multiplied by the total number of equity shares issued by the company. Large Caps are companies with market valuation of Rs 25,000 crore or more. Mid-Caps are companies with market valuation of up to Rs 25,000 crore.…
-
Asset Allocation Strategy.
A question which most Investors think about is “What should be my asset allocation Strategy”?. It is generally believed that Equity exposure should decrease as age increases and vice versa. Some investors think that Equity and Equity based products are too risky and avoid them altogether. Equity is, however, an essential part of any good…
-
Limitations of ETFs.
ETFs or Exchange Traded Funds have been gaining popularity in India over the last five years. ETFs offer some advantages over Mutual Funds but also suffer from some limitations: 1. Liquidity: ETFs are bought and sold over a stock Exchange. If a particular ETF is not popular or widely used it may become difficult to…
-
Limitations of Mutual Funds.
Mutual Funds are a great Investment tool and have rewarded Indian Investors handsomely in the last twenty-five years. Mutual Funds suffer from a couple of limitations as mentioned below: 1. The Duplicity of selecting Stocks: When we invest in two Large Cap Funds or any category of Mutual Funds, both the Schemes contain many stocks…
-
Advantages of Exchange Traded Funds over Mutual Funds.
ETFs offer the following advantages over Mutual Funds: 1. Lower Fund Management Charges. 2. Eliminates duplicity or overlap of buying Stocks through different Mutual Funds. 3. Exposure to the entire Stock Market in a Country or Region through One or Two ETFs. 4. Global Exposure. 5. Easy Liquidity throughout the Year. 6. Tax implications as…