Posts

What is the benefit of staying invested in the long term? by FinVise India

Image
Invest for long term  – an advice routinely given by many Mutual Fund distributors and investment advisors. This is especially true in case of certain Mutual Funds – such as equity and balanced funds. Let us understand why the professionals give such advice. What really happens in the long term? Is there a benefit of staying invested for long term? Consider your Mutual Fund investment as a good quality batsman. Every good quality batsman has a certain style of batting. However, each good quality batsman would be able to accumulate lots of runs, if he continues to play for years. We are talking about the record of a “good quality” batsman. Every good batsman would go through some good and poor performances. On average the record would be impressive. Similarly, a good Mutual Fund would also go through some ups and downs – often due to factors beyond the control of the fund manager. An investor would benefit if one stays invested through these funds for long periods of time. S
Post a Comment
Read more

"What are Hybrid Mutual Funds?" by FinVise India

Image
www.finviseindia.com                                                                                       (Source : AMFI website) "What are Hybrid Mutual Funds?" Our choice of meals when we dine depend largely on the time at hand, the occasion and of course, our mood. If we’re in a hurry, say during an office lunch or eating before boarding a bus/train, we may opt for a combo meal. Or if we know a combo meal is famous, we may not bother to go through the menu. A leisurely meal would mean ordering individual items from the menu, as many as we’d like. Similarly, an investor in a Mutual Fund can select and invest individually in various schemes, e.g.  equity fund ,  debt fund ,  gold fund ,  liquid fund , etc. At the same time, there are schemes like a combo meal – known as hybrid schemes. These hybrid schemes, earlier known as Balanced Funds, invest in two or more asset categories so that the investor can avail the benefit of both. There are various types of hybri
Post a Comment
Location: New Delhi, Delhi, India
Read more

"What are Debt Mutual Funds?" by FinVise India

Image
www.finviseindia.com                                                                                       (Source : AMFI website) What are Debt Mutual Funds?? A debt fund is a Mutual Fund scheme that invests in fixed income instruments, such as Corporate and Government Bonds, corporate debt securities, and money market instruments etc. that offer capital appreciation. Debt funds are also referred to as Income Funds or Bond Funds. A few major advantages of investing in debt funds are low cost structure, relatively stable returns, relatively high liquidity and reasonable safety. Debt funds are ideal for investors who aim for regular income, but are risk-averse. Debt funds are less volatile and, hence, are less risky than equity funds. If you have been saving in traditional fixed income products like Bank Deposits, and looking for steady returns with low volatility, debt Mutual Funds could be a better option, as they help you achieve your  financial goals  in a more tax effici
Post a Comment
Read more

Part 3 : "What are Equity Mutual Funds??" by FinVise India

Image
www.finviseindia.com                                            (Source : AMFI website) What are Equity Mutual Funds? An Equity Fund is a Mutual Fund Scheme that invests predominantly in shares/stocks of companies. They are also known as Growth Funds. Equity Funds are either Active or Passive.  In an Active Fund, a fund manager scans the market, conducts research on companies, examines performance and looks for the best stocks to invest. In a Passive Fund, the fund manager builds a portfolio that mirrors a popular market index, say Sensex or Nifty Fifty. Furthermore, Equity Funds can also be divided as per Market Capitalisation, i.e. how much the capital market values an entire company’s equity. There can be Large Cap, Mid Cap, Small or Micro Cap Funds. Also there can be a further classification as Diversified or Sectoral / Thematic. In the former, the scheme invests in stocks across the entire market spectrum, while in the latter it is restricted to only a particular s
Post a Comment
Location: India
Read more

Part - 2 : "What are various types of Mutual Funds?" by FinVise India

Image
  www.finviseindia.com                                                                                                                                                                (Sources : AMFI website)                                                                                                                                          Various types of Mutual Funds exist to cater to different needs of different people. Largely, they are of three types. Equity  or  Growth Funds These invest predominantly in equities i.e. shares of companies The primary objective is  wealth creation  or  capital appreciation . They have the potential to generate higher return and are best for long term investments. Examples would be “Large Cap” funds which invest predominantly in companies that run large established business “Mid Cap” funds which invest in mid-sized companies. “Small Cap” funds that invest in small sized companies “Multi Cap” funds that invest in a mix of large, mid
Post a Comment
Location: New Delhi, Delhi, India
Read more

Part 1 - "What are Mutual Funds?" by FinVise India

Image
www.finviseindia.com "What are Mutual Funds???" To many people, Mutual Funds can seem complicated or intimidating. We are going to try and simplify it for you at its very basic level. Essentially, the money pooled in by a large number of people (or investors) is what makes up a Mutual Fund. This fund is managed by a professional fund manager . It is a trust that collects money from a number of investors who share a common investment objective. Then, it invests the money in equities, bonds, money market instruments and/or other securities. Each investor owns units, which represent a portion of the holdings of the fund. The income/gains generated from this collective investment is distributed proportionately amongst the investors after deducting certain expenses, by calculating a scheme’s “ Net Asset Value or NAV . Simply put, a Mutual Fund is one of the most viable investment options for the common man as it offers an opportunity to invest in a divers
Post a Comment
Location: New Delhi, Delhi, India
Read more