Practicing long-term investing in stocks can be challenging. This is especially true for retail investors who often look to experts for guidance. I have observed a recurring trend in the recommendations made by the appearing guests of mutual fund houses on various TV news channels. They frequently suggest stocks that have already been performing well…
If you are new to investing and are curious about mutual fund tax rules, this article will help. The tax landscape can be overwhelming for beginners as different types of investments are taxed diversly. In this blog post, let’s break down mutual fund taxation in India with simple explanations and real-world examples. My approach to…
Does SIP actually work? This was the query posted by a reader on my blog. He further added to his query stating that. “if SIP is effective, then why don’t all people invest in mutual funds through SIPs.” I can understand his doubt. Whenever we hear about big investors like Warren Buffett, Rakesh Jhunjhunwala, Ramesh…
Recently I met a young investor who wanted to know what happened in 2008 with the mutual fund investors. In the 2008 market crash, caused by the subprime mortgage crisis in the US, equity mutual funds saw havoc. The market crash significantly impacted several equity mutual fund schemes. Allow me to mention a few prominent…
Investing in equity mutual funds is a popular choice. People seek to invest in them to grow wealth faster. Their benefit is that they offer diversification, professional management, and attractive returns. However, what many of us may not realize is that mutual funds are also not immune to market volatility. They also have to book…
The purpose of this article is to highlight the impact of new tax rules applicable to debt mutual funds. Debt Mutual Funds Taxation is an important aspect of investing in these schemes. Investors need to be aware of the tax implications of their investments in debt mutual funds. It is especially true in light of…
The purpose of this article is to compare SIP vs Lumpsum investment as two distinct investing strategies. Investors often face the dilemma of whether to choose SIP or lumpsum investment. Both methods have their pros and cons. This article will help you understand which one is suitable for you. For quick answers, read the FAQs….
A clever stock investor will not rely solely on the stock market for investment needs. Do you know how? Look no further! This article covers the top alternatives to direct stock investing, complete with the pros and cons for each option. From gold to real estate to cryptocurrencies, discover new ways to diversify your portfolio…
The purpose of this article is to highlight the necessity of keeping the investment portfolio well diversified. We’ll see in this blog post how investment diversification is not only about buying different types of assets, it is more about keeping a balanced portfolio. For quick answers on the diversification strategy, check the FAQs Introduction What…
Debt mutual funds are investment instruments that cater to the need for risk-averse investing. These mutual funds primarily include only those securities in their portfolio that yield fixed returns. Moreover, unlike equity funds, the safety of the invested capital is ensured in debt funds. The securities included in the debt fund’s portfolio consist of treasury…
What is IDCW in Mutual Funds? IDCW is an abbreviation for “Income Distribution cum Capital Withdrawal.” As per SEBI Circular no: SEBI/HO/IMD/DF3/CIR/P/2020/194, dated October 05, 2020, all dividend plans must be renamed. These days, the term dividend does not appear in the scheme names. The change of name was effective since 01-Apr’2021. Currently, the fund houses offer…
Recently a friend asked me about how exit load in SIP is calculated. Before we can answer it, let’s understand a bit about the exit load itself. Check our Mutual Fund Screener. We have mainly four types of mutual funds in India, equity, debt, hybrid, and gold funds. Among these types, the majority carry an exit…
