India is in the midst of a secular development phase, during which a number of emerging businesses are displaying their potential for expansion. These businesses not only have a proven track record but also innovate and have evolving business models. As India grows, the various macroeconomic factors become favourable; these strong existing and emerging businesses…
Investors often do not think about tax consequences when making investment decisions. For example, a downside of investing in fixed deposits is interest income that is added to your taxable income and is fully taxable as per the income tax slab rate, which is disadvantageous for investors who are in the highest income tax bracket.…
In India, there are up to 44 Asset Management Companies (AMCs) that operate in the mutual fund industry and offer mutual fund schemes across various categories and sub-categories. Are you finding it difficult to choose the right mutual fund scheme among the 2500+ mutual fund schemes floating in the Indian market? You may have come…
The Indian equity markets have been reeling under pressure and witnessing high volatility amid global uncertainties. While the equity market will continue to face high volatility in the near future, the recent sharp corrections may be considered as a buying opportunity for long-term investors. However, one should focus on diversification to benefit from opportunities across…
The past year 2021, witnessed a spate of New Fund Offers (NFOs) launched by mutual fund houses to raise capital, riding on the back of a sharp market rally and rising interest from retail investors and asset management companies (AMCs). However, the Securities and Exchange Board of India (SEBI) circular dated March 31, 2022, extended the…
A mutual fund portfolio consists of various stocks, bonds, and other asset classes. SEBI has clearly defined the types of assets/sub-assets each category and sub-category of a mutual fund can invest in. For instance, Large-cap Funds are mandated to invest at least 80% of their assets in equities of large-sized companies, i.e., top 100 stocks…
Midcap companies have the potential to become the large-caps of tomorrow, which gives Mid-cap Funds a higher upside potential and the ability to create significant wealth for the investors. These funds tend to outperform Large-cap Funds over the long run. However, remember that Mid-cap Funds can plunge lower than Large-cap Funds during bearish market phases. Therefore, when…
Debt mutual funds are schemes that predominantly invest in fixed-income generating instruments such as corporate bonds, government bonds, certificates of deposits, treasury bills, etc. These funds aim to provide diversification and stable returns as they are less volatile compared to equity mutual funds. The prevailing interest rate environment is one of the most crucial factors…
Bears seem to be tightening their grip on the global financial markets. The worries of investors are mounting with unprecedented global developments, thanks to the fallout effects of the Russia-Ukraine war, supply-chain disruptions, rising inflation, zero covid policy of China, and rising interest rates, amongst others. The World Bank has clearly highlighted the risk of…
Market fluctuations drive mutual fund investments. Although you can buy and sell mutual fund units throughout the day during office hours, there is a cut-off time during the day that determines which day’s NAV will be applicable to your transaction. Net Asset Value (NAV) – The NAV represents the per share/unit price of the mutual fund…
