Mutual Funds
About Various Types of Mutual Funds
SIP-Systematic Investment Plan in Mutual Funds
Major Attractions of SIP :
(1)One Can Start Investing in this Instrument with a small amount of Rs. 100.
(2)Higher Returns than Banks RD's, FD's over a period of time.
(3)Rupee Cost Averaging : Means when the market is at it's low you are able to buy more units which reduces your overall cost of Investments.
(4)Helps Creates a large amount of corpus over long period of time.
(5)No lock in period means in case an investor need money they can withdraw any time.
(6)An Investor can Pause a SIP if they don't have sufficient fund.
| Know More |
SIP-Systematic Investment Plan in Mutual Funds
Major Attractions of SIP :
(1)One Can Start Investing in this Instrument with a small amount of Rs. 100.
(2)Higher Returns than Banks RD's, FD's over a period of time.
(3)Rupee Cost Averaging : Means when the market is at it's low you are able to buy more units which reduces your overall cost of Investments.
(4)Helps Creates a large amount of corpus over long period of time.
(5)No lock in period means in case an investor need money they can withdraw any time.
(6)An Investor can Pause a SIP if they don't have sufficient fund.
| Know More |
Mutual Funds
Key Points related to Mutual Funds :
(1)Mutual Funds are professionally managed funds.
(2)It is a fund that pools money from various investors.
(3)The Money so collected is used to buy the stocks/shares of companies and the investors are allotted units according to the money they contributed in funds.
(4)Mutual Funds Investment are subject to market risks but are better for a beginner who has no knowledge about stock market as these funds invest money in different stocks and are managed by professionals.
(5)Mutual funds these days are categorized according to the risk taking ability of an Investors.
(6)There are 2 ways of Investing money in Mutual funds : Lumpsum and SIP
(7)A better option for those looking for long-term wealth creation.
| Know More |
Mutual Funds
Key Points related to Mutual Funds :
(1)Mutual Funds are professionally managed funds.
(2)It is a fund that pools money from various investors.
(3)The Money so collected is used to buy the stocks/shares of companies and the investors are allotted units according to the money they contributed in funds.
(4)Mutual Funds Investment are subject to market risks but are better for a beginner who has no knowledge about stock market as these funds invest money in different stocks and are managed by professionals.
(5)Mutual funds these days are categorized according to the risk taking ability of an Investors.
(6)There are 2 ways of Investing money in Mutual funds : Lumpsum and SIP
(7)A better option for those looking for long-term wealth creation.
| Know More |
ELSS Mutual Funds
(1)ELSS stands for - Equity Linked Savings Schemes.
(2)These funds invest major portion of funds in equity or equity related instruments.
(3)Also Called Tax Saving Funds one can claim an exemption of the amount invested up to Rs.1,50,000 on taxable income under section 80C of Income Tax Act 1961.
(4)Lock in period of 3 years.
(5)Income earned under this investment at the end of 3-year tenure will be considered as Long term capital gain and will be taxed at the rate of 10%(If the Income is above Rs.1 Lakh)
| Know More |
ELSS Mutual Funds
(1)ELSS stands for - Equity Linked Savings Schemes.
(2)These funds invest major portion of funds in equity or equity related instruments.
(3)Also Called Tax Saving Funds one can claim an exemption of the amount invested up to Rs.1,50,000 on taxable income under section 80C of Income Tax Act 1961.
(4)Lock in period of 3 years.
(5)Income earned under this investment at the end of 3-year tenure will be considered as Long term capital gain and will be taxed at the rate of 10%(If the Income is above Rs.1 Lakh)
| Know More |
Index Funds
(1)As the name suggests, an Index Mutual Fund invest in stocks of the companies listed on that particular index in stock market .
(2)These funds are passively managed funds means they invest in same stock that are present on that particular index whether sensex or nifty or any other index in same proportion and does not change portfolio composition.
(3)Major Attraction for Index Funds is that they have low expense ratio since they are passively managed funds and there is no need to create any strategy or research.
(4)Taxability - Both Capital Gain and Dividend received are taxable.
(5)An Investor can expect over 10% - 12% return over a period of 7 years.
(6)Low Risk compared to Actively Managed funds.
| Know More |
Index Funds
(1)As the name suggests, an Index Mutual Fund invest in stocks of the companies listed on that particular index in stock market .
(2)These funds are passively managed funds means they invest in same stock that are present on that particular index whether sensex or nifty or any other index in same proportion and does not change portfolio composition.
(3)Major Attraction for Index Funds is that they have low expense ratio since they are passively managed funds and there is no need to create any strategy or research.
(4)Taxability - Both Capital Gain and Dividend received are taxable.
(5)An Investor can expect over 10% - 12% return over a period of 7 years.
(6)Low Risk compared to Actively Managed funds.
| Know More |
Equity Mutual Funds
As the name suggests, Equity Mutual funds :
(1)Invest in Shares of different companies of every size whether large cap, mid cap or small cap.
(2)Invest in different sectors in market
(3)Generate better returns than Debt-funds and Term Deposits
| Know More |
Equity Mutual Funds
As the name suggests, Equity Mutual funds :
(1)Invest in Shares of different companies of every size whether large cap, mid cap or small cap.
(2)Invest in different sectors in market
(3)Generate better returns than Debt-funds and Term Deposits
| Know More |
Value Funds
In Value Funds the Fund Manager Looks for the Stocks of the Companies which are undervalued and trade for less than their respective intrinsic values.
They are intrinsically more valuable and have a lot of potential to grow.
In simple words if the company's market value is less than it's intrinsic value, then it is considered to have VALUE
| Know More |
Value Funds
In Value Funds the Fund Manager Looks for the Stocks of the Companies which are undervalued and trade for less than their respective intrinsic values.
They are intrinsically more valuable and have a lot of potential to grow.
In simple words if the company's market value is less than it's intrinsic value, then it is considered to have VALUE
| Know More |