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Showing posts with the label mutual fund in India

Smart Tips to Invest in Best Mutual Funds: Lump Sum & SIP Investments

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A great strategy to find the best performing mutual funds is to look at both qualitative and quantitative indicators, such as: 1. Scheme Asset Size: Investing in a fund that is neither too big nor too tiny is always a good idea. While there is no clear definition or relationship between fund size and performance, it is argued that a fund that is either too small or too huge can hurt its performance. Fewer Assets under Management (AUM) in any plan are risky because you don't know who the investors are or how much money they have invested in it. As a result, when selecting a fund, choose one with an AUM that is roughly equal to the categories. 2. Fund Performance: Investors should undertake a fair appraisal of the fund's performance over time before investing in the top-performing mutual funds. Also, look for a scheme that continuously outperforms its benchmark over a period of 4-5 years; additionally, look at each period to determine if the fund can outperform the benchmark.

What are the Advantages of Mutual Funds?

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A mutual fund is something you should seriously consider adding to your investment portfolio, whether you are a seasoned or first-time investor. However, you should be aware of both the benefits and potential drawbacks of this investment.  The benefits and drawbacks of mutual funds are listed below to help you make an informed selection.  Advantages of Mutual Funds:  • Liquidity  • Diversification  • Expert Management  • Less Cost for bulk transactions  • Cost-efficiency  • Automated payments  • Suit your financial goals  • Quick & painless process  • Tax-efficiency  • Invest in smaller denominations  • Safety  • Systematic or one-time investment

What is Net Asset value (NAV)?

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The performance of a Mutual Fund's strategy is measured by its Net Asset Value (NAV). NAV stands for net asset value, which is the market value of the securities held by the scheme. Mutual funds put the money they collect from investors into the stock market.  Because the market value of assets fluctuates every day, the NAV of a scheme fluctuates as well. On any given day, the NAV per unit is calculated by dividing the market value of a scheme's securities by the total number of units in the scheme. In compliance with SEBI Mutual Fund Regulations, the NAVs of all Mutual Fund schemes are declared at the end of the trading day after markets have closed.

Why should you invest in a systematic investment plan (SIP)?

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One of the most important reasons to invest in a SIP is that it instills discipline in your investing and encourages regular saving habits. A SIP is based on the principle of saving little amounts of money on a regular basis. It allows the investor to accumulate riches over time. Aside from that, there is a slew of other advantages to investing in a SIP. How can SIP help you achieve more? To get the most out of your SIP, make sure to complete the following: ·          Make a list of your objectives and figure out how much you'll need to save to reach them. ·    Determine how much you want to invest monthly/quarterly through a SIP to achieve your objectives. ·    Look into the mutual fund market and see which funds have done well in recent years. After you've done that, you'll be able to decide which plan to invest in via a SIP. ·    Investors must complete the KYC verification process, as well as additional formalities such as the submission of checks and forms, for

What are the benefits of investing in Mutual Funds?

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  What are Mutual Funds? A Mutual Fund is a monetary instrument that pools the cash of various individuals and puts them in various monetary securities such as stocks, bonds, etc. Why plan? The security is selected keeping in mind the speculative objective of the scheme. Mutual Fund is overseen by Resource Board Organizations (AMCs). AMCs designate asset supervisors to oversee various general asset plans and guarantee that the plan's speculative goals are met. To store the officials and various administrations given by the AMC, an expense is charged from the financial backers.   Advantage# 1: Mutual Fund investments are more or less stress-free Investments are always girdled by a degree of a query. An investor is spooked of investing due to a lack of acceptable knowledge & time, tone- discipline, or investing experience. Mutual Fund fits in impeccably in this situation as they have an essential design to valve professional moxie to manage investments which, in turn, re