Learn all about Mutual Funds
Creating a Strong Child Education Fund with SIPs
12 February 2025 | 7 mins read
Years ago, a single Rs 20 note allowed Riya to buy her favourite bread and butter after school. Today, two decades later, she orders the same for ₹100, signalling a more than three-fold increase in price. Rising prices or inflation not only affect everyday products but also apply to services, including education. With education costs rising, having a robust financial plan is more important than ever to help your child achieve their academic goals and create a better future. Mutual funds can make the task easier, particularly through a Systematic Investment Plan (SIP). This article explains the role of mutual fund SIPs in securing your child’s future.
Achieving financial freedom through SIPs
12 February 2025 | 6 mins read
For most people, Systematic Investment Plans (SIPs) and financial freedom may seem like an antithesis – a figure of speech that presents two contrasting ideas. SIPs involve small, regular investments, sometimes as low as ₹100 per month, while financial freedom typically suggests the availability of a substantial corpus. Yet, SIPs are one of the most effective ways to achieve financial freedom. This article will explain the meaning and benefits of SIPs and how they can contribute to financial independence.
What is Assets Under Management (AUM) in Mutual Fund?
13 February 2025 | 6 mins read
Assets Under Management (AUM) is a key metric in the mutual fund industry, representing the total market value of investments managed by a fund on behalf of its investors. It serves as a crucial benchmark for assessing a fund’s size, credibility, and performance capacity. Whether you're a new investor or a seasoned one, understanding AUM can help you make informed decisions and evaluate
What is the Entry Load in Mutual Funds? Meaning & How It Works
13 February 2025 | 5 mins read
Mutual fund investments come with associated costs, and understanding these is crucial for maximising returns. Why? Because these costs can add up and eat away from your final returns, thereby reducing the net value of your investment. While exit load, total expense ratio (TER), and brokerage fees are the typical ones, one cost that is often overlooked is the entry load. Entry load in mutual funds is not common these days, but investors must understand it nonetheless to make informed decisions.
How to Avoid LTCG Tax on Mutual Funds
13 February 2025 | 7 mins read
Investing in mutual funds is an excellent way to grow your wealth, but taxes such as Long-Term Capital Gains (LTCG) tax can reduce your returns. Understanding how to manage and possibly reduce your LTCG tax liability can help you keep more of your earnings. This blog will guide you through what LTCG tax is, how it applies to mutual funds, and strategies to minimise the tax's impact on your investments.
What is a Fund of Funds?
13 February 2025 | 6 mins read
A Fund of Funds (FoF) is a type of mutual fund that invests in other mutual funds, rather than directly holding individual securities like stocks or bonds. This investment approach provides diversified exposure to multiple asset classes by pooling capital into different funds, each with a unique strategy. FoFs are popular among investors seeking broad market exposure without the need for individual fund management. They offer a way to access professional management expertise across various sectors, markets, or investment styles.
Systematic Transfer Plan: What is STP in Mutual Funds?
3 January 2025 | 7 mins read
Within investment instruments, there are different investment strategies and tools that investors can use to modify investments to most accurately suit their financial needs. The STP is one such investment approach within the purview of mutual fund investment. The STP or Systematic Investment Plan is a mechanism whereby an investor can transfer their capital from one mutual fund to another, provided both the funds exist within the same asset management company (AMC) or fund house.
What are Direct Mutual Funds and How Do They Work?
9 January 2025 | 7 mins read
The mutual fund industry in India has picked up pace as people find a range of funds to suit their growing investment needs, including cost-effective options for investors. In terms of affordability and higher returns, a direct mutual fund may be considered by investors. Direct mutual fund schemes are appealing as low-cost options, with low expense ratios. This is because direct mutual funds can be invested directly with the mutual fund house/the asset management company (AMC), without involving brokers or other intermediaries like distributors. Hence, lower costs are associated with these funds, encouraging investors to choose them. Knowing the characteristics of direct mutual funds is paramount if you wish to add these to your portfolio for successful investment.
Small-Cap Funds: Meaning, Features & Benefits
3 January 2025 | 8 mins read
Recently, mutual funds have held their own as investment avenues as they cater to different investor needs. Among the many kinds of mutual funds you get these days, small-cap mutual funds are worth a look. Essentially, these are “aggressive” funds that invest your money in stocks of small-cap organisations. Concerning market capitalisation, small-cap companies fall in the lowest rung of companies, with mid-cap, and large-cap companies, respectively, above small-caps. Small-cap mutual funds are chosen for their potentially lucrative performance in the long term, but they are prone to more risk than other investment alternatives. This is because small-cap stocks are influenced by economic crises and market shifts, considering their low market capitalisation to withstand such shocks.
Interval Fund - Meaning, Features & Taxation
3 January 2025 | 7 mins read
The Securities & Exchange Board of India has long since made it its mission to encourage investors to make investments based on their unique investment goals and investor profile. In this respect, the promotion and popularity of mutual funds as routes for potentially profitable investment have grown rapidly. Every investor will likely find a mutual fund suitable for their needs and unique financial goals, not to mention their risk profile. In this regard, the interval fund has created waves with investors as it offers the flexibility of redeeming units when it suits investors who may decide on redemption at certain intervals to fulfill investment requirements. As an investor, you should know the nuances of all kinds of funds, the benefits and features offered by funds, and how they fit into your taxation model. Without further ado, then, let’s enter the world of interval funds.
Income Fund - Meaning, Features & Types
3 January 2025 | 8 mins read
As tools of investment, adding diversification to any portfolio, mutual funds have emerged as winners. Over time, Indian investors have witnessed the rise of mutual funds with different plans that provide a range of lucrative returns depending on the type of investor and financial goals. In fact, there are so many kinds of funds available, investors are spoiled for choice. If you are an investor who is interested in a consistent income flow, you may consider an income fund. Known for its many pros, you can delve into an income fund’s advantages, know the types available, and more, in the following blog, helping you to decide to invest.
Consolidated Mutual Fund Statement: Meaning, Features, & Benefits
2 January 2025 | 7 mins read
If you invest in different types of mutual funds across multiple Asset Management Companies (AMCs), keeping track of every transaction and holding can be quite cumbersome. This is where the Consolidated Mutual Fund Statement comes into play. Designed to simplify portfolio management, a consolidated account statement (CAS) brings together all your mutual fund investments under a single document, providing a detailed overview of your holdings, transactions, and valuations.
What is Mark to Market (MTM)?
24 December 2024 | 7 mins read
MTM, full form Mark to Market, is a valuation approach that ensures an investor’s holdings are adjusted to mirror the asset's fair market value, based on prevailing market conditions. MTM is crucial in areas like stock trading, mutual funds, and accounting, as it helps track gains or losses daily, providing a more accurate representation of an entity’s financial position. Let’s find out more about it.
What is the Power of Compounding?
24 December 2024 | 8 mins read
The power of compounding has been used by investors to build a corpus of wealth over time. If you start your investment with an instrument employing the power of compounding, like a public provident fund account (PPF), you can grow your capital to a substantial amount over a period. In compounding with a PPF account, the longer you invest, the greater the value of your investment will be at the end of a specific period. Let’s dive into the power of compound and the implications it has for different investors.
What is STP? Differences Between STP and SIP
24 December 2024 | 7 mins read
One of the reasons for the popularity of mutual funds investment is that there are multiple strategies you can utilise to optimise your returns and manage risks. Two popular methods are the Systematic Transfer Plan (STP) and the Systematic Investment Plan (SIP). Understanding these strategies and how they differ is crucial for making informed financial decisions. Let us find out what STP is, how it works, and its differences from SIP, so that you can choose the right investment strategy.