Learn all about Mutual Funds
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.
What Is Mutual Fund Overlap and Its Impact on Your Portfolio
24 December 2024 | 6 mins read
Mutual fund investment is a popular strategy for building wealth, but many investors face an issue known as mutual funds overlap. This concept refers to the duplication of the same securities within different funds in your portfolio. Overlap can lead to unintentional concentration in certain stocks, sectors, or asset classes, which may reduce the effectiveness of your diversification strategy. This article will explore what mutual fund overlap means, its impact, and ways to manage it for a well-balanced portfolio.
Different Types of Systematic Investment Plans and It’s Benefits
24 December 2024 | 6 mins read
A Systematic Investment Plan (SIP) is among the go-to investment plans for investors seeking gradual yet lucrative returns through mutual fund instruments. SIP investment has the key advantage of helping you, especially if you are a small and risk-averse investor, to grow your wealth into a corpus by investing small sums of money. What some investors may not know is that this kind of versatile investment includes different kinds of plans that can match investment goals, aiding you in fulfilling your financial objectives faster. This article sheds light on different SIPs, their working, and resulting unique perks for investors.
Learn How to Invest in SIP With Our Extensive Guide
24 December 2024 | 8 mins read
Besides considering financial investment instruments matching investors’ future goals, investors have an array of choices in investment methods. A SIP or a Systematic Investment Plan takes pride of place in the Indian investor’s mind as an effective and low-risk investment scheme. Here, investors can invest over a period with systematic payouts delivered on a frequent and fixed basis (say every month, or quarter). These payments continue till the plan is invested in and offer a lucrative income source. Furthermore, investors use a SIP calculator to decide the amounts they wish to invest as per their needs. The key advantage of a SIP investment is that wealth is built via regular investment as well as the effect of compounding. Learn all about a SIP here and find a systematic hassle-free way to build a corpus!
What are Direct Mutual Funds?
24 December 2024 | 7 mins read
In the domain of mutual fund investment, direct mutual funds may be potentially smart ways to invest as investors seek cost savings. However, there are some considerations about direct mutual funds that investors should be aware of and this article dives deep into the topic to aid investors in making informed and intelligent investment decisions.
Dividend Yield Funds: Meaning and Benefits
24 December 2024 | 8 mins read
Investors look to dividend yield stock to invest in as this potentially generates capital appreciation and is a source of regular dividend payouts. Dividend payouts act as an income source. Dividend yield mutual funds can also generate dividend payouts besides giving investors income from the mutual fund investment itself. If you are an investor who wishes to make the most of dividend yield mutual funds that invest in the stock of companies with solid track records of delivering consistent dividends, this article explains the meaning of dividend yield funds and their advantages.
What is Folio Number in Mutual Funds & How to Find it?
24 December 2024 | 7 mins read
There are no two ways about it that the mutual fund industry in India is growing by leaps and bounds as different kinds of funds cater to all types of investment needs. With an increase in investor awareness about mutual funds, the growth shown by this industry is likely to surpass that achieved so far. Therefore, it goes to say investors must learn all the salient points about their mutual fund investment such as how they can check mutual funds status, keep track of fund balances and other factors that monitor performance, etc. For doing all this seamlessly, mutual fund investors need a folio number as a unique identification number. This is not a magic number but it plays a crucial role in your mutual fund investment decisions by checking your mutual fund status regularly. We are going to reveal what the folio number is all about here, and how to keep track of your fund with this very important identifier.