Learning Hub
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Market & MF Snapshot - FY2020-21
The year gone by – FY21 has been nothing short of a roller coaster ride for Indian equities, which rebounded after the market crash late March 2020 on fears over the economic impact of the Covid-19 pandemic. The year was a painful disaster for humanity but beneficial for global stock markets.
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Concept Clarifier: Arbitrage Funds
Arbitrage is the process of buying stocks or shares in one market and selling it in another to exploit the price difference. An Arbitrage fund is a type of hybrid fund which aims to capitalise on profitable arbitrage opportunities (price differential in a stock) between cash and derivatives segments of the equity market. Thus opportunity lies in generating a good return between these differences.
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Women's Day 2021: Questions to ask before signing
Don’t just sign here. ASK a few questions before signing to make a financial decision
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What Successful Women Have To Say!
Women’s’ growing popularity – as entrepreneurs, world leaders, consumers and executives is changing the way companies do business, the way businesses advertise and the way we communicate, spurring a paradigm shift in the overall perception.
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Understanding Mutual Fund Riskometer
Investment decisions are usually based on an investor’s risk appetite. To help investors be aware of the risks associated with Mutual fund investments, SEBI has made it mandatory for all fund houses to display a riskometer depicting levels of risk.
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Duration vs Accrual: Which is the ideal strategy?
Debt fund managers primarily use two strategies to generate gains. Understanding how the strategies work makes it easier for investors to appreciate the risk-return tradeoff of investing in debt funds.
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Concept Clarifier - Flexicap Funds
The market regulator, SEBI had vide it circular dated November 6, 2020, introduced a new category of equity mutual fund scheme called ‘Flexicap Fund’. These are open-ended dynamic equity schemes investing across large-cap, mid-cap and small-cap stocks.
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Should you invest in equities now?
Every time the stock market reaches an all-time high, many investors decide to defer investment in equities or look to redeem existing investments with an anticipation that they will be able to invest at a lower market level. A lot of this belief stems from the fact that conventional wisdom espouses the investment tenets of buy low and sell high. While it is natural for investors to think in this manner, it may not always be a wise decision to stay away from equities during market peaks as the absolute stock market level is often less relevant and the key is valuations. In other words - the current level of market may not denote the true value of companies forming the market.
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Basic terms first time mutual fund investors need to know
If you are a first time investor and interested in investing in mutual funds, here are some terms you need to understand.
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Understanding the magic of compounding
Napoleon Hill, author of bestseller ‘Think and Grow Rich’ is often credited as saying that ‘Make your money work so hard for you; so that you do not have to work for it.’ Various books have been written on the art and science of making money based on more or less the same principle.
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All about Dynamic Asset Allocation Fund
While making investments, investors' do keep certain aspects in mind - how to grow the capital and second is how to protect the capital. There are plenty of investment options available in the markets that can cater to an investor’s requirement of capital protection and growth. Each investment option has a different level of risk and return potential.
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Start early, retire rich
Right from childhood, we have heard our parents talk about doing things post retirement. We’ve heard them talk about travelling abroad for that one exclusive holiday or taking up gardening or doing something different after retirement. Once we started working, many options started throwing up in our own retirement plan.
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SIP or lump sum or combination of both
Should I invest a lump sum in Mutual Fund or should I go the Systematic Investment Plan (SIP) route? is a dilemma faced by most investors. When you invest a lump sum, you are instantly hostage to market timing. The investment will work only if you can time your buys at all market lows and sell your investments when the market peaks. In theory, all this sounds very appealing and, worse still, doable. In reality, it is quite the opposite. Generally, investors flock to the market when it is on a roll and head for the exit when it begins to slide.
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What the portfolio turnover ratio means to investors
Mutual funds invest in stocks like regular investors. They buy and sell stocks resulting in portfolio churn. What is the ideal portfolio churn? How should investors interpret it?
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Why one should not chase short term performance
There is a tendency among certain investors to keep checking the value of their investments. Has the stock price moved up or down? What was the closing value of the market index today? What was the NAV of the fund? Many feel that they need to be on top of the news so that they can manage their investments better.
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A comparison between Cricket and Investing
While watching Cricket, have we ever noticed that there are many similarities which exist between Cricket & Investing? The most important amongst them being strategy and a long term view. In a quick- paced format like of 20 overs, strategy is key along with careful planning and patience. Here are the ways you could get the best from your investments just like the matches and play a strong innings.
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Build your kids' monetary skills
Every parent wants to spend quality time with their kids. However, due to busy work busy work and life responsibilities they are not able to spend as much time with their children which lead to developmental delays. The present lockdown has given opportunity enabled many companies to work from home, thus giving enough opportunities on spending meaningful time with their kids and bond with them.
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Average Maturity and Modified Duration
While investing in fixed income funds, one of the key parameters to consider is the interest rate risk associated with the portfolio of the fund which can be quantified using measures such as average maturity and modified duration of a portfolio.
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Investing for a secure future
In today's world, financial security for individuals of any age is an absolute must. It is likely that at different points in your life you would have sole or partial responsibility to make financial decisions that have the potential to impact your future standard of living later in life. So whether you are single, married or divorced or run a business, a job or have kids, it is important to invest for a secure future.
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Determining risk profile of an investor
Before you consider investing in any financial instrument, you must know how much risk you’re ready to take. Investing in the financial market carries some inherent risk – which can be classified under systematic and unsystematic risk.
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Importance of a Financial Advisor
Let’s look at the role of a financial advisor like the role of a fitness coach. We all understand the importance of being fit and healthy, but we often fall out of our regime due to lack of discipline, paucity of time and unawareness of what to do next. This is where the role of a coach comes in. A coach’s role is to ensure you tirelessly work towards your goal. He keeps an eye on your workout regime, regulates your diet and carefully monitors your progress.
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Why investing is necessary?
Investment is to your money what working out is to your body – both ensure fitness, discipline and endurance in the long term. Investment basically means setting aside a sum of money for devoting into a financial instrument, so that after certain period of time, the money will earn you an interest and grow.
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Investing through MF during market volatility
“Stock market is a place to get rich slowly” – someone has very well said. This statement very well captures the nature of stock markets. It is possible to get rich through investing in stocks. However, expecting that to happen in short periods, is unrealistic.
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Give your money the equity boost
With each passing year, the commodity prices will keep rising, subsequently raising the cost of living. If your household expenses are Rs 50,000 per month right now, 10 years down the line, just to maintain a similar lifestyle, you will need about Rs 90,000.
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Decoding Indian debt market
The Indian debt market, one of the largest in Asia, is developing rapidly buoyed by a multitude of factors including new instruments, increased liquidity, deregulation of interest rates and improved settlement systems.
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5 simple steps to retirement planning
The younger the generation, the faster they aim to retire from the everyday life of a salaried employee and enjoy the luxuries of a retired man.
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Investing in your child’s future
The arrival of a child brings a lot of happiness and responsibilities at the same time. In fact, as soon as a child is born, parents start worrying about the future.
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Importance of nomination
Every time you fill up a form for an investment, whether it’s a Fixed Deposit or Insurance, Shares or a Mutual Fund or even if you’re opening a new bank account, there will be a separate section that will ask you to mention a ‘Nominee’.
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Benefits of SIP top-up
Investing in mutual funds through Systematic Investment Plan (SIP) is an effective wealth building tool by contributing a fixed amount every month.
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Understanding asset allocation
People investing in mutual funds or other financial instruments these days, often come across a term called Asset Allocation thrown at them, time and again, without necessarily understanding the true essence of the term.
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5 easy steps to get started
One of the biggest drawbacks today is the lack of awareness. We often follow what is blindly told to us, either by our parents, friends or financial advisor.