Mutual funds offer varying levels of returns depending upon the risk level. You can start investing in very low amounts. Here’s all you need to know about MFs.
Every mutual fund offers a direct plan and regular plan to investors. Both the plans are identical, but the major difference is returns offered by them. Mutual fund advisors have taken a subscription from several mutual fund (MF) companies such as HDFC mutual fund, SBI mutual fund, etc.
The mutual fund portfolio should be carefully designed keeping in mind your financial objective, investment horizon, and risk appetite. Whether it is a short-term or long-term goal, there are several mutual funds to cater to your investment needs. As selecting a mutual fund is a unilateral decision, you can refer to the past performance of a mutual fund, however, your portfolio should completely focus on the financial goal.
ELSS and ULIP offer tax advantages under Sec 80C of the income tax Act. Both the investments serve different purposes, thus the investment perspective should be kept in mind while investing. ULIP is a mix of investment and life insurance, while ELSS is an equity-oriented fund and gives more returns than the traditional savings schemes such as fixed deposit, recurring deposit, etc.
A common worry for the first-time investors is the complex process for redeeming the units of a mutual fund. While liquid or low duration fund are redeemed within one working day, equity funds might take 2-3 business working days for redemption.
Liquid funds are schemes that invest in financial instruments such as bank deposits, treasury bills, commercial paper, and other securities that mature in 90 days.
As investors find it difficult to choose the right mutual fund, we have laid important factors to make it easy for you to select the right mutual fund.
The stock market is unpredictable and investors feel a sense of complexity and uncertainty while investing in mutual funds. Although many investors are aware of the mutual funds and the type of mutual funds they are investing in via SIP route, they are still unaware of the timing of the market.
Index funds are popular in developed markets such as the US and UK as compared to emerging countries like India. Due to re-categorization in mutual funds schemes, investors have made a gradual shift from the active mutual funds to less-known index funds.