Finance Forum India

Mutual funds are investments which pool savings from a number of investors under a particular scheme managed by an asset management company (AMC). The pooled money from Mutual Funds is then invested in securities like equity shares, bonds according to the scheme. The fund manager manages the investment portfolio as per the market situations in order to create wealth for investors. The company charges an annual fee called expense ratio from the investors to manage their portfolio. The Mutual Fund investors usually make money by way of regular dividends/interest and capital appreciation. The investor can even decide whether to reinvest the...

Mutual funds are probably the safest investment choice for the newer and even the most experienced investors. A mutual fund is managed by an expert fund manager who maintains and invests all the money in the fund on behalf of the investors. The most important part to know about mutual fund Investments is that they are diversified. It means that the fund manager does not invest the money in just stocks or in any one investment instrument. The fund money is invested in multiple securities, ranging from the safest ones to the most profitable ones. This way, your investments in a...

Opting for mutual funds (MFs) gives you the opportunity to invest in the capital markets while reducing your risks. However, you may want to know whether investing a lump sum or opting for a systematic investment plan (SIP) is a better option. If you are a disciplined investor, both these options are advantageous. When you invest your capital as a lump sum, you are able to build wealth over a longer period of time. The power of compounding gives you the opportunity to enjoy capital growth in the long-term. On the other hand, SIPs provide averaging cost opportunities. Under such options,...

The main purpose of the investment is to earn good returns and create wealth over a period. With numerous investment vehicles available in the market, it often becomes difficult to make the right choice. One of the most common and popular avenue for investment in Indian markets is a Systematic Investment Plan (SIP). You may buy shares in a similar manner by using a service known as equity systematic plan. Through such a vehicle, you may buy gold exchange-traded funds, index exchange-traded funds, and shares through a regular interval of time. Based on your choice, you may opt to invest at...

Your children have a better opportunity to seek higher education in several foreign and domestic universities. Parents must start saving for their children’s education early to ensure they have the required corpus to meet the expenses. However, saving for your children’s education must not mean ignoring other goals, such as your retirement. You must differentiate between short-term and long-term goals. An important long-term goal is retirement and you must never compromise on saving for it. This is because any shortfall towards paying for your children’s education may be funded through a loan. However, any shortfall in your retirement corpus is not...