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Showing posts with label Mutual Fund. Show all posts
Showing posts with label Mutual Fund. Show all posts

Saturday, July 26, 2014

DIY (Do It Yourself) - Starting Direct Investment in Mutual Funds

Everything whatever we do first time look difficult and tedious and same is with mutual fund investment.
When I started investment in mutual fund I don’t know how to invest directly with AMC. So initially I started investment with distributor and after sometime I started direct investment.
This post is intended to people who has not done any mutual fund investment and want to invest directly through AMC.

Sunday, July 6, 2014

2008 Market Crash and People's Reaction

Currently Indian market is in bull phase and the new investors are happy by seeing the growth of their investments. They are hoping that the bull phase will continue forever. 
The idea of this post originated from the discussion about the actions people has taken during the 2008 market crash on Facebook Group “Asan Ideas for Wealth”. 
In 2008 market crash almost all fund’s NAV dropped significantly. People who are sitting on huge profits suddenly found that now they are sitting on losses. After seeing the market crashed some people stopped investment, some people redeemed their funds and some people continued with further investment.

Wednesday, June 11, 2014

Mutual Fund Basics Part 3 - General Terms


In this part I am going to explain the general terms which is used in mutual funds.

1. Fund Category

Funds category determines by the fund’s portfolio. Large Cap Fund :- Invests in large cap company stocks. Mid Cap Fund:- Invests in mid cap company stocks.

Monday, December 16, 2013

Mutual Fund Basics - Part II (Types of Mutual Funds)


In the First Part, I explained about what is mutual funds and their advantages and disadvantages. In this part I am going to explain the basic types of mutual funds. Mutual funds can be categories according to Maturity Period or Investment Objective.

Mutual Funds according to Maturity Period

Based on the maturity period mutual fund schemes can be categories into two types

 1. Open Ended Mutual Funds         
An open ended mutual fund is one that is available to purchase and repurchase continuously. Liquidity is the main feature of open ended mutual funds. There is no maturity date for open ended mutual funds. Investors can buy or sell unit at any time based on NAV which is declared on a daily basis.

Tuesday, December 3, 2013

Mutual Fund Basics - Part I

A mutual fund is a professionally managed investment scheme that pool money from many investors and invest in market securities. The companies which manage the funds are called AMC (Asset Management Company).




Profits and losses are shared by the investors by the proportion of their investment. AMC allocates units to the investors as per their investment. The value of unit varies daily basis based on the market.


Wednesday, August 7, 2013

9 Best Tax Saving Instruments

One should plan their tax saving investments at the beginning of the financial year. Do not wait for end of the financial year which can lead to wrong choice of instrument. I am listing here 9 tax saving instruments one can consider while doing tax planning.



1. Term Insurance Policy


Everyone who is having some liabilities or having dependent people should purchase a pure term insurance policy. I have used word purchase because it is a expense (and should be a mandatory expense) which provides cover to life. Life cover may differ from person to person depending on liabilities or dependent people. One can avail tax benefit under section 80C.
Please read "Term Insurance - Points To Remember Before Purchasing" blog post before purchasing the term Insuranse.