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Short term funds, also known as short duration funds, are debt mutual fund schemes which invest in debt and money market instruments such that the Macaulay Duration of the scheme is 1 to 3 years. Macaulay duration is the weighted average of the period the investor should remain invested in the security in...

Target maturity funds are open ended passive debt mutual fund schemes, which track an underlying bond index and have defined maturity dates. You will get the principal along with accrued interest on maturity of the fund. Target maturity funds (TMFs) can be in the form of Exchange Traded Funds (ETFs) or Index Fund. You need demat and trading...

2022 was a tumultuous year for global markets. We started the year with concerns regarding the highly infectious COVID variant, Omicron. As we ended 2022, COVID has reared its head again in China with a surge of cases. In 2022, we saw the first conventional war in Europe since World War 2. Russia invaded Ukraine in 2022...

Quant funds are thematic equity mutual fund schemes which use quantitative investment strategies. Stock selection of quant funds are based on mathematical models. The fund managers of quant schemes are responsible for developing and reviewing the mathematical models on a periodic basis, and make updates to...

Many investors have substantial amounts lying idle in their savings bank accounts. Interest on savings bank balance is currently around 2.7 – 3%. Savings bank interest is taxable under the head “Income from other sources”. You can avail deduction of up to Rs 10,000 under Section 80TTA. Thereafter, the interest will be...

Flexicap funds are diversified equity mutual fund schemes which invest across market cap segments i.e. large cap, midcaps and small caps. SEBI does not have segment wise limits for flexicap funds. The fund manager can have any allocation to large, mid and small caps, according to his / her market outlook...

Conservative hybrid funds are hybrid mutual fund schemes which invest primarily in debt and money market instruments and also in equity and equity related securities. As per SEBI’s mandate, conservative hybrid funds must invest 75 – 90% of their assets in debt and money market instruments. They also invest 10 – 25%...

Market capitalization or market cap is defined as the current market price of a stock times the number of shares outstanding. The market cap of a stock is one of the best measures of a publicly traded company’s size. Companies with larger market caps are usually larger in size compared to a company with smaller market...

There is relatively less awareness of this debt mutual fund category. Constant duration funds invest in Government bonds and maintain a constant duration of their portfolio of bonds. A debt fund with constant duration of 10 years will maintain the 10 year duration irrespective of interest rate cycles. Before we delve...

Quantitative investing or quant is a rule based investment strategy that uses mathematical and statistical techniques to make investment decisions. Since quant investments are based on computer algorithms, there is very limited human intervention in quant investing. Quant funds are thematic equity mutual...