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Systematic Withdrawal Plan (SWP) is a mutual funds facility using which you can draw fixed amounts from your mutual fund investment at regular intervals (e.g. monthly, any other interval as specified by the AMC). SWP works by redeeming the required number of units at prevailing NAVs to meet your SWP cash-flows. The SWP will...

Investment cycles are inevitable in equity markets. Prices go up in bull markets, come down in bear markets and again go up; this cycle continues. You should sell equity (shift to other asset class) when market is high and buy equity (shift from other asset classes) when market is low. This idea is encapsulated in the age-old...

15th August is a day of pride for all Indians. On this day in 1947 we gained our much cherished independence from colonial rule. Fruits of freedom are sweet but it requires hard work and sacrifices. India's independence came after a very long period of struggle and sacrifice by several generations of Indians. In this blog post, will...

Multi asset allocation is diversifying your invests across at least three asset classes e.g. equity, fixed income, gold, REITs, InvITs etc. Multi asset funds are hybrid mutual fund schemes which invest in at least three asset classes primarily equity, fixed income and gold. Different asset classes have different risk / return...

Asset classes refer to categories of investments that have the same fundamental characteristics. The four common asset classes are equity, debt, gold and real estate. Equity and debt are financial assets. Gold and real estate can be in form of physical assets (e.g. gold jewellery, gold bars,residential or...

Many mutual fund investors may have come across a new term IDCW over the past couple of months. Many investors may have received emails from Asset Management Companies notifying about the change in terminology. Some investors may be aware what IDCW is, but there may be many investors who do not know what...

Dynamic Asset Allocation changes equity and debt allocations of the portfolio based on market conditions. Dynamic Asset Allocation models usually increase asset allocation to equity and reduce allocation to debt, if equity valuations fall. If equity valuations increase, then dynamic asset allocation models...

Flexicap funds are diversified equity mutual fund schemes which can invest across market cap segments. There are no upper or lower limits with respect to allocations to any market cap segment. The fund managers of these schemes can invest any percentage of their assets in any market cap segment viz. large cap, midcap and small...

Nippon India Focused Equity Fund has given 65% return in the last one year (as on 19th July 2021); it has been one of the best performing focused equity funds. The scheme underperformed in 2018 and 2019, but has come back strongly in the last 2 years. The long term track record of the scheme is also very...

Consistency is one of the most important attributes of fund performance. Many mutual fund schemes can deliver good performance i.e. beat market returns in certain market conditions but they may not be able to outperform in certain market conditions. For example, a high beta stock can deliver high returns in bull markets but see...