Diversification refers to building a portfolio with multiple assets to reduce the risk associated with a single asset. For example, a diversified equity fund invests in a portfolio of stocks across different industry sectors and market capitalization segments. Diversification can also mean investments across different asset classes...Read More

SBI Funds Management Ltd is a subsidiary of the State Bank of India. Just as its parent bank, this is the largest asset management company in India. Though it has many funds across categories that are doing well, herein let us explore the SBI Arbitrage Opportunities Fund. The fund was launched on 03-Nov-2006. The...Read More

Arbitrage funds are hybrid mutual fund schemes which aim to generate arbitrage profits by exploiting price differences of the same underlying assets in different capital market segments. These funds can also invest in debt and money market instruments. As per SEBI’s directive, arbitrage funds must invest at least 65% of their assets...Read More

Systematic Investment Plan or SIP is one of the most popular ways of investing in mutual funds in India. More than Rs 10,000 crores gets invested through SIPs every month for the last few years. In FY 2022-23, Rs 1.56 lakh crores were invested in equity mutual funds through SIPs (source: AMFI, as on...Read More

Balanced advantage funds, also known as dynamic asset allocation funds, are a type of hybrid mutual funds which invests in debt, equity and arbitrage strategies. The asset allocation of these funds is managed dynamically based on an asset allocation model that changes asset allocation depending on market conditions. SEBI has not...Read More

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...Read More

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%...Read More

Savings is the money left in your bank account after all your regular and discretionary expenses. Your regular living expenses include food, rent / EMI, utilities (electricity, phone, broadband etc), fuel, school fees for children etc. Your discretionary spending may include restaurants bills, movie tickets, clothes, appliances, gadgets...Read More

Indian retail investors have traditionally favoured fixed interest products over market linked products even though our financial industry has evolved a lot over the past 25 – 30 years. As per RBI Bulletin on Financial Assets and Liabilities of Households (September 2021), bank deposits comprise 53% of household financial assets...Read More

After a dream bull rally which saw the stock market climb to all time high, the market has turned volatile in the last one month. The Nifty has given up nearly 1,400 points, falling 8% in the last month or so. The broader market has also been volatile with midcaps falling 8% in the last month or so. Fears of new Coronavirus mutation and rising...Read More