One question which we often see in Quora and other social media platforms is, “In what proportion should I invest in large cap, midcap and small cap funds”. Your financial advisor may have recommended a mix of large cap, multicap, midcap and small cap funds, but you should try to understand the basis of...

Mutual fund systematic investment plan (SIP) is a very popular investment vehicle among retail investors in India. As per AMFI data (February 2021), there are nearly 3.63 crore SIP accounts in India. Nearly 1.25 crore new accounts were added till February 2021 in FY 2020-21 (source: AMFI). Till February year to date (FY 2020-21), total SIP...

The year 2020 was one of the most volatile years for capital market in recent years. With outbreak of COVID-19 pandemic threatening to overwhelm healthcare infrastructure, the stock market saw one of its worst crashes in the month, with the Nifty falling more than 20%. The ensuing lock-down resulted in one of the worst economic...

Several important tax changes were announced in Union Budget of 2020. Taxation is an important consideration in financial planning from various tax savings options to tax consequences of your investments. Investors should note that several important changes were announced in the Budget which may have an impact on your income...

Dividend paying mutual funds hold allure for many investors, especially those who want regular cash-flows from their investments. Though many mutual fund schemes have excellent dividend pay-out track records, it is important for investors to understand that mutual fund dividends are not guaranteed. Mutual fund dividends are...

Passive investing i.e. investing through ETFs or index funds is very popular in the developed economies. Passive mutual fundswere launched in the 1970s, but their popularity soared globally after the Global Financial Crisis of 2008. As on March 2020, global assets under management (AUM) in passive mutual funds crossed...

Many investors still think of mutual funds as a way of investing in equities. As per AMFI, nearly 70% of retail and HNI assets were invested in equity funds in August 2020. However, mutual funds offer investment solution for a variety of investment needs for investors in all age groups. You can invest in mutual funds to park money for...

The last one month has been very difficult for stock market due to the spread of Coronavirus pandemic around the world. The Nifty fell from 11,700 levels to around 7,600 (on 23^rd March) – a 35% fall. Since then Nifty has recovered some 1,000 points over the next 3 daysafter the US Government announced $2 trillion stimulus. On 26^th...

For the last 20 years (except for a brief period in FY 2003) dividends were tax free in the hands of the investors, but the company paying dividends had to pay dividend distribution tax (DDT) before giving dividends to investors. In the 2020 Budget, the Finance Minister abolished DDT and moved back to the classical system of taxing...

Tax planning is an important financial objective any person has. Tax planning starts when a person starts working and continues almost throughout one’s life, even after retirement. We have observed that, people often fail to look at tax planning objectively and start making investments related to tax saving in a very mechanical way. Tax...