Most investors associate mutual funds mainly with equity investments. While equity as an asset class has an important role to play in your financial plan, fixed income or debt also has an equally important role. Traditionally fixed income investments have been associated with bank deposits, Government small savings...

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...

Mutual funds are market linked investments. The prices of the underlying securities e.g. stocks, bonds etc of a mutual fund scheme can go up or down depending on market movement. The Net Asset Value (NAV) of a scheme reflects the market value of the underlying securities. Accordingly, the NAV of a scheme can go up or down...

Net Asset Value or NAV is a very important term in the lexicon of mutual funds. NAV is the market value or price of one unit of a mutual fund scheme. It is the per unit price you pay or get when you are buying or selling (redeeming) mutual funds. You should know the correct NAVs of your mutual fund schemes when you are filing...

Corporate bonds are debt instruments issued by companies to the public. Corporate bonds have a fixed tenure i.e. they mature on a fixed date and they pay regular interest (also known as coupons) at regular intervals e.g. monthly, quarterly or yearly. Corporate bonds can either be secured i.e. backed by the company’s assets...

Flexicap fund is the one of the most popular categories of mutual funds in India. As per AMFI data, total assets under management (AUM) in flexicap funds, as on 29^th July 2022, was more than Rs 2.3 lakh crores, almost the same as the AUM in large cap funds. Though the term flexicap as a category name is relatively...

There is an old saying which says that, parents live out their dreams through their children. For parents, a good career for their child is one of life’s most important aspirations. Good education is an important factor in career success in the modern age. With rising prosperity, more and more parents want to provide...

Fixed income should be an important part of your asset allocation. Fixed income will provide stability to your investment portfolio and generate income even in difficult market conditions. Traditionally investors have preferred Bank Fixed Deposits and Government Small Savings Schemes for fixed income investments. However...

The last few months have been a rough ride for investors. Global equity markets have been highly volatile due to high inflation and the War in Ukraine. Indian equities have also seen large corrections due to FII selling. The broader market (midcaps and small caps) is down 10 – 12%, while Nifty 50 TRI is down 6% on...

There is growing awareness about asset allocation among financial advisors and experienced investors in India. The unexpected fallout of COVID-19 outbreak and the market crash in 2020 reinforced the importance of asset allocation to many investors. Financial advisors have been asking their clients to invest...