FinanceIndia

Mutual funds India are available in a variety of options in the market, and they are classified based on liquidity or asset class of investment. Investors need to make a wise decision from this range of options, based on the purpose they wish to fulfil, their risk capacity, investment tenure, etc. Different investors have different kinds of goals when they choose a mutual fund and if the purpose is to save taxes, while creating wealth, keep reading this article for more. It is always advisable that one should think of ways to save taxes, not evade them. One of the best ways to do so is invest in ELSS or equity linked savings scheme. You may ask ‘what are these funds? Let us discuss further in order to have a clearer picture. ELSS funds are open-ended equity mutual fund schemes that invests primarily in equities as well as equity-oriented securities. They are a prominent category among mutual funds that qualify for tax deductions under Section 80C of the Income Tax Act, ...

Lump sum investment, also referred to as one time investment, is investing your entire amount in one go. It is the simplest form of investments. Though Systematic Investment Plans (SIPs) have gained a lot of popularity in India, lump sum investments remain one of the most popular forms of investments. In this article, we will discuss about mutual fund lump sum investments and how to calculate its returns using the lumpsum calculator . When do you invest in lump sum? There are many instances when you prefer to invest in lump sum:- The most important requirement for investing in lump sum is availability of sufficient investible funds. If you have an investible corpus, you may prefer to invest in lump sum Salaried investors usually get their annual bonus once in a year. Since it is a relatively large sum, you may want to invest a portion of it or all of it, in lump sum. From time to time, you may receive windfall cash-flows e.g. maturity proceed of fixed deposits, recurring depo...

Mutual fund is a way of investing one’s savings into funds that goes into various assets and categories, depending on the choice made by the investor. It is an investment vehicle, which is professionally managed and offer risk diversification. Mutual Fund schemes are a good investment option for the common man as they are accessible, affordable and can be started with a small amount.   There are various types of mutual fund schemes available - Equity Funds, debt funds and hybrid funds. The confusion in choice, generally lies in the type of equity or debt fund to be selected, the time period of investment and the goal which one is working towards. All these questions are rather pieces of the same puzzle which need to be selected carefully, after research, in order to give you the perfect picture. The major reason why people invest in mutual funds is to create wealth. However, investor should avoid some common investing mistakes as given below - Ignoring one’s risk profile - On...

 A systematic investment plan enables an investor to invest regularly a fixed sum of money at regular intervals, like monthly, weekly or even daily, in a scheme of his/her choice. The money collected via systematic investment plan is in turn invested in equities or debt instruments by the fund manager depending upon the scheme mandate. SIP mutual fund helps us build long term wealth through the benefit of power of compounding and rupee cost averaging. Investing in SIPs is easy and convenient for investors as they can invest online with a few clicks and with the help of a single mandate, the chosen SIP amount is deducted per month/ or the frequency chosen from the investor’s bank account. You must have heard that SIP investing is for the long term which helps to reach financial goals. While there is no denying the above fact, the reality is that simply investing in mutual funds for long term via SIP may not help you achieve these goals. Then what will help you achieve your fut...

Investors are constantly in the lookout for opportunities or schemes that can help to grow wealth, save taxes, generate returns, and plan their finances in a better way. There are various similar schemes available in the market but most of their returns are taxable according to the Income Tax rules. Keeping the fact in mind that investors should look at saving taxes and not avoiding them, this is where ELSS funds or tax savings funds steps in. Through ELSS funds you can get tax benefits under Section 80C. They have the shortest lock – in period of 3 years, as compared to other tax saving instruments. You should know that when you invest in schemes like PPF, bank tax savings FD and ELSS etc. you can claim up to Rs. 150,000 in a financial year as deduction from your gross total income under the Income Tax Act 1961. The table below will explain how this works: (Illustration of Tax exemption for an individual less than 60 years in receipt of salary income for the financial year 2021...

 The automatic choice when investors want regular cash flow from their investments, the natural choice for majority is post office monthly income scheme or bank term deposits. However, due to declining interest rates of conventional investments, SWP in mutual fund is emerging as a popular choice amongst investors. Also known as systematic withdrawal plan, it is a good investment option for investors needing regular cash flow from their mutual fund investments. The reasons are following – SWP in mutual fund gives regular cash-flows to MF investors till such investors have sufficient unit balance in their account. As returns are not assured in mutual funds, investors can decide how much they want as cash flow and at what frequency. The frequency can be monthly, quarterly or annually. If the withdrawals from systematic withdrawal plan is reasonable, investors can also expect capital appreciation over and above the regular cash flow. Usually, the returns from mutual funds is hig...

What is SIP? Mutual Funds India offer a variety of choices to investors, in terms of the kind of fund to invest in, such as debt or equity etc. They also offer a choice in terms of how the investor wants to invest - SIP or Lumpsum. While both are popular methods of undertaking Mutual Fund investments, an investor can choose one or both methods based on their need and convenience. In case of the SIP investment, the investor has to make periodic investments, based on the chosen frequency, such as daily, monthly, quarterly or yearly. They have to pump in money on the chosen SIP date, for the investment tenure and allow the amount to grow into a substantial corpus over a period of time.   How it works? SIP mutual funds brings discipline in investing by making sure the investor invests small but regular amounts in the chosen scheme, over time. On choosing a frequency and date, the money automatically gets debited from the investor’s bank account. But, in case, there is insufficie...