SIP your way to wealth with stocks

SIP your way to wealth with stocks

Identify a few long-term growth stocks and invest small amounts in these each month to create wealth Systematic investment plans (SIPs) of mutual fund houses are currently the flavor of the season. According to fund managers, retail (small) investors have entered equity funds largely via the SIP route in the past two years. This new, and possibly savvier, generation of investors is not making one-off bets on equities when the markets are at or near their peak. They are focused on long-term wealth creation and don’t stop their SIPs even…

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Mutual funds purchase on mobile wallets – SEBI’s new Idea to boost it’s investment

Mutual funds purchase on mobile wallets – SEBI’s new Idea to boost it’s investment

Mutual Funds purchase to become a breeze through mobile wallets NEW DELHI: With the number of smartphone users in the country increasing every day, electronic payment applications or mobile wallets are creating the next wave of change in the way people make payments. Capital market regulator Securities and Exchange Board of India (Sebi) is planning to cash in on this opportunity and has initiated efforts to broaden investor participation in the equity markets. The capital markets regulator is mulling allowing purchase of mutual funds units using digital wallets or e-wallets.  …

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What you need to do to save enough for your Child’s Education?

What you need to do to save enough for your Child’s Education?

Best Investment Instruments & Strategies for Saving for a Child’s Education Providing the best education to their children is every parent’s dream and one of the biggest goals. But are you saving enough or investing in the right instrument to achieve this goal? From child plans offered by insurance companies to the Sukanya Samriddhi scheme for girl child, there are a plethora of investments in the market. So which option to choose and how much to invest are the most critical questions. First, you need to set a target. It…

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Gold prices rise: Equity gold mine MFs soar 100% this year

Gold prices rise: Equity gold mine MFs soar 100% this year

Gold Rates piggyback Equity Gold Mine MFs to soar 100% this year Can you guess which is the best performing asset in the last one year and so far in 2016? If by the sky high gold rates you think it is gold, you are slightly off the mark. The answer is equity mutual funds (MFs) that invest in global funds which, in turn, own shares in gold mining companies. These `feeder funds’ have surged over 100% so far in 2016 and gained in excess of 80% in the last…

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Invested in equities: Retail investors have to be patient

Invested in equities: Retail investors have to be patient

Every fund manager and financial planner has a single piece of advice for retail investors : Stay invested in equities for the long term. And, whether it is retirement corpus, children’s education or any other long-term goal, the same advice is given out. How long is long-term? When returns over five years or eight years are bad, investment planners are quick to say the tenure should be longer. At the very outset, let’s set the record straight. Equity investments are fruitful over the very long 20-year term. According to data…

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Why costly funds can deliver more

Why costly funds can deliver more

A study of funds with a higher expense ratio reveals that some of these funds’ returns over a three and five-year period are among the best. The expense ratio charged by mutual funds is once again under the spotlight. The market regulator, SEBI, is considering lowering the ceiling for the total expense ratio (TER) from the current 2.5% for equity funds. The TER for many schemes is as high as 300 basis points or 3% of the assets under management (AUM). One way to avoid paying such a high cost…

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First Salary – Pay, Perks and Provident Fund

First Salary – Pay, Perks and Provident Fund

Just like every other year the work-force will have new entrants this year too. The first salary is sacred and sentimental to many and marks the beginning of adult life. Graduates and Post Graduates from many educational institutions get placed in companies across India through the campus recruitment process which, for most parents and students is the ‘be all and end all’ of their education. For many it’s the placement or job guarantee offered seems to be the very purpose of education. Perspectives and opinions aside, most graduates entering the…

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Financial Planner – The what, when and how much of Financial Planning

Financial Planner – The what, when and how much of Financial Planning

Financial Planning can mean different things to different people. Some would say, “Save more and spend less”, a few would say “creating wealth which means buying property, gold etc., and some firmly believe  that financial planning is to have a secure and financially independent retired life. So here we go… All of it or some of it may or may not be right. That’s simply because financial planning is not one or all of the above. It is planning your finances well –enough to enjoy the full benefits of your…

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First Salary- A joy that lasts forever

First Salary- A joy that lasts forever

First salary! Undoubtedly as memorable as first love. And at this Multinational IT firm all the new campus recruits were excited and so was Sushil. The iPhone is definitely on the first salary spend list and so is a party with his friends. He also thought of a gift for his parents and sister and put down all that on the list and saw the figure exceed the salary. Smiling to himself, he thought, “let me get my hand on that iPhone first”. Well it’s all so natural and real today….

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Balanced fund vs Dynamic fund: How are they different from equity

Balanced fund vs Dynamic fund: How are they different from equity

Mutual fund investments come in various shapes and forms – ranging from the passive index funds to the actively managed funds. Two of the most popular mutual fund types are balanced funds and dynamic funds. Let us take a deeper look at what each one is and how they are different.   Balanced fund Balanced funds typically invest around 65 – 70 per cent of their corpus in equities and the remaining in invested in debt instruments. These funds are most often not actively managed, in the sense that there…

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