Gold has long been considered an investment that one should keep in their portfolio. But holding physical gold comes with challenges like storage and security. That's where gold funds step in, offering a modern way to invest in gold. But what happens behind the scenes when you invest
Asset allocation is a key principle in investing, and gold has been considered as a crucial asset class for diversification for a long time. Gold has historically exhibited a low correlation to stocks, meaning it can provide a hedge against market volatility. But a question that often arises is, how
What is a Gold ETF? Gold ETFs are passively managed and aim to generate returns that closely track the domestic price of physical gold. Investors can get exposure to physical gold without dealing with the challenges of physically holding or securing it. Gold ETFs invest in physical gold, offering investors
The number of new investor folios coming from smaller cities has been rising on a monthly basis. As per AMFI Mutual Fund Industry data, the mutual fund industry has added 2.3 Cr investor folios from Apr till Aug 2024 out of which more than 50% of them come from
The landscape of mutual fund investing in India is continually evolving, potentially making it more accessible than ever before. Mutual Funds in India currently have more than [1]9.5 Cr SIP accounts, enabling investors to contribute to a variety of schemes. Over the years, mutual funds have played a
What are Passive Funds? It is a type of Investment Strategy in mutual funds that aims to mirror the performance of their underlying benchmark index, such as the Sensex or the Nifty. These funds invest in underlying instruments of the index they track and have fund managers to make sure
Systematic Investment Plan (SIP) is a convenient and a great way to get started with investing in mutual funds. Setting up an SIP offers an opportunity for investors to adopt a disciplined approach to investing. Steady rise in SIP Accounts and Monthly SIP Contributions: There is a healthy trend of
What is a Fund of Fund (FoF)? What does it mean? A fund of funds (FoF) scheme is a mutual fund scheme that invests primarily in other schemes offered by the same mutual fund house or another mutual fund house. It is an investment strategy of holding a portfolio of
The total number of retail Index Fund folios has grown by around 12X in less than 4 years. Investors may be choosing Index Funds for their numerous benefits such as Broad Market Exposure, Diversification, and potential for long term growth. Please find the detailed breakdown below👇 Growth in the total
What is a Nomination? Nomination is the process of designating a person to receive the benefits of an asset or account upon the death of the original owner. This is an important legal step that ensures the smooth transfer of assets to the intended beneficiaries. In the context of financial
Mutual fund Schemes offer two different options, and it's important to understand the differences between them before investing. One such option is the IDCW (Income Distribution cum Capital Withdrawal) option, and the other is the growth option. Difference between Growth and IDCW Option in Mutual Funds The key
What are Liquid Funds? Liquid Funds are funds whose investment is into debt and money market securities with a maturity of up to 91 days only. Where will your money be invested through liquid funds? Liquid Funds primarily invest in highly liquid money market instruments and short-term debt securities, ensuring
The Finance Minister presented the Union Budget 2024 on July 23 2024. Here are a few key highlights and updates from the Budget. Budget Theme: This budget focuses particularly on employment, skilling, MSMEs, and the middle class. This year a provision is made of ₹1.48 lakh crore for education,
Who is a RTA The full form of RTA is Registrar and Transfer Agent. RTAs are entities registered with the Securities and Exchange Board of India (SEBI). Every asset management company (AMC) is required to appoint a registrar and transfer agent (RTA), unless they have an in-house RTA. RTAs specialize
Many individuals may find it difficult to successfully track their Mutual Fund investments especially if you have invested in schemes of various mutual funds through diverse platforms. Here are three different ways in which you can track your mutual fund investments: 1. Direct Mutual Fund (MF) Investment Platforms: These are
Gold represents a versatile investment proposition due to its dual nature as both a consumer good and an investment asset. This dual role allows it to provide effective diversification during times of financial turmoil while also benefiting from growth in jewellery and technology demand during periods of economic growth. Brief
There are many different investment avenues available to investors. Mutual funds are one of them that may offer good investment opportunities. These are a type of financial instrument made up of a pool of money collected from many investors. They then invest in securities such as shares, bonds, money market
Over the past few years, Exchange Traded Funds (ETFs) seem to have been adopted by many Indian investors since they provide exposure to broad segments and sub-segments of Indian markets. ETFs are the funds that trade on exchanges, generally tracking a specific index. ETFs provide investors with exposure to broad
Large cap, mid cap, and small caps are categories used to classify companies based on their market capitalization. Market capitalization (market cap) can be defined as the total value of a company's outstanding shares, calculated by multiplying the number of outstanding shares by the current market price of
An Exchange Traded Fund, popularly known as an ETF is a passively managed investment. Unlike traditional mutual funds, ETFs are traded on stock exchanges like other stocks. This means that their price fluctuates throughout the trading day as they are bought and sold. What are Exchange Traded Funds (ETFs)? An
Mutual funds may be considered as a mechanism to take exposure to the stock market. It offers an opportunity to invest in a diversified, professionally managed basket of securities. In this article, we will break down two of the commonly known categories of mutual funds - equity and debt funds.
The full form of TREPS is Tri-Party Repo Dealing System which means a repo contract where a third entity (apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to facilitate services like collateral selection, payment and settlement, custody and management during
Index funds and Exchange Traded Funds (ETFs) are few of the schemes for passive investments. Both these schemes invest a minimum 95% investment in securities of an underlying index as prescribed by SEBI. Although both of these funds are passive, there are distinct differences. Let’s understand the characteristics of
Asset Allocation Asset allocation can be defined as a process of investing in a range of assets or investments in order to diversify and reduce the risk of the overall portfolio. Hence an investor may try to balance risk versus return by using a combination of different asset categories keeping
What is Total Expense Ratio (TER) in Mutual Funds Total Expense Ratio in Mutual Funds is the measure of the total cost of investing in a mutual fund to the investor. It can also be defined as the total fees charged by the asset management company (AMC) for operating and
What are Index Mutual Funds? Index Funds are investment funds that follow a benchmark index. They aim to mirror the overall performance of the underlying index. When an investor puts money in the index fund, the said amount will be then invested in all the companies that make a particular
What is XIRR in Mutual Funds? XIRR, also known as Extended Internal Rate of Return, is an essential tool for figuring out how well your investments are doing, especially when money is deposited and withdrawn at different intervals. XIRR may be a complex term that helps you calculate the annualized
Understanding the Concept of Entry and Exit Load in Mutual Funds Asset Management Companies may collect a charge from investors when they enter or exit a mutual fund scheme. That is, each time one buys or sells units in the mutual fund, a charge will be payable and this charge
One of the top queries1 of the investors is around the date and the frequency of doing SIP investments. Many investors believe that a particular day of the month, or a particular frequency can help them optimize their investment returns. But is it really the case? Let's dive
Gold - viewed as a valuable commodity has played an important role in portfolio diversification. Let’s look at a few factors that affect gold prices. 💡Did you know? [1] More than 75% of the households agreed to be owning gold in some form or another 1. Central Bank Buying:
Net Asset Value (NAV) of a Mutual Fund: One of the most fundamental concepts to understand while investing in mutual funds is NAV which stands for Net Asset Value. This is the value assigned to every mutual fund unit that investors buy. Before we break down the concept of Net
What is SIP? The full form of SIP is Systematic Investment Plan. It is an investment option which provides a structured way to invest regularly in mutual funds by contributing a fixed amount monthly, quarterly, annually etc rather than making a one time investment (lump sum). Why are SIPs a
What is an AMC - Full Form (Asset Management Company) In the finance world, an Asset Management Company is a Securities and Exchange Board of India (SEBI) registered intermediary that is allowed to accept money from different investors and then allocates that to mutual fund products across different asset classes
What is a Benchmark Index A benchmark index is a reference point that helps you understand how the corresponding fund is performing. Let’s understand this concept in more detail and see how it can be used to measure fund performance. Benchmark in Mutual Funds When it comes to mutual