Posts tagged mutual fund
Investing in Mutual Funds – Dividend or Growth Option?
Apr 18th
In most mutual funds schemes an investor can choose what s/he wants to do with the profit made on his investments — get it in hand (I mean bank account) or plough it back into the mutual fund scheme. Just a few days ago I was asked this question by a friend — which option should one pick while investing in a mutual fund — Growth or Dividend?
The answer — this post, explaining the difference that should be of benefit to all.
PROFITS
The basic difference is in the way the returns on investments are treated. In a growth option, any profit made on investment is not distributed but retained in the scheme. In a dividend option, the investor gets back the return as dividend. Continue reading “Investing in Mutual Funds – Dividend or Growth Option?” »
Save entry load on SIPs
Aug 15th
Beginning August 1, 2009, the Securities and Exchange Board of India (Sebi) has said, there will be no entry load for any mutual fund scheme and the upfront commission to distributors will be paid directly by the investor.
Did you know you could be still paying an entry load even after Aug 1, 2009?
Here’s how — if you started investing via systematic investment planning (SIP) before Aug 1, 2009 then you will be paying the entry load on each SIP amount every month even AFTER Aug 1, 2009 till the term end of your SIP. Most funds deduct an entry load of 2.25% on each SIP installment. Continue reading “Save entry load on SIPs” »
9 tips on how to select a fund
Jun 6th
photo by seven_null7
1. Don’t just blindly buy what the financial advisor sells you. See if the stocks the suggested fund invests in are relevant and missing from your portfolio.
2. When a scheme’s return have run up too fast, it’s time to exit and not enter a scheme.
3. You don’t have to invest in a hot-selling fund just because a colleague is investing in it. Maybe it’s too hot to handle. Continue reading “9 tips on how to select a fund” »
Stop Paying Entry Load, Go Direct
Oct 4th
photo by coloros
In January 2008 SEBI abolished entry load on Indian equity funds if you’re investing directly. However, it is mandatory to pay an entry load of 2.25 percent if you transact through intermediaries, better known as distributors who take this charge to service investors.
Suppose you are investing Rs 1000 and the NAV (net asset value) of the scheme that you are buying is Rs 10. This NAV is multiplied by 1.0225 (2.25 percent of Rs 10) to factor in the entry load and operative NAV for you becomes Rs 10.225 (Rs 10 as the actual NAV and Rs 0.225 as the entry load). Continue reading “Stop Paying Entry Load, Go Direct” »
What if I gave you 100,000 bucks?
Aug 30th
Imagine if you had Rs 100,000 and had the full freedom to decide where to park (invest) it — where would you put it? Rewind — last quarter of 2007, no doubt it would’ve been the stock market calling your money. But hey, considering the bearish sentiments in the stock market today you’ve got to carefully evaluate your investment decisions.
Here’s how you could look at investing the amount:
CASH IS KING
With the inflation rate at 12.40% (approx as on Aug 28, 2008) you’re gonna have higher outflows in your monthly home budget. Make sure you have about 3-6 months of your living expenses set aside in either:
(1) A savings account that’s linked to a fixed deposit. This ensures you enjoy a slightly high rate of interest (as compared to a normal savings account) along with the liquidity of a Savings Account. And hey, you don’t even pay any penalty to access your funds which otherwise is the case when you access your funds in a normal Fixed Deposit account. Continue reading “What if I gave you 100,000 bucks?” »
Need Money For Short Term? Try Secured Loans
Apr 4th
A friend of mine recently applied for a personal loan from a leading bank and was shocked to know that she would be paying almost 50% of the loan amount as interest, spread over a period of 5 years. The purpose of this personal loan was to settle some outstanding credit card dues. Agreed, the rate of interest on a personal loan (16-22% per annum) is lesser than that of a credit card (35-44% per annum). But is a personal loan the only way out? Nope. Continue reading “Need Money For Short Term? Try Secured Loans” »
