You always considered Bond Funds as safe or risk-free investment. Bond Funds operate in the Debt Market. They primarily buy and sell government, semi-government and bank-backed bonds which may be considered as safe. But,don’t be surprised, bond funds are not.
For thousands of years, gold has been valued as a global currency, a commodity, an investment and simply an object of beauty. In Indian context, investment in Gold also has a religious and socio-economic importance. Buying Gold on occasions of Diwali, Akshaya Tritiya or on special occasions such as marriages and birth of a child is considered auspicious.
What is the basic reason that one investment will pay a greater return than another? Well, there could be many reasons, but believe it or not, the greatest overall determining factor is that of Risk!
Return and Risk are the two most important features of any investment product that are considered in almost all investment related activities viz., stock or portfolio selection, asset allocation, restructuring and performance evaluation.
Systematic Investment Plans (SIP) in Mutual Funds are gaining popularity with investors. Unlike some investors who like to park their money as a lumpsum into a Mutual fund Scheme and forget about it, investors going in for SIP have an edge. SIP offers investors choice to invest a fixed sum, as low as Rs.500 at regular intervals.
Phishing Scams have become so common now a days that many of us simply ignore them, however, some who are not aware about phishing fall prey. You think you are protected, but are you really?
Growth investing and Value investing are essentially two contrasting investment styles offered by funds. Both mean different things and represents the stock-picking methodologies used by the Fund Manager. While there are funds that tie themselves to either one or the other style, it has been observed that most funds tend to follow a mix of the two styles.
Most people believe that past returns are the most important criterion while choosing a mutual fund. That is not strictly true. Those who have seen heavy market downturns will be able to tell you that fund portfolio liquidity is an equally important factor to be kept in mind.
Tax planning entails making investments and contributions that help minimize the tax liability. Traditionally, most of us invest only instruments that provide tax saving benefit as aversion for taxes ranks as one of the most universal emotions. But, does this fit well with our overall financial planning goals?
Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. They’ve been categorized and classified very simply and logically, so you can figure out what each one implies.