While some amount of the mutual fund may be diverted to an asset, the remaining amount might be retained in liquid cash. It is decided by the fund manager.
There are certain funds which will only invest in a selected range of sectors such as banking, pharma etc.
Certain fund managers follow the mandate of investing in international stocks to add more diversification.
A Monthly Income Plan (MIP) does not offer a monthly income as the name suggests. It is a debt-oriented hybrid mutual fund where the larger portion of investments is in a debt mutual fund and a lesser portion of the investment is in an equity mutual fund.
A Fixed Maturity Plan or FMP is similar to a fixed deposit only that the investment here takes place through a mutual fund. The Fixed Maturity Plan sees an investment for a fixed time period and a fixed interest rate.
The relationship between interest rates and the value of debt funds is inversely proportional. A rise in the interest rates affects the value of debt funds bringing in a fall and vice versa.
Systematic Investment Plan or SIP is often mistaken for a fund but ideally, it is a monthly plan which allows the investor to invest regularly in installments in a selected mutual fund of the investor’s choice. The Systematic Transfer Plan or STP is another method to invest money. A systematic Withdrawal Plan allows the withdrawal of money in installments.
What many people do not know about
Mediclaim cannot exclude mental illnesses
Actor Rajnikanth has insured his voice
You will able to switch from “On &Off” on your vehicle insurance soon.
The insurance tech wave is rapidly growing. For example, Plum Insurance raised $15.6 Million in May 2021.
Tier 2 and Tier 3 cities still have a lot of untapped potential for insurance growth.
The insurance industry of India has 57 insurance companies.
An insurance policy exists for death by excessive laughter at a movie theatre, at Lloyd’s of London.
Starbucks pays more for employee health insurance than it does for coffee.
By 2025, the demand for real estate in India is expected to increase by around 15-18 million square feet.
Under the Pradhan Mantri Awas Yojana (PMAY) Scheme, the central government plans to build around 20 million affordable houses in urban areas across the country by 2022.
There are around 11 million vacant houses in India where there is already a shortage of houses.
India is home to the most expensive private residential home in the world. Antilia, owned by Mukesh Ambani, is a 27-storey building worth around USD1 billion. It is the tallest independent residence in the country and is designed to withstand earthquakes of up to 8.0 magnitudes on the Richter scale.
Connaught Place in New Delhi ranks among the top 15 costliest commercial real estate markets in the world. The occupancy costs are around USD111 per square foot per year.
India ranks third in the world for having around 12 million square meters of LEED-certified space. LEED stands for Leadership in Energy and Environmental Design which is a standard for green building rating systems.
Real Estate Investment Trusts or REITs are evolving as alternative investment avenues for people wanting to invest in real estate without buying a property.
From the time the Real Estate Regulatory Act (RERA) was brought into force in 2016, the real estate sector in India has become more structured and regulated. It put an end to malpractices and loopholes and offered a secure ecosystem to buyers.
P2P lending is done through a website that connects borrowers and lenders directly.
P2P lending generally provides higher returns to investors relative to other types of investments.
For some borrowers, peer-to-peer lending is a more accessible source of funding than conventional loans from financial institutions. This may be caused by the low credit rating of the borrower or the atypical purpose of the loan.
P2P loans usually come with lower interest rates because of the greater competition between lenders and lower origination fees.
Peer-to-peer loans are exposed to high credit risks. Many borrowers who apply for P2P loans possess low credit ratings that do not allow them to obtain a conventional loan from a bank. Therefore, a lender should be aware of the default probability of his/her counterparty.
The government does not provide insurance or any form of protection to the lenders in case of the borrower default.
Some jurisdictions do not allow peer-to-peer lending or require the companies that provide such services to comply with investment regulations. Therefore, peer-to-peer lending may not be available to some borrowers or lenders.
P2P lending is a microfinance service covered by RBI regulations notified in detail in 2017. The lending platforms are NBFC with an Rs.50 Lac cap lending to minimize the lender’s risk.
Create a budget: Making a budget is the first and the most important step of money management. It is a fairly simple measure and has been used for centuries.
Save first, spend later: As a rule of thumb, it helps to first save some part of your monthly income and then start spending your money on regular essentials like groceries, rent, electricity, loan repayments, insurance premiums, etc.
Set financial goals: Having a financial goal allows you to stay focused and avoid overspending. So, plan what you want to do with your money in the short as well as long term.
Start investing early: It is advisable to start saving money as early in life as you can. This gives you more time to grow your wealth and get back higher returns in the longer run.
Avoid debt: While taking loans to achieve your life goals is a common way, they do come with a fair share of problems. The high interest can eat into your savings. Taking on multiple loans also affects your credit score, thereby making it harder for you to avail of credit when absolutely necessary or in some cases, even a job. So, try to limit your debt as much as possible.
Track your spending -The Capital One Mind Over Money study found that using healthy money habits when you feel confident about your finances can help you when things get more challenging.
Save For Retirement - It may help to start small when it comes to retirement savings. In other words, you could save a small amount every month for now, and then add to it when you feel ready.
Save for emergencies - Putting away savings in an emergency fund for unexpected life events—like needing major home repairs—may help you feel better about your financial situation.
The first gold coins appeared around 300 BC
Gold Investments Can Protect Against Inflation Risks
Gold Exchange Traded Funds (ETFs) are a hot option these days. These are like mutual funds that invest only in gold.
In the short term, gold is a very strong bet compared to shares that are highly volatile.
Gold does not carry much risk at least in India, as we hardly see deflation in the real sense.
Gold scores the highest in terms of liquidity, compared to all other investments. At any time of the day and any day, gold can literally be converted to cash.
Gold suffers capital gains tax as per the IT Act. So it is better to ask your jeweller for the bill. Close to 90 per cent of the gold jewellery traded in India is unbilled.
With the emergence of golf ETFs, the convenience to hold gold for the short term has increased. Instead of holding cash for the short term, one can today make investments in gold ETFs.
Foreign Direct Investment Policy - an entity of a country, which shares a land border with India or where the beneficial owner of an investment into India is situated or is a citizen of any such country, can invest only under the government route.
