We favor investments that are low cost, tax efficient, diversified, liquid and simple. Many investors often run into trouble while investing in things that do not have these five characteristics. Investments with these five characteristics have been profitable over time, but usually aren’t very exciting. There usually isn’t a “hot story” you need to act…
We all have a common desire, ‘to become financially strong’. But merely thinking about it will not accomplish it; We have to work hard to achieve the same. So, before moving towards it, we need to know what can help us to reach there, to make the path easier. Everyone is aware that only money…
Many people have heard the term hedge fund, but most people have no idea what they are. Even those who have spent years investing in the stock market and other securities do not really understand the concept of a hedge fund. It is a type of limited partnership where the fund manager acts as the…
We all make some plans to manage our income, savings, expenses, future liabilities (money we expect to spend in future) whether we understand anything about financial planning or not . Even if we are managing it well right now, it may not be the best way to do it or it may not give us…
6 ways to make capital gains There are basically two types of investment income. Capital gains and investment income. Investment income is income you receive from an asset, examples of investment income are interest on savings, rent from property, and dividends from stocks. Capital gain is the increased value of an asset; Examples of capital…
There are smarter ways to invest money to get higher returns. Mutual funds are a way of earning more returns for your investment. Average returns are higher than normal savings accounts and other investment options offered by banks. Systematic Investment Option is a way in which investors can invest a small amount every month. In…
Investing in Mutual Funds is one of the easiest ways to save taxes as well as earn some extra money. Especially ELSS is one of the most preferred investments to save tax. Apart from offering tax exemption under Section 80C, Equity Linked Savings Scheme also offers two more benefits: It offers investors the dual benefits…
We belong to a conservative culture where savings habits are embedded in our DNA. As a country, we prefer to save than spend, unlike developed economies which are driven by the expenditure driven demand of their domestic economies. Saving comes naturally and we all save for the future in our own ways. Whether it is…
Exchange Traded Funds (ETFs) were first introduced in 1993 for institutional investors. They have since become increasingly acceptable to advisors and investors alike due to their ability to allow portfolio construction at a lower cost and greater control over the diversification process. You should consider making them a core building block for the foundation of…
Mutual funds are subject to market risk- The fund advertising amendments, as well as the proposed fund of funds rules and amendments, are expected to be available on the Commission’s Web site within the next few days. The Commission is soliciting comment on the fund of funds proposals until December 3, 2003 Advertisements for Mutual Funds (MFs) claim – “Mutual Funds…