How Quickly Can You Get Your Money Back From Mutual Funds? SEBI Stress Test Tells You The Answer

How Quickly Can You Get Your Money Back From Mutual Funds? SEBI Stress Test Tells You The Answer

Back in 2020, as COVID-19 raged, people started panic selling. In this chaos, one mutual fund AMC found it hard to keep up with this sudden surge in redemption. Six of its debt funds did not have enough liquidity! As a result, the fund house had to suspend redemption from and investment in these funds. The result? A lengthy legal battle between the fund house and the investors. It took three years for these funds to be completely liquidated.   SEBI Stress Test For Mutual Funds   What if something like this happens again? The latest directive comes on the …

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Navigating Debt Mutual Funds: What You Need to Know Before Investing

Navigating Debt Mutual Funds: What You Need to Know Before Investing

Are you considering investing in debt mutual funds to diversify your investment portfolio and potentially earn steady returns? Or looking to invest for your short- or medium-term goals? Before you take the plunge into the world of debt funds, it’s essential to arm yourself with knowledge about how these funds operate and the risks involved. Debt funds offer a plethora of options (16 categories to be exact) catering to various needs, but understanding their intricacies is paramount to making informed decisions. From the dynamics of the NAV movement to the risks like credit and interest rate fluctuations, we’ll learn everything …

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Mistakes To Avoid While Investing In Mutual Funds

Mistakes To Avoid While Investing In Mutual Funds

Janet Jackson has a memorable quote that states, “In complete darkness we are all the same, it is only our knowledge and wisdom that separates us, don’t let your eyes deceive you” It is becoming increasingly common for us to be lured into investing in stocks, mutual funds with expert comments and promises of unrealistic returns through print media and other social media. You’ll always have a mix of contradictory opinions and suggestions going on at once. It is better to have your relevant research to form your own decision based on the information you will gather from all the …

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PPF Vs Mutual Funds SIP

SIP VS PPF Returns

SIP (Systematic Investment Plan) and PPF (Public Provident Fund) are both very common financial instruments in India that serve different purposes and accommodate different investment needs. While talking about SIP vs PPF returns, it is important to keep the risk appetite, the time frame and the goals of investors in mind. Here’s a comparison of SIP and PPF and why both are important and should not be ignored: SIP (Systematic Investment Plan): SIP is a mode of investing  in mutual funds where one can invest a fixed (pre-determined) amount regularly (monthly) over a period of time. Through SIP an individual …

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Decoding Investment Options: Flexi-Cap Funds or Multi-Cap Funds?

With an abundance of investment options available, it’s essential to understand the nuances of different strategies and select the approach that aligns with your financial goals. Both Flexi Cap and Multi-Cap funds offer distinct advantages. In this article, we unravel the mysteries surrounding these investment styles, dissect their characteristics, and provide insights to empower you in making wise choices. So, let’s dive in and discover the perfect investment strategy that will lead you toward financial success. When it comes to investment decisions, you should tailor them according to your own risk appetite. Your unique financial goals play a crucial role …

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Unlocking the Potential: Exploring the Workings and Benefits of Index Funds

Unlocking the Potential: Exploring the Workings and Benefits of Index Funds

Whether you’re a seasoned investor or just beginning your journey, understanding how index funds operate and the advantages they offer is crucial for making informed decisions that can propel your financial growth. In this comprehensive guide, we will delve into the mechanics of index funds, demystify their complexities, and shed light on the remarkable benefits they provide to investors of all backgrounds. An investor should always choose his investment according to his Risk Profile and Goal. For short-term goals, you may go for Debt schemes, but for long-term goals, where your time horizons are at least 5 years, you have …

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Liquid Mutual Funds and Their Benefit

Liquid Mutual Funds and Their Benefit

Liquid mutual funds offer a convenient and efficient solution to park short-term funds or emergency reserves for investors. These funds provide stability, liquidity, and potential for reasonable returns, making them an ideal choice for investors seeking short-term investment opportunities. In this blog, we will explore the concept of liquid mutual funds, their benefits, and key considerations for choosing the right fund for your needs. What are Liquid Mutual Funds? Liquid mutual funds are a category of mutual funds that primarily invest in short-term debt and money market instruments with a maturity period of up to 91 days. These funds focus …

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Cut-Off Timing Rules for Mutual Funds Transactions: Why You Need to Know Them

Cut-Off Timing Rules for Mutual Funds Transactions: Why You Need to Know Them

In recent years, mutual fund investments have become increasingly popular among Indian investors. The flexibility, diversity, and potential for higher returns that mutual funds offer have made them a go-to investment option for many. One of the reasons for this growth in popularity is the increased awareness and education about mutual funds among the general public. Many investors now understand the benefits of diversifying their portfolio through mutual funds, which can mitigate risk and generate higher returns. Additionally, the availability of online platforms and mobile apps for investing in mutual funds has made it easier for individuals to access and …

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Know the Top 7 Advantages of Mutual Fund Investing

Know the Top 7 Advantages of Mutual Fund Investing

You would be lying if you were to say that you haven’t heard the words “mutual funds” or “SIP” if you live in India. Thanks to the immense and successful marketing campaign by the industry, most Indians are well acquainted with mutual funds (at least the word). This is clearly reflected in the recent figures. As of 31st July this year, the Assets Under Management (AUM) of the Indian Mutual Fund Industry stood at 37.74 trillion and has witnessed a five-fold increase in a span of 10 years and around two-fold just in the last five years. Mutual funds are …

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Why should you invest in shares/mutual funds – part-3

Why should you invest in shares/mutual funds in 2021 -- part-3

ETFs – a simple and low-risk way to invest in shares. Investment in equities doesn’t always entail a thorough research of balance sheets, management pedigree, etc of companies. Thanks to the advent of exchange-traded funds (ETFs), those are now things of the past. Passive investment through ETFs is increasingly becoming a darling to seasoned as well as first-time investors in equity markets around the world. Consider this bit of information to get an idea about how popular are ETFs – 60% of daily trading volume in the US stock market, which is 8 times bigger than India, are ETFs. In …

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