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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Why should you invest in shares/mutual funds – part 1

Why should you invest in share/ mutual fund in 2021 - Part 1

Think beyond bank deposits to stave off Inflation If you feel quite satisfied by keeping your savings in a bank or post-office fixed deposit scheme, think again. Sure, while signing up for a bank fixed deposit, you know beforehand exactly how much (rate of interest) and how long (the maturity of the deposit) you’ll get. But, have you considered the ‘real’ return on maturity after providing for inflation and income taxes? Or, for that matter, bank fixed deposits also come with liquidity risks in the form that if you want to withdraw the money before maturity, you’ll have to pay …

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