` MoneyMindz.com India's First Free Online Financial Advice, on-call Financial Advisory , Best Insurance Advisory

Mutual Funds

Mutual Funds - Moneymindz - India's First Free Online Financial Advisory Portal

Mutual Funds – Moneymindz – India’s First Free Online Financial Advisory Portal

According to Mr.Kadam, an economist finding Mutual Fund is not easy.He sets up the mutual fund in four different strategic.

They are as follow:

1  Returns.
2  Fund Style.
3  Moving Average.
4  Expense Ration.

We run 90 million simulations before suggesting the right asset allocation. The only Mutual Fund behind Science is To select the best performing mutual fund, there are many different parameters under the same.

There are two ways of Analysis Qualitative and Quantitative.

In a mutual fund, the market prices reflect over holdings related to expenses and management fees. In different industry sectors, there is pool money from different individuals and organization to invest in assets, bonds, and stocks.

The fund of the company units the whole buy of a fractional fund, through the broker. The value of money is important to define the various form of action with the small means and limited knowledge, that would be profitable in the decision of investment. In stocks, you get the invest for bonds.

Times were the balance funds gets converted into bonds and stocks, some become aggressive due to unchanging of the fund that would be mutual. The management has some time, the mutual expectations with the real value to achieve.

The shareholders happen to achieve the goals that are bonded internally. Through this, they can meet the different measures of the mutual fund. There are funds to stay open in different moves, depending on the sponsor in the market and sell the fund at biggest asset many times.thus, the funds stay at an open note. Unfortunately, the management companies due to investments go with uninspired results.

After the view of the economists, we can get rid of the mutual fund in an easy through decide with the shareholders and different the funds.In improving the comparative data, with the help of money mind, the manager’s career discloses the record of the mutual funds, with the asset of competing it.

At money minds, you would get the investors, according to the comfort of the funds directed. The shareholders, the financial advisers give you disclosure in other mutual benefits, to get deeply different from other funds, Visit Money minds. Hence, Mutual Funds continue to be the most cost-effective means of investing.

Read more

You are working in an MNC and began to earn lot of money. You have done a lot of research in various financial products in India. No Joy, you finally zeroed in on the mutual funds. New Age Mutual Funds is the major financial product, creating ripples in the silent stream of the financial river.

It is a very good idea, to invest in New Age Mutual Funds. It is because the tax related benefits/returns are very superior compared to other financial products in India. Entry of SEBI (Securities and Exchange Board of India) has made the process very easy. People are very confused, about the process of investment in the mutual funds.

Moneymindz is the best financial company offering financial advice to citizens of India.
We have done a lot of research in a systematic and satisfactory manner, where in the layman can invest in the mutual funds.

Various Guidelines Available To Invest In Mutual Funds:

Comprehend Your Profile: Various kinds of investment products are present in India, with various kinds of returns. The investor must understand his positives and negatives before investing in a systematic manner. Higher the ageless will be threat levels. Usually there are three kinds of the profiles namely the Moderate, Conservative, Moderately Aggressive.

Understand Your Financial Goals:

Each and every person will have various financial goals in his/her life. Most of the goals are vital like the purchase of the house, retirement expenses, and medical expenses, education of the kid, purchasing the car, long vacations and others. Value addition to the goals play a major role in enhancing investment in a logical fashion.

Free Financial Advice on GST  on Real Estate Investment by Certified Financial Planners Press Below Button

click-here-moneymindz

For More Information:


*Are you Looking For Free Financial Advice*

*Fill The Form Our CERTIFIED FINANCIAL PLANNER Will Call You Freely*





Give Us a Missed Call On 022 – 62116588

(Or) Download Our MoneyMindz -Expert Seller APP

(Or) Visit: https://www.moneymindz.com/

(Or) Download Our MoneyMindz-Financial Freedom APP

Category of Funds:

Various kinds of funds are present in the market like the equity funds, income funds, balanced funds and others. Most of the mutual funds are tailored to suit interest of investors. You must search for the correct financial product. Various categories of funds are available like debt funds, fixed maturity plans and others.

Check Historical Performance:

It plays a major role in checking performance of the mutual funds. They usually do consist of various records of various performance related issues in a logical fashion.

Also Read :TIPS TO CHOOSE THE RIGHT MUTUAL FUND

Not to Worry:

The Mutual funds are foremost component of investment and is above market fluctuations. So, if you invest in mutual funds, do not worry about it in the near future. I believe that is a major quality of new age mutual funds.

Also Read: How To Invest In “Money Market Mutual Fund(MMMF)”

Effective Monitoring:

Mutual Funds is the major financial product and as an investor, you must monitor the mutual fund account in a logical fashion. It helps to know status of mutual funds and time required to do the fund accumulations.

Hence, New Age Mutual Funds is the main weapons for New Investors to build the wealth. Let’s Hope For Better Days.

Read more

Most person do Investment, But what a majority of them hesitate at is investing.

What Loan?

There are good and bad loans. Good loans are used to build assets such as a house. Bad loans don’t create assets and are used to buy home theatre, PDA, etc. Debt service ratio (monthly loan payment as percentage of monthly take-home income) indicates your repayment ability without stretching your resources

Home loan:
can invest up to 40-45% of your income

Auto/personal loan: should not be more than 20-25% of income

Credit card repayment: no more than10-15% of income

Total debt servicing not more than 40-45% of pay

Also Read : Why To Avail Home Loan?

Retirement Planning Now?

Plans to holiday and travel after an active career needs to be well funded. Power of compounding helps you amass a huge retirement corpus; the earlier to start, the bigger it gets. A secure, comfortable retirement is every worker’s dream. And now because we’re living longer, healthier lives, we can expect to spend more time in retirement than our parents and grandparents did.

Achieving the dream of a secure, comfortable retirement is much easier when you plan your finances.

Also Read : Jump start for your retirement planning early.

Buying Stocks?

Stock are high-risk and high-return investment. There are options like IPOs (initial public offer), mutual funds and direct equity start safe with a mutual fund;

As a beginner you can start with a SIP (systematic investment plan) and then look at other investing options

Bonds and deposits are fixed return in nature, best avoidable for those under 30

SIPs into any well-performing fund scheme is a good way to safe and disciplined stock investing

Also Read :Is Mutual Fund Safe?

 

Free Financial Advice on GST  on Real Estate Investment by Certified Financial Planners Press Below Button

click-here-moneymindz

For More Information:


*Are you Looking For Free Financial Advice*

*Fill The Form Our CERTIFIED FINANCIAL PLANNER Will Call You Freely*





Give Us a Missed Call On 022 – 62116588

(Or) Download Our MoneyMindz -Expert Seller APP

(Or) Visit: https://www.moneymindz.com/

(Or) Download Our MoneyMindz-Financial Freedom APP

Read more

Many just think of surplus available with them for investment. But sadly forget to identify the financial goals, time horizon, asset allocation and finally the right funds.
Hence, before jumping into “How should I start investing in Mutual Funds?”, I want to make sure that you must know few basics of investment (including Mutual Funds).

I am not saying that Mutual Funds are BEST or WORST. At the same time other products also. Each product or asset will come with it’s own positives and negatives and also risks. Hence, it is YOU who must understand your RISK.

Below are few inputs from my end.

You must have a proper Financial Goal

I noticed that many of investors simply invest in mutual funds just they have some surplus money.

The second reason may be someone guided that mutual funds are best in long run compared to Bank FDs, PPF, RDs, or even LIC endowment product.

If you have clarity like why you are investing, when you need money and how much you need money at that time, then you will get the better clarity in selecting the product. Hence, first identify your financial goals.

You must know the current cost of that particular goal. Along with that, you must also know the inflation rate associated with that particular goal. Remember that each financial goal to have it’s own inflation rate. For example, education or marriage cost of your kid’s is different inflation that the inflation rate of household expenses.

By identifying the current cost, time horizon and inflation rate of that particular goal, you can easily find out the future cost of that goal. This future cost of the goal is your target amount.

Asset Allocation is MUST

Next step is to identify the asset allocation. Whether it is short term goal or long term goal, the proper asset allocation between debt and equity is a must. I personally prefer the below asset allocation.

Remember that it may differ from individual to individual. However, the basic idea of asset allocation is to protect your money and smoothly sail to reach the financial goals.

If the goal is below 5 years-Don’t touch equity product. Use the debt products of your choice like FDs, RDs or Debt Funds.

If the goal is 5 years to 10 years-Allocate debt:equity in the ratio of 40:60.

If the goal is more than 10 years-Allocate debt:equity in the ratio of 30:70.

While choosing debt product, make sure that the maturity period of the product must match your financial goals. For example, PPF is best debt product. However, it must match your financial goals. If the PPF maturity period is 13 years and your goal is 10 years, then you will fall short of meeting your financial goals.

Return Expectation

Next and the biggest step is the return expectation from each asset class. For equity, you can expect around 10% to 12% return. For debt, you can expect around 7% return expectation.
When your expectations are defined, then there is less probability of deviating or taking knee-jerk reactions to the volatility.

Portfolio Return Expectation

Once you understand how much is your return expectation from each asset class, then the next step is to identify the return expectation from the portfolio.
Let us say you defined the asset allocation of debt:equity as 30:70. Return expectation from debt is 7% and equity is 10%, then the overall portfolio return expectation is as below.

(70% x 10%) + (30% x 7%)=9.1%.

How much to invest?

Once the goals are defined with target amount, asset allocations is done, return expectation from each asset class is defined, then the final step is to identify the amount to invest each month.
There are two ways to do. One is constant monthly SIP throughout the goal period. Second is increasing some fixed % each year up to the goal period. Decide which suits best to you.
Hope the above information will give you clarity before jumping into equity mutual fund products.

How many mutual funds are enough?

How many mutual funds do we have? Is it 1, 3, 5 or more than 5? The answer is simple…you don’t need more than 3-4 funds for investing in mutual funds. Whether your investment is Rs.1,000 a month or Rs.1 lakh a month. With the maximum of 3-4 funds, you can easily create a diversified equity portfolio.

Having more fund does not give you enough diversification. Instead, in many cases, it may create you portfolio overlapping and leads to underperformance.

Free Financial Advice on GST  on Real Estate Investment by Certified Financial Planners Press Below Button

click-here-moneymindz

For More Information:

 

*Are you Looking For Free Financial Advice*

*Fill The Form Our CERTIFIED FINANCIAL PLANNER Will Call You Freely*





Give Us a Missed Call On 022 – 62116588

(Or) Download Our MoneyMindz -Expert Seller APP

(Or) Visit: https://www.moneymindz.com/

(Or) Download Our MoneyMindz-Financial Freedom APP

Read more

If you want to get your investing off to a successful start, there are two things to do first.

 ➡  Have no short-term debt

Before you start investing, pay off any credit card debt, or personal loans, or overdrafts, or any other short-term debt.

Why? It’s simple. You have to pay interest on debt. And you have to pay a lot of interest on short-term debt.

If you could borrow money at 7% from a bank for three years, and invest it for a guaranteed return of 12%, then it would make sense to take a loan and invest the money.

But that’s never going to happen. The interest you pay on short-term debt will always outstrip any return you can hope to make without taking a ludicrous amount of risk.

So investing (or even just putting money in the bank) while you still hold short-term debt is like using a thimble to fill a bucket with a hole in the bottom. A waste of effort.

Patch your financial leaks first. Then you can start saving.

 ➡ Have three months’ living costs to hand

Life happens. Boilers blow up. Roofs need mending. People lose their jobs.

That’s why we have emergency funds. A pot of cash you can access immediately to cushion against life’s ups and downs.

How big should your emergency fund be? It depends partly on your circumstances. If you have dependents, you’re probably less keen to suffer a drop in living standards than if you’re on your own.

As a minimum, aim to have three months of living costs saved up. In other words, you could live for three months at your current standard of living without earning anything.

Of course, three months go by fast. So it’s not much of a cushion. Ideally, it would be six months.

But I can already hear some of you sighing with tedium at the idea of saving up three months’ costs.

So once you’ve got three months, you can start investing. But keep topping up your emergency fund too until you get to six.

Read more

Was talking to a cousin of mine about his investing. He said he had some ‘Mutual Fund Investments’. When I saw it, it was appalling. He is very close but was not too forthcoming about why he had chosen such an array of funds. However he earns very well and spends almost nothing (comparatively) which means he can pretty much do whatever he wants with his money and still not worry about retirement funds.

Another cousin started a SIP which actually got stopped for some technical reason. However by the time the second debit should have come he had already made a fixed deposit with the balance money. Again a case of earning in crores (I did debate with the word millions, then corrected myself) but spending in ‘000s allows all investments to be in bank fixed deposits without too many worries.

Lessons:

1. Most people are employed far beyond the economic need for a job.

2. An office to go to every morning is a social, family and a self created need.

3. Most people will continue to be employed beyond the need for money, because they do not KNOW what to do.

4. Most people will continue to be ’employed’ even if the salary is cut in half post retirement.

5. One person was willing to come to office if apart from ‘coming to office costs’ he earned Rs. 5000 a month. His last drawn salary? Rs. 54,000 p.m.

6. When it comes to managing money, MEN do not ask for directions. WOMEN think their husbands (unless they have learnt it the hard way) are managing their money well.

7. Most people do not set FINANCIAL goals. This leads to a lot of money being friterred away on things which they may not need.

More Random Thoughts:

Recently saw some very poorly written personal finance articles in Hindu Business Line. Respect for that group is still very, very high. Hopefully they will correct it soon. Surely personal finance does not have such a shortage of writers, Mr. Kumar.

Is Securities and Exchange Board of India (SEBI) pushing through mutual funds dematerialisation to create revenue for National Securities Depository (NSDL) or for the DPs? Clients have no benefit in holding the units in a Demat mode (you cannot sell, transfer, pledge, gift….- it can only be redeemed), and the statement has no commercial value (if you lose it, get another one, NORMALLY FREE). Not sure…

For More Information:


*Are you Looking For Free Financial Advice*

*Fill The Form Our CERTIFIED FINANCIAL PLANNER Will Call You Freely*





Give Us a Missed Call On 022 – 62116588

(Or) Download Our MoneyMindz -Expert Seller APP

(Or) Visit: https://www.moneymindz.com/

(Or) Download Our MoneyMindz-Financial Freedom APP

Read more

To some extent, every investor wants to protect his capital and at the same time, looks to earn a high return from the investment. The entire drive towards mutual funds has caused several people write in to ask if it is safe to invest in them. I don’t think safety is a criterion, as perceived by investors, it is something that mutual funds meet. Every interesting advertisement about the virtues of mutual funds ends with the end note disclaimer that investing in mutual funds is subject to market risks. Basically, investments in mutual funds do not guarantee capital preservation.

At the same time, there are several safeguards built into the system to protect the interests of investors who invest their money in mutual funds. First and foremost, the capital market regulator, Securities and Exchange Board of India (SEBI), which regulates MFs, is a critical entity in protecting investor interest, be it by drafting regulations or monitoring their implementation. It has laid down guidelines for all constituents of a MF – sponsors, trusts, Asset Management Companies (AMCs) and custodians. The distributors selling mutual funds are also regulated by the SEBI.

Coming back to safety, if the question is about investor safety, regulations pertaining to sponsors and trustees are crucial. For instance, to be the sponsor of a MF, there are prerequisites that one needs to follow diligently as stated by the regulator. Basically, overnight one cannot float an AMC in the country besides the need for experience, adequate capital, track record and more. All of these should give investors comfort. Yet, chances are investors are wired to link safety to returns and be stuck right there.

Take for instance the board of trustees, which is set up by the sponsor, also aims to protect investor interest. At least two-thirds of the directors on the board are required to be independent. This helps in maintaining an independent stance, albeit slightly tilted in favour of investors. Trustees also monitor fund performance and compliance with SEBI regulations. This is again something that should be seen by investors as a safety net. But, more often an investor would rarely be seen worry over these aspects.

Going back to mutual funds: these are professional managed, each AMC has its own internal risk management teams comprising risk analysts, who monitor risks and keep them in check. Investors need to move away from their block of looking for guarantees in returns and increase their awareness about financial products, their features, which is where mutual funds score over the rest handsomely. 

For More Information:


*Are you Looking For Free Financial Advice*

*Fill The Form Our CERTIFIED FINANCIAL PLANNER Will Call You Freely*





Give Us a Missed Call On 022 – 62116588

(Or) Download Our MoneyMindz -Expert Seller APP

(Or) Visit: https://www.moneymindz.com/

(Or) Download Our MoneyMindz-Financial Freedom APP

Read more

India First Free Online Financial Advisory, India First Free On-call Financial Advisory, Best Free Financial Advisory

India First Free Online Financial Advisory, India First Free On-call Financial Advisory, Best Free Financial Advisory

Investors now strongly believe that equity is one of the best asset classes to create wealth over the long term. Financial planners advise them to start investing with mutual funds to start wealth creation journey instead of direct stocks.

What is the benefit of investing in MFs as compared to direct investment in stocks?

The biggest advantage for a mutual fund investor is that he has the services of a professional fund manager, who tracks, evaluates and researches sectors and companies on a regular basis.

As an individual investor, one does not have the time and the resources to research, track and identify stocks on one’s own. An individual may get carried away due to sentiment and may go overboard on a particular stock. 

A fund manager evaluates risk before buying a stock and there are guidelines in place. There are limits on how much a fund manager can invest in each stock and each sector, which helps in the long term. A fund manager’s decision to invest in a particular share is backed by strong research by the team.

How much money do you need to invest in mutual funds?

You can start with small amounts in mutual funds. You can start with as little as Rs 500. There is no need to open a demat account, too. Many blue-chip stocks themselves quote at a high price, making entry point in stocks generally cost higher than mutual funds.

You can also choose to invest systematically every month using SIP route by writing a simple mandate to the fund house.

What tax benefits does a mutual fund offer as a product?

When an investor buys and sells shares before completing one year, he has to pay short-term capital gains. However, in a mutual fund, the fund manager may keep transacting in shares at varying points of time.

If investor remains invested for over one year in an equity fund, his gains are tax free since securities transaction tax is already deducted.  

What liquidity do mutual funds offer?

In a bear market, you may find individual stocks could be illiquid. If you wish to sell large quantities, the price goes down or there could be no buyers. Similarly, on a good announcement, the stock may be on upper circuit.

Such liquidity problems are not faced by a mutual fund investor. An open-ended fund can be bought/sold at that day’s NAV by simply approaching the fund house or its registrar or a distributor.

For More Information:


*Are you Looking For Free Financial Advice*

*Fill The Form Our CERTIFIED FINANCIAL PLANNER Will Call You Freely*





Give Us a Missed Call On 022 – 62116588

(Or) Download Our MoneyMindz -Expert Seller APP

(Or) Visit: https://www.moneymindz.com/

(Or) Download Our MoneyMindz-Financial Freedom APP

Read more

It’s good that you are enthusiastic about investments. Investments need to be accompanied by goals, horizon and risk appetite. As you are approaching retirement, I presume that you have a moderate risk appetite. Therefore, aiming at capital appreciation at a stable pace is advisable. With this in mind, I would advise you following avenues:

Senior Citizen Saving Scheme (SCSS) :

You may think of investing in Senior Citizen Saving Scheme (SCSS) which offers capital protection, regular income and tax benefits. You can invest up to Rs 15 lakh in SCSS by opening an account at a post office or scheduled commercial bank for five years. Afterwards, you may extend it for another three years. Quarterly interest will be paid at 8.4 per cent per annum. This is a tax-efficient scheme as you will be eligible to claim a deduction of up to Rs 1,50,000 under Section 80C of Income Tax Act 1961.

Monthly Income Plans (MIPs) :

Monthly Income Plans (MIP) are debt mutual funds which invest in fixed interest yielding securities. These funds deploy 60-70 per cent of your investment in debt securities and money market instruments. The rest is employed in equities. These funds aim at generating regular income via dividends and investing in high investment grade securities. After a holding period of three years, the capital gains become eligible for indexation benefit and are taxable at 20 per cent excluding cess.

Equity-oriented balanced funds :

These funds invest 65 per cent of your investments in equities and balance in debt securities. The equity component helps to earn higher returns while debt component keeps risk profile of portfolio intact. After a holding period of one year, your capital gains become tax free.

For More Information:


*Are you Looking For Free Financial Advice*

*Fill The Form Our CERTIFIED FINANCIAL PLANNER Will Call You Freely*





Give Us a Missed Call On 022 – 62116588

(Or) Download Our MoneyMindz -Expert Seller APP

(Or) Visit: https://www.moneymindz.com/

(Or) Download Our MoneyMindz-Financial Freedom APP

Read more

Investor attention turns towards buying equity shares when the buzz in the markets increases. Celebrations around the Nifty reaching the 10,000 mark would leave many gasping at the possibility of becoming wealthy by simply picking up a few stocks.

My consistent message to eager investors has been this: Equity investing is tough. It takes a lot to be successful.

Do it only if you can persist, learn and persist even more. So what does it take to become a successful equity investor? 

First, to invest in equity is to invest in a business. You should have a basic interest in how a business works and how it struggles through various challenges and ultimately succeeds. The richest equity investors are those who set up their own business and spent the best part of their lives working towards its success. The value they build over the years reflects in the shares they own as promoters, managers and stakeholders.

Second, you should have the ability to put together a framework for growth of the business you will invest in. To do this, you should have training in financial analysis, or be willing to pick up the knowledge and skills required to understand how profits are generated and how the numbers come together. Every business whose shares you buy should be supported by an investment thesis, and you should be able to put that thesis down in words and numbers.

Third, you should have the perseverance to apply your framework on the potential stocks you could buy and come up with a shortlist. For example, you can have an investment thesis that says that you are looking at companies that are in businesses whose sales is growing at an even pace (plug a number), and whose return on capital invested is high (number here too) and the management is focused on growth without leverage or increasing costs (quantify these too).

Fourth, you should have the risk taking ability to keep your money in the a few picks that meet your stringent criteria. There is no point in buying stocks that are in the news, or recommended by friends or relatives, or picked off random conversations or lists from the TV or newspapers. When you do not know why you are buying, you will stake too little. When you lack in conviction, you will take no risks. Then you will end up with a long list of stocks.

Fifth, you should have the discipline to keep investing in the stocks you picked while also tracking their performance. Without a good understanding of the business and the numbers, and a robust investment thesis, you will not be able to make up your mind about whether to keep or leave the stock as its performance unfolds. Even the best investment mind cannot forecast the growth path of a business.

Sixth, you should have the mental framework of a learner who is willing to be caught having made a mistake. If you are the kind of person who likes to always be right or seek complete control of things in your life, or like the comfort of everything going exactly as you planned, equity investing is not for you. You have to be able to take active calls on what is going wrong. There is no knowing the potential upside of a stock.

For More Information:


*Are you Looking For Free Financial Advice*

*Fill The Form Our CERTIFIED FINANCIAL PLANNER Will Call You Freely*





Give Us a Missed Call On 022 – 62116588

(Or) Download Our MoneyMindz -Expert Seller APP

(Or) Visit: https://www.moneymindz.com/

(Or) Download Our MoneyMindz-Financial Freedom APP

Read more