ABC of Investment

Generally, most of the schemes of Mutual Fund has two alternative plans to buy i.e …. Direct Plan & Regular Plan. Direct Plan is that option of Mutual Fund, which we buy directly from mutual fund company. But Regular Plan is another alternative option of Mutual Fund, which we buy through adviser or broker or distributor or intermediary. Once upon a time, there was no existence of Direct Plan in Mutual Fund and only Regular Plan was available to buy. SEBI (Securities and Exchange Board of India)  has done the reform to launch Direct Plan of Mutual fund in the year 2012. Direct Plan of Mutual Fund is always better than Regular Plan of Mutual Fund. Please go through the following points to understand the differences between the two plans…… ·         When we invest in Direct Plan, we actually deal directly with the AMC (Asset Management Company) but  in case of Regular Plan we deal through adviser or broker. ·         Mutual Fund Company pay some fees to the

Today, we will discuss another very popular category of Mutual Fund as given below.... Equity : Mid Cap Money in this type of Mutual Fund is invested in equity / stock market. Money is generally invested in Companies which are of 'Mid Cap' category in respect of their market capital. The companies are known to people. The risk factor is medium in this type of Mutual Fund.  Return on investment may be more than that of Equity-Large Cap Fund. Profit gained after minimum one year of investment is termed as' Long Term Capital Gain'. This long term capital gain is totally exempted from paying income tax. Now, there are numbers of Mutual fund schemes from different mutual fund houses. We will discuss few good funds as examples of 'Equity: Mid Cap' category. Mirae Asset Emerging Bluechip Fund: Invests in companies like Federal Bank, Kotak Mahindra Bank, Indusind bank, ICICI Bank, Tata Chemicals, Voltas, Motil

In previous blog, we have already come to know that there are more than 4000 schemes of mutual fund available in Indian market to buy. So, choosing right fund is simply an uphill task for common investors. So, we have to learn different categories of Mutual Fund available in market one by one with necessary illustration. Today, we will discuss one very popular category as given below.... Equity : Large Cap Money in this type of Mutual Fund is invested in equity / stock market. Money is invested in Companies which are of 'Large Cap' category in respect of their market capital. The companies are well known and popular. The risk factor is minimum in this type of Mutual Fund.  Return on investment is very good and well above  Fixed Deposit/ PPF/TD present in Indian market. Profit gained after minimum one year of investment is termed as' Long Term Capital Gain'. This long term capital gain is totally exempted from paying income tax. Now, there ar

What is Mutual Fund? A Mutual Fund is a pool of money from investors who wish to make money. It invests money in Stocks, Bonds, money market instruments and different types of securities. It is a collection of different investments. It is managed by professional Fund Manager. Mutual Fund is well diversified investment tool. It is a low cost investment option. It may be a tax saving investment vehicle. So, simply invest in Mutual fund and the fund manager will take care of your investment to grow with handsome return. But keep in mind that Mutual Funds are subject to market risk. How to start ? You should have one bank account. You should be KYC complaint. (Know Your Customer) You should have PAN (Permanent account Number) You should have Aadhaar Number. What is KYC ? It is a way to identify investors. You can check your KYC status online in different website by putting your PAN. One such link is given below for your ready reference.....