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. · ...

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..... ...

Money invested in Indian stock market is very little by percentage by individual investors. Maximum percentage of money comes in Indian market by investment from different Mutual Fund Houses. Hence, we should understand the fact that the destiny of a stock may be decided by the Fund Houses. So, make it very clear that we must check how many Fund houses are invested in a Stock which we are planning to buy or invest. This is one of the many important points to be considered before investing. We will examine some Indian stocks as examples to clarify things stated above. Maruti suzuki India:  Fund houses invested in 'Maruti Suzuki India' are given below..... HDFC Mutual Fund Birla Sun Life Mutual fund UTI Mutual Fund ICICI Prudential Mutual Fund SBI Mutual Fund Axis Mutual Fund Kotak Mahindra Mutual Fund Reliance Mutual Fund DSP Black Rock Mutual Fund Motilal Oswal Mutual Fund So, you may consider investing in 'Maruti Suzuki India...

 People enter the world of stock market in the expectation of making big money. Many investors invest in stocks as per advice by someone  and they do not try to know anything about the business of companies. This may results in losing the hard-earned money. Suppose, you  invest in a stock. The meaning of this sentence is like that.... Actually, you do not invest in market.   You invest in stock of a company which is doing some business. Now, you own a part of the business as a share-holder. As you are having ownership of the business, you are entitled to a share in the profit from the business. You are compelled to bear losses if the business makes losses. There is no guarantee of profit in investing in share market. Investment may reduce by losses. Investment in stock is risky. So, understanding the business of a company is very much important before investing in the company. We have already discussed about stocks which...

          Before investing in any stock, we should be very clear about our Financial Goal, Expectation of Return and Risk Appetite. Understanding of Market Capitalisation of stock or share is very much essential.  What is Market Capitalisation ? It is the value of a company that is traded on stock market and calculated by multiplying the total number of shares by the present share price. Stocks are classified according to their Market Capitalisation ( or cap) as given below.. Large Cap Stocks Mid Cap Stocks Small Cap stocks Large Cap stocks : Stocks which have market cap of more than roughly 20 Thousand Crore are Large Cap stocks. These stocks are generally from large companies which are well-established in market. These are are generally safe to invest as the risk factor is minimum. Return on investment is generally lower in this type of stocks. Large Cap stocks which has market cap of more than roughly 75 Thousand Crore, ar...