Posts Tagged: ‘India’

Top 10 Mutual Funds in India

April 19, 2015 Posted by admin

y taking care of the feature ‘all investments are subject to market risks’, people have gone crazy for more and more investments. There is a lot said, in India on the business TV and channels, in the newspapers and everywhere. With different kinds of mutual funds available in the markets, people are enjoying their investments. They say some of the best possible investments in markets are available in a country like India. With so many options available for investing, a novice investor may find it a bit confusing as to which mutual fund is the best suited for investing. The fact is all these different kinds of mutual funds offer a perfect platform for the investors to simply pool the cash with a predefined objective of investment. Infact all these different kinds of investments have emerged just to suit the different objectives of investments.

Investing in best mutual funds in India is simple if you keep a note of finest 10 of them!

1.Gold Funds- considered to be one of the safest investments, these gold funds are a boon to invest in to. Surely the investments in to Gold Funds are focused with one single asset, the Gold. As per the gold prices in markets the units of gold funds shift accordingly.

2.Opportunities Funds-compared to other mutual funds in india, these are a bit different. Opportunities Funds include investment strategies like market timing, events, distress and arbitrage.

3.Close Ended- with a structure based mutual fund like this one, you get a chance to invest as per a specified period of maturity like 5 to 7 years. Investors can exit from these investments by selling back the units.

4.Open Ended- This is one of the commonly practiced mutual fund investments in India wherein the investor can invest or execute in available schemes anytime. There is nothing like an upper limit for the number of shares, investors and funds’ size.

5.Interval schemes- if you wish to combine features of open ended and closed ended funds, the interval schemes are a perfect choice. Here the units can easily be traded on stock exchange.

6.Equity mutual funds-these are one of the common investments that are classified as per nature wherein the fund’s structure differs for different schemes. With equity you can invest in to mid-cap, small-cap, sector-specific and tax-saving funds.

7.Debt mutual funds- are you willing to invest in to guilt funds, income or liquid funds or short term schemes or debt papers? The debt funds are for you!

8.Balance funds- do you wish to invest in to something that combines equity and a debt? Go ahead for the balance funds!

9.Growth schemes- also popular by the name equity schemes, the growth schemes aim to offer capital appreciation within a time period.

10.Income schemes- for availing regular income the investors can go ahead to invest in to these income schemes.

Indian Stock Market Situation, Stock Tips and Mutual Funds

April 15, 2015 Posted by admin

Do you think political upheavals, natural calamities, and global economic turbulence affect a country’s stock market performance? Yes it is! Investors’ spirits indeed get dampened. It is more of selling rather than buying that rule the scenario leading to fall of the indices and increased volatility. The Indian stock market has been facing a similar situation. It was only during the first week of the announcement of the Union Budget that the markets seemed to witness a positive stride only to be dampened soon by earthquake in Japan, the Gaddafi issue leading to oil price rise, and more related events. So, the Indian stock market is again swinging in the pendulum. If you are too confused about how to proceed forward investing in the Indian stock market, worry not. Get stock tips and suggestions from market experts serving via brokerage portals.

Do not just blindly follow stock tips published at many an online platform; you will rather get the more confused. It will be wise on your part to get registered at a brokerage portal that has maintained a rapport in the market of providing investment solutions beyond the satisfaction levels. Superlative investment services and tailor made stock tips are what the market experts offer to all clients serving via such portals. No matter whether you want to invest in an NSE or BSE stock or want to know about the top performing mutual funds of India and other diverse investment options, you can always expect to receive the right guidance from these experts. So, get registered and start availing superlative services and see your money multiply like never before.

The Japanese quake did dictate the trading trends of the NSE and BSE stock market. Both the sensex and nifty exhibited weak performance, creating a panicky situation yet again. The worst affected are the novice investors who are hardly aware about the tide.
Given such a situation, the Indian stock market is going to be subdued for the short term and mixed results may follow till the mid of the year, as per fresh predictions from market experts. The second part of the year will see the NSE and BSE stock market performing up to the expectation levels of the investors at large. With inflation is on its way down, positive announcements made for the Union Budget, tightening cycle that RBI had initiated, and more such positive news, the Indian stock market in the long run will exhibit good growth if not the best.

Rather than investing in many an NSE and BSE stock, people are getting more and more attracted towards investing in mutual funds of India as people feel the risk factor in this segment. Though it is again indirectly investing in the Indian stock market in the name of mutual funds of India, the drive is indeed good news for the asset management companies. Get updated with news related to this segment so that you know where to invest right.

Have The Electronic Equipment Insurance For Your Industry Operation

February 24, 2015 Posted by admin

The replacement for consistency in protection is not there to ensure the least disaster in equipment. Still misfortune occurs, costly equipments and the instrumentation and taking the extensive amount invested for causes that are changed. Different conditions like sudden, unforeseen and accidental can output in equipment breakdown to equipment insurance in India is offered to solve these breakdowns and rest organizations from much income loss. Generally, the below conditions comes under the equipment insurance strategy in India. Any type of equipment can be covered against the theft, flood, problems, damage and fire.

A short circuit, electrical atmospheric pressure, interruption, thrashing of action of protective devices, structural mistakes, material faults are the problem happened in the equipment. If you have the workers or do not have the workers compensation insurance is an essential coverage to have. An employee’s compensation insurance costs for the workers medical payment and gone wages from the work linked injury. By taking a couple of minutes to research through online equipment insurance east west providers, you will be capable to protect the monetary safeguard, so that you may go back to deciding your life. .

Most of the states looked-for industry with more workers has the compensation coverage. It is likewise significant to add yourself as the worker in this case, so that you are wrapped like other workers. Insurance providers have modified the insurance policies for better. The equipment insurance east west offers the protection against unforeseen and sudden problems resulting in damage to the equipment while working. The equipment that can be wrapped in equipment insurance are telecommunication, audio visual, scanner machines, electro medical devices, testing and research of the machine, computers and the office devices. Know about the equipment insurance to get the best insurance policy your equipments that are utilized in your industrial operation.

Assessing Mutual Funds and Purchasing Them Online

December 16, 2014 Posted by admin

Assessing mutual funds should ideally begin not by looking out for the highest returns, but by first assessing the investor’s current financial situation is relation to his financial goals for the near and distant future. One must take into account their incomes, their savings and their plans for the future as well. For example, do you plan to get married, or have children, or buy a house? These decisions are among the most financially taxing you will ever make, and it is best to be clear about these things before investing in a long term security, such as a mutual fund. Also consider your stomach for risk. There is no point in taking on a risky investment if one is not comfortable doing so. After all, it is important to realize that investments are as prone to depreciation as they are to appreciation.

When shopping around for the right fund, look at what the style of the fund is. That is, is it open-ended or close-ended? Does it invest in high value stock or low value stock? What securities would you like to have your money invested in? Once you know this, you will be able to better select an appropriate mutual fund. Also, before investing, look at the fund’s performance over a five or ten year period rather than just seeing how it performed last year. It does not always keep up their good streaks, and a hasty decision might put your money in danger.

Another angle of assessment to consider is the Net Asset Value, or NAV, of a mutual fund. Investors should keep in mind that these are not the same as share prices in the stock market. They do not denote the cost of your investment, but rather the intrinsic value of the mutual fund without any liabilities. Certain investors do not consider this to be an important metric, but for potential investors it can be quite helpful. The higher the Net Asset Value of a fund, the better the fund manager’s performance at choosing which securities to invest in.

Nowadays, one can contribute to mutual funds online at the click of a mouse. This is highly convenient for investors who are serious, but who also have other commitments to stick to, such as a day job. It also eliminates the troublesome paperwork that comes with most investment transactions as everything is conducted online. With the availability of the digital medium, one can expect it in India to become highly popular, as they already are in other markets.

Private Equity Funds The visionaries that guide the corporates of the future

December 8, 2014 Posted by admin

Today private equity plays a very vital role in international trade and commerce as their investments are not restricted to one particular country or region. PE funds have successfully incubated and mentored a host of businesses in India. While the first set of businesses to receive PE funding were the software companies, more recently realty and media companies have also sought Private Equity Funds. Some of the largest and most popular Indian software firms began with this funds. PE funds invest funds and buy a certain percentage of stake in a company which they later sell at a higher price and derive their profits. Equity Funds are an elite version of the best mutual funds however unlike mutual funds the that need not necessarily pay a regular dividend.

Private Equity Funds seeks companies that can give them high returns, however, this also means that they assume a higher risk by investing in these companies and while all investments might not hit the jackpot, they must ensure that they do not erode the total value of their capital. Some investments, indeed most investments by these funds will earn them a profit but an exceptional few will earn them a huge multi-million dollar profits and these are the deals that every firm seeks to make.

As with Mutual funds, PE fund appoint a fund manager or managers who are paid a management fee, which is a percentage of the amount in the kitty, and also get a share in the profits.

Such take an active interest in the businesses that they invest in and also bring in global experience and best practices that help firms to scale up their operations and add value in terms of a long term strategy.

The decision to invest in a business is based on a careful assessment of the market potential, growth opportunities in the future, long term sustainability of the business, exit opportunities for the quality of management that runs the business.

TIGER Funds : TIGER is the acronym for The Infrastructure Growth and Economic Reforms Fund which is a PE fund that focuses exclusively on investing in companies and sectors that have been deregulated and do business in India. The fund is one which seeks to leverage India’s position as a growing economy and the scale of the Indian economy to generate greater returns. TIGER funds are popular in developing countries, especially the BRICS nations of Brazil, Russia, India, China and South Africa. A growing population and increasing demand in these countries has seen their economies boom. To cash in on this boom PE funds have begun investing here.

Mutual Fund Investments Improve Your Financial Goal

December 6, 2014 Posted by admin

Investing in mutual funds can be simply described as – the easiest way to become a ‘prince’ or a ‘pauper’. The mutual fund market is very volatile. People invest every day, some on a large-scale and others on a small-scale. It depends on how much return you expect and how much money you are willing to risk get that return. However, mutual funds are very popular among many as they can yield a higher rate of return than the interest rates provided by banks. Of course, how high also depends on the kind of mutual funds you invest in. For example, the top mutual funds in India like SBI, HDFC, etc. are known as large cap funds, and belong to the category known as ‘equity.’ These are capable of generating 20 to 30% interest on an investment. But of course there is a catch, equity investments are the most volatile and risky category of investments. Choosing to invest in them depends on your risk appetite.

The Indian market has progressed over the last 10 years, in terms of growth and size. At first people were reluctant to invest, as they were more used to depositing money in banks. But as inflation went up, people opened up to the idea of investing their money in it and other areas of interest. That, and the IT boom of the early 2000’s, opened up a whole new world to the growing populous of India.

What happened was people started using the internet. They learn about it, the potential of an investment and how they can benefit from it. They then started going on online to do research on the different investment options. They started buying shares and stocks of other companies, they started investing in the mutual funds of the biggest and most profitable companies. It was all available on the internet. Needless to say, it became their major source of knowledge, and guide, for investments. In fact, the credit for the current market size and market growth of other investment opportunities can even be attributed to the internet.

Finally, the future is as, or perhaps more, unpredictable and volatile than the market for investments. With the year on increase in inflation and population, the thought of investing in it may very well supersede the thought of saving money in the bank. After all that is said and done, investing in it is a very lucrative investment opportunity – in spite of the risks involved.

How Does Mutual Fund Work. A Simplified Version

September 8, 2014 Posted by admin

Instead of directly investing in stocks or fixed deposits you can use the mutual funds route to invest in them.
A mutual fund is an investment scheme launched by a company called Asset Management Company. Examples of asset management companies are ICICI Prudential Asset Management Company, SBI Funds Management Private Limited etc. There are about 45 asset management companies in India.

Asset management companies will have experts in their team. This team of experts will create a list of shares or bonds that are expected to do well. The list typically will have 15-20 shares/securities. This list is known as mutual fund scheme. Each mutual fund scheme will have a manager and he is called the fund manager. Example of fund managers is Prashant Jain and he manages the mutual fund scheme called HDFC top 200 and HDFC Equity Fund.

All you need to do is choose suitable schemes offered by the asset management companies, fill up a form and write a cheque. They then will invest your money proportionately in all the 15-20 shares/ securities specified in the mutual fund scheme. You will get a folio number (account number) and periodic statements.

You have no role to play in stock picking. The fund managers themselves will decide which stock they need to buy and how much they need to pick. At the end of every month they will publish the performance of the fund and provide the list of stocks they have invested in. This information is called as fact sheet.

For managing funds on your behalf they charge annual fund management fees The fund management fee varies from 1% to 2.5% every year. The management fee is directly charged from your investments. The management fees covers all the costs of the asset management company including salaries, office rent and maintenance, advertisement, distribution, servicing etc. They will charge fund management fees irrespective of whether the scheme makes money or not.

Whenever you want your money back fill up a form and you will get your money back within 4-5 days.

Now, you may want to know what will happen if the asset management company closes down? Ok, just remember the money which you give them actually goes to a trust and you are the unit holders of that trust. So even if the AMC closes down, the money is lying in the trust a/c and does not go in their pocket. In fact you can be rest assured that mutual funds are very well regulated by SEBI in India.

Planning Your Finances With Mutual Funds

August 22, 2014 Posted by admin

When planning your finances it is important to be very clear as to what your goals are. Once you have them clearly defined it becomes easier to select investment options based on your needs. The next step is to have all the knowledge possible about where you are investing your money. Knowledge equals power in the financial world, and the more you have, the better off you will be.

There are a number of avenues to invest your money in, but one of the largest growing financial products in India is mutual funds. Most Indian’s are very conservative in terms of the investments they make. Culturally we prefer safety to risk when it comes to our money. Therefore, mutual funds offer us an excellent avenue as they reduce the risk factor for individual investors while maintain either a dynamic or secure return rate, depending on how the fund’s assets have been allocated.

One of the best ways to invest into mutual funds is through the systematic investment plan or the SIP. When investing through an SIP you decide on how much you wish to invest every month in a particular fund and also for how long. Let as assume that you wish to invest Rs. 5000 every month for 3 years. Then every month that money will be deposited into the fund from your account. The advantage of this is that if the fund is not doing well and the cost per unit or NAV drops, then for the same amount invested, you are receiving more units, which will increase your return through volume. Whereas if the fund is doing well and the NAV increases then, even though you purchase fewer funds per instalments, your returns at least are high.

Thus an SIP helps to make the best out of any situation that the market creates for it. Also, once all the initial paperwork is completed it is hassle-free as the amount is simply removed from your account every month and deposited into the fund at regular intervals. However, simply because we have mentioned the many advantages does not mean that it is the ideal investment avenue for you.

Sometimes it is necessary to invest in funds that definitely come with a higher risk like ELSS funds or equity linked saving schemes. These funds invest their capital solely into the equity of companies thus generating an extremely dynamic rate of return. However these funds stand at a higher risk as the equity market is far more volatile and hence riskier than investing in government bonds and so forth. In the end, you must always pick the investment route that matches your needs and helps you to achieve your financial goals.

How to Find the Best Performing Mutual Funds in India

August 6, 2014 Posted by admin

Identifying a mutual fund is just like finding out the best stocks to invest in – you must be very careful with the choice instead of going with the �hot’ fund of the day or week, or ones that have nothing else but a short term past performance to show for.

There are some simple rules you must follow to identify the best performing mutual funds in India. Here are three of them:

1. Look for long term players: Typically in a bull market, there are a lot of new schemes launched by mutual fund companies. Most of these schemes are nothing but an offshoot of existing schemes, and thus have nothing new to offer to investors.

These are however launched with a view to get more assets under management for the mutual fund companies.

For you, as an investor, it pays to look only at schemes that have been operation for a long time, say around 10 years. This will leave you with only those schemes that have seen through a few market cycles, and thus have proven their ability to earn returns for investors.

Simply avoid the schemes that have done well in the short-term, because their returns are exactly that – short-term.

2. Look for low cost funds: Mutual funds don’t come for free. Fund houses charge investors what is known as fund management fee, which is mandated to be a maximum of 2.5% for equity funds (2.25% for debt schemes).

Look for funds that charge a low management fee, because each rupee saved can add a lot to your returns over the long term. Of course, cheapness alone doesn’t guarantee success – but low cost is one of the necessary conditions for long-term success.

3. Look for best-performing managers: Your money is not managed by mutual fund companies, but by the fund managers employed by these companies. And fund managers are people like us, who have their own investment rules and discipline to follow.

It is thus important that you choose fund where the fund manager had delivered good returns over the past 8-10 years. This will help you ensure that the manager has been on the job in both bull markets and bear markets.

Also look whether a fund manager has been with a specific fund for long (10 years) or not. While there’s no data to back the claim for a �long-serving’ fund manager in India, research done by Standard & Poor’s in the US has proved that a fund manager’s tenure with a specific fund is one of the most important reasons for its success. But this factor is often overlooked by investors rushing to buy funds with the highest short-term returns.

Conclusion

Like your must do a careful research to find out the best stocks for your portfolio, you must also do a due diligence when it comes to finding out the best mutual funds for long term investment.

While it is difficult to know how your chosen fund will perform in the future, you will at lese be able to sleep peacefully at night knowing that you have done the hard work to pick the safest and the best fund.

Pros and Cons of Mutual Funds

August 5, 2014 Posted by admin

As a structure, mutual funds(MF) have inherent advantages: Expert research team and fund managers ?�EUR” Unless you devote full time to research, you cannot expect to do justice to your portfolio. In mutual funds, you just leave the research to the specialists and relax while they do their job and deliver returns for you Diversification ?�EUR” A single stock or a single bond inherently has risks. Think of the Satyam or the Enron debacle. But as a market, the risks are far lower. This simple concept, wherein you use the fact that not all stocks go bad at the same time, though individual stocks sometimes could, is called diversification. MFs use this to your advantage, through holding several stocks or bonds at any given time Risk control ?�EUR” Experts in the regulatory bodies, and in the fund houses themselves, have laid down strict rules that funds must follow. This is a scientific way to keep risk low and manageable. You would struggle to do this yourself. There are some special advantages of MFs in the Indian context:
1. Customer friendly regulatory environment: MFs in India are regulated by the Securities and Exchange Board of India (SEBI). Over the years, SEBI has introduced several features to make mutual funds customer friendly ?�EUR” such as safety, low transaction costs, transparency on fund portfolio and strict disclosure norms for the funds. Indeed, in several ways, investing in MFs in India is cheaper and easier than in the West. 2. Tax treatment: MFs enjoy a favourable tax treatment in India, far better than even the US and several Western markets. In India, they are treated as a pure pass-through, i.e. there is no separate taxation of funds. In case of equity and gold, the only tax that happens is at the product level. In case of debt, it is even better. While interest from debt if you invest in a fixed deposit is taxed as income, mutual fund debt is taxed as capital gains, a far more lenient system.
3. Low cost: As a result of the above points, the annual cost of holding MFs in India is very low (hardly 2% in case of equity and less than 1% in case of debt). This is a very small price to pay compared to the returns you can generate, and the other benefits mentioned above.
There are very few cons of a MF. In fact, we struggle to think of any serious contender! But yes, for certain expert and involved investors who are regularly updated on the market, mutual funds may be unnecessary. They may prefer to deal in the equity or debt markets directly.For more knowledge and wisdom on Personal Finance, visit the website of fintotal