The Nifty LargeMidcap 250 index reflects the performance of a portfolio of 100 large cap and 150 mid cap companies listed on National Stock Exchange (NSE), represented through the Nifty 100 and the Nifty Midcap 150 index respectively[1]. The aggregate weight of large cap stocks and mid cap stocks
The Sharpe ratio theory was developed by William F Sharpe. The Sharpe ratio helps in accessing if an investment is giving good returns for the risk you are taking. It measures the risk-adjusted return of an investment. What is Sharpe Ratio? The Sharpe ratio is a key metric used to
In India, gold is far more than just a precious metal. Its significance is deep and ingrained in the country’s history and culture. The last three decades have seen India's relationship with gold develop in notable ways. From a demand of 340 tonnes in 1992, the nation&
Choosing between gold and silver often comes down to understanding their market behaviour, industrial demand, historical performance and current economic trends and other factors. Is Gold Better than Silver? Several factors influence whether gold or silver is the better investment at the moment, as both offer distinct advantages: * Market Stability:
The mutual fund landscape in India is witnessing a strategic shift with SEBI’s latest initiative tailored to the needs of passive investing. By introducing this framework, SEBI aims to encourage new players, reduce compliance requirements and increase market penetration. What is the MF Lite Scheme? SEBI has introduced a
Mutual funds have become a cornerstone of many investment portfolios, offering diversification and professional management. However, like any popular investment vehicle, they're often surrounded by myths and misunderstandings. In this "Myth Busters" series, we'll tackle these common misconceptions head-on, providing clarity and helping you
Understanding the performance of your investments over time is essential for effective financial planning. While absolute returns may offer a limited view on performance of the portfolio, the Compound Annual Growth Rate (CAGR) represents the average annual growth rate of an investment over a specific period. It essentially smooths out
In today's complex investment landscape, managing multiple financial instruments can be challenging. The Consolidated Account Statement (CAS) addresses this by providing a unified report of your investment holdings, simplifying tracking and portfolio management. A CAS aggregates data from various sources, including mutual fund units and dematerialized securities, into
What are Silver ETFs? A Silver ETF is an exchange-traded fund that invests at least 95% of the net assets of the scheme in Silver and Silver related instruments.Exchange Traded Commodity Derivatives (ETCDs) having silver as the underlying shall be considered as a ‘silver related instrument’ for Silver ETF.
In November 2021, SEBI (Securities and Exchange Board of India) allowed Asset Management companies to launch silver ETFs (Exchange-Traded Funds)[1]. Since then, silver ETFs have seen massive growth (as shown in below graph) in AUM, crossing the ₹13,500 cr mark as of Jan 2025.[2] There are 12
Before divulging into Arbitrage Mutual Funds, let’s understand what does arbitrage mean? Arbitrage is the practice of buying something (for example, shares or foreign money) in one place and selling it in another place where the price is higher. Arbitrage funds are distinct in their investment approach and aim
As per SEBI categorization of Mutual Fund schemes, multi-asset allocation funds need to invest in at least 3 asset classes with a minimum allocation of at least 10% in each asset class. These asset classes may invest in equity, debt and commodities like gold, silver etc. Benefits of Multi-asset allocation
Topic: Starting Small In simple terms, a mutual fund means a pool of investments, managed by a professional fund manager. To get started: Choose any Investment Platform: There are many mutual fund investing platforms, including any Asset Management Company (AMC) apps/websites. Pick any of the them that you prefer
Topic: Understanding Your Investment Once your investment is successful, you will receive an email from the AMC confirming your investment. This email will likely contain the following details: Full Name of the scheme you have invested in: Every mutual fund scheme has to follow a particular naming convention. This naming
Topic: Categorization of mutual fund schemes These are the different categories of schemes available: 1. Equity Schemes: These schemes primarily invest majority in stocks (equities and equity related instruments) which are listed companies on the exchange. These schemes may be suitable if you have a higher risk appetite and longer
Total Expense Ratio (TER): To manage your investments in a mutual fund scheme, the AMC charges something called an expense ratio, expressed as a percentage. As a Mutual fund investor, it is important to be aware that mutual fund investments are not free, and you have to pay for it.
Topic: Investing through SIPs and Lumpsum Lumpsum: A lump sum investment is a one time investment that is made in one go in a mutual fund scheme. For instance, investing a sum of ₹ 1,20,000/- in a mutual fund, in one go can be considered as a lump
Topic: Direct vs Regular Plan You can choose to invest in Mutual Fund schemes in two ways – 1. Directly from the AMC → Direct Plan 2. Via a distributor → Regular Plan When you buy from the AMC/fund house directly, there is no distributor, hence no distributor commission, and therefore lesser
Topic: Understanding Investment Performance Post your investment, how do you now calculate the returns on your investments Investment Type Duration Type of Return Lumpsum >1 year CAGR Lumpsum <=1 year Absolute Return SIP <1 year Absolute Return SIP >1 year XIRR CAGR → The compounded annual growth
Now that you have an introductory understanding of the basics of a mutual fund, it is important to understand a few things. These things may not be exciting to talk about but we still have to do it because they are essential. 1) Emergencies: Think of any unexpected events in
Topic: Creating Financial Goals All of us will have certain aspirations in our life/career. To fulfill those aspirations we would need a certain amount of money/corpus which is why we earn, save and invest. Hence, the goal of investing in mutual funds or any instrument is to achieve
Now that you have made it to this module, we assume that you have laid out your financial goals. But before we start thinking about building a mutual fund portfolio, it is essential to set the right expectations from your investments. If your expectations are not in line with your
When it comes to mutual funds, a benchmark serves as an indicator used for assessing the performance of a mutual fund. A comparison of benchmark’s performance with the fund’s performance will help the investor understand how the fund has performed. Any equity/debt index comes in two different
An Equity Linked Savings Scheme (ELSS) fund is a type of mutual fund scheme that invests primarily (a minimum of 80%) in equity and equity-related instruments in accordance with Equity Linked Saving Scheme, 2005 as notified by the Ministry of Finance. Features of ELSS Mutual Funds * An ELSS fund invests
Assets Under Management is a key metric used to quantify the total value of all the assets that an asset management company (AMC), or a fund manager manages on behalf of its investors. Importance of AUM in Mutual Funds AUM is an important metric for AMCs. It reflects the overall
Systematic Investment Plan (SIP) A SIP is a mode of investment that enables investors to invest a fixed amount in a mutual Fund scheme periodically, at fixed intervals. One can purchase multiple units of the mutual fund scheme through a SIP. It is a convenient way to get started with
The Finance Minister presented the Union Budget 2024 on July 23 2024. Here are a few key highlights and updates from the Budget. Budget Theme: This budget focuses particularly on employment, skilling, MSMEs, and the middle class. This year a provision is made of ₹1.48 lakh crore for education,
A New Fund Offer (NFO) is a first-time subscription offer for a new scheme that is launched by an Asset Management Company (AMC). It allows investors to subscribe to the units of a newly launched scheme at a pre-determined price, before the scheme re-opens for normal subscription. How Do NFOs
Hybrid funds invest in a mix of equities and debt securities. They seek to find a ‘balance’ between growth and income by investing in both equity and debt. India already has active funds in the different hybrid categories, but as per the current regulations, passive funds have to be based
Over the past year, Index funds have emerged as the fastest-growing fund in terms of Assets Under Management (AUM) flowing in through Systematic Investment Plan (SIP) route , achieving a growth close to 85% from Nov 23 - Nov 24 with the live SIP accounts increasing by about 80% over the
There are different categories of Mutual Fund schemes that are available currently. Different schemes launched by a Mutual Fund are clearly distinct in terms of asset allocation, investment strategy etc. In order to bring uniformity in the characteristics of similar types of schemes launched by different Mutual Funds, SEBI issued
Investors have two distinct options for holding mutual fund units: either through a Statement of Account (SOA) with an asset management company (AMC) or in a demat account with depositories like Central Depository Services Ltd (CDSL) or National Securities Depositories Ltd (NSDL). The SOA represents the units that are usually
What are overnight mutual funds? Overnight funds are a type of open-ended mutual fund that invests in debt and money market instruments with maturities of one day. These instruments include options like Tri-Party Repos (TREPS) on government securities or treasury bills, and other securities with a residual maturity of one
What is a Mutual Fund Factsheet? A Mutual Fund Factsheet is one of the guides/ documents containing all the information for analyzing the mutual funds before making a decision pertaining to investment. It may not contain all the requisite information of all the mutual fund schemes offered by the fund
Gold has long been considered an investment that one should keep in their portfolio. But holding physical gold comes with challenges like storage and security. That's where gold funds step in, offering a modern way to invest in gold. But what happens behind the scenes when you invest
Asset allocation is a key principle in investing, and gold has been considered as a crucial asset class for diversification for a long time. Gold has historically exhibited a low correlation to stocks, meaning it can provide a hedge against market volatility. But a question that often arises is, how
What is a Gold ETF? Gold ETFs are passively managed and aim to generate returns that closely track the domestic price of physical gold. Investors can get exposure to physical gold without dealing with the challenges of physically holding or securing it. Gold ETFs invest in physical gold, offering investors
The number of new investor folios coming from smaller cities has been rising on a monthly basis. As per AMFI Mutual Fund Industry data, the mutual fund industry has added 2.3 Cr investor folios from Apr till Aug 2024 out of which more than 50% of them come from
Any investor can invest in a mutual fund scheme by way of a lumpsum investment (i.e. single payment) or by way of Systematic Investment Plan (SIP) [i.e. periodic payment over a defined time period]. The landscape of mutual fund investing in India is continually evolving. In order to
What are Passive Funds? It is a type of Investment Strategy in mutual funds that aims to mirror the performance of their underlying benchmark index, such as the Sensex or the Nifty. These funds invest in underlying instruments of the index they track and have fund managers to make sure
Systematic Investment Plan (SIP) is a convenient and a great way to get started with investing in mutual funds. Setting up an SIP offers an opportunity for investors to adopt a disciplined approach to investing. Steady rise in SIP Accounts and Monthly SIP Contributions: There is a healthy trend of
What is a Fund of Fund (FoF)? What does it mean? A fund of funds (FoF) scheme is a mutual fund scheme that invests primarily in other schemes offered by the same mutual fund house or another mutual fund house. It is an investment strategy of holding a portfolio of
The total number of retail Index Fund folios has grown by around 12X in less than 4 years. Investors may be choosing Index Funds for their numerous benefits such as Broad Market Exposure, Diversification, and potential for long term growth. Please find the detailed breakdown below👇 Growth in the total
What is a Nomination? Nomination is the process of designating a person to receive the benefits of an asset or account upon the death of the original owner. This is an important legal step that ensures the smooth transfer of assets to the intended beneficiaries. In the context of financial
Mutual fund Schemes offer two different options, and it's important to understand the differences between them before investing. One such option is the IDCW (Income Distribution cum Capital Withdrawal) option, and the other is the growth option. Difference between Growth and IDCW Option in Mutual Funds The key
What are Liquid Funds? Liquid Funds are funds whose investment is into debt and money market securities with a maturity of up to 91 days only. Where will your money be invested through liquid funds? Liquid Funds primarily invest in highly liquid money market instruments and short-term debt securities, ensuring
Who is a RTA The full form of RTA is Registrar and Transfer Agent. RTAs are entities registered with the Securities and Exchange Board of India (SEBI). Every asset management company (AMC) is required to appoint a registrar and transfer agent (RTA), unless they have an in-house RTA. RTAs specialize
Many individuals may find it difficult to successfully track their Mutual Fund investments especially if you have invested in schemes of various mutual funds through diverse platforms. Here are three different ways in which you can track your mutual fund investments: 1. Direct Mutual Fund (MF) Investment Platforms: These are
Gold represents a versatile investment proposition due to its dual nature as both a consumer good and an investment asset. This dual role allows it to provide effective diversification during times of financial turmoil while also benefiting from growth in jewellery and technology demand during periods of economic growth. Brief
There are many different investment avenues available to investors. Mutual funds are one of them that may offer good investment opportunities. These are a type of financial instrument made up of a pool of money collected from many investors. They then invest in securities such as shares, bonds, money market