Since the stock markets are doing well, it is not just IPOs (Initial Public Offer) that are flooding the markets. Mutual fund houses are launching new fund offers (NFOs) as well to capture investor’s attention. NFOs are nothing but new schemes launched by mutual fund companies to expand their business. During the NFO subscription period, an investor can buy the mutual fund units at a fixed rate of Rs.10. After the NFP window closes, the fund units are available for subscripti

Index funds are fast gaining popularity in India. These funds track a stock market index like the NSE Nifty 50, BSE Sensex, etc. For e.g., a nifty 50 index fund will have all the stocks of Nifty 50 and in the same proportion. Thus, if the market moves up by 10 per cent, the index fund value also goes up in the same proportion and vice versa. The investors hence do not have to worry about the performance of the fund manager and whether the fund will underperform or outperform

Continuing with its issuance of sovereign gold bond (SGB) scheme, the RBI opened the window for next tranche of subscription from 17 -21 May 2021. These will allow investors to invest in gold in digital form with certificate issued against grams of gold. For individual investors, the minimum investment is equivalent to the price of 1 gram of gold and maximum investment is equal to the value of 4 kg of gold. A holding certificate is issued in the name of an investor upon succe

In all my years of experience in the financial advisory profession, I can surely tell that the science behind getting wealthy is very elementary. There is no secret to getting wealthy. Getting wealthy is not just confined to people who are earning high incomes or doing business or investing in properties or taking bets in stock markets, commodities, foreign currency, etc. Earning big money is a skill, but managing that money well is even a bigger skill. Even an individual wit

Imagine a farmer growing only one crop a year, say wheat. This implies that his agricultural income is dependant on only one crop. Now suppose if something wheat-related went wrong like inconducive weather, or pest nuisance or unfavourable wheat market. The farmer is in real trouble. Overreliance on just one crop exposed him to a lot of risk. Had he diversified his crop-base to some millets, some rice plantations, etc, his income would have been protected to an extent. In th

Remember the 2004-2006 period, where not just DIYers but also amateurs, first-timers made money in the stock market IPOs. Well, those signs of temptation and overconfidence have not faded since. IPOs have been commonly perceived as get-quick rich options by retail investors. Even last year post the March crash, as the stock markets soared, a lot of IPOs fared well. Retail investors need to stay cautious though. Let us understand certain hard facts about an IPO first. An IPO

Heard of the famous FAANG stocks? The acronym stands for the famous 5 companies – Facebook, Apple, Amazon, Netflix and Google. With technology driving the global growth, more so amidst Covid times, every investor wants to have a piece of them in their portfolio. The FAANG stocks have outperformed the broader S&P 500 index for this year. But should you invest in them, or for that matter in the global markets to chase high returns? Before you jump the gun, you should know that

Today, parents are bombarded with many investment options to plan for their children’s future. In insurance, you will find specific child insurance schemes. They are similar to traditional insurance policies which provide life cover and time frame for maturity. In banking, you will find savings account options for kids. Likewise, there are also dedicated mutual fund schemes to plan for a child’s future. They aren’t difficult to identify as the scheme is likely to have the te

These trying times have taught us to slow down and self-reflect on many things in our life. It has signalled to act on certain tasks which we may have procrastinated for a really long time. Like for e.g., people are taking some time out to declutter their homes. It is actually very therapeutic. It is like decluttering our minds because we then have to focus on lesser things. Less is more! This virtue can be extended to our financial life. This lockdown presents an opportunit

When a crisis occurs and something as enduring as the current Pandemic, stock markets can be really cruel. The scale and speed of the fall could be severely harsh wiping off even 10-year average returns in a brief period. It is natural to feel anxiety, confusion and fear about our investments. I am sure there would be many investors who have vowed never to invest in the stock markets again. There would be majority who have sold in this falling market. But there has been cris

Nowadays, almost every 9 out of 10 messages on WhatsApp you will read would be related to Corona Virus. There are also videos where the self-proclaimed experts would talk about home remedies and preventive measures to deal with it. Further, you will see debates on media channels about how Corona Virus is adversely affecting the global economy including India. Then we have the Yes Bank fiasco which has shaken every common man’s trust in depositing money with banks. The power

Mobile apps in our smartphones have become a ubiquitous part of our everyday lives. They are fast and convenient. Apps are just a swipe away – Amazon for shopping, Ola/Uber for travel, Zomato for food orders, etc. However, this high dependence on mobile apps is also enticing us to spend more. Add to that, the discount offers and cash back deals are too hard to resist. We aimlessly spend gobs of time scouting for attractive deals and buy that extra jacket or footwear just beca

One of the biggest pain points that investors find in the National Pension Scheme (NPS) is the taxation part. Of the 60 per cent corpus that could be withdrawn lump sum at age 60, about 40 per cent is tax free and 20 per cent is taxable under the present rules. Now, in a recent development, the government has exempted even the 20 per cent from tax taking the tax exemption limit from 40 per cent to 60 per cent. This means that the money invested in the scheme (up to a limit) i

Many investors have a general perception that while equity and equity mutual funds are volatile, debt mutual funds are risk free. They also see debt funds as an alternative to fixed deposits which can yield higher returns than the latter. The primary reason behind this misconception is that investors fail to understand how a debt fund works. Debt funds are risky for sure and unlike equity, the former is much more difficult for the retail investors to understand. Not just inve

Rising crude oil prices, weak rupee, political uncertainty ahead of state and central elections, etc., all have spoilt the stock market party. But is there anything new in this? Markets have gone down earlier because of such macro-economic and geo-political factors. Yet, panic, anxiety, confusion – any emotion related to fear is common amongst investors. They always face the common dilemma of whether to sell or not. This indecisiveness amongst investors stems from the fact th

The stock markets are hitting new highs and investors must be facing the common dilemma – whether to book profits and then re-enter the markets on correction. When that correction would happen, no one knows. Predicting It would be more difficult than winning Blackjack in a casino. Although markets are cyclical and they reflect sentiment based on potential political events, macro-economic indicators, corporate earnings performance, it does not mean an investor can accurately p

Stock tickers flashing at the bottom of news channels, red and blue colour codes on the trading bolt, fast gainers & losers, 52-week highs & lows, etc., are all things which a retail investor associates equity stock markets with. They are usually more focused on the daily price movements. They would also not hesitate to park money in a stock based on tips from friends, brokers and associates. They would invest money in a particular stock just because it gave handsome dividend

With equity mutual funds coming under the ambit of taxation in the recent Budget 2018-19, insurance companies have made a strong case for selling ULIPs to investors. While a 10 per cent tax has been imposed on long term capital gains of equity mutual funds, ULIPs continue to remain tax free. Insurance agents have been dwelling on this tax disparity as part of their sales pitch. If this has got you thinking or confused whether to buy ULIPs or mutual funds, read on further to f

It is going to be 10 years on 21 January 2018, a decade, since the 2008 stock market crash. The BSE Sensex had registered a fall of 1408 points, the second largest single-day fall in the history of the Indian stock markets. History in hindsight always offers valuable lessons. While investors can never fully anticipate and prepare in advance for future crashes, such events do teach a thing or two about managing risks. Here are a few lessons which investors can always bear in m

As the year 2017 draws to an end and you look forward to a new year, making new resolutions must be weighing on your mind. Everyone likes new beginnings and people look for special occasions to make a new start. They are naturally motivated, just like a child is excited to have neat handwriting in a new notebook at the beginning of an academic term. Observe the parks or the gyms in your vicinity on January 1 of every year. You will see they would be comparatively more crowded