Mutual Funds

Mutual funds are exposed to market risks; therefore, you should assess your risk tolerance before investing in them. Risk tolerance is the extent of risk you want to take with your investments. Taking a higher risk can increase the chances of getting higher returns, especially over the long term. Although there's no guarantee, choose the kind of fund that suits your risk appetite. This is the first step towards reducing investment risks. Wish to know about some other ways too? Here are 3 additional tips to reduce the risk associated with your mutual fund investments. Diversify Your Portfolio Diversification is crucial for investments. To diversify your portfolio, you can invest in a mix of assets so that profits from one investment can offset losses from another. You can diversify your investments in these ways: Invest in weakly correlated asset classes: Invest in a combination of equities and debt funds. Debt funds are suitable for steady and fixed income at lower risk over a sho...

  Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund. This is at a regular interval, say, once a month or a quarter, instead of a lump sum investment. You do not have to be stressed about market timings or monitor the payment. Banks can be given standing instructions to debit the amount automatically. No wonder it is an extremely popular strategy among Indian investors. Get the best mutual fund distributor app on your phone to explore the different SIPs at your convenience.  Anyone with limited money can generate wealth too. This is because a bit of money can turn into a significant amount over time that can be used to achieve their life goals. You do not have to exhaust your emergency corpus. It is also ideal for salaried people who have a fixed cash flow. Look at a few other reasons why SIP investment is a smart choice.  The Many Benefits of SIP Download a reliable mutual fund app and start investing with as little as ₹500. This way, the...

Equity-linked savings scheme ( ELSS ) is a kind of mutual fund scheme that essentially invests in equities, i.e., the stock market. It is an attractive avenue in which investments of up to ₹1,50,000 qualify for a tax deduction per the Income Tax Act of India, Section 80C. But should you choose a systematic investment plan (SIP) or make a lump sum deposit to invest in this scheme? Here's a look.  Differences Between SIP and Lumpsum Investment SIP Lumpsum You can invest a fixed amount of money at regular intervals (annually, half-yearly, quarterly, monthly or weekly). You need to buy the chosen number of units in one go. It doesn't depend on the timing of the market. It uses the strategy of timing the market.  You can develop financial discipline by building the habit of making regular and planned investments.  It doesn't foster financial discipline since it involves a one-time investment. It doesn't depend only on market turbulence.  It is very market-responsive....

When compared to other investment tools available under Section (80C) of the Income Tax Act of 1961, investing in ELSS mutual funds is an economical approach to saving taxes. ELSS has a shorter lock-in period and expert fund management, which can result in wealth accumulation. This article will teach you more about the various characteristics of ELSS funds. What are Equity-Linked Savings Schemes? The best ELSS mutual funds are managed by skilled finance experts known as fund managers and are available through nearly all investment houses in India. ELSS mutual funds are the only type of mutual funds that qualify for tax breaks. Investing in ELSS will save you up to Rs 46,800 (annual tax deductions of up to Rs 1,50,000) per year in taxes. You can, however, invest more than the specified amount, but any excess over Rs 1.5 lakh would not qualify you for tax benefits under Section 80C. The returns earned by ELSS are subject to capital gains tax (LTCG). The Union Budget 2018-19 reinstated...