Should You Invest in Real Estate or Mutual funds? Residential housing prices in the country have more than tripled in the past decade. Does it make a strong case for investing into real estate?
How Falling Interest Rates affect your Finances The yield on the 10-year benchmark government bonds has fallen sharply by 100 basis points (100 basis points is equal to 1%) to 6.4% per annum, in the last three months. Similarly, the five-year and one-year government bond yields have fallen to 6% plus levels. Fixed deposit and lending rates of banks are directly linked to these rates of the economy.
How debt mutual funds can help with better tax planning Debt funds are useful in creating that part of your investment portfolio where you are looking for stable returns with low risk. Typically, this is filled with bank deposits, however, if used wisely debt funds can not only deliver better returns but also more tax efficient returns.
Rupee-Cost-Averaging or Value-Averaging – What’s better? Buying low and selling high is easier said than done, thanks to volatile equity markets. Timing the market is tough. That’s why experts suggest retail investors choose a systematic and unemotional way of investing in equity. Rupee cost averaging and value averaging are two such popular methods.
How much should you spend on your Car? Buying a car is the second biggest buying decision after a home. While it’s okay to occasionally binge, over-stretching your car budget can cause financial angst and jeopardise long-term financial plans. Spend only what you can truly afford. How do you do that?
What are large-caps, mid-caps, and small-caps? If you are unsure what the term “cap” has to do with mutual funds, don’t worry. Here’s a simple guide to understanding the whole thing.
Goals take away uncertainty To create wealth, you have to include market linked investments like equity in your portfolio. While doing so, rely on well-defined goals to tide over uncertainty.
This is how compounding works Compounding returns, especially in growth assets like equity can help you create wealth provided you give it enough time and hence, start early.
How can a single parent achieve financial nirvana Being a single parent is seldom easy as one single-handedly shuffles responsibilities at home and work. While the transition to living on a single income can be intimidating, having a grip on finances makes the journey a lot smoother. Follow these steps to take you closer to financial nirvana:
Child’s education goal: equity risk, debt stability or both? Are equity investments too risky to cater to your child’s education goal? Should you then invest only in the stability of fixed income investments? The answers to these questions depend on your estimated expense amount for the goal and secondly, the time line for when you will need this money.
Does a repo rate cut matter to your investments? In the latest monetary policy review, the Reserve Bank of India cut its benchmark repo rate by 35 basis points of 0.35% to 5.40%. You are right in thinking that your housing loan EMI could look lower if banks follow suit and lower their lending rates too. But what happens to your committed equity and debt fund investments?
