NPS or Equity MFs – what’s a better retirement tool? In structure NPS is similar to a mutual fund scheme; both pool assets from a number of investors and assign or allot units as investment value in a fund.
Do SIPs in debt funds make sense? While SIPs in equity funds have enough time to accumulate growth, in case of SIPs in debt funds it’s a lot more about managing your behaviour. The SIP gets deducted automatically each month and you don’t get the chance to spend the money.
Are current liquid fund returns worth your while? At the moment liquid funds are delivering an annualised return of 5.5%-6%. This is lower than the 6.5%-7% seen a year ago. However, it is in line with the downward trending interest rates in the economy. If you are feeling disappointed with these returns and think that its better to move to a higher return fund or leave money in the bank itself, first read through the points below and then decide what to do.
Three things not to do when linking your equity mutual funds to your long-term goals The point of this article though is to make sure, that irrespective what you think your definition of “long-term” is, you don’t do the following when linking your goals to equity mutual funds.
Checking your portfolio return too often? Ideally, you shouldn’t be concerned about portfolio returns every now and then. Of course, in times of extraordinary market movement, you will want to see what happened but, looking at your portfolio returns too often can be detrimental too.
Long term wealth creation needs bear markets The recent recovery in market prices, might signal hope, however historical experience has taught us that bear markets can continue for much longer. What’s important is the need to take this period as an opportunity to build future wealth, rather than letting fear take over.
Is it a good time to invest? With the scenario worsening, there is one question on top of every mutual fund investor’s mind – Is it a good time to invest?
Revisiting what long term means in equity investing How much longer do you need to be invested for long term returns to look reasonable? How long should a long-term portfolio continue for?
COVID-19 and the markets – What can history tell us? The Indian markets have reversed much of the recent gains seen till February, rather quickly and you may have seen your gains made over the past years shrink in a matter of days. And that makes you wonder what will happen to your money?
Will the market recovery be as sharp as the fall? The future trend in the stock market will finally get defined by the aggregate earnings expectations from individual companies in an economy.
Create wealth for charity Often charity is considered from our leftover funds, but you can just as easily convert that into a goal. Use the same concepts of wealth creation, start early, and stay for long periods.
Making sense of risk and why we need it There are many such examples of risk-return trade off which we make consciously in our daily lives. In investing too there are varied types of risks, to achieve your return you have to know which ones to take and which ones to avoid.
