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Alpha is the first Greek alphabet, but in Mutual funds and investments, Alpha is the yardstick to which the investment performance of a mutual fund scheme is generally tied with. Alpha denotes the excess returns generated by the fund as against the expected returns from such funds. 

It tends to reflect the outperformance or underperformance of the fund as against the market returns. Here are seven things you must know about Alpha:

Income Tax provisions allow deduction under Section 80C up to Rs. 1.50 lakh in a financial year, which effectively reduces the taxable income. There is a large bouquet of investment options listed under the section, wherein the investor can invest and take the tax benefit. While some options provide market-linked returns, like Equity Linked Savings Scheme (ELSS), Unit Linked Insurance Policies (ULIP), etc., some options provide fixed returns to the investments.

One should not keep all its eggs in the same basket. Such a piece of advice rightfully focuses on the importance of different asset classes within the investment portfolio. While one may have invested in various asset classes in an optimal proportion, the ratio can subsequently change due to the relative outperformance/ underperformance of different asset classes. It becomes vital for the investors to periodically rebalance the investment portfolio to keep it aligned with the investor risk appetite.

Here is a step-by-step guide to portfolio rebalancing:

To reach a holistic assessment, performance should be viewed adroitly to unearth a fund’s realistic potential.

5 Steps to Decipher Past Performance

If you have ever invested in mutual funds, chances are that you would have narrowed down on one that put up some very good numbers in the recent past. Despite the bold disclaimers about past performance not necessarily being sustained in the future, investors have a hard time resisting the numbers. Past performance is undoubtedly very luring, but should you rely on it?

5 Reasons To Open A PPF Account

If you do not already have a Public Provident Fund, or PPF, account, you should consider opening one right away. Its benefits make a compelling case.

5 Reasons To Invest In An Equity Fund

Skeptical about equity funds?It is actually the most beneficial and opportune way for a retail investor to get an exposure to stocks. If you are unsure as to how mutual funds are advantageous, read on.

A mutual fund investment portfolio may comprise several mutual fund schemes, which may be linked to different financial goals and may carry different investment objectives. Since selecting the mutual fund schemes to form the basis of the future investment performance, selecting the schemes becomes an important decision to lay a strong foundation towards a prosperous financial future.

5 questions about passive investing

Though not as popular in India, as it is in the U.S., it is getting noticed. Here are a five questions investors need to get answered before they consider passive investing with regards to the stock market.

Globally, a growing number of ETFs straddle the line between active and passive, offering investors a dizzying array of increasingly complex choices.

5 Principles Of Strategic Beta

"Smart beta," "advanced beta," "alternative beta," "enhanced indexes," "strategy indices," "quantamental indexes"—are the list of monikers describing the intersection of active and passive investing.At Morningstar, we refer to smart beta as strategic beta.

A quick lowdown on the current stock market turbulence across the globe.

5 Questions About The Market Turmoil

Some believe the stock markets have overreacted, others believe the worst is yet to come. Here's what you need to know about the markets.