Floater Rate Fund is an open-ended debt scheme predominantly investing in floating rate instruments (including fixed rate instruments converted to floating rate exposures using swaps/ derivatives). These schemes will invest at least 65% of its net assets in floating rate instruments.
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<p dir="ltr"><span>Just like any other type of investors, NRIs (Non-Resident Indians) can also invest in mutual funds in India, provided they adhere to the FEMA (Foreign Exchange Management Act) provisions. With a wide range of mutual fund schemes to choose from, the <a href="https://www.utimf.com/nri-center/">NRI investors</a> can build a diversified portfolio in their home country with an optimal mix of equity and debt schemes.
ETF stands for Exchange Traded Fund. As the name suggests, ETFs can be traded on stock exchanges, just like other stocks listed on stock exchanges.
As per the SEBI Guidelines, ETFs must invest at least 95% of their net assets in the underlying index's securities. Thus, ETFs adopt passive investment strategies tracking different indices, viz., equity, debt, or commodities.
NAV stands for Net Asset Value, which serves as the base and the transaction price for all the investment transactions, including purchase, redemption, switch transactions in a mutual fund scheme. For example, if NAV of mutual fund scheme is Rs. 10 and the investors have invested Rs. 5,000, 500 units will be allotted to the investor.
<p dir="ltr"><span>The investors are living in a dynamic world and the financial goals or the risk appetite of the investor may change over a period of time. As such, it makes sense for the investors to keep checking on a regular basis that they are on the right track to reach their financial goals. </span></p>
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March 2020 was one of the worst months for equity market. Indian indices witnessed massive sell-off in line with global equities sparked by the COVID-19 pandemic and potential economic damage amid lock-down worldwide. Large cap based index, Nifty 50 dropped by over 23% and broad-based index, Nifty 500 fell by a little over 24%. Mid cap and Small cap benchmarks vis., Nifty Midcap 100 index fell over 30% and Nifty Smallcap 100 index dropped by over 36%.
<p dir="ltr"><span>ELSS (Equity Linked Savings Scheme) fund refers to the specified equity mutual fund scheme, which invests at least 80% of its net assets in equity-related investments and carries a lock-in period of three years. The investment in such funds is eligible for tax benefit under Section 80C of the Income Tax Act 1961. </span></p>
<p dir="ltr"><span>Equity Funds</span> are a specific category of mutual fund schemes that invest predominantly in equity and equity-related securities. The investment exposure can be in the form of direct investments in equity shares of domestic companies or through related derivatives with underlying equity exposure. Since equities equip the investors with the potential of long-term wealth creation, such funds are considered to be an preferred investment to achieve long-term financial goals. </p>
<p dir="ltr"><span>Today I commented on a tweet about what is “capable” in reaction to “People become DIY not because they are capable, but they want to avoid fees “. That triggered me, not to sound disrespecting to anyone but really how do you define capable – is it a professional qualification like Certified Financial Planner (CFP), it is number of clients you serve or impeccable trust you have in someone.</span></p>
e-NACH has been a recent entrant into the mutual fund investment process, in a bid to make the entire investment process digital and paperless. This article aims to discuss the NACH mandate and the registration process in detail.
