Knowledge Hub

When investing in mutual funds, it's recommended to review your investment portfolio periodically. During such a portfolio review, the primary objective would be to identify mutual fund schemes that aren't performing well, and replace them if needed.

The investment portfolio may contain assets from different fund houses and across various Demat accounts. This is where a Consolidated Account Statement comes into the picture.

A demat account is a digital account available through depositories, whereby investors can hold their  securities   in a dematerialised or digital form. Investors can use it for multiple securities like equity shares, bonds, debentures, ETFs (Exchange Traded Funds), mutual funds etc.

TDS stands for Tax Deducted at Source. As the name suggests, this tax is deducted by the income payer (deductor) while  making a payment to the deductee. Such taxes are taken from the total amount payable by the payer and deposited with the Income Tax Department. The person paying the income and deducting the TDS is called the deductor, while the person receiving the income and on whose behalf the tax has been deducted is called the deductee.

While discussing the valuations of markets in general and stocks in particular, the most commonly used tool is undeniably a Price Earnings multiple (PE multiple). A PE multiple is a short-hand for the valuation process — not valuation per se — and no one should fail to make that distinction. The good thing about multiples is that they save time. However, they also incorporate a lot of economic assumptions that need to be unpacked for investors for them to accurately understand their meaning.

Dissecting the earnings multiple

UTI Equity fund has a strong predilection towards investing into businesses that have strong and steady profile of free cashflow generation, high RoCEs through the cycle and a high visibility of long term growth.

Mutual funds offer the facility of Systematic Withdrawal Plan (SWP) which enables the investors to periodically redeem their mutual fund investments over a period of time. So, this is exactly the opposite of what Systematic Investments Plan (SIP) offers.

Mutual fund fact sheets are the treasure house for the investors to get updated information about their mutual fund scheme. Most of the fund houses publish the fund fact sheets every month, and the investors can access these on the website of the mutual fund houses.