A mid-cap fund is a type of an equity mutual fund scheme that invests at least 65% or more of its net assets in the equity shares of mid-cap companies. As per the SEBI (Securities & Exchange Board of India) categorization norms, the companies ranking between 101 to 250 in terms of full market capitalization are classified as mid-cap companies.
Index investing is a passive investment technique that attempts to generate returns similar to a underlying benchmark index. An Index investment vehicle, tracks a market index or a specific market segment, to construct a portfolio of underlying index.
New Fund Offer (NFO) denotes the first-time offer for subscription of scheme units being launched by a mutual fund. This may be considered similar to Initial Public Offers (IPO) of equity shares, wherein the company offers shares to the public. Before discussing the comparison between NFO vs. IPO, it is important to know how NFOs and IPOs work.
This is a regular question that I get asked at meetings with investors and mutual fund distributors. It is even more common today as markets have moved up to a record high and valuations have pushed significantly higher. This question presupposes that I have the skills to discern the risks in the market. Blessed as I am with a worrying & skeptical nature, I see risks all the time. But, the problem with risk is that the biggest and market disrupting risks are those that I cannot see. Worse they are the unknown unknowns.
As we all know, there are various types of mutual fund schemes catering to different investment needs. And having a right mix of mutual funds may aid in building a corpus over a period of time. Likewise, while investing in value funds it would lead to diversification in investment style and unlock the potential of wealth creation over medium to long run.
Value Investing is dead was the oft repeated conclusion of investors who were being fed by commentaries of the investing community in early 2020. The conclusion was backed by not only short term performance data of 1 to 3 years performance but even looking at performance data of longer period of 10 years of value as style as compared to growth.
With the evolution of the financial markets, investors today have a wide range of investment options to choose from. However, to make an informed investment decision, one must carefully evaluate the different options available out there. This article aims to discuss different broad categories of investments as below:
A father's role in his children's lives cannot be quantified, but it can only be expressed in emotions. A father makes several sacrifices for his children and family but seldom expects anything back. Beneath everyone’s success is a strong foundation of the dreams and aspirations of a father who believes in only taking care of his family and many times not even expressing their feelings and emotions to the family.
A Father-child relationship is one of the most beautiful relationships in the world. However, it is often felt that a father may not even express their emotions and feelings with their children yet silently work towards fulfilling all the dreams and aspirations of their child. Traditionally, financial matters often flow from top to bottom, with your Father taking care of your savings, etc., during the early stages of your lives.
Equity Linked Savings Schemes (ELSS) are a special category of equity mutual fund schemes that provide tax benefits to the investors and are commonly known as tax-saving mutual funds. As of 30 June 2021, such funds manage around Rs. 1.36 lakh crores of AUM (Assets Under Management). ELSS funds are reasonably popular amongst retail investors, with 1.28 crore investor folios in such schemes as on that date
Source: AMFI – Association of Mutual Funds in India
