Systematic Investment Plan (SIP) is a facility offered by the mutual funds to investors. Here one can opt to invest in a mutual fund scheme on regular basis by registering a standing instruction, wherein mandated amount by the investor is deducted automatically from the bank account and invested in the mutual fund scheme as specified in the registration process.
It is always advised, "one should not have all eggs in the same basket." This advice works well in the investment world too, as no single asset class has always been a winner for investors. As such, the investors tend to prefer having a diversified investment portfolio across different asset classes.
When it comes to mutual fund investing, investors can choose between actively and passively managed funds. While both aim to provide market-linked returns to the investors, these funds tend to differ on many parameters.
Mutual funds are increasingly becoming the preferred option for retail investors, thanks to the growing awareness of this most transparent and professional money manager. The consistent monthly SIP inflows is a reflection of investor’s changing preference towards mutual funds. The data released by the Association of Mutual Funds in India (AMFI) shows that investors channelised Rs. 10,351 crores in mutual funds through Systematic Investment Plans (SIPs) in September 2021 alone and Rs.
With a wide range of mutual fund schemes are available for investments, it becomes imperative for the investors to carefully review the available options and then select the mutual fund schemes best suiting the risk profile, financial goals, and investment horizon. Different mutual fund schemes may be suitable for financial goals with varied investment horizons.
Debt funds are one of the five broad categories of mutual funds allowed by the Securities & Exchange Board of India (SEBI). Debt funds predominantly invest in debt securities and bonds. Such securities tend to provide income primarily through interest income from such securities.
It is always advised, "one should not have all its eggs in the same basket." This advice works well in the investment world, as no single asset class has always been a winner for investors. As such, the investors tend to prefer having a diversified investment portfolio across different asset classes.
When it is about equity investment, it is natural for investors to look for investments consistent in their performance with reasonable stability over a period of time. In such a scenario, investors tend to prefer investing in large-cap mutual funds.
When it comes to equity markets, investors often use the terms ‘blue chip companies’ or ‘blue chip stocks’. A blue chip company is a well-established, fundamentally and financially strong with a proven track-record of performance. Such companies are considered more resilient to adverse economic events and minor hiccups in the financial performance and are thus considered relatively safe and stable for the investors.
One of the expectations from fixed income asset managers this time of the year is their annual forecasts on inflation, repo rate or government bond benchmarks. Forecasting typically involves answering the following question: “Given the data we see today, what will be the value of a variable at a period”. It is often said that forecasting exists to make astrology look good.
