Beginner

The Association of Mutual Funds in India (AMFI) is an industry association dedicated to nurturing and developing the Indian Mutual Fund Industry professionally and ethically. To protect and promote the interest of the mutual fund industry, Asset Management Companies (AMCs), and investors, AMFI aims to enhance and maintain professional standards for the AMCs and distributors through the Code of Conduct.

What are liquid funds?

As per Securities & Exchange Board of India (SEBI) guidelines, liquid funds are mutual funds that invest primarily in debt and money market securities with a maturity/residual maturity of up to 91 days. Accordingly, such funds may invest in money market securities like Certificates of Deposits (CDs), Treasury Bills (T-Bills), Commercial Papers, etc.

A type of mutual fund or exchange-traded fund, index funds are designed to follow certain pre-set rules. They are passive strategies, wherein the objective of the fund is to replicate the performance of underlying indices such as the Sensex, Nifty 50 or Nifty Next 50.

UTI Value Opportunities Fund is an open-ended equity scheme that follows a value investment strategy. The Fund follows the principle of intrinsic value — instead of the traditional multiple-based definition of value for portfolio management. Intrinsic value is ‘the discounted value of cash generated by a business during its remaining life’. The Fund has a flexible approach in terms of investing across the market cap spectrum based on available opportunities.

Mutual funds are increasingly becoming the preferred option for retail investors, as reflected by the consistent monthly SIP inflows. As per the latest data released by the Association of Mutual Funds in India (AMFI), mutual funds received Rs. 12,976 crores through Systematic Investment Plans (SIPs) in September 2022 alone and Rs. 74,234 crores total in FY 2022-23 so far. (Source: AMFI)

When it comes to investing in equity markets, retail investors often look at the movements of the benchmark indices - NSE Nifty 50, S&P BSE Sensex BSE 200, BSE Midcap Index, BSE Small Cap Index, Nifty 500, etc. This is because such indices may be considered indicators of financial markets.

Investing may be considered more of an art than a science. Amidst a wide range of investment options, products may be selected basis individual risk profiles, financial goals and investment horizons. Within an investment portfolio, the focus should also be on diversification and optimal asset allocation.

Diversification of investment portfolio across different asset classes

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.

Rate action: The monetary policy committee today voted 5-1 to raise the policy repo rate by 35 bps to 6.25%, in line with the market expectations. The external member Prof. Jayant Varma dissented against the decision & voted against the rate hike. The policy corridor floor, the Standing Deposit Facility (SDF) rate, was also hiked by 35 bps to 6.00%, while the ceiling Marginal Standing Facility (MSF) rate was hiked to 6.50%.

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.