In common parlance, a Non-Resident Indian (NRI) is an Indian citizen who is staying abroad for employment, business purpose, or currently living in a foreign land. Like the resident individuals, NRIs are also eligible to invest in mutual funds in India subject to compliance with the FEMA (Foreign Exchange Management Act) provisions.
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.
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.
Often ‘the more the merrier’, but sometimes ‘the lesser the better’. This holds true while investing in Mutual Funds too. Although Mutual Funds are popular for offering diversification, there is a type of scheme that adopts a focused and concentrated approach too.
Independence Day opens up a flood of emotions in every Indian. While the Indian freedom struggle teaches patriotism, grit and sacrifice, you can also learn valuable investment lessons. Following are some valuable lessons that we Indians can learn from the country's freedom struggle and its leaders.
"Swaraj is my birth right, and I shall have it."
Not all asset classes have been winners consistently in the investing world since different asset classes may react differently to macroeconomic events. As such, asset classes like equities, debt, gold, real estate etc., tend to perform in their respective economic cycles.
While equities may perform better during periods of high economic growth, debt may perform better during periods of decreasing interest rate scenario. Similarly, gold may be a better performer when asset classes like equity and debt seem volatile and uncertain, as gold is considered a safer investment option.
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.
