Mutual Fund Basics

Exit load is a charge levied on mutual fund investments if the investor makes a redemption before the end of the specified holding period. It is not uniform across mutual fund schemes; it may differ per the chosen scheme's investment objective and time horizon.

Exit load is applied to protect investors' financial interests, discouraging them from redeeming their investments too early. It may bring an essence of discipline in investors to remain invested for the scheme's minimum applicable time period and reap reasonable returns.

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.

As per income tax laws, all taxpayers must file their Income Tax Return (ITR) for the previous year, within the prescribed due dates, during the assessment year. The due date for filing tax returns for salaried taxpayers & non-audit businesspersons and professionals is usually July 31. Sometimes this date may be extended by the Finance Ministry.

Since the terms  'financial year', 'previous year' and 'assessment year' are often used in income tax laws, it’s helpful for all taxpayers to know their basic meaning. Read on to know the meaning and importance of these terms.

One may consider active and passive investment products when one plans to invest in financial markets. Active investment products are those where the investment portfolio is being managed actively, with the professional fund management team taking investment decisions after research and due diligence. The objective of an actively managed scheme is to generate alpha, i.e. returns over and above market benchmarks.

What is Equity Investing?

Equity investing refers to investments in equity shares of different companies. When one invest in equity, one becomes a part-owner of such a company. As such, equity investing allows investors to participate in the growth story of different companies.

5 Principles Of Equity Investing

Investing in a debt fund is quite different from buying a bond.

With the evolving financial markets, debt funds are seen as an alternative to traditional investment products. Such funds invest in debt securities and money market securities to generate returns for the investors. Such funds mainly invest in Govt. Securities (G-Secs), Corporate Bonds, money market instruments, etc. Here are five basic terms to know about debt funds:

Alpha is the first Greek alphabet, but in Mutual funds and investments, Alpha is the yardstick to which the investment performance of a mutual fund scheme is generally tied with. Alpha denotes the excess returns generated by the fund as against the expected returns from such funds. 

It tends to reflect the outperformance or underperformance of the fund as against the market returns. Here are seven things you must know about Alpha:

5 Reasons To Invest In An Equity Fund

Skeptical about equity funds?It is actually the most beneficial and opportune way for a retail investor to get an exposure to stocks. If you are unsure as to how mutual funds are advantageous, read on.

A mutual fund investment portfolio may comprise several mutual fund schemes, which may be linked to different financial goals and may carry different investment objectives. Since selecting the mutual fund schemes to form the basis of the future investment performance, selecting the schemes becomes an important decision to lay a strong foundation towards a prosperous financial future.

5 questions about passive investing

Though not as popular in India, as it is in the U.S., it is getting noticed. Here are a five questions investors need to get answered before they consider passive investing with regards to the stock market.