National Savings Certificate (NSC) is one of the investment options the Government of India offers. NSC investments are received and serviced by the National Small Savings Fund, managed by the government through the interface of post offices.
<p>When investing in the market, opting for stocks with reasonable valuations and a higher margin of safety may provide a safety cushion. <strong>P/E Ratio </strong>(Price to Earnings Ratio) can help the investors gauge the valuation multiples for a given company or scheme, which can then be used to compare other companies or mutual fund schemes.</p>
<p><strong>What is P/E ratio?</strong></p>
Mutual funds have been steadily emerging as an attractive investment option for retail investors and have become one of the intelligent avenues to invest money. This is because it's convenient to invest in mutual funds, and there are many schemes to choose from.
Across different mutual fund schemes, the investment portfolio may be managed actively or passively. While active investing requires making active investment decisions by the fund managers, passive investing tracks benchmark indices instead of fund managers making independent investment decisions.
<p>Mutual funds are emerging as a preferred investment option amongst investors owing to the convenience of investing. One can invest in lump sum mode or through a Systematic Investment Plan (SIP). Under an SIP, the investment amount will be deducted from the investor's bank account periodically and invested in the specified mutual fund scheme.</p>
Here is a simple quiz question. “What do you need to meet life’s major financial goals like children’s higher education and retirement?” You have got it right if your answer is ample savings. But that was the easier part.
What comes to your mind when you think of making investments for future needs?
It is a fine balance every investor needs to achieve. We need to pay the taxes due from us. Yet, we need to plan our taxes especially on our investments. The idea is to make more money available for growth so that we save ample amounts for future needs. But how does one do that?
Make volatility help you create wealth
The long journey to major financial goals like buying a home, children’s higher education and retirement, is comparable to a long distance flight or a sea voyage. In Air travel you sometimes experience uncomfortable air pockets and choppy seas in case of sea travel. Of course, we don’t interrupt or abandon those journeys because turbulence is a part and parcel of them.
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
A good investor aims to generate reasonable returns from the investment portfolio aligned with the financial plans and commensurate with the financial objectives. However, there is no 'one size fits all' investment strategy that can be advised for all the investors.
Investing is not a science but an art. While one may read all the financial literature to understand the financial markets, investing skills demand more than technical skills. However, certain fundamental investing principles can be universally applied across different investing strategies.
