Passive investing refers to an investment strategy of creating an investment portfolio that has a similar composition as an underlying index such as S&P BSE Sensex, NSE Nifty50 or a commodity, such as Gold. In passive investing, the investors invest with intent to replicate the returns of the underlying index/commodity.
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While making regular investments is a healthy financial habit, it is prudent to set aside some amount for meeting any financial difficulties. Most of the financial advisors will advise you to hold an emergency fund of around six times your monthly expenses to meet the contingencies of life.
A gold Exchange Traded Fund (ETF) is an investment option that tracks domestic gold prices. A single gold ETF fund unit will be equal to 1 gram of gold.
It is rightly said that investing is an art. While many investors know ‘how to build a Mutual Fund portfolio,’ but the real need is to know ‘how to build an ideal mutual fund portfolio.’ This article will aim at guiding you about constructing an investment portfolio that suits your risk profiles and your financial goals.
Equity Linked Savings Schemes (ELSS) is one of the investment instruments that allows the investors to avail a tax benefit up to Rs. 1.50 lakhs from the total gross income under Section 80C of the Income Tax Act 1961. Owing to its inherent benefits of lowest lock-in period of three years amongst all the eligible investment options and potential of higher returns, ELSS has been gaining immense popularity.
Prudent financial planning involves listing down the financial priorities and then steadily working towards achieving the financial goals in the desired time frame. While you may have already taken your first step towards investing towards a healthy financial future by registering a Systematic Investment Plan (SIP), it is equally important to review the investment periodically. The performance review of the investment portfolio would allow you to align your financial priorities and financial goals.
<p dir="ltr">When we talk of a Systematic Investment Plan (SIP), one of its most talked-about benefits is the <a href="https://www.utimf.com/articles/all-about-sip">rupee cost averaging</a>. It is an investment phenomenon of averaging the cost of investments, which happens when the investors make regular investments periodically. </p>
It is said, "If you don't know where you're going, any road will take you there." Just like you must know your destination before you start your journey, you must determine the financial goal before you start investing. You must have a specific financial goal in sight. Be it saving for your child's education, buying a new house or saving for your retirement, linking your investments with your financial goals help you accomplish your goal in a better way.
“Mutual fund investments are subject to market risks.” While the market risk in mutual funds is inevitable, the fund management team can mitigate it to a certain extent, with adequate research and analysis. Based on their risk tolerance ability, an investor may be classified as an aggressive investor, moderate investor, or a conservative investor. This article aims to discuss how to evaluate the risk profile of an investor, including various factors that affect it.
