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How to Pick Mutual Funds That Beat the Market

  Smart Strategies for Investing in Mutual Funds: A Guide to Maximising Your Returns One of the most well-liked investing options for people looking for expert management and diversification without having to choose individual equities is a mutual fund. One of the easiest ways for people to accumulate wealth over time is through mutual fund investments. Mutual funds combine the capital of numerous individuals to invest in a diverse portfolio of stocks, bonds, and other securities, in contrast to direct stock market investing, which necessitates considerable time, study, and risk tolerance. Mutual funds are a well-liked option for both new and experienced investors due to their expert management and diversification. But merely investing in a mutual fund and crossing your fingers seldom yields the best outcomes. A comprehensive approach that matches the appropriate fund selection and management strategies with your financial objectives, risk tolerance, and investment timeline is nece...
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SEBI introduces a new category of funds flexi-cap in mutual funds

  Securities and Exchange Board of India (SEBI) has introduced a new fund category, Flexi-cap, in mutual funds. According to the circular, mutual funds in this category need to invest at least 65 per cent of the portfolio in equities. However, there is no restriction in terms of allocation to market capitalization range and they can dynamically shift across large-cap, mid-cap and small-cap. So, effectively, the new category of the fund in a mutual fund is how SEBI used to define the multi-cap category until it changed the category's mandate.   On September 11, 2020, SEBI issued a circular informing about the change in the mandate of the multi-cap fund's category. According to the new guidelines of SEBI, multi-cap funds need to allocate 25 per cent of the portfolio to each-large-cap, mid-cap and small-cap stocks, increasing the minimum equity allocation to 75 per cent. AMC has been given time until January 2021 to make the required changes in the portfolios of their multi-c...
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Loan against mutual fund will be beneficial on, cheaper loan than a personal loan

  Investing in mutual funds can not only provide good returns to the consumer, but you can also take a loan on this in a bad time. Loan against mutual fund is classified as secured loans. Loans to equity or debt-based mutual funds are available to the consumer quickly. Let us discuss today digital loans taken on mutual funds.   Loan against mutual fund gets cheaper loans than personal loans. Interest rates of loan against mutual fund vary from bank to bank. Loan against mutual funds interest rate usually between 9 and 13%. State Bank of India is offering 9.75% annual loan against mutual funds interest rate on equity mutual funds and Dual Advantage Fund. This is much better than the interest rate on personal loans, which can be up to 16%.   How much loan can I take? In the case of equity-based mutual funds, banks can lend up to 50% of net asset value (NAV). Loan against mutual funds SBI provides loans up to 50% of the net asset value of equity, hybrid or ETF mutual...
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Know what changes SEBI made in debt funds after Franklin Templeton incident

  SEBI has paid special attention to the matter since the closure of the 6 debt scheme of Franklin Mutual Fund AMC. It has made several changes in the last month regarding debt and equity funds. Debt mutual funds scheme has been losing investors for some time. For this major reason, SEBI had to do all this. Please tell that 6 schemes of Franklin Templeton have defaulted. Due to this, around 28 thousand crore rupees of his investors were stuck. However, money has been slowly coming back since then to the investor. In view of the interests of an investors, market regulator SEBI has made some changes in the rules of mutual funds business, to reduce the risk. Also, such incidents should be stopped in future.   SEBI told the mutual funds company that they will now give a new warning in the fund product. It is fundamentally related to risk. Now, in every mutual fund scheme's risk-o-meter, a very high-risk category is also included in this. All mutual funds scheme will now be req...
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Get more return by investing in Mutual Fund’s ‘Fund of Funds’ category

  If you are planning to invest in a mutual fund scheme but are afraid of the risk involved in it, then you can reduce the risk by diversifying the portfolio. Risk can also be reduced to a large extent through fund of funds. It is a category of mutual funds. Such that schemes invest money in another mutual fund AMC schemes. Investors who want to diversify their portfolios to reduce risk can invest in FoF scheme. Today we are telling you about the Fund of Funds category of mutual funds.   What are 'Funds of Funds'? Funds of funds are schemes of mutual funds that invest in other mutual funds schemes. But FoF is not limited to index funds and exchange-traded funds (ETFs). By investing in multiple schemes, the Fund of Fund can give to an investor a broad exposure to multiple market segments or strategies and is also likely to yield better returns.   Understand from the example, if the fund manager wants to invest in gold, then he will invest money in gold scheme inves...
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What is SIP

  Systematic Investment Plan (SIP) is an investment route offered by mutual funds wherein one can invest a hard and fast amount during a Mutual Fund scheme at regular intervals– say once a month or once a quarter, rather than making a lump-sum investment. The instalment amount might be as little as INR 500 a month and is analogous to a recurring deposit. It’s convenient as you'll give your bank standing instructions to debit the quantity monthly. SIP has been gaining popularity among Indian Mutual Funds investors because it helps in investing during a disciplined manner without fear about market volatility and timing the market. Systematic Investment Plans offered by Mutual Funds are easily the simplest thanks to entering the planet of investments for the future. it's vital to invest for the long-term, which suggests that you simply should start investing early, so as to maximise the top returns. So your mantra should be - Start Early, Invest Regularly to urge the simplest out ...
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The asset base of mutual fund industry grew 12% in September quarter

The asset base of the mutual fund industry reached Rs 27.6 lakh crore in the second quarter ended September, a 12 per cent increase from the previous quarter. The main reason behind this is being said to be a surge in the stock markets. According to the Mutual Fund Association of India (AMFI), assets of 45 companies of the mutual fund industry were under the management of Rs 24.63 lakh crore under various funds in the April-June quarter, which increased 12 per cent to Rs 27.6 lakh crore in the July-September quarter. In the April-June quarter, there was a drop of eight per cent.   All the 10 major mutual fund companies recorded growth in assets under management during the July-September quarter. These include SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Aditya Birla Sunlife Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, Axis Mutual Fund, UTI Mutual Fund, IDFC Mutual Fund and DSP Mutual Fund.   It is worth noting that Axis Mutual Fund, UTI...
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Mutual funds give more returns than Nifty by adopting asset allocation tool

  The first thing investors should focus on while investing in mutual funds is that their investment should be based on asset allocation formula. That is, the investment he is making should be divided into both debt and equity, as he reduces risk and gives good returns. By adopting the same method, many more mutual funds have outperformed the Nifty in terms of returns. Dynamic asset allocation fund invests in a mix of instrument tools such as stocks and FDs. However, they vary this fund allocation periodically depending on market conditions to provide you with optimal returns while maintaining minimal risk. That type of fund allocation called dynamic asset allocation.   An ideal mutual fund portfolio allocation requires both debt and equity exposure. In a bull market, equity exposure should be higher and debt should be lower, and recession debt exposure should be increased and equity should be reduced. Funds should always be carried by balanced asset allocation according t...
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Invest on SIP in Mutual Funds; know how you should do it.

  If you invest in SIPs of mutual funds, then you have to understand the rules of this investment. It is often seen that the investor sometimes gets scared and withdraws money, which he has to bear. Take any middle quartile equity mutual fund and take any earlier 10-year SIP period, you will find that their annual return far outstrips all other asset classes.   Not all investors starting SIP did able to get returns. If you are an investor who wants to make a successful SIP investment then these three golden rules can help you.   Rule 1: Understand how things work   Many SIP subscriber who go to SIPs from fixed return assets like recurring deposits and PFs actually do so because they are not well aware. Attracting from past returns ranging from 12–14% over a period of 5–10 years, they assume that these returns are not really going to be the same. There are countless instances in which SIP returns have been negative for the first two or three years and thes...
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