Closed end funds have two main disadvantages. Firstly, investors cannot redeem their units before maturity or lock-in period. Asset Management Companies can list their closed end funds in stock exchange, which allows the investors to buy and sell units of closed end funds in the secondary market. The units may… Continue reading
Investment experts are split in their opinion whether open end funds give higher returns than their closed end counterparts or vice versa. In our opinion it is difficult to generalize whether open end funds are better than closed end funds or vice versa. The performance of a fund, whether open… Continue reading
A closed end fund is a mutual fund scheme where the investment is locked in for a specified period of time. Investors can subscribe to these schemes only during the offer period and can redeem their units only after the lock in period or the tenure of the scheme. Some… Continue reading
Today’s senior citizens definitely have more savings and investments compared to their parents, when they were retired, but the cost of living has multiplied manifold. Many of today’s retirees, unlike their parents, do not want to be financially dependent on their children’s earnings. While lifespan has increased, sky rocketing healthcare… Continue reading
While Equity Mutual Funds invest in stocks and other equity related securities, Debt Mutual Funds offer a wide range of solutions that invest in interest bearing securities like Government & Corporate Bonds, Term Deposits and Money Market Instruments. Debt Funds are also referred to as Fixed Income Funds, are generally… Continue reading
Equity funds invest in stocks / shares of various companies listed on the stock markets. The performance of these companies over the years and various other market related factors, determine the kind returns that you may earn. These funds generally high risk – high return, and are used to work… Continue reading
Choosing between Growth and Dividend Option should be determined by the financial objectives of the investor. Investment horizon and tax considerations also determine, whether you should opt for growth or dividend options. Here are some general guidelines that will help investors choose between dividend and growth options:- If the investment… Continue reading
Equity mutual funds are actively managed. The mutual fund managers actively manage their portfolios and try to beat market indices. ULIP funds are more passively managed and there is less portfolio churn. The company weights in ULIP funds usually track a benchmark market index. Diversified equity funds have more aggressive… Continue reading
Diversified funds, which invest across market capitalizations, have several advantages compared to funds focused on any particular market capitalization. Different segments of the market outperform each other in different market cycles. For example large cap companies outperform midcap companies in bear market conditions and in the initial phase of the… Continue reading
Pension plans offered by Mutual Funds do not get as much of mention, compared to the other retirement planning solutions like PPF, Insurance Plans etc. This is surprising, since the 5 to 10 year investment returns from mutual fund pension plans are quite good. UTI Retirement Benefit Pension Fund was… Continue reading