Here is our recommendation list of aggressive hybrid mutual fund schemes in the new year. We are continuing with our 2019 recommendations this year, as all the schemes in the list are performing well. The three aggressive hybrid mutual fund schemes that were on the list managed to retain their slots. As per Sebi norms, aggressive hybrid schemes have a mandate to invest 65-80% of their corpus in equity and 20-35% of the corpus in debt. These schemes are considered as equity mutual fund schemes for the purpose of taxation. That means, investments held in aggressive hybrid mutual funds for more than a year qualify for long-term capital gains tax of 10% on long-term gains of over Rs 1 lakh in a financial year. For newcomers, do not take the term 'aggressive' literally. Ironically, these aggressive schemes are considered ideal for `conservative' equity investors and new equity investors. However, a word of caution: there is a lot of difference between `conservative equity investors' and … [Read more...] about Best aggressive hybrid mutual funds to invest in 2020
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Santosh Joseph, Founder, Germinate WealthSolutions, a Bengaluru-based wealth management firm. Questions asked by investors:1. Are index funds a better option since they are low-cost? 2. Should we invest in ETFs? 3. Are mid and small cap index funds good for our portfolio? His response to his clients: Passive schemes are gaining traction after they proved their worth in the large cap segment in the last two years. We can debate about their long-term worth in the Indian market, but at the moment they are popular. The other reason for their popularity is their ‘low-cost’ structure. AMCs are also coming up with a lot of index funds and ETFs after they got acceptance in the market. However, all this doesn’t make index funds the best investment option. Index or passive funds may or may not beat the actively-managed funds in the long-term. Investors who are investing via SIPs in actively managed funds shouldn’t stop their SIPs. If you have a big corpus and you … [Read more...] about Are mid cap and small cap index mutual funds good for our portfolio?
Several mutual fund houses have filed draft papers for their upcoming index funds and ETFs. AMC s like Mirae Asset and ICICI Prudential Mutual Fund have recently launched two passive funds: Mirae Asset Nifty Next 50 Fund and ICICI Prudential Midcap 150 ETF. AMCs like Nippon, ICICI Prudential, UTI, L&T, JM and IDFC are in queue to launch passive schemes ranging from bank ETFs and IT ETFs to mid and small cap index funds. At least 10 passive funds are in line to get Sebi’s approval. However, mutual fund advisors believe that this rush doesn’t mean passive funds have taken over the active management. “We believe that the good performance of large cap passive schemes in the past two years has paved way for all the AMCs to launch passive schemes in all segments to complete their bouquet of offerings. The sudden rise in new passive funds doesn’t make them more suitable for retain investors in this market,” says Vishal Dhawan, Founder, Plan Ahead Wealth … [Read more...] about Mutual fund houses are busy lining up index funds. Should you invest?