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?
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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
The budget 2020 is around the corner. Mutual fund houses are playing it safe this year - most refuse to comment on their expectations from the budget. Association of Mutual Funds of India or Amfi has already put out a wish list. ETMutualFunds.com wanted to know what are mutual fund investors expecting from the forthcoming budget, and conducted a small Twitter poll to find out. We offered four options, long-standing demands from fund houses, to investors to choose from: Removal of long-term capital gains (LTCG) tax on equity mutual funds Hike in Section 80C limit of Rs 1.5 lakh Cut in personal income tax Lastly, others (asking the investors to mention if they are expecting anything else from the budget) The poll was active on our twitter handle @ETMutualFunds for a week. Around 655 readers participated in the poll. And the final results were very much in line with the wide expectations this year. Around 44% poll participants voted for 'cut personal income tax,' followed by 32% … [Read more...] about What do mutual fund investors expect from Budget 2020?
I am a software employee, with Rs 55,000 salary per month. I am a beginner to mutual funds. I have started investing Rs 1,000 in Mirae Asset Tax Saver Fund (growth) from this month. Should I continue this fund and how much I need to increase my SIP amount and what mutual funds will be good for me? My age is 25 and my financial goal is to buy land and construct a house.-Raja Shekar First, you should try to find out the current cost of land in the area where you would like to build a house. Next, find out how much is the inflation. For example, if the land cost Rs 50 lakh today, it will cost around Rs 81.44 lakh after 10 years when you account for an annual inflation of 5%. Once you know this number (your target corpus), you can find out how much you need to invest every month to achieve it. In this case, you may have to invest around Rs 35,000 every month to create Rs 81.44 lakh at the end of 10 years. We have assumed an annual return of 12% for the calculation. You are currently … [Read more...] about Mutual funds to create a corpus for a house
If I am investing in an ELSS mutual fund using SIP, when will the three year lock-in period start? Can I take the entire amount of SIP after three years from the starting date of SIP?-Raja Shekar As you know, an ELSS or Equity Linked Saving Scheme, like all other tax-saving investments, comes with a mandatory lock-in period. In the case of ELSS, the lock-in period is three years. When you are making a lumpsum investment, it is easy to understand how the lock-in period works. You can withdraw the entire amount once the investment completes 36 months. However, things are a bit complicated when you are investing periodically through SIPs. If you are investing via an SIP, the three-year lock-in period is applicable to every SIP instalment. That means, only the first SIP instalment will complete three-year or 36-month lock-in period at the end of three years. Every SIP instalment needs to complete 36-months before you can take the money out. … [Read more...] about Can I take the entire SIP amount from ELSS mutual fund after three years?