What if someone invests Rs 1 lakh as a lumpsum in five types of mutual funds like large cap, mid cap, small cap, multi cap, and tax savings fund for 7-10 years. How much returns can be expected?-Nitin Solanki First, an investor should choose mutual funds based on his or her financial goals, time in hand to achieve those goals, and risk profile. Adding every mutual fund category is not going to offer the benefits of diversification. Diversification happens when you choose mutual funds based on the following parameters. For example, take the example of a conservative equity investor investing for seven to 10 years. The person should invest mostly in large cap mutual funds. What if the person has a moderate risk profile? She should invest mostly in multi cap schemes. If she wants to reduce the risk further, she can add large cap mutual funds to her portfolio. Second, it is always better to stagger your investments in equity mutual funds. This is just to make sure that you don’t … [Read more...] about How much returns can one expect from equity mutual funds?
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I am 38 years old and I have invested in the following schemes via SIP Kotak Standard Multicap FundMirae Asset Emerging Bluechip FundReliance Large Cap FundSBI Bluechip FundI would like to invest a lumpsum of Rs 15,000 and a monthly SIP of Rs 3,000 per month in one high-risk scheme for three years. Which scheme would you recommend? --Sajitha MpDilshad Billimoria, Director and Chief Planner, Dilzer Consultants Pvt Ltd, responds: Equity mutual funds are not suitable for a three-year investment horizon. If you can hold on to your investments for more than seven years, you may add the extra money to Mirae Asset Emerging Bluechip Fund. Moreover, lumpsum investments are risky and should be held at least for 7-10 years in the equity market. If you don’t have much knowledge about mutual funds, please take the help of a mutual fund advisor. … [Read more...] about Best equity mutual fund schemes for three years
NEW DELHI: Government will shift Rs 500-crore Price Stabalisation Fund (PSF) to Consumer Affairs Ministry from Agriculture Ministry for effective control of price rise in essential commodities and provide relief to the consumers. Last year, PSF was created with a corpus of Rs 500 crore under the Agriculture Ministry. The fund was to be used to support market interventions for managing prices of perishable agri-horticultural commodities by procuring directly from farmers and later supplying at reasonable rates to consumers. "The purpose of PSF was to provide relief to consumers from price rise. So far, the fund has been used mostly with an aim to provide relief to farmers, who otherwise are covered under the minimum support price system. Hence, PSF is being shifted," according to sources. An in-principle approval has already been given to move this fund to the Consumer Affairs Ministry, which faced difficulty in handling the pulses price issue last year in the absence of direct say … [Read more...] about Price Stabilisation Fund to be shifted to Consumer Affairs Ministry
I have to invest around Rs 1 lakh in ELSS funds for tax saving purpose. However, since markets are at an all-time high right now and a crash seems imminent, I do not want to deploy new funds into them. Instead, I want to switch funds from my existing non-ELSS mutual funds to ELSS funds. These funds were invested in previous financial years. Is that acceptable as ELSS investment for the current financial year? Or will it not be considered for tax-saving since I switched already in invested funds?-Amir Parvez To begin with, yes, you can sell your investments in regular equity mutual funds and invest the money in an ELSS fund to claim tax deductions. Mutual fund advisors refer to this process recycling of investments - the process of shifting money from existing mutual funds (ELSS or otherwise) to ELSS funds to claim tax deductions. Though it is perfectly legal to do it, it can have serious impact on your long-term financial goal. If you have accounted for certain investments in equity … [Read more...] about Can I shift money from non-ELSS funds to ELSS funds to claim tax deduction?
I have a medium risk appetite. I don’t want to be extremely conservative. Is it a good time to invest in pure mid cap mutual funds?-Rupa Deb First, it is always a great time to invest in equity mutual funds to achieve your long-term financial goals. Investing a small sum regularly over a long period is the only way to achieve your long-term financial goals. However, you should not consider investing in mid cap mutual funds. Mid cap schemes are suitable for investors with a very high risk appetite or with aggressive risk profile. Mid cap schemes can be extremely risky and volatile. Sure, they have the potential to offer superior returns over a long period. However, a medium risk-taker would find it extremely difficult to continue with the investment when there are huge losses. This is the reason why mid cap schemes are recommended to investors with a very high risk tolerance level and stomach for extreme volatility. … [Read more...] about Can an investor with medium risk appetite invest in mid cap mutual funds?