Mutual Funds refer to a financial instrument where money pooled from various investors is put together to form a fund which is used to invest in financial assets.Answer and Explanation: Become a member and unloc
Most mutual funds invest in either shares of other companies which is normally known as equity or they invest in interest generating investments such as bonds, debentures, and deposits - these mutual funds are calleddebt mutual fundsand are similar tofixed depositsin some ways. Certain kinds of ...
Minimal Tax Impact: Liquid mutual funds are usually taxed as per the Income Tax slab. This simplifies tax planning. High Credit Quality: These funds invest in highly rated, short-term securities, ensuring a high degree of credit quality and stability. Convenience: Investments can be made and ma...
Equity Mutual Funds schemes are investment assets that pool money from multiple investors to purchase companies' stocks. These funds primarily invest in equity shares, aiming to generate high returns over the long term. They are best managed by professional fund managers who help investors pool their...
There are several benefits to investing in mutual funds via an SIP. A striking feature of SIPs is thepower of compounding. In simple words, compounding helps investors get a return on both the initial and continuing investments. Over a long period of time, this can result in substantial wealt...
Depending on your financial objectives, you can invest in equities and debt. When one asset class doesn't perform well, you can still gain valuable returns from the other and avoid losses in the process. However, there are risks to investing in mutual funds. Such as: Macroeconomic risks: ...
Kayezad E. Adajania
the pricing model and the futures contract in a better manner. The difference between the strike price, spot price, and the futures price is ideal to create goodhedgingpositions. Hence, understanding how the futures are priced will help them take better hedge positions and maximize their returns...
The Union Budget of 2020 changed the rules on tax on dividend from equity mutual fund in India. You need not pay a Dividend Distribution Tax (DDT) on equity mutual funds now, and the dividends are taxable in the hands of the investors. This amendment is likely to reduce the...
But individuals can still invest in fixed income throughmutual fundsandexchange traded funds. BlackRock offers three major categories of fixed income investment solutions: Mutual FundsiShares ETFsModels and Separately Managed Accounts Actively managed bond strategies, in the form ofmutual funds, can pursue...