Types of Mutual Funds There are three basic types of mutual funds—stock (also called equity), bond, and money market. Stock mutual funds invest primarily in shares of stock issued by Indian or foreign companies. Bond mutual funds invest primarily in bonds. Money market mutual funds invest mainly in short-term securities. Money Market Funds The money [...]

A mutual fund is a company that invests in a diversified portfolio of securities. People who buy shares of a mutual fund are its owners or shareholders. Their investments provide the money for a mutual fund to buy securities such as stocks and bonds. A mutual fund can make money from its securities in two [...]

Estate Planning Discussion If you thought that estate planning was only for the very rich, get ready for a surprise. It may be even more important for those with modest incomes to plan carefully, to conserve the maximum value of their assets for distribution to their chosen heirs. Consider the following three situations, and imagine [...]

Fixed deposits (FDs) are fixed-interest-rate, time-bound monies canvassed for and accepted by banks from the retail customer. Banks accept both short and long-term fixed deposits. FDs are the most popular investment vehicle for retail investors in India because investors find banks very convenient to deal with. These deposits are perceived to be highly safe and [...]

Consistent growth in India’s economy has led to a boom in incomes of the middle class families and investors.  Rapid urbanization of smaller towns has resulted in a sharp growth of the real estate industry. Traditionally it has been the most preferred investment option. Now, it is the investment option beyond compare.The appeal of this [...]

Buying Real Estate The real estate sector is one of the fastest growing sectors in India and is poised to grow manifold with the thrust on infrastructure expansion. Highways, airports, SEZs, townships, commercial properties etc. are coming up all over the country, representing a great wealth creation opportunity for investors. According to Merill Lynch (world’s [...]

IPO(Initial Public Issues) of good and growing companies keep on coming in the market. History shows investors who bought equity shares of reputed companies during their intial public issues have now become rich and prosperous

Do not speculate: Always evaluate risk-taking capacity. Do not chase returns: Because what goes up must come down. Do not put all eggs in one basket: Diversification reduces the risk. Do not stop working on Mutual Funds: Continuous evaluation of funds is a must. Do not time the market: Every time is good for investments. [...]

Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits. Financial institutions and Non-Banking Finance Companies (NBFCs) also accept such deposits. Deposits thus mobilised are governed by the Companies Act under Section 58A. These deposits are unsecured, i.e., if the company defaults, the investor [...]

Bond refers to a security issued by a company, financial institution or government which offers regular or fixed payment of interest in return for borrowed money for a certain period of time