Mutual Funds

Have you ever wondered how you could invest in Global companies like Facebook, Amazon, Google?  You don't have to open foreign bank accounts or foreign brokerage account. You can invest in these companies via the International Funds provided by Indian Mutual Fund Companies. Indian Mutual Fund houses offer "International Funds" through which they either invest directly in US Markets / Stocks or they Invest in their Global Funds that invests in International Markets. Ultimately through these funds, you can take exposure in global well known US companies. In the post below, I am sharing top funds, their performance and portfolio companies. The performance of these funds over past few years has been very good as compared to India focussed funds. Also, the returns have been less volatile. So y...

Equity Linked Savings Scheme (ELSS) Mutual Funds are one of the popular 80C tax saving options for savvy investors. ELSS is a diversified equity mutual fund which has a majority of the corpus invested in equities. Overview of ELSS Funds It is a diversified equity mutual fund There is a lock in period of 3 years from the date of investment. You can remain invested even after 3 years and can withdraw anytime after that lockin. You should not be rushing to sell after the lock in period.  Returns from ELSS Schemes are tax free. As the investments are in shares, it is subject to market volatility, so you should have longer time frame in mind. There is no limit of investment in ELSS Funds, but you can claim Tax deduction upto Rs 1.50 Lakh under Section 80C of Income Tax Act. Read - ...

When you have invested in other Equity funds, like Large, Midcap, Small cap, Multipcap Equity funds etc, you can consider allocating some funds to any sector specific or Thematic funds. As the name suggests, these funds invests in share of specific industry (e.g. pharma) or specific theme (i.e. infrastructure) etc. These funds have higher risk as compared to diversified Equity funds, so you should allocate only a portion of your funds, for e.g. 10-15% depending on your risk profile. Some of the best performing Sector / Thematic Funds are as follows for investment in 2021 Pharma & HealthCare funds Due to recent pandemic, Pharma & Healthcare sector companies are doing well and are giving good returns You may note that Pharma funds have not done well during 2016-2019, but d...

To help you create a well-rounded MF portfolio, Moneycontrol personal finance filtered a crisp set from a list of over 1,000 MF schemes. There are 1,554 MF schemes in the market. Even if you remove 522 closed-end schemes, you are still left with close to a 1000 funds to scan and decide. Even if you break them into three broad categories, you have 351 equity, 313 debt and 140 hybrid funds on offer. Making choices among passive funds isn’t easier either. There are 49 index schemes and 11 gold exchange-traded funds (ETFs). In addition, there are 97 other equity, debt and international ETFs. Moneycontrol has curated basket of 30 hand-picked MF schemes for you to choose from (MC30). That is not to say you must invest in all the 30 schemes. Instead, you should invest in just 6-10 MF schemes to...

Arbitrage Funds, as the name suggests, are the funds which make money from Arbitrage opportunities.  Many investors are not familiar with this type of Mutual Funds. They normally know Equity Funds and Debt Funds etc and think Arbitrage Funds are just other fancy schemes under Equity Funds. However this is not the case. Arbitrage Funds Definition / Meaning "Arbitrage" means - The simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset. Actually, Arbitrage Funds are niche category of mutual funds that aim to take advantage of arbitrage opportunities between spot (cash) and future markets. The arbitrage is sought by taking advantage of the mis-pricing between the ca...