Thursday, July 25News That Matters

Mutual Funds

SBI Gold Fund Accumulation Facility – Details & Review

Mutual Funds
SBI Gold Fund has recently launched the unique Gold Accumulation Facility under it's Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP). The facility would allow investors to invest in the scheme based on a specific quantity of SBI Gold Exchange Traded Schemes (SBI GETS) unit, wherein unit of SBI GETS represent approximately 1 gram of gold. Till now, you could invest in Gold Mutual Funds only by a specific amount and not by quantity (as in Gold ETF – you buy by quantity) Terms & conditions for the Gold Accumulation Facility SIP: Target scheme: SBI Gold Fund Frequency: Monthly & Quarterly Minimum units: 1 unit of SBI GETS & in multiples of thereof Maximum SIP instalment amount will be capped at Rs. 1 lakh.< Minimum number of instalments: 6 for monthly S...

Comparison of Gold ETF vs Gold Mutual Funds vs e-Gold – Which is the Best ?

Mutual Funds
  If you want to invest in Gold, electronic form of investment is better than buying physical gold due to reasons of safety, storage, liquidity, purity etc.You have few options of buying gold in electronic format  like e-Gold, Gold ETF, Gold Mutual Funds etc. In this post, I have compared the features of different options of buying gold in electronic form.   e-Gold (NSEL) -   Very Cost effective as compared to Gold ETF / Gold Funds. Best for those you want to invest for longer term & large amounts. Also, Physical delivery of Gold Coins/Bars can be taken. But need to open separate DMAT account with NSEL. Read my other article on e-Gold by NSEL.    Gold ETF - Gold ETF for those who already have share trading account and do not want to open separate account with NSEL for e-Gold.   Gold M...

Rajiv Gandhi Equity Savings Scheme – RGESS – Tax Saving Option

Mutual Funds
Rajiv Gandhi Equity Savings Scheme (RGESS) – this new tax saving scheme was introduced in 2012 Budget to attract retail investors to invest in Equity, directly or indirectly.  RGESS scheme was introduced in 2012 budget, but the details of this scheme were made available only in Sep 2012. Presently, only 3-4% of Indian household savings is going into equities as compared to  42% in the US and 14% in China   How much is the Tax Benefit? Under section 80CCG of the IT act 1961, an investor will get a tax deduction of 50% on the Investments made under RGESS.  However, the maximum investment amount eligible for deduction is Rs 50, 000 or maximum tax exemption of Rs 25000. This tax exemption is over & above limit of Rs 1 lakh under section 80C. See my other post on - Tax saving op...

Basics of Mutual Fund

Mutual Funds
I remember, when I advised one of my friends to invest via Mutual funds, he replied - "I am afraid of share market and that's why I don't want to invest in Mutual Funds. " Do you also think, investing in mutual funds means investing in share market and it is as risky as share market. Then you are not correct and need to understand the basics of Mutual Fund. It is a Myth that : Mutual Funds means Share Market. Mutual Fund by itself is not an Investment but it is a way to invest in other products like Equity (Shares), Fixed Income, Commodity (Gold), Index, etc Size of Mutual Fund Industry in India As per AMFI, the total Funds under management as on 31-March-2012 is Rs 587,271 crores There are 44 mutual fund companies in India operating 1000+ mutual funds schemes under various categories. Wh...