Sarfras

Gilt Funds: Investing in Government Bonds : Day 15

Gilt Funds: Investing in Government Bonds

Gilt funds, a type of debt mutual fund, are popular among Indian investors for their relatively low risk and stable returns. They invest exclusively in government securities (G-Secs) with varying maturities, offering a reliable investment avenue for those seeking safety and steady income. In this comprehensive guide, we’ll explore gilt funds in detail, including their features, benefits, risks, and suitability for investors in the Indian context.

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Fixed Maturity Plans (FMPs): Day 14

Fixed Maturity Plans (FMPs) are a unique type of mutual fund designed to offer predictable returns with minimal risk. As a close-ended debt-oriented investment vehicle, FMPs have gained popularity among Indian investors for their tax efficiency and stable performance.

In this blog, we’ll dive into the details of FMPs, exploring their features, benefits, risks, and why they may be a smart addition to your investment portfolio.

What Are Fixed Maturity Plans (FMPs)?

FMPs are close-ended mutual fund schemes that invest in fixed-income securities like corporate bonds, government securities, commercial papers, and certificates of deposit. These funds have a fixed tenure, typically ranging from one month to five years, and are designed to mature on a predetermined date.

Unlike open-ended funds, FMPs can only be subscribed to during the New Fund Offer (NFO) period and cannot be redeemed before maturity, except through stock exchanges where they are listed. Read more

Large-Cap, Mid-Cap, and Small-Cap Funds : Day 13

Investing in equity mutual funds often involves selecting from large-cap, mid-cap, and small-cap funds, which are defined based on the market capitalization of the companies they invest in. Each category offers unique risk-return dynamics, making them suitable for different types of investors.

In this blog, we’ll explore these three fund types in the Indian context, discussing their features, benefits, risks, and suitability to help you make an informed investment decision.

What Is Market Capitalization?

Market capitalization, or market cap, refers to the total value of a company’s outstanding shares. It is calculated as:

Market Cap = Share Price × Number of Outstanding Shares

Based on market capitalization, companies are categorized as:

This classification forms the basis for large-cap, mid-cap, and small-cap funds. Read more

Multi-Cap vs. Flexi-Cap Funds: Day 12

In the ever-evolving landscape of mutual funds, multi-cap funds and flexi-cap funds are two popular categories for investors seeking equity exposure. While both offer a mix of large-cap, mid-cap, and small-cap stocks, the distinction lies in their investment mandates and flexibility. Understanding these differences is crucial for making informed decisions aligned with your financial goals and risk appetite.

This blog will explore the features, benefits, risks, and key differences between multi-cap and flexi-cap funds in the Indian context, helping you decide which type of fund is better suited for your portfolio.

What Are Multi-Cap Funds?

Multi-cap funds are equity mutual funds that invest across large-cap, mid-cap, and small-cap stocks. However, SEBI (Securities and Exchange Board of India) mandates these funds to maintain a minimum allocation of 25% each in large-cap, mid-cap, and small-cap stocks.

Key Features of Multi-Cap Funds:

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