Archive for Mutual Funds

Overnight Funds: Ultra-Short-Term Investments : Day 17

Overnight Funds: Ultra-Short-Term Investments : Day 17

In the world of investing, liquidity and safety are crucial for short-term investments. Whether you’re looking to park idle funds temporarily or need a safe option for managing emergency savings, overnight funds are an excellent investment choice. These ultra-short-term debt funds offer a combination of low risk, high liquidity, and convenience, making them an ideal option for those seeking a secure investment solution for brief periods.

In this blog post, we will explore overnight funds, their characteristics, benefits, and why they are a popular choice for ultra-short-term investments. Read more

Liquid Funds for Short-Term Parking : Day 16

Liquid Funds for Short-Term Parking : Day 16

When it comes to investing, one of the most crucial factors that every investor considers is the investment horizon—how long the money will be invested. While long-term investments are ideal for building wealth, short-term investments play an equally important role in managing temporary funds, emergency savings, or idle cash that needs to be parked somewhere safe.

In this context, liquid funds offer an ideal solution. Liquid funds are short-term debt mutual funds that provide a low-risk investment option for those looking to park their money for a brief period. In this blog post, we will explore the concept of liquid funds, their benefits, and why they are considered a great choice for short-term parking of funds.

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Gilt Funds: Investing in Government Bonds : Day 15

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): 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

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:

Large-Cap: The top 100 companies by market cap.

Mid-Cap: Companies ranked 101 to 250.

Small-Cap: Companies ranked 251 and beyond.

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