Mutual Funds Handbook

Mutual funds pool money raised from many people and invest it in stocks, bonds or other assets. The combined holdings of a particular fund scheme are known as its portfolio. Each investor in the fund scheme owns a portion of the portfolio, known as units. The price of a unit is calculated using the NAV or Net Asset Value. Think of NAV units as a share from a mutual fund and therefore NAV can go up or down.

Here is everything you need to know about mutual funds:

Let's say you bought one share of Airtel in the beginning of 2016 for ₹1,000. On the same day, your friend bought one share of Bajaj for ₹1,000. A third friend bought one share of Colgate for ₹1,000. Now let's say that at the end of 2016, Airtel had grown ...
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In an earlier post I explained what a mutual fund is and how it works. If you haven't read it go ahead and do so because some of the terms written below are explained there. Now let's understand how you can go about investing in mutual funds. Before you can ...
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Let's delve a bit deeper into mutual fund investing. You should read the beginner's guide to investing in mutual funds to orient yourself with the basics before we get into SIP. Do you:
  • believe you don't have enough money to start investing?
  • get scared by market volatility?
  • think you ...
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Debt mutual funds should be your choice of investment when looking for stable and less risky short term investment products. In earlier posts I discussed how equity funds will work best in fulfilling your long-term goals. But what about short-term goals? Also, not every investor is willing to take the ...
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In an earlier post I wrote about how you can start investing with small amounts in mutual funds via SIP & make volatility of the market work for you in the form of Rupee Cost Averaging. But what if you have a large amount of money available with you and ...
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Let's see how  taxation works for income from mutual funds. Read the previous posts on my mutual funds series here. The profits that you earn from your mutual fund investments after selling your units is a form of income and hence will be taxed accordingly. Income earned by sale of ...
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Equity Linked Savings Scheme or ELSS is a mutual fund scheme which offers the best of both worlds: Long-term wealth creation & tax saving. ELSS serves as one of the best options for your goal of wealth creation and also acts as an effective instrument for tax saving. As the ...
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I have written about Debt Funds and Equity-Linked Savings Funds in the past. Now, let's take a closer look at Closed-End Mutual Funds. Closed-ended funds, by definition, refer to funds where the investor can subscribe only during the launch period and cannot withdraw money until the tenure of the scheme ...
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One of the best things about mutual funds is that there are so many different kinds that everyone can find a suitable mode of investment. No matter what your goals are or what your risk profile is, you can invest easy & make a sound portfolio. In earlier posts I ...
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Are you planning to take a sabbatical from work? Or maybe you are thinking of quitting your full-time job to start something of your own? Or maybe retirement is just around the corner? Then obviously your main concern right now will be to replace that steady and regular income inflow ...
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