Pharma ETFs in India: Which Are The Best Pharmaceutical ETFs?
In the next 20-years investment horizon, one sector that stands out from the rest is Pharmaceutical. Though, as a whole, this sector is not as profitable, there are pockets of value. Stocks of a few companies stand out. But if direct stocks are not for you, pharma ETFs will do. The Exchange Traded Fund (ETF) […]
IDCW in Mutual Funds – IDCW vs Growth Which is Better
What is IDCW in Mutual Funds? IDCW is an abbreviation for “Income Distribution cum Capital Withdrawal.” As per SEBI Circular no: SEBI/HO/IMD/DF3/CIR/P/2020/194, dated October 05, 2020, all dividend plans must be renamed. These days, the term dividend does not appear in the scheme names. The change of name was effective since 01-Apr’2021. Currently, the fund houses offer […]
Exit Load in SIP – How to Calculate It In Mutual Fund Schemes?
Recently a friend asked me about how exit load in SIP is calculated. Before we can answer it, let’s understand a bit about the exit load itself. We have mainly four types of mutual funds in India, equity, debt, hybrid, and gold funds. Among these types, the majority carry an exit load. What is an exit […]
Mutual Fund Charges – Declutter The myths About The Transaction Charges [Guide]
Allow me to tell you a story about why I’m writing an article on the topic of mutual fund charges. Recently, I met a worried senior citizen (my uncle). He was upset about the low returns his mutual fund (SIP) is yielding. He was so upset that he was even calling it a scam. Uncle even shared his […]
Index Funds Vs ETFs: What is The Difference and Which is Better?
First, I’ll explain what prompted me to explore the idea of index funds vs ETFs. Both are very similar products. But I wanted to know that for people like me, who like stocks, ETF is the first choice. But what is the logic behind this preference? I wanted to record it in black and white, hence […]
Capture Ratio: It digs deeper into Mutual Fund’s Performance
Capture ratio is one of the most understandable financial-ratio in which we (small investors) can gauge a mutual fund’s return from a perspective. I’ll tell you how. We often pick mutual funds for investment based on their past returns. It is like evaluating a mutual fund based on only one parameter. Which is not enough, right? But […]
How to Compare Mutual Funds? Which Parameters To Use for Comparison
Let’s start with the most basic question. Why compare two mutual funds? It’s done to know which fund is better for investing. But such a comparative method is effective? If one knows the vital parameters for comparison, it can be more effective. In fact, unlike stock analysis, a detailed fundamental analysis of mutual funds is not possible. […]
Direct Plan: Difference between Regular and Direct Plans of Mutual Funds
There is a need for people to know about direct plan offered by mutual fund companies. What is the need? In good old days, mutual fund schemes could be sold to investors only through agents and distributors. Reason being, lack of penetration of internet into the Indian households, hence negligible online transactions. But today we […]
Sharpe Ratio: One can Use It To Pick Best Mutual Funds
Sharpe ratio is a measure of risk-adjusted returns generated by mutual funds. Looking at ‘returns’ through the filter of ‘risk’ is advisable for investors. What we need as an investor? High returns but at low risks, right.? Sharpe ratio is a tool which helps us to identify such mutual funds – which generates high returns […]
Systematic Transfer Plan (STP): Way To Invest Lump Sum Money [Mutual Fund]
Systematic Transfer Plan (STP) is a useful tool like Systematic Investment Plan (SIP). SIP has become a synonym for mutual fund investing. People prefer buying mutual fund units through SIP route. Hence these days, it is not necessary to explain the meaning and purpose of SIP to people. But the concept of Systematic Transfer Plan (STP) […]
ELSS Fund: It is The Best Tax Saving Scheme [2021]
Fist things first, ELSS is NOT a savings plan. It is an investment plan which is equity-heavy, with a lock-in period. Hence offers moderate risk. What is ELSS? It is an acronym for ‘Equity Linked Savings Scheme’. ELSS is basically a type of mutual fund which closely resembles a multi-cap fund. But there is a […]
Mutual Fund Calculator: Estimate Monthly Contribution For Investment Growth
You can check my mutual fund calculator here. It has been coded to help beginners to estimate ‘how much to invest’ for a financial goal. But why we need such a calculator? Why we cannot simply start a SIP in mutual funds based on our current savings? This way no calculation is necessary, right? Yes, […]