Latest news with #SIPs
Hans India
a day ago
- Business
- Hans India
Advantages of Investing in a Mutual Fund
Investing may seem daunting for beginners because of the variety of instruments available. An option that introduces simplicity and structure for such investors is mutual funds. This investment option enables you to invest in different asset classes without having to manage the investments yourself. Whatever your investment goals are, be it: saving for the future, wealth creation over time, or diversification of assets, mutual funds can help you attain them through a well-disciplined process. The article discusses advantages of investing in mutual funds, their nature, availability, and major aspects to keep in mind while investing in them. What is a Mutual Fund? A mutual fund invests the capital from various investors in a pool of diversified mix of securities equities, bonds, and other market instruments. A professional fund manager oversees and manages the funds. Each investor hold units of the fund in the ratio of the amount they have invested. This setup enables people to access numerous types of investment products within one single avenue, thereby making the process of investment easy for people with little knowledge or experience in the markets. Major Benefits of Investing in a Mutual Fund Mutual funds simplify investing, increase transparency, and makes investments easier to retail investors. Some of the significant advantages that make them preferable among a variety of investors are below: Diversification of Investments Mutual funds invest in a combination of asset classes. This diversifies the investment in different industries and companies. A diversified portfolio can assist in mitigating the effects of market volatility. Professional Fund Management A fund manager who has access to detailed market research manages each fund. This enables them to make informed decisions based on data, and also on their previous experience. Investors have access to this professional advice without necessarily learning about the market themselves. Liquidity and Flexibility Open-ended mutual funds may offer liquidity, allowing investors to redeem their units at any time. This ensures funds are available during emergencies or for anticipated expenses. There are mutual funds that have a lock-in period, but many offer daily liquidity. Affordability and Accessibility Mutual funds are available to investors with different income levels. You may begin investing with modest amounts. Furthermore, Systematic Investment Plans (SIPs) simplify investing by allowing individuals to invest a fixed sum at regular intervals, thus instilling discipline. Transparency in Operations Mutual funds are under the Securities and Exchange Board of India's (SEBI) purview. Furthermore, a particular fund's details such as its asset allocation, tentative interest rates, and other details are shared before and as well as periodically by the fund house. This helps investors stay informed regarding their investments. Tax Efficiency Alternatives Certain mutual funds are capable of saving tax under sections of the Income Tax Act. ● Equity-linked Savings Scheme (ELSS) is a category that has a three-year lock-in requirement. ● Dividend and capital gain taxation depend on fund type and holding period, offering a degree of certainty in terms of total possible gains. Convenience through Digital Platforms One of the reasons for the growth of mutual funds over the last several years is the availability of several mutual fund investments apps that simplify investing. Using these apps, investors monitor portfolios, make transactions, and view performance. It further allows investors to monitor their investment and make informed investment decisions without having to rely on paper statements or visiting a branch. Sufficient for a Wide Variety of Financial Purposes Mutual funds may be suitable for different financial goals, such as retirement planning, education, or buying a house. This is because there are various types of funds available, namely equity, debt, hybrid, and liquid, being some of them. Investors can choose funds that are suitable for their investment horizon, risk appetite, and desired goal. ● Equity funds can be useful for long-term goals. ● Short-term objectives can be achieved using debt or liquid funds. ● Hybrid funds combine debt and equity to give balanced exposure. Things to Keep in Mind While mutual funds offer numerous advantages, there are a few significant considerations: ● Market-Linked Nature: Fund performance is subject to market fluctuations. Past performance may not accurately indicate potential future outcomes. ● Fees and Charges: Mutual funds have fees such as fund management fees and exit fees. ● Selection Process: Investors must review their fund goals, risk tolerance, and past performance before investing. Additionally, Investors should also read the offer documents and understand the product prior to making a decision. Conclusion Mutual funds offer a disciplined method of investing in financial markets with the benefits of professional management and diversified risk exposure. They are suitable for both novice and experienced investors because of their flexibility, transparency, and convenience. Additionally, with digital services such as mutual fund investment apps, investment in financial markets is simplified. However, it is important to approach mutual fund investing with a degree of awareness about its advantages and potential risks, considering the market-linked nature of the product.
Economic Times
a day ago
- Business
- Economic Times
How to buy happiness with money? 22-year-old with Rs 2 LPA salary and Rs 80K monthly savings gets advice from Reddit
A 22-year-old professional earning Rs 2 lakh per month shared on Reddit that after investing Rs 1 lakh through SIPs and covering expenses, he's left with Rs 80,000 that just sits idle in his savings account. Unsure whether to save more or spend on experiences, he asked the community for advice. Reddit users offered a wide range of suggestions — from traveling and investing in hobbies to diversifying investments and enjoying life while young. Many emphasized the importance of balance between saving for the future and living in the present. Tired of too many ads? Remove Ads Savings or Spending? Reddit Reacts Practical Tips and Cautionary Tales Tired of too many ads? Remove Ads Lifestyle Investments Over Luxuries Work Hard, But Ask Why In an age where financial literacy and early investments dominate online discussions, a 22-year-old employee has caught the attention of Reddit with a dilemma that many young earners silently face — how to strike a balance between financial discipline and enjoying life. Despite earning Rs 2 lakh per month, and already contributing Rs 1 lakh to SIPs, he finds himself with Rs 80,000 leftover each month, untouched and sitting in his savings to Reddit, he asked if spending that money would make sense — and whether money can truly buy his post, the user explained that he was raised with a frugal mindset and is now earning well. Though his essential expenses are covered and investments are in place, he feels unsure about whether to enjoy the remaining amount guilt-free. 'Sometimes I feel since I have investments in place I should just spend on whatever I like but at the same time it doesn't make financial sense to splurge 80k a month,' he question resonated with many. One user advised, 'Travel, go out, explore some activities on weekends,' emphasizing the importance of experiences over accumulation. Another reminded him, 'Ye jawaani fir ni aani,' urging him to enjoy his youth while he users offered more practical guidance, suggesting additional investments. 'You can put the excess money in SIP as well if it's collecting dust,' one comment read. Another offered a broader financial strategy: 'Get an NPS account, get a PPF or something similar… best is to have a qualified financial advisor to manage your portfolio.'Others warned about the risks of saving without purpose. A user reflected on his own early career, saying he saved a lot but now regrets not taking breaks or travelling when he had the chance. 'Money saved was good but now I regret… I worked tirelessly without leave… life is just not about bank statement and monotony.'Several shared personal choices that brought them happiness without guilt. One person said buying a bike and a gaming laptop helped him cope with loneliness. 'I just take leave from my job and go for a solo mountain trip. Helps me simply stay alive.' Another suggested hobby-based spending: 'Find out your hobbies… you'll be very happy.'There were also reminders to be mindful. 'Don't spend on anything which you don't like,' someone advised, sharing how people often regret impulsive purchases like expensive cameras or bikes that go many comments was the deeper question: why are we working so hard if we never enjoy the rewards? The original poster seemed to echo this when he replied, 'I know this is the sensible thing to do but then I ask myself why I am even grinding this hard.'The responses showed a near-unanimous agreement: save wisely, but don't forget to live. Whether it's solo travel, investing in meaningful hobbies, or setting up a safety net for the future, the advice encouraged him to spend with intention — not guilt. As one commenter succinctly put it, 'Enjoy life a little. You won't take the money with you to the next life.'
Time of India
2 days ago
- Business
- Time of India
How to buy happiness with money? 22-year-old with Rs 2 LPA salary and Rs 80K monthly savings gets advice from Reddit
In an age where financial literacy and early investments dominate online discussions, a 22-year-old employee has caught the attention of Reddit with a dilemma that many young earners silently face — how to strike a balance between financial discipline and enjoying life. Despite earning Rs 2 lakh per month, and already contributing Rs 1 lakh to SIPs, he finds himself with Rs 80,000 leftover each month, untouched and sitting in his savings account. Turning to Reddit, he asked if spending that money would make sense — and whether money can truly buy happiness. Savings or Spending? Reddit Reacts In his post, the user explained that he was raised with a frugal mindset and is now earning well. Though his essential expenses are covered and investments are in place, he feels unsure about whether to enjoy the remaining amount guilt-free. 'Sometimes I feel since I have investments in place I should just spend on whatever I like but at the same time it doesn't make financial sense to splurge 80k a month,' he wrote. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bank Owned Properties For Sale In Bat Xat (Prices May Surprise You) Foreclosed Homes | Search ads Search Now Undo His question resonated with many. One user advised, 'Travel, go out, explore some activities on weekends,' emphasizing the importance of experiences over accumulation. Another reminded him, 'Ye jawaani fir ni aani,' urging him to enjoy his youth while he can. Practical Tips and Cautionary Tales Some users offered more practical guidance, suggesting additional investments. 'You can put the excess money in SIP as well if it's collecting dust,' one comment read. Another offered a broader financial strategy: 'Get an NPS account, get a PPF or something similar… best is to have a qualified financial advisor to manage your portfolio.' Others warned about the risks of saving without purpose. A user reflected on his own early career, saying he saved a lot but now regrets not taking breaks or travelling when he had the chance. 'Money saved was good but now I regret… I worked tirelessly without leave… life is just not about bank statement and monotony.' Lifestyle Investments Over Luxuries Several shared personal choices that brought them happiness without guilt. One person said buying a bike and a gaming laptop helped him cope with loneliness. 'I just take leave from my job and go for a solo mountain trip. Helps me simply stay alive.' Another suggested hobby-based spending: 'Find out your hobbies… you'll be very happy.' There were also reminders to be mindful. 'Don't spend on anything which you don't like,' someone advised, sharing how people often regret impulsive purchases like expensive cameras or bikes that go unused. Work Hard, But Ask Why Underlying many comments was the deeper question: why are we working so hard if we never enjoy the rewards? The original poster seemed to echo this when he replied, 'I know this is the sensible thing to do but then I ask myself why I am even grinding this hard.' The responses showed a near-unanimous agreement: save wisely, but don't forget to live. Whether it's solo travel, investing in meaningful hobbies, or setting up a safety net for the future, the advice encouraged him to spend with intention — not guilt. As one commenter succinctly put it, 'Enjoy life a little. You won't take the money with you to the next life.'
Economic Times
2 days ago
- Business
- Economic Times
Best mutual fund SIP portfolios to invest in June 2025
Many mutual fund investors, especially new investors, are often confused about how to choose a bunch of schemes to take care of their various goals, especially for long-term goals like retirement. They keep looking for a ready-made mutual fund portfolio to achieve their long-term goals. Here is some help for such investors. We have put together a slew of schemes, based on risk profile, time horizon, and the amount you want to invest. ADVERTISEMENT ETMutualFunds launched its recommended mutual fund portfolios to invest through SIPs in October 2016. Since then, we have been closely monitoring the schemes in these portfolios and coming up with updates on them regularly. We also inform our readers about poorly performing schemes and replacements for them. The schemes in these ready made portfolios are selected based on our in-house methodology mentioned at the end of this article. ETMutualFunds' best mutual fund SIP portfolios are meant for three different individual risk profiles: conservative, moderate and aggressive. We have also considered three SIP baskets – between Rs 2,000-5,000, between Rs 5,000-10,000 and above Rs 10,000 – while creating these portfolios. Take a look at our recommended portfolios. Here are our recommended SIP portfolios for June 2025: ETMutualFunds has employed the following parameters for shortlisting the equity mutual fund schemes. 1. Mean rolling returns: Rolled daily for the last three years. ADVERTISEMENT 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast. ADVERTISEMENT ii) When H is less than 0.5, the series is said to be mean When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series ADVERTISEMENT 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure.X =Returns below zeroY = Sum of all squares of X ADVERTISEMENT Z = Y/number of days taken for computing the ratioDownside risk = Square root of Z 4. Outperformance: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the market. Average returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} 5. Asset size: For Equity funds, the threshold asset size is Rs 50 crore. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H is less than 0.5, the series is said to be mean When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X =Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of Z 4. Outperformance: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. 5. Asset size: For Debt funds, the threshold asset size is Rs 50 crore. 1. Mean rolling returns: Rolled daily for the last three years. 2. Consistency in the last three years: Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H. i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H 0.5, the series is said to be mean When H0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series 3. Downside risk: We have considered only the negative returns given by the mutual fund scheme for this measure. X = Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of Z 4. Outperformance i) Equity portion: It is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate} ii) Debt portion: Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund. 5. Asset size: For Hybrid funds, the threshold asset size is Rs 50 crore (Disclaimer: past performance is no guarantee for future performance.) Page 2
Time of India
2 days ago
- Business
- Time of India
Best mutual fund SIP portfolios to invest in June 2025
Recommended portfolio for conservative investors: ET Online Recommended portfolio for moderate investors: ET Online Recommended portfolio for aggressive investors: ET Online Live Events Methodology for equity funds: Methodology for debt funds: Methodology for hybrid funds: Many mutual fund investors, especially new investors, are often confused about how to choose a bunch of schemes to take care of their various goals, especially for long-term goals like retirement. They keep looking for a ready-made mutual fund portfolio to achieve their long-term goals. Here is some help for such investors. We have put together a slew of schemes, based on risk profile, time horizon, and the amount you want to invest. ETMutualFunds launched its recommended mutual fund portfolios to invest through SIPs in October 2016. Since then, we have been closely monitoring the schemes in these portfolios and coming up with updates on them regularly. We also inform our readers about poorly performing schemes and replacements for them. The schemes in these ready made portfolios are selected based on our in-house methodology mentioned at the end of this article. ETMutualFunds' best mutual fund SIP portfolios are meant for three different individual risk profiles: conservative, moderate and aggressive. We have also considered three SIP baskets – between Rs 2,000-5,000, between Rs 5,000-10,000 and above Rs 10,000 – while creating these portfolios. Take a look at our recommended portfolios. ETMutualFunds has employed the following parameters for shortlisting the equity mutual fund daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H is less than 0.5, the series is said to be mean When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X =Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZIt is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate}For Equity funds, the threshold asset size is Rs 50 daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H is less than 0.5, the series is said to be mean When H is greater than 0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X =Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZFund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the Debt funds, the threshold asset size is Rs 50 daily for the last three Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.i) When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to When H <0.5, the series is said to be mean When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the seriesWe have considered only the negative returns given by the mutual fund scheme for this measure.X = Returns below zeroY = Sum of all squares of XZ = Y/number of days taken for computing the ratioDownside risk = Square root of ZIt is measured by Jensen's Alpha for the last three years. Jensen's Alpha shows the risk-adjusted return generated by a mutual fund scheme relative to the expected market return predicted by the Capital Asset Pricing Model (CAPM). Higher Alpha indicates that the portfolio performance has outstripped the returns predicted by the returns generated by the MF Scheme =[Risk Free Rate + Beta of the MF Scheme * {(Average return of the index - Risk Free Rate}Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the Hybrid funds, the threshold asset size is Rs 50 crore
