| Invest Online in India

Marketplace - FundsIndia

Official blog of

Archive | Simply Important RSS feed for this section

FundsIndia explains: Closed-ended Fixed Income Mutual Funds

Last week we looked at closed-ended mutual funds, and how they differ from open-ended mutual funds. We also took up in detail the other pros and cons of closed-ended equity funds. This week, we take up closed-ended debt funds; more specifically, FMPs. There are several other types of closed-ended debt funds which we will look […]

Continue Reading Comments { 0 }

FundsIndia explains : What are Closed-ended mutual funds

Most mutual funds are open-ended, that is, you can invest in that fund any time you please and also exit when you wish to. But some funds are classified as closed-ended. How are these different and what are their pros and cons? This article deals with it. What is an Open-ended mutual fund Open-ended mutual […]

Continue Reading Comments { 1 }

FundsIndia explains: How to tell if your fund is doing well

Looking back on 2016, your equity funds have not matched up to your expectations. Where did those 20% returns go? Should you sell your fund? Don’t do that just yet. Remember that you never look at a fund’s performance in isolation. So how do you tell if your fund is doing well? Answer these questions […]

Continue Reading Comments { 0 }

FundsIndia explains: What to do if your AMC shuts shop

Over the past decade, especially after many foreign players entered the Indian mutual fund space, there have been several instances of fund houses calling it quits and exiting their business by selling their business to other players. In such instances, as investors, the first question in your mind would be what’s going to happen to […]

Continue Reading Comments { 1 }
Great investment.

FundsIndia explains: Why the growth option is preferable

Over the past few weeks, we have been explaining various aspects of dividends in mutual funds. You know how a mutual fund makes dividends, what happens when a fund declares a dividend, and how it affects your NAV. We, and most advisors, usually recommend that you opt for growth when investing rather than dividend, especially […]

Continue Reading Comments { 0 }

FundsIndia Explains – Scheme Information Document (SID)

Scheme Information Document (SID) provides investors with much of the information that you need to know about a scheme. You would have read disclaimers in mutual funds, telling you to read the SID before investing. But a SID can overwhelm you, going by the information overload that it carries. So, here’s what we would recommend […]

Continue Reading Comments { 0 }

FundsIndia Explains: What are dividend yield funds?

Last week, in this column, we explained how mutual funds pay dividends. We had mentioned how mutual funds don’t have to pay dividends (and can’t, for that matter) unless they have a distributable surplus. A natural assumption that follows is that dividend yield funds are at least those that pay regular dividends, even if one […]

Continue Reading Comments { 0 }

FundsIndia Explains : How mutual funds pay dividends

Many investors assume that mutual funds pay their dividend from the dividends they receive in the stocks they hold. They also ask us during corporate dividend season (post annual results), why mutual funds are not paying out that dividend. But this is not the only means by which mutual funds pay you dividend – if […]

Continue Reading Comments { 0 }

FundsIndia Explains: Why debt fund returns are not fixed

Last week, in this column, we explained why equity fund returns are not fixed or predictable. This week, we’ll take up debt funds. You may look in askance if we tell you that debt fund returns are not fixed. After all, they invest in fixed-income instruments. If interest is fixed, why doesn’t it translate to […]

Continue Reading Comments { 0 }

FundsIndia Explains – Why there is no fixed return in mutual funds

When first-time investors in mutual funds approach us, the first question they ask is what is the ‘returns’ that the fund will give. As investors we all like certainty in the returns we get from our investment; whether such ‘fixed return’ is an optimal choice or not is a separate point to debate. In this […]

Continue Reading Comments { 2 }