If you do not want to take the risk of dabbling in individual stocks and firmly believe that equity investments is one sure way of beating inflation and building wealth for long-term, Equity Mutual funds which are managed by professional investors is the right choice for you.
What is Equity Mutual fund?
Equity Mutual Funds typically have more than 70% of the fund invested in stocks, most of them hold any where between 30 to 50 stocks. There are several types of Equity Mutual Funds, ranging from large cap to mid cap/small cap and sector based funds. It is managed by professionals who has expertise in assessing the balance sheets and access to market research in related areas. Mutual fund managers also follow various checks and balances including not any individual stocks exceeding say X% of portfolio and buying stocks across sectors, so that performance is well-balanced and risk is minimized.
Which fund should I buy?
While there are hundreds of funds which invest in stocks, fund choice is entirely dependent on the risk profile and time period for which you are looking to invest. Typically Continue reading
While there are several indexes which represent the stock market in India, Sensex and Nifty are the salient indexes which represent Indian stock market and these indexes are tracked at a global level to see how Indian stock markets are doing, similar to how we track Dow Jones and Nasdaq indexes of US stock market.
For a stock market investor, it is always interesting to see how Sensex and Nifty moves impacts individual portfolios? To understand this, first we need to understand what are the stocks that comprise Sensex and Nifty Continue reading
Whenever a discussion on mutual funds comes up, I am surprised to find myself negating the same misconceptions over and over again. So I decided to elaborate on some of the common myths in this post.
Bur first, we should be clear on what an NAV is. A New Asset Value or NAV is a mutual fund’s price per share, or exchange-traded fund’s (ETF) per-share value. The mutual fund’s per-share dollar amount can be easily calculated by dividing the total value of all the securities in the fund’s portfolio, minus any liabilities, by the number of fund shares outstanding. Continue reading