The SBI fixed deposit returns calculator uses a simple formula to calculate the return from a term deposit. Its an easy to calculate your Fixed Deposit investment in 2023

SBI Fixed Deposit Calculator | Calculate SBI FD Returns Online

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SBI Fixed Deposit Calculator – Know your Returns from SBI FD

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<h2>SBI FD Returns Calculator 2023</h2><p>Fixed deposits are amongst the most sought-after investment options in India – more popular than securities, mutual funds, and life insurance. This is majorly due to their risk-free nature and fixed returns for depositors. Moreover, five-year tax saving FDs also allow you to enjoy tax exemption of up to INR 1,50,000 under Section 80C of the Income Tax Act. SBI – among the largest banks in India – offers one of the highest FD rates in the country. SBI fixed deposit calculator can help you ascertain the returns from your deposits and make informed decisions.&nbsp;</p><h3>Benefits of SBI Fixed Deposit Calculator</h3><p>Fixed deposit interest rates vary depending on several factors, including the tenure of the deposit. For instance, you can earn higher interest rates on FDs with longer lock-in periods. These lock-in periods can range from seven days to ten years, and your applicable SBI FD interest rate can be anywhere from 3.50 to 7.25 (subject to change). Moreover, senior citizens earn 0.50 percent higher interest on their deposits. Due to all these factors, gauging the returns from FDs can be challenging, especially when opting for a tenure of several years. This is where the SBI FD calculator comes into the picture! &nbsp;</p><p>Here are some of the many benefits of the State Bank of India fixed deposit calculator: &nbsp;</p><ul><li>You get error-free results as compared to manual calculation. &nbsp;</li><li>Saves time by sharing instant results for different tenures and deposit amounts. &nbsp;</li><li>Supports decision-making regarding the ideal investment tenure. &nbsp;</li><li>Helps in short-term and long-term investment planning. &nbsp;</li></ul><p>Thus, one should always use an SBI FD interest calculator before making a term deposit-related decision. &nbsp;</p><p>Also Read : <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/sipcalculator">SIP Return Calculator Online</a></p><h3>How Does an SBI FD Calculator Work?</h3><p>The SBI fixed deposit return calculator uses a simple formula to calculate the return from a term deposit. This formula is mentioned below: &nbsp;</p><p>TP = P (1 + r/n) ^ n*t</p><ul><li>TP is the total payout you receive at the time of maturity.</li><li>P is the deposit amount or the principal amount.</li><li>r is the annual interest rate you earn on your term deposit.</li><li>n refers to the number of times the interest is compounded. (For instance, if the FD is quarterly compounding, then ‘n’ will be 4; while for monthly compounding, the value of ‘n’ will be 12).</li><li>t is the tenure of investment or the number of years.</li></ul><p>We will now use an example to understand this formula better. &nbsp;</p><p>Suppose you invested INR 50,000 for 10 years, earning an interest rate of 6 percent per year and compounding your funds quarterly. In that case, your</p><p>P = 50,000</p><p>r = 6</p><p>n = 10</p><p>t = 4 &nbsp;</p><p>After inserting all these values in the formula, we get &nbsp;</p><p>TP = 50000 (1 + 6 / 4) ^ 1 * 10</p><p>Solving the above calculation, the maturity amount will turn out to be INR 90,700, wherein INR 50,000 is the principal and INR 40,700 is the interest you have earned on your deposit at maturity. &nbsp;</p><p>Moreover, it is evident from the above formula that calculating returns from FDs can be a challenging task. Thus, it is better to employ an SBI FD interest calculator to calculate your returns for different periods of time.</p><h3>Using ZFunds SBI Fixed Deposit Interest Calculator &nbsp;</h3><p>ZFunds makes calculating your returns from FD easier than ever before. All you need to do is enter a few numbers and you will know your returns from an FD investment option. Just provide the deposit amount, the applicable interest rate, and the tenure of the deposit, and the ZFunds SBI FD calculator will provide the total returns in no time. You can check the applicable interest rate on your term deposit on our SBI fixed deposit interest rates 2023 page. You will also find other critical information that will help you make an informed decision regarding your SBI fixed deposit. &nbsp;</p><h3>Frequently Asked Questions about SBI FD Calculator</h3><p>Q. What is the minimum deposit amount for an SBI fixed deposit? &nbsp;</p><p>A. You can open an SBI FD with just INR 1,000. There is no maximum limit to the deposit amount. &nbsp;</p><p>Q. Is premature withdrawal facility available for SBI fixed deposits?</p><p>A. Yes, you can withdraw – partially or fully – your SBI fixed deposit before its maturity. However, since this option may not be available for some FD schemes, it is advisable to confirm the same while opening the fixed deposit. &nbsp;</p><p>Q. Can I take a loan against my State Bank of India fixed deposit? &nbsp;</p><p>A. Yes, you can easily take a loan against your SBI term deposit. The bank allows its depositors to take a loan of up to 90 percent of the deposit amount. &nbsp;</p><p>Q. Can I add nominees to my SBI fixed deposit?</p><p>A. Yes, you can easily add nominees to your SBI FD. &nbsp;</p><p>Q. Should I start an SBI fixed deposit or go for mutual fund investments?</p><p>A. You can choose from SBI FD and mutual funds as per your long-term and short-term goals and market outlook. While mutual funds are a remarkable long-term wealth-creation instrument, they can be volatile in the short term. However, fixed deposits can help you enjoy stability and fixed returns in the short as well as long term. Hence, you can choose the one that suits you the best.</p><p>Also Read:</p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hdfc-sip-mutual-fund-calculator">HDFC SIP Calculator Online</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hsbc-mutual-fund-sip-calculator">HSBC Mutual Fund SIP Calculator Online</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/sbi-sip-calculator">SBI SIP Calculator Online</a></p><p>&nbsp;</p>

Get Nazara Technologies Ltd. IPO details. find ipo date, price, allotment, gmp, listing date, analysis, company strength, valuation and all other details

Nazara Technologies Ltd. IPO - Date, Price, GMP, Valuation, Details

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Nazara Technologies LTD IPO

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<h3>Nazara Technologies Limited IPO Details</h3><p>Incorporated in 1999, Nazara Technologies is an India-based leading diversified gaming &amp; sports media platform. Their goal is to cater to billion-plus mobile internet players across emerging markets like India, South East Asia, Middle East, Africa, and Latin America. To achieve this, the company is providing eSports content, interactive mobile games, and gamified early learning app.</p><p>The company offers across the interactive gaming, eSports, and gamified early learning ecosystems which include CarromClash &amp; World Cricket Championship (WCC) in mobile games, Kiddopia in gamified early learning, Sportskeeda &amp; Nodwin in eSports &amp; eSports media, and Halaplay &amp; Qunami in fantasy, skill-based, and trivia games.</p><p>Nazara Technologies operates in different segments which include Freemium Business, Subscription-based business, Gamified early learning, eSports, and Real money gaming. Its subscription business focuses on mass mobile internet users which comprises mainly first-time mobile gamers. Its main revenue comes mainly from subscription fees paid by users for the access of the eSports business, as well as from gamified early learning content. For the six-month period ended and FY 2020, these two segments have cumulatively revenue from operations accounted for 71.03% and 41.73%, respectively.</p><p>The promoters of the company are Mr. Vikash Mittersain, Mr. Nitish Mittersain, and Mitter Infotech LLP.</p><h4>Strengths of the Company:</h4><ul><li>Nazara Technologies has a large &amp; engaged community of users offering attractive monetization opportunities.</li><li>It has a portfolio of premium intellectual property &amp; content across different regions and businesses.</li><li>The company has shown successful inorganic growth through its strategic acquisitions.</li><li>The company has a strong leadership team that is backed by marquee investors.</li><li>It has a leadership position in its diversified &amp; scalable business.</li></ul><h4>Purpose of the IPO:</h4><ul><li>To offer the sale of up to 4,965,476 Equity Shares by the Selling Shareholders.</li><li>There is no fresh issue in the IPO. The company will not receive any proceeds from the offer.</li><li>To get the listing benefits of the equity shares on the stock exchange.</li></ul><h4>Financial Performance of the company:</h4><figure class="table"><table><tbody><tr><td>&nbsp;</td><td><strong>For the six-month period ended 30th September 2020</strong></td><td><strong>FY 2020</strong></td><td><strong>FY 2019</strong></td><td><strong>FY 2018</strong></td></tr><tr><td><strong>Total Revenue</strong></td><td><strong>207.00</strong></td><td><strong>262.14</strong></td><td><strong>186.09</strong></td><td><strong>181.94</strong></td></tr><tr><td><strong>Total Expenses</strong></td><td><strong>213.58</strong></td><td><strong>281.15</strong></td><td><strong>174.28</strong></td><td><strong>133.37</strong></td></tr><tr><td><strong>Profit After Tax</strong></td><td><strong>-10.10</strong></td><td><strong>-26.61</strong></td><td><strong>6.71</strong></td><td><strong>1.02</strong></td></tr><tr><td><strong>Total Assets</strong></td><td><strong>798.65</strong></td><td><strong>776.82</strong></td><td><strong>514.58</strong></td><td><strong>470.75</strong></td></tr></tbody></table></figure><p>*All the values are in crores and as per DRHP.</p><h4>Valuation of the Company:</h4><figure class="table"><table><tbody><tr><td>&nbsp;</td><td><strong>For the six-month period ended 30th September 2020</strong></td><td><strong>FY 2020</strong></td><td><strong>FY 2019</strong></td><td><strong>FY 2018</strong></td></tr><tr><td><strong>Basic Earnings per Share (EPS)</strong></td><td><strong>-1.78</strong></td><td><strong>-0.77</strong></td><td><strong>6.39</strong></td><td><strong>1.05</strong></td></tr><tr><td><strong>Diluted Earnings per Share (EPS)</strong></td><td><strong>-1.78</strong></td><td><strong>-0.77</strong></td><td><strong>6.27</strong></td><td><strong>1.04</strong></td></tr><tr><td><strong>Return on Net Worth (%)</strong></td><td><strong>-1.04%</strong></td><td><strong>-0.46%</strong></td><td><strong>4.23%</strong></td><td><strong>0.73%</strong></td></tr><tr><td><strong>Net Assets Value per Equity share</strong></td><td><strong>168.47</strong></td><td><strong>165.54</strong></td><td><strong>150.61</strong></td><td><strong>135.18</strong></td></tr></tbody></table></figure><p>*as per DRHP.</p><h4>IPO details:</h4><figure class="table"><table><tbody><tr><td><strong>Face Value</strong></td><td><strong>₹4 per equity share</strong></td></tr><tr><td><strong>Market Lot</strong></td><td><strong>13 Shares</strong></td></tr><tr><td><strong>Minimum Order Quantity</strong></td><td><strong>13 Shares</strong></td></tr><tr><td><strong>Price Band</strong></td><td><strong>₹1,100 - ₹1,101 per equity share</strong></td></tr><tr><td><strong>Issue type</strong></td><td><strong>Book Built Issue IPO</strong></td></tr><tr><td><strong>Issue Size</strong></td><td><strong>₹546.70 Crores</strong></td></tr><tr><td><strong>Fresh Issue</strong></td><td><strong>-</strong></td></tr><tr><td><strong>Offer for Sale</strong></td><td><strong>₹546.70 Crores</strong></td></tr><tr><td><strong>Listing&nbsp;</strong></td><td><strong>NSE, BSE</strong></td></tr></tbody></table></figure><h4>Important IPO dates:</h4><figure class="table"><table><tbody><tr><td><strong>Open Date</strong></td><td><strong>17th March 2021</strong></td></tr><tr><td><strong>Close Date</strong></td><td><strong>19th March 2021</strong></td></tr><tr><td><strong>Basis of Allotment Date</strong></td><td><strong>24th March 2021</strong></td></tr><tr><td><strong>Initiation of Refunds</strong></td><td><strong>25th March 2021</strong></td></tr><tr><td><strong>The credit of shares to Demat Account</strong></td><td><strong>26th March 2021</strong></td></tr><tr><td><strong>Listing Date</strong></td><td><strong>30th March 2021</strong></td></tr></tbody></table></figure><h4>Allocation Quota:</h4><figure class="table"><table><tbody><tr><td><strong>Category</strong></td><td><strong>Portion</strong></td></tr><tr><td><strong>Qualified Institutional Buyers (QIBs)</strong></td><td><strong>Not less than 75%</strong></td></tr><tr><td><strong>Non- Institutional Buyers (NIIs)</strong></td><td><strong>Not more than 15%</strong></td></tr><tr><td><strong>Retail Investors</strong></td><td><strong>Not more than 10%</strong></td></tr></tbody></table></figure><p><strong>More Latest IPO List:</strong></p><p><a href="https://zfunds.in/m/suryoday-small-finance-bank-ltd-ipo">Suryoday Small Finance Bank Ltd IPO - Date, Price, GMP, Valuation, Details</a><br><a href="https://zfunds.in/m/laxmi-organics-industries-ltd-ipo">Laxmi Organic Industries LTD IPO</a><br><a href="https://zfunds.in/m/anupam-rasayan-india-ltd-ipo">Anupam Rasayan India Ltd IPO</a><br><a href="https://zfunds.in/m/easy-trip-planners-limited-ipo">Easy Trip Planners Limited IPO</a><br><a href="https://zfunds.in/m/craftsman-automation-ltd-ipo">Craftsman Automation LTD IPO</a><br><a href="https://zfunds.in/m/mtar-technologies-limited-ipo">MTAR Technologies Limited IPO</a><br><a href="https://zfunds.in/m/mrs-bectors-food-specialities-limited-ipo">Mrs. Bectors Food Specialities Limited IPO</a><br><a href="https://zfunds.in/m/irfc-ipo">IRFC IPO - Date, Review, Share Price, Financial Performance &amp; Valuation</a><br><a href="https://zfunds.in/m/antony-waste-handling-cell-ipo">Antony Waste Handling Cell IPO</a><br><a href="https://zfunds.in/m/mrs-bectors-food-specialities-limited-ipo">Mrs. Bectors Food Specialities Limited IPO</a><br><a href="https://zfunds.in/m/kalyan-jewellers-ipo">Kalyan Jewellers IPO</a><br><a href="https://zfunds.in/m/gland-pharma-ipo">Gland Pharma IPO Date, Price, GMP, Review, Details</a><br><a href="https://zfunds.in/m/indigo-paints-limited-ipo">Indigo Paints Limited IPO</a><br><a href="https://zfunds.in/m/railtel-corporation-of-india-limited-ipo">Railtel Corporation of India Limited IPO</a></p><p><a href="https://zfunds.in/m/nism-certification">Nism Certification</a></p>

What is STP - Understand Systematic Transfer Plan meaning, types benefits, taxability, features full form, know who can and how to start SIP

Systematic Transfer Plan (STP): Meaning, Types, Benefits, How STP Works

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Systematic Transfer Plan (STP): Meaning, Types, Benefits, How to Start SIP

<h2>What is Systematic Transfer Plan?</h2><p>A Systematic Transfer Plan is a plan where investors give their consent to a Fund House or Asset Management Company to periodically redeem or switch a specific amount or certain units from one scheme and invest in another scheme of the same AMC or Fund House. Therefore, at regular intervals, a certain amount/units are transferred from one scheme to another of your choice.</p><p>This scheme enables an investor to park a lump sum amount in a fund and regularly transfer a variable or fixed amount into another fund. As this transfer occurs periodically, it helps investors to gain market advantage by switching to securities when they offer higher returns and also safeguard investors’ interest during market fluctuations, to minimize the damages incurred.</p><p>The fund where the lump sum money is parked is called Source Fund which is a debt-based fund, and the fund where the money is to be transferred is called a Target or Destination fund which is an equity-based fund chosen by the investor.&nbsp;<br><br>In the near past, AMC/Fund Houses allowed the transfer within the same company, but now you can transfer from an equity fund of one AMC to that of another.</p><h2>Who can start an STP and How?</h2><p>Going for an STP would be ideal for investors who are considering investing a lump sum amount but are not ready to do that in one go. The reason behind the same can be the volatile nature of the market and less risk appetite. Also, investors having limited resources but wanting to gain high returns by investing in the stock market can also opt for STP as they will get a fixed return on their initial investment from a debt fund, and can earn potentially higher returns from the equity fund which they are gradually switching into.<br><br>Talking about starting STP, you can approach your financial advisor or a <a href="https://zfunds.in/m/become-mutual-fund-advisor">mutual fund distributor</a> or any AMC/Fund house and select a fund where you would like to park your money (i.e. Source Fund)&nbsp; and a fund to which the transfer is taking place (i.e. Destination/Target fund). You may also get in touch with a financial expert through the ZFunds platform by downloading the app <a href="https://play.google.com/store/apps/details?id=com.zfunds.user">https://play.google.com/store/apps/details?id=com.zfunds.user</a>.</p><p>The minimum sum to be parked, number of transfers, and interval differ from company to company and depend upon the STP scheme chosen.&nbsp;</p><h2>How does STP work?</h2><p>STP is the transfer of the amount from one fund to another fund of the same AMC or the fund house. Let us understand with an example how does the STP work:</p><p>Suppose, you have been invested in a debt fund for 2 years and now you want to get the exposure to any equity fund. Assume that you have invested Rs. Rs.10,00,000 in a debt fund. Now, you need to select the equity fund in which you want to invest. After selecting the fund, you need to instruct the AMC about the frequency and total amount you want to transfer from the debt fund to the equity fund. Suppose, you gave the instruction to transfer Rs.6,00,000 in 24 months with installments of monthly frequency. So, the AMC will transfer Rs.25,000 every month from the debt fund to that equity fund.</p><p>This transfer plan is often called as STP or Systematic Transfer Plan.</p><h2>Key Features&nbsp;</h2><ol><li><strong>Minimum Investment</strong></li></ol><p>As per the norms of SEBI, there is no minimum amount of investment to invest through STP. However, most of the AMC/Fund Houses require a minimum investment of INR 12,000 to go forward with this scheme. (One may confirm these limits for the selected fund from their financial advisor)</p><p><strong>2. Lucrative &amp; Disciplines</strong><br>STP enables a planned and disciplined transfer of funds between two schemes. In most scenarios, investors initiate an STP from a debt-based fund to an Equity-based fund.</p><p><strong>3. Entry and Exit Load</strong><br>You need to do at least 6 capital transfers from one fund to another to apply for an STP. While there is no entry load, SEBI allows AMC/Fund Houses to charge an exit load that cant exceed 2%. The exit load is also applicable in case the switch is done within a specified period after the initial investment and in certain schemes only.</p><h2>Advantages of Investing through STP</h2><ol><li><strong>Rupee Cost Averaging</strong></li></ol><p>It is an effective mechanism that helps in eliminating the need to time the stock market. Under this, one need not be concerned about how much and when to invest. A certain amount of money can be invested regularly and over time it averages out the costs. Thus by purchasing more units at a lower NAV and vice versa, STP assists in averaging out the related cost of the investor.</p><p><strong>2. Scope of Higher Returns</strong></p><p>An investor opting for STP tends to gain higher returns because of the fact that the lump sum amount you will be investing initially in a debt-based fund like a liquid fund will generate a return ranging from 4%-6% as compared to a mere 2%-3% in a saving bank account.</p><p><strong>3. Consistent and Steady Returns</strong></p><p>You will get the returns of the equity-based fund you are redeeming into and at the same time earn a good return on the other part of the investment which is protected in the debt-based fund.</p><p><strong>4. Rebalancing Portfolio</strong><br>If your investment in equity goes up money can be switched from equity to a debt fund and if your investment in debt increases money can be reallocated to equity funds through an STP, thus facilitating the rebalancing of the portfolio by allotting investment from debt to equity or vice versa.</p><p><strong>5. Risk Management</strong></p><p>STP can also be used to shift to a less risky asset class from a high-risk asset class. To understand this, let’s assume you have started a SIP for 35 years into an equity fund for retirement planning. As you approach the age of retirement you instruct your AMC/Fund house to start redeeming a certain amount from an equity fund to a debt fund. Following this modus operandi, by the time you retire, you would have moved most of the accumulated corpus to a safer haven.</p><h2>Taxability of STP</h2><p>An investor should always be aware of the tax implications and exits loads on the transfer of the fund he is investing in. In the case of STP, gains from redemption from debt funds before 3 years from the date of purchase are added to the investor's income and taxed at the tax rate applicable to the investor. In case redemptions from debt funds are done after 3 years, the STP amount is taxed at a rate of 20% with the benefit of taxation.&nbsp;</p><p>In case the STP is made from equity funds, the applicable tax rates in case of short term capital gains (STP within 1 year from purchase) is 15%. In case the units are switched post 1 year, the gains are taxed at the long-term capital gains tax, which is 10%. This 10% LTCG tax is only applicable if the total gains in a financial year are more than Rs. 1 Lakh.</p><h2>Types of STP&nbsp;</h2><p>An STP is of three types, namely; Fixed STP, Flexi STP, and Capital Appreciation.</p><p><strong>Fixed STP: </strong>In this, you take out a fixed sum of money from one investment fund to another.</p><p><strong>Flexi STP: </strong>In Flexi STP, you have a choice to transfer a variable amount. The fixed amount will act as a minimum amount and the variable depends on the volatility in the market.</p><p><strong>Capital Appreciation STP: </strong>In this, you take the profit/gain part out of one investment and invest it in the other.&nbsp;</p><h2>STP vs SIP</h2><p>There many difference between STP and SIP like:</p><ul><li>STP is the Systematic Transfer Plan while SIP is the Systematic Investment Plan.</li><li>STP transfers the invested amount from one fund to another of the same AMC or the fund house whereas SIP helps to invest a fixed amount of sum into a fund as per the chosen frequency.</li><li>To avail the facility of STP, there should be a minimum of Rs.12,000 invested in a fund from which you want to transfer whereas for the SIP, the minimum investment amount is different for all the funds but for most of the schemes, it is Rs.500.</li></ul><h2>Conclusion</h2><p>STP is particularly suitable for investors who have a lump sum amount and wish to invest in the market but are wary of timing the market. One must keep the following points in mind while choosing STP.<br><br>First, One needs to follow it with discipline. STP, just like a SIP, generates returns only when followed diligently and properly. Breaking STP because of slight market movements or interest rate movements will only hamper the growth in the long term.</p><p>Secondly, STP is probably the best risk mitigation strategy. It will protect one from any adverse loss to a great extent. And one should note, all risk mitigation strategies cap the loss but also reduce the possibility of high returns when the market is bullish.</p><p>Finally, One needs to analyze and understand the stages and assets they are in. For instance, it would be unwise to transfer money from equity to debt when the market is close to the bottom. Similarly, it will be counterproductive to transfer money from debt to equity when the market is closer to the peak value.<br>&nbsp;</p><p><strong>Frequently Asked Questions</strong></p><ul><li><strong>What is STP?</strong></li></ul><p>STP is a systematic transfer plan. In STP, an investor gives the instruction to the AMC to periodically redeem the units and then transfer the amount to another fund as instructed by the investor.</p><ul><li><strong>How does the STP work?</strong></li></ul><p>STP transfer the invested amount from one fund to another selected fund of the same AMC or the fund house. It transfers the invested amount as per the frequency and amount as instructed by the investor.</p><ul><li><strong>What are the advantages of STP?</strong></li></ul><p>STP gives the advantage of the rupee cost averaging, the scope of higher returns, risk management, and many more.</p><ul><li><strong>What are the types of STP?</strong></li></ul><p>There are three types of STP :</p><ol><li>Fixed STP</li><li>Flexi STP</li><li>Capital appreciation STP</li></ol><ul><li><strong>How STP is different from SIP?</strong></li></ul><p>STP transfers the invested amount from one fund to another while SIP helps to invest a fixed amount into a fund as per the selected frequency.</p><ul><li><strong>What is the minimum investment for the STP?</strong></li></ul><p>There is no minimum investment amount required for the STP. But in order to avail the benefit of STP in most fund houses, there should be at least Rs.12,000 invested in a fund from which you want to start STP.</p><ul><li><strong>Is exit load applicable while doing STP?</strong></li></ul><p>If the units at the time of transfer come under the period specified for the application of an exit load then the exit load will be charged on that unit, otherwise not. Like, if the fund has an exit load of 1% if the units are redeemed within one year and assuming if the units are transferred after the 6 months from the date of investment months then exit load will be charged but if the units will be transferred after 12 months, then the exit load will not be charged.</p><ul><li><strong>What is the tax treatment in the case of the STP?</strong></li></ul><p>Tax treatment will be as per the applicable short-term capital gain tax and long-term capital tax. For equity funds, STCG is at 15% and LTCG is at 10% while for the debt funds, STCG is taxed as per the investor income tax slab rate and LTCG is taxed at 20% after indexation. Now, it depends on the type of fund and time period after which the units are transferred for the tax treatment. To know about the tax treatment for an STP, it is mentioned above in the article under the heading “Taxability of STP”.</p><p>&nbsp;</p><p><strong>Also Read:</strong></p><p><a href="https://zfunds.in/m/sip-vs-stp-vs-swp">SIP vs STP vs SWP - Suitability, Tax Impact, Advantages</a><br><a href="https://zfunds.in/m/what-is-sebi">What is SEBI - Meaning, Functions, Powers, Regulations</a><br><a href="https://zfunds.in/m/how-to-invest-in-mutual-funds">How to Invest in Mutual Funds in India?</a><br><a href="https://zfunds.in/m/arn-code">ARN Code - Purpose, Registration, Renewal, How to Apply Online</a><br><a href="https://zfunds.in/m/nism-va-certification">Nism VA Certification: Objective, Preparation Tips, Fees, Exam Certificate</a><br><a href="https://zfunds.in/m/mutual-fund-distributor-commission-structure">Mutual Fund Distributor Commission Structure</a><br><a href="https://zfunds.in/m/euin-number">EUIN Number: Purpose, Registration, Rules, Renewal Process</a><br><a href="https://zfunds.in/m/cost-inflation-index">What is Cost Inflation Index - Meaning, Calculation, Example</a><br><a href="https://zfunds.in/m/what-is-expense-ratio-in-mutual-funds">What is Expense Ratio in Mutual Funds?</a></p>

An idea regarding returns from ICICI SIP plans can help investors make informed investment decisions. However, gauging returns from SIP plans can be a challenging task.

ICICI SIP Plans - ICICI Mutual Fund SIP Investment in 2023

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ICICI SIP Plans 2024 - ICICI Mutual Fund SIP Investment in 2024

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<h2>ICICI SIP Plan 2024 - Overview</h2><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/icici-prudential-mutual-fund"><strong>ICICI Prudential Mutual Fund</strong></a> is one of India's leading asset management companies that offers a wide range of investment options, including systematic investment plans (SIPs). A SIP is a simple and hassle-free way to invest in mutual funds regularly.<a target="_blank" rel="noopener noreferrer" href="https://www.icicibank.com/personal-banking/investments/mutual-funds/sip">&nbsp;</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://www.icicibank.com/personal-banking/investments/mutual-funds/sip">ICICI Mutual Fund SIP investment</a> provides investors with the benefits of rupee cost averaging, compounding, and disciplined investing. With an<strong> ICICI SIP plan</strong>, investors can achieve their financial goals, such as wealth creation, retirement planning, children’s education, and more.&nbsp;</p><p><strong>ICICI Mutual Fund</strong> offers a variety of <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-investment-plans">best investment plans </a>to cater to different investment goals and risk profiles. Investors can choose the plan that suits their investment objective and <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/daily-sip">start investing in SIP with as little as INR 100 per month</a>.</p><h2>Top Performing ICICI Mutual Fund SIP &nbsp;for Investment</h2><figure class="table"><table><tbody><tr><td><strong>S.No</strong></td><td><strong>Fund Name</strong></td><td><strong>1 Year</strong></td><td><strong>3 Years</strong></td><td><strong>5 Years</strong></td></tr><tr><td>1</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-infrastructure-fund-growth">ICICI Prudential Infrastructure Fund Growth</a></td><td>38.53%</td><td>47.46%</td><td>22.25%</td></tr><tr><td>2</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-bharat-22-fof-cumulative-option">ICICI Prudential BHARAT 22 FOF Growth</a></td><td>44.12%</td><td>46.37%</td><td>17.04%</td></tr><tr><td>3</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-value-discovery-fund-growth">ICICI Prudential Value Discovery Fund Growth</a></td><td>27.36%</td><td>30%</td><td>18.39%</td></tr><tr><td>4</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-large-mid-cap-fund-growth">ICICI Prudential Large &amp; Mid Cap Fund Growth</a></td><td>23.09%</td><td>31.72%</td><td>17.39%</td></tr><tr><td>5</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-multi-asset-fund-growth">ICICI Prudential Multi-Asset Fund Growth</a></td><td>22.48%</td><td>29.14%</td><td>16.99%</td></tr><tr><td>6</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-dividend-yield-equity-fund-growth-option">ICICI Prudential Dividend Yield Equity Fund Growth</a></td><td>28.25%</td><td>34.57%</td><td>16.85%</td></tr><tr><td>7</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-multicap-fund-growth">ICICI Prudential Multicap Fund Growth</a></td><td>25.48%</td><td>28.79%</td><td>15.4%</td></tr><tr><td>8</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-manufacturing-fund-cumulative-option">ICICI Prudential Manufacturing Fund Growth</a></td><td>34.45%</td><td>33.99%</td><td>18.35%</td></tr><tr><td>9</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-equity-debt-fund-growth">ICICI Prudential Equity &amp; Debt Fund Growth</a></td><td>22.53%</td><td>31.78%</td><td>17.73%</td></tr><tr><td>10</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-smallcap-fund-growth">ICICI Prudential Smallcap Fund Growth</a></td><td>29.33%</td><td>38.32%</td><td>24.49%</td></tr></tbody></table></figure>

<h3><strong>#1. </strong>ICICI Prudential Infrastructure Fund Growth</h3><p>ICICI Prudential Infrastructure Fund Growth is an equity mutual fund that invests in the infrastructure sector of the Indian economy. The fund invests in companies that are involved in the construction, development, and maintenance of infrastructure projects such as roads, railways, airports, ports, and power plants.</p><p>The fund has a high-risk profile, but it has also generated good returns over the long term. It is suitable for investors who are willing to take risks in order to achieve higher returns.</p><figure class="table"><table><tbody><tr><td><strong>Attribute</strong></td><td><strong>Value</strong></td></tr><tr><td><strong>Launch Date</strong></td><td><strong>August 31, 2005</strong></td></tr><tr><td><strong>Category</strong></td><td><strong>Equity: Sectoral-Infrastructure</strong></td></tr><tr><td><strong>Rating</strong></td><td><strong>4 stars</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>Very High</strong></td></tr><tr><td><strong>Expense Ratio</strong></td><td><strong>2.06% (Regular plan), 1.48% (Direct plan)</strong></td></tr><tr><td><strong>Minimum Investment</strong></td><td><strong>₹100</strong></td></tr></tbody></table></figure><p><strong>Please note:</strong> Past performance is not indicative of future results. Mutual fund investments are subject to market risks.</p><h3><strong>#2. </strong>ICICI Prudential BHARAT 22 FOF Growth</h3><p>ICICI Prudential BHARAT 22 FOF Growth is a fund of funds that invests in other equity mutual funds. The fund invests in funds that have a focus on the Indian economy, including funds that invest in the infrastructure, financial services, and consumer sectors.</p><p>The fund has a very high-risk profile, but it has also generated very good returns over the long term. It is suitable for investors who are willing to take risks in order to achieve higher returns.</p><figure class="table"><table><tbody><tr><td><strong>Attribute</strong></td><td><strong>Value</strong></td></tr><tr><td><strong>Launch Date</strong></td><td><strong>June 29, 2018</strong></td></tr><tr><td><strong>Category</strong></td><td><strong>Fund of Funds: Equity</strong></td></tr><tr><td><strong>Rating</strong></td><td><strong>5 stars by Value Research</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>Very High</strong></td></tr><tr><td><strong>Expense Ratio</strong></td><td><strong>0.14% (Regular plan), 0.08% (Direct plan)</strong></td></tr><tr><td><strong>Minimum Investment</strong></td><td><strong>₹100</strong></td></tr></tbody></table></figure><h3><strong>#3. </strong>ICICI Prudential Value Discovery Fund Growth</h3><p>ICICI Prudential Value Discovery Fund Growth is an <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/equity-funds">equity mutual fund</a> that invests in large-cap companies in India. The fund invests in companies that are well-managed and have a strong track record of profitability.</p><p>The fund has a high-risk profile, but it has also generated good returns over the long term. It is suitable for investors who are looking for a diversified portfolio of large-cap stocks.</p><figure class="table"><table><tbody><tr><td><strong>Attribute</strong></td><td><strong>Value</strong></td></tr><tr><td><strong>Launch Date</strong></td><td><strong>August 16, 2004</strong></td></tr><tr><td><strong>Category</strong></td><td><strong>Equity: Large Cap</strong></td></tr><tr><td><strong>Rating</strong></td><td><strong>5 stars by Value Research</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>High</strong></td></tr><tr><td><strong>Expense Ratio</strong></td><td><strong>1.64% (Regular plan), 1.11% (Direct plan)</strong></td></tr><tr><td><strong>Minimum Investment</strong></td><td><strong>₹100</strong></td></tr></tbody></table></figure><h3><strong>#4. </strong>ICICI Prudential Large &amp; Mid Cap Fund Growth</h3><p>ICICI Prudential Large &amp; Mid Cap Fund Growth is an equity mutual fund that invests in both large-cap and mid-cap companies in India. The fund invests in companies that are well-managed and have a strong track record of profitability.</p><figure class="table"><table><tbody><tr><td><strong>Attribute</strong></td><td><strong>Value</strong></td></tr><tr><td><strong>Launch Date</strong></td><td><strong>February 11, 2013</strong></td></tr><tr><td><strong>Category</strong></td><td><strong>Equity: Large &amp; Mid Cap</strong></td></tr><tr><td><strong>Rating</strong></td><td><strong>5 stars by Value Research</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>High</strong></td></tr><tr><td><strong>Expense Ratio</strong></td><td><strong>1.00% (Regular plan), 0.94% (Direct plan)</strong></td></tr><tr><td><strong>Minimum Investment</strong></td><td><strong>₹100</strong></td></tr></tbody></table></figure><h3><strong>#5. </strong>ICICI Prudential Multi-Asset Fund Growth</h3><p>ICICI Prudential Multi-Asset Fund Growth is a <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hybrid-fund">hybrid mutual fund</a> that invests in a mix of equity, debt, and gold assets. The fund's asset allocation is dynamic, meaning that the fund manager can adjust the allocation between different asset classes depending on market conditions.</p><figure class="table"><table><tbody><tr><td><strong>Attribute</strong></td><td><strong>Value</strong></td></tr><tr><td><strong>Launch Date</strong></td><td><strong>October 31, 2002</strong></td></tr><tr><td><strong>Category</strong></td><td><strong>Hybrid: Dynamic Asset Allocation</strong></td></tr><tr><td><strong>Rating</strong></td><td><strong>5 stars by Value Research</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>Moderate</strong></td></tr><tr><td><strong>Expense Ratio</strong></td><td><strong>1.67% (Regular plan), 1.18% (Direct plan)</strong></td></tr><tr><td><strong>Minimum Investment</strong></td><td><strong>₹100</strong></td></tr></tbody></table></figure><h3><strong>#6. </strong>ICICI Prudential Dividend Yield Equity Fund Growth</h3><p>ICICI Prudential Dividend Yield Equity Fund Growth is an equity mutual fund that invests in dividend-paying companies in India. The fund invests in companies that have a strong track record of paying dividends.</p><figure class="table"><table><tbody><tr><td><strong>Attribute</strong></td><td><strong>Value</strong></td></tr><tr><td><strong>Launch Date</strong></td><td><strong>May 16, 2014</strong></td></tr><tr><td><strong>Category</strong></td><td><strong>Equity: Dividend Yield</strong></td></tr><tr><td><strong>Rating</strong></td><td><strong>4 stars by Value Research</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>Moderate</strong></td></tr><tr><td><strong>Expense Ratio</strong></td><td><strong>2.02% (Regular plan), 1.55% (Direct plan)</strong></td></tr><tr><td><strong>Minimum Investment</strong></td><td><strong>₹100</strong></td></tr></tbody></table></figure><h3><strong>#7. </strong>ICICI Prudential Multicap Fund Growth</h3><p>ICICI Prudential Multicap Fund Growth is an equity mutual fund that invests in companies across all market capitalizations, i.e. large-cap, mid-cap, and small-cap. The fund invests in companies that are well-managed and have a strong track record of profitability.</p><figure class="table"><table><tbody><tr><td><strong>Attribute</strong></td><td><strong>Value</strong></td></tr><tr><td><strong>Launch Date</strong></td><td><strong>August 24, 1994</strong></td></tr><tr><td><strong>Category</strong></td><td><strong>Equity: Multi Cap</strong></td></tr><tr><td><strong>Rating</strong></td><td><strong>5 stars by Value Research</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>High</strong></td></tr><tr><td><strong>Expense Ratio</strong></td><td><strong>1.82% (Regular plan), 1.35% (Direct plan)</strong></td></tr><tr><td><strong>Minimum Investment</strong></td><td><strong>₹100</strong></td></tr></tbody></table></figure><h3><strong>#8. </strong>ICICI Prudential Manufacturing Fund Growth</h3><p>ICICI Prudential Manufacturing Fund Growth is an equity mutual fund that invests in companies in the manufacturing sector in India.</p><figure class="table"><table><tbody><tr><td><strong>Attribute</strong></td><td><strong>Value</strong></td></tr><tr><td><strong>Launch Date</strong></td><td><strong>September 21, 2018</strong></td></tr><tr><td><strong>Category</strong></td><td><strong>Equity: Thematic/Sectoral – Manufacturing</strong></td></tr><tr><td><strong>Rating</strong></td><td><strong>5 stars by Value Research</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>Very High</strong></td></tr><tr><td><strong>Expense Ratio</strong></td><td><strong>2.21% (Regular plan), 1.76% (Direct plan)</strong></td></tr><tr><td><strong>Minimum Investment</strong></td><td><strong>₹100</strong></td></tr></tbody></table></figure><h3><strong>#9. </strong>ICICI Prudential Equity &amp; Debt Fund Growth</h3><p>ICICI Prudential Equity &amp; Debt Fund Growth is an aggressive hybrid mutual fund that invests in a mix of equity and debt assets. The fund's equity allocation is typically in the range of 60-80%, while its debt allocation is typically in the range of 20-40%.</p><figure class="table"><table><tbody><tr><td><strong>Attribute</strong></td><td><strong>Value</strong></td></tr><tr><td><strong>Launch Date</strong></td><td><strong>January 1, 2013</strong></td></tr><tr><td><strong>Category</strong></td><td><strong>Hybrid: Aggressive Hybrid</strong></td></tr><tr><td><strong>Rating</strong></td><td><strong>4 stars by Value Research</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>High</strong></td></tr><tr><td><strong>Expense Ratio</strong></td><td><strong>1.69% (Regular plan), 1.12% (Direct plan)</strong></td></tr><tr><td><strong>Minimum Investment</strong></td><td><strong>₹100</strong></td></tr></tbody></table></figure><h3><strong>#10. </strong>ICICI Prudential Smallcap Fund Growth</h3><p>ICICI Prudential Smallcap Fund Growth is the <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-small-cap-mutual-funds">best small cap mutual fund</a> &nbsp;that invests in small-cap companies in India. Small-cap companies are companies with a market capitalization of less than ₹5000 crores.</p><figure class="table"><table><tbody><tr><td><strong>Attribute</strong></td><td><strong>Value</strong></td></tr><tr><td><strong>Launch Date</strong></td><td><strong>January 1, 2013</strong></td></tr><tr><td><strong>Category</strong></td><td><strong>Equity: Small Cap</strong></td></tr><tr><td><strong>Rating</strong></td><td><strong>5 stars by Value Research</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>Very High</strong></td></tr><tr><td><strong>Expense Ratio</strong></td><td><strong>1.83% (Regular plan), 1.35% (Direct plan)</strong></td></tr><tr><td><strong>Minimum Investment</strong></td><td><strong>₹100</strong></td></tr></tbody></table></figure><h3>ICICI SIP Plans Benefits</h3><p>Systematic investment plans are a smart and convenient way to<a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/how-to-invest-in-mutual-funds"> invest in mutual funds</a> regularly. It offers numerous benefits to investors, including the following:</p><p><strong>⇛ Disciplined Investing: </strong>One of the most significant advantages of SIP is that it helps investors cultivate the habit of disciplined investing. It ensures that investors invest a fixed amount of money regularly, regardless of market conditions. This can lead to better long-term financial planning and help avoid impulsive investment decisions.</p><p><strong>⇛ Rupee Cost Averaging:</strong> SIPs allow investors to benefit from the power of <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/rupee-cost-averaging-power-of-systematic-investment-plan">rupee cost averaging</a>. This means that investors can buy more units when prices are low and fewer units when prices are high. Over the long term, this can lead to an overall reduction in the average cost of investments. Invest in different types of SIPs such as Yearly, Monthly, and <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/daily-sip">Daily SIP Investment</a>.</p><p><strong>⇛ Compounding:</strong> Another significant advantage of SIP is that it enables investors to benefit from the power of compounding. By investing small amounts regularly over a long period, investors can earn interest not just on their principal amount but also on the returns generated by their investments. This can result in substantial wealth creation over time.</p><p><strong>⇛ Flexibility:</strong> SIPs offer investors the flexibility to start, stop, or modify their investments at their convenience. They can also choose the investment amount, frequency, and investment tenure as per their financial goals and risk appetite.</p><p><strong>⇛ Low Minimum Investment:</strong> SIPs offer the benefit of low minimum investment amounts, making it easy for small investors to start investing in mutual funds.</p><p><strong>⇛ Tax Benefits: </strong>SIPs offer tax benefits to investors under various sections of the Income Tax Act, such as 80C, 80CCD, and 10(10D). Investors can also avail tax benefits on long-term capital gains.</p><h3>ICICI SIP Calculator &nbsp;</h3><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/icici-mutual-fund-sip-calculator">ICICI Mutual Fund SIP calculator</a> is a tool that helps investors calculate the future value of their ICICI mutual fund SIP investments. It assists investors in planning their investments by providing an estimate of the potential returns over time.&nbsp;</p><p>The calculator requires investors to input the investment amount, SIP frequency, investment period, and expected rate of return to calculate the future value of their investment.</p><p>&nbsp;The ICICI <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/sipcalculator">SIP mutual fund calculator</a> also enables investors to compare different mutual fund schemes and select the most suitable option based on their financial goals and risk appetite. It is a useful tool for investors who want to plan their investments systematically and achieve their financial goals through mutual fund investments.</p><h3>Frequently Asked Questions about ICICI Mutual Fund SIP Investment</h3><h4>Q. What is the minimum investment amount for ICICI Mutual Fund plans?</h4><p>A. The minimum investment amount for ICICI Mutual Fund SIP plans may vary depending on the <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds">mutual fund scheme</a> and the investment tenure chosen by the investor. Some ICICI SIP plans allow investors to start their systematic investment plan with as low as INR 100 per month. &nbsp;</p><p>However, the minimum SIP investment amount for most ICICI Mutual Fund schemes is INR 500 per month. Some schemes may have a higher minimum monthly SIP investment amount, such as Rs. 1000 or Rs. 5000 per month. However, there is no upper limit on the investment amount, and investors can invest as much as they want based on their financial goals and risk appetite.</p><h4>Q. How much money do you need to start an ICICI SIP plan?</h4><p>A. You can start an ICICI <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/systematic-investment-plan-sip">SIP investment plan</a> for as low as INR 100. However, not all <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/icici-prudential-mutual-fund">ICICI mutual fund schemes</a> have a minimum investment amount of INR 100. Therefore, we recommend you do proper research before starting an ICICI SIP plan. &nbsp;</p><h4>Q. Do ICICI SIP investment plans offer tax benefits?</h4><p>A. Yes, ICICI SIP investment plans offer tax benefits under certain schemes that are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. These schemes are referred to as <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/elss-funds">Equity Linked Saving Schemes</a> (ELSS) and have a lock-in period of three years.</p><p>Investments in <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/elss-funds">ELSS mutual funds</a> are eligible for a tax deduction of up to INR 1.5 lakhs per financial year. The amount invested in ELSS mutual funds can be claimed as a deduction from your taxable income, thus reducing your tax liability.</p><h4>Q. Can I start an ICICI SIP plan on ZFunds?</h4><p>A. Yes, you can easily start an ICICI SIP investment plan on <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in">ZFunds</a>. Simply log in or create an account on ZFunds, select the ICICI mutual fund, and pay the first installment to start the SIP.</p><p>Also Read :&nbsp;</p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/sbi-sip-investment-plan">SBI SIP Investment Plan&nbsp;</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/daily-sip">Daily SIp Plan</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hdfc-sip-mutual-fund-calculator">HDFC SIP Mutual Fund Calculator</a></p>

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<h2>Top Fund Managers in India 2024</h2><p>In the dynamic world of finance, fund managers play a pivotal role in guiding investments and shaping portfolios. A fund manager is responsible for managing and adjusting your investment portfolio of securities that a mutual fund holds. In this article, we will share all about top 10 fund managers in India. You’ll also learn the factors you should seek when choosing a fund manager for yourself.&nbsp;</p><h2>What is a Fund manager?</h2><p>A Fund Manager is a financial professional expert responsible for managing investment funds such as mutual funds, pension funds, trust funds, hedge funds, or other financial options. They play an important role in ensuring the fund performs well and meets its investment objectives.</p><p>Investing in fund advice from a fund manager gives the investor peace of mind, but the investor should research the fund manager's investment style fully.</p><h2>Top 10 Best Mutual Fund Managers in India</h2><p>Here are the names of the top 10 fund managers in India:</p><figure class="table"><table><tbody><tr><td>Fund Managers</td><td>Fund Name</td><td>AUM</td><td>Schemes</td><td>Experience</td></tr><tr><td>Shreyash Devalkar</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/axis-mutual-fund">Axis Mutual Fund</a></td><td>₹58,601 Cr</td><td>12&nbsp;</td><td>14 Years</td></tr><tr><td>Aniruddha Naha</td><td>PGIM India Mutual Fund</td><td>₹12,503 Cr</td><td>12</td><td>18+ Years</td></tr><tr><td>R. Srinivasan</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/sbi-mutual-fund">SBI Mutual Fund</a></td><td>₹1,14,343 Cr</td><td>14</td><td>26 Years</td></tr><tr><td>Sankaran Naren</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/icici-prudential-mutual-funds">ICICI Prudential Mutual Fund</a></td><td>₹1,23,053 Cr</td><td>33</td><td>26 Years</td></tr><tr><td>Jinesh Gopani</td><td>Equities - Axis Mutual Fund</td><td>₹54,466 Cr</td><td>24</td><td>17 Years</td></tr><tr><td>Sohini Andani</td><td>SBI Mutual Fund</td><td>₹36,724 Cr</td><td>4</td><td>23 Years</td></tr><tr><td>Manish Gunawan</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nippon-india-mutual-fund">Nippon India Mutual Fund</a></td><td>₹22,395 Cr</td><td>12</td><td>20+ Years</td></tr><tr><td>Harsha Upadhyaya</td><td>Kotak Mahindra Mutual Fund</td><td>₹50,059 Cr</td><td>14</td><td>23 Years</td></tr><tr><td>Chandraprakash Padiyar</td><td>Tata Mutual Fund</td><td>₹7,904 Cr</td><td>10</td><td>19 Years</td></tr><tr><td>Ankit Agarwal</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/uti-mutual-fund">UTI Mutual Fund</a></td><td>₹8,167 Cr</td><td>5</td><td>15+ Years</td></tr></tbody></table></figure><h2>Role &amp; Responsibilities of Mutual Fund Manager</h2><p>A fund manager’s primary responsibility is to manage a fund’s portfolio and achieve its objectives. This responsibility could include the following dimensions:</p><ul><li>Selection of Securities: One of the critical roles of a fund manager is deciding which securities should be held in the portfolio. Therefore, fund managers perform extensive research. Over time, they may also need to replace securities in their fund portfolios with better ones and decide when to sell them.</li><li>Risk Management: Fund managers are also responsible for managing the portfolio’s risk. They ensure that the portfolio’s overall risk is aligned with the fund’s objectives.</li><li>Track Performance: Fund managers must track the fund’s performance regularly and may decide to sell underperforming securities. They aim to get better returns than the benchmark.</li><li>Ensure Compliance: SEBI (Securities Exchange Board of India) frames policies and regulations related to mutual funds. Thus, a fund manager’s job is to ensure that the fund doesn’t violate any rules set by SEBI.</li></ul><h2>How do Fund Managers Invest?</h2><p>Fund managers follow a proper investment strategy. Their decisions are backed up by extensive research and market analysis. Here’s how they invest in funds.</p><ul><li>Investment Goal &amp; Risk Profile: The Fund manager establishes a clear investment goal and risk profile of the investor. This helps the fund manager to select the investment option accordingly.</li><li>Research and Analysis: Fund managers do deep research of different sectors and companies, and analyze market trends to identify the best suitable investment opportunities that align with their investment goal. He/she can use advanced tools for data analytics and risk assessment.</li><li>Portfolio Diversification: The fund manager ensures that the portfolio has a mix of assets to reduce risk and market volatility.&nbsp;</li><li>Monitoring: He/she should regularly review the portfolio's performance against the benchmarks and adjust according to market conditions. This will help him/her easily reach the investment goals.</li><li>Transparency: Fund managers should follow the SEBI rules and regulations to maintain transparency with investors.</li></ul><h2>Different Strategies That Fund Managers Use</h2><p>Fund managers use several popular investing strategies to generate the best returns in the market:</p><ul><li>Bottom-Up Approach: In the bottom-up strategy, stocks and other securities are chosen as per their fundamentals, irrespective of their country’s overall economy.</li><li>Top-Down Approach: In the top-down strategy, fund managers and financial analysts consider the country’s economy to pick sectors and companies with the most potential.</li><li>Technical Analysis: In technical analysis, fund managers analyze stocks on the basis of technical parameters such as their past performance. Some managers may also combine this with the fundamental analysis of the company, similar to the bottom-up approach.</li><li>Dividend Analysis: This sort of approach is slightly conservative and suits investors who are seeking regular earnings from their investments through dividends. So, fund managers look at dividend-yielding stocks.</li><li>Against the Tide: The ‘Against the Tide’ approach is slightly contrarian in style. In this approach, investors seek stocks that aren’t well-performing but hold good valuation. As much as this approach offers high returns, it also comes with a high risk.</li></ul><h2>Factors to Remember While Choosing a Fund Manager</h2><p>Below are 6 factors listed that you must consider while choosing a fund manager:</p><ul><li>Experience: Experienced fund managers have generally seen the market at all levels. Therefore, they know how to manage the portfolio through thick and thin.</li><li>Past Performance: Examine the fund manager’s track record and analyze their funds’ portfolio performance. Analyze if they are able to match or deliver better returns than the benchmarks or index.</li><li>Investment Style: Consider a fund manager’s investment style and check if their style aligns with your investment objectives. For instance, an aggressive investment style may not suit you if you need a conservative fund.</li><li>Tenure with the Fund: The longer time the fund manager has with a specific fund, the more you can attribute the fund’s performance to them.</li><li>Stability: Check if the fund manager stays with a fund house for a long time. Also, check if they jump from one company to another often. If a fund manager switches their job too often, it’s not a very good sign for the investors.</li><li>Number of Funds Managed: If a fund manager has too many funds on their hands, it could be a negative sign as they may not be able to give proper attention to all of them. Thus, always check the number of funds managed by a fund manager.</li></ul><h2>Top 10 Best Mutual Fund Managers in India</h2><p>Here is all about the top 10 fund managers in India.</p><h3>1. Shreyash Devalkar</h3><p>Shreyash Devalkar is the Senior Fund Manager of Axis AMC. After joining the AMC in 2016, he took control of significant funds like the Bluechip Fund, Midcap Fund, and Multicap Fund in 2017.&nbsp;</p><p>Prior to this, Mr. Devalkar spent more than 5 years at BNP Paribas AMC as a fund manager. Additionally, he worked as a research analyst for IDFC AMC (July 2008 to January 2011) and IDFC Securities (September 2005 to July 2008).</p><h3>2. Aniruddha Naha</h3><p>Mr. Aniruddha Naha is a Master of Finance and Control graduate. He is a senior fund manager at PGIM India Asset Management Pvt. Ltd. Mr. Naha looks over the PGIM India Midcap Opportunities Fund and PGIM India Diversified Equity Fund.</p><p>In markets of debt and equity, Aniruddha has more than 18 years of experience.&nbsp;</p><h3>3. R. Srinivasan</h3><p>In May 2009, R. Srinivasan joined SBI Funds Management as a Senior Fund Management. As of now, he is the Head of Equity there.</p><p>He has been dealing with the equity market for more than 25 years actively. Mr. Srinivasan has previously worked for companies such as Future Capital Holding, Principal PNB, Oppenheimer &amp; Co, Indosuez WI Carr, and Motilal Oswal.</p><h3>4. Sankaran Naren</h3><p>At ICICI, Sankaran is in charge of the investment functions of both the international advisory business and mutual funds. He has a major part in the company’s development and its overall investment strategy.</p><p>Naren has won numerous fund management awards for his management and investment strategies. Moreover, his opinions on macroeconomics and markets are often featured in local and international media.&nbsp;</p><h3>5. Jinesh Gopani</h3><p>Jinesh Gopani is the Head of Equity at Axis Mutual Fund. He joined the company in 2009 as an equity fund manager. Later, Gopani was promoted as Head of Equity in 2016.</p><p>Jinesh operates and manages the flagship Axis Long-Term Equity Fund. He has previously worked as a portfolio manager for Birla Sunlife AMC, where he managed the alternative assets for the growth, value, and dividend baskets.&nbsp;</p><h3>6. Sohini Andani</h3><p>Sohini joined the SBI Mutual Fund in 2007 as the Head of Research. Later, she was promoted to Portfolio Manager in 2010. Prior to joining SBI Mutual Fund, she worked as a senior research associate in ING Investment Management.&nbsp;</p><h3>7. Manish Gunawan</h3><p>Manish Gunawan is a PGDM and a B.Tech. graduate. Before joining Nippon India Mutual Fund, he worked with ICICI Prudential Mutual Fund at Vicisoft Technologies, Lehman Brothers, Brics Securities, Lucky Securities, SSKI Securities, and Prime Securities as a fund manager and analyst.&nbsp;</p><h3>8. Harsha Upadhyaya</h3><p>Mr. Upadhyaya has 23 years of experience with equity research and fund management. He has worked with reputable organizations like DSP BlackRock Investment Managers and Prabhudas Lilladher Pvt. Ltd, SG Asia Securities, Reliance Group, and UTI Asset Management Co. Ltd in the past.&nbsp;</p><p>He graduated from NIT, Suratkal, with a bachelor’s degree in Engineering in Mechanical. He also completed a Post Graduate Management degree in Finance from IIM Lucknow. He also has a Chartered Financial Analyst designation from the CFA Institute.&nbsp;</p><h3>9. Chandraprakash Padiyar</h3><p>In September 2018, Chandraprakash Padiyar joined Tata Asset Management as a senior fund manager for equities. He has an experience of 19 years in fund management and research.&nbsp;</p><p>He holds an MBA in Finance from the Symbiosis Institute of Business Management, having cleared all three levels of The CFA Institute’s CFA Program.&nbsp;</p><h3>10. Ankit Agarwal</h3><p>Ankit has his graduation degrees in economics management, computer science and engineering, and finance (PGDM). Before joining UTI Mutual Fund, he worked for Centrum Capital Ltd, Barclays, Lehman Brothers, BNP Paribas, and D. E. Shaw &amp; Co.&nbsp;</p><h2>Active vs Passive Fund Manager</h2><p>There are two primary types of investment management strategies that mutual fund managers follow: active management and passive management.&nbsp;</p><h3>Active Management</h3><p>Active management is a strategy that fund managers use to make proactive investment decisions to surpass a specific benchmark or market index. This involves continuous research, analysis, and trading to seize opportunities and achieve higher returns.&nbsp;</p><p>Indian fund managers strive to identify undervalued assets, and time market trends, and adjust the investment portfolio accordingly. They often rely on their expertise and strategies to make strategic investment moves.&nbsp;</p><h3>Passive Management</h3><p>Passive management, also known as index investing, is a strategy where a fund’s portfolio replicates a particular Indian market index, such as the Nifty 50 or the BSE Sensex.&nbsp;</p><p>Rather than trying to outperform a particular index, passive managers aim to replicate the performance of their chosen index. As the portfolio’s composition stays relatively stable, the strategy involves minimal buying and selling. This approach aims to offer consistent, market-matching returns with relatively lower costs.&nbsp;</p><h2>How to Become a Fund Manager in India?</h2><p>Becoming a fund manager in India requires a structured approach that involves education, experience, and certifications. Here are a few steps that you can consider taking to become a fund manager in India:</p><ul><li>Pursue a professional degree in finance, economics, or business to build a strong foundation in finance and investment management. Pursuing an MBA or a master’s in finance will add more benefits to your profile.</li><li>Start by gaining practical experience in the finance sector. You can work as a financial analyst, investment banker, or portfolio analyst to polish up your skills.</li><li>Then, you can pursue a professional certification such as the Chartered Financial Analyst (CFA) designation. This certification will enhance your prospects by showcasing your expertise in financial markets and investment management.</li><li>Now that you’re qualified, start applying for a job as a fund manager.&nbsp;</li><li>Stay updated with the latest rule and regulation changes in the financial industry, market trends, and investment strategies to maintain a competitive edge.</li></ul><h2>Conclusion</h2><p>In conclusion, choosing the right fund manager is an important decision for mutual fund investors. These professionals manage the fund’s assets and make strategic investment decisions to achieve good returns for the fund.&nbsp;</p><p>Therefore, it is extremely crucial for investors to closely look at a fund manager’s track record, investment philosophy, and risk management approach. These factors can significantly impact the long-term performance of your investments.&nbsp;</p><h2>FAQs&nbsp;</h2><h3>1. Who is the best fund manager in India?</h3><p>Shreyansh Devalkar is the best fund manager in India, as of the July 2024 update. However, there are many fund managers with decades of experience and well-performing funds.&nbsp;</p><h3>2. How many fund managers are there in India?</h3><p>As of January 2024, there are 473 fund managers in India — only 42 of which are women.&nbsp;</p><h3>3. What is the salary of a fund manager in India?</h3><p>A fund manager’s salary can range anywhere between ₹3 lakhs to ₹93.5 lakhs per annum in India. The average annual salary of a fund manager is ₹26.4 lakhs.&nbsp;</p><h3>4. Who can be a fund manager in India?</h3><p>To become a fund manager in India, one needs to have a Bachelor’s degree in finance, economics, or related field. It needs to be followed&nbsp;</p>

Lock-in period is applicable to different types of investments including ELSS funds, Hedge funds, Tax-Saving FDs & other savings schemes. The

Lock in Period in Mutual Funds, NPS, NSC, PPF, Tax Saving FD

lock-in-period

<h2>What is Lock-in Period?</h2><p>The Lock-in period is the time period during which investors are not allowed to make redemptions or sell their investments. Investors are restricted to sell their units until the lock-in period is over. After that, investors are allowed to make redemptions or sell their units as per their will.&nbsp;</p><p>Lock-in period is applicable to different types of investments including <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/elss-funds">ELSS funds</a>, <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hedge-funds">Hedge funds</a>, <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/tax-saving-fixed-deposit">Tax-Saving FDs</a> &amp; other <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/saving-schemes">savings schemes</a>. The objective of lock-in period is generally to restrict the investors from selling their investments based on market events &amp; irrational behaviours and therefore maintain liquidity. Sometimes high redemption pressures in investments might lead to capital losses as the management would have to sell their holdings or underlying securities at discounts to meet redemptions.</p><p>Also, a lock-in period has been kept for some specific investments which offer tax benefits to provide investors a disciplinary approach to long term investing.</p><p>Let's have a look at the lock-in period of various types of investments:&nbsp;</p><h2>1. Lock-in Period in Mutual Funds</h2><p>Mutual Funds are the pooled investment vehicles which invest in marketable securities as per the investment objective of the scheme.</p><p>Mutual Fund investments have a lock-in period to restrict their investors from making redemptions &amp; let them follow a long term approach to investing. Especially in equity based funds, investing for the long term helps to offer high returns over time.&nbsp;</p><h3><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/closed-ended-funds">Closed-Ended Mutual Funds</a></h3><p>Closed-ended mutual funds are those mutual fund schemes where investments can only be made during the NFO period. After that, investors are not allowed to make investments or redemptions in these funds. Investors can redeem only after the expiry of the specified lock-in period.</p><p>The objective behind keeping a lock-in period in closed-ended funds is to maintain stability in the fund. As the fund manager would then be able to stick to an investment strategy in the absence of situations like high redemption pressures.&nbsp;</p><p>So, Closed-ended funds will have the potential to generate higher returns over the period.</p><p>The lock-in period varies across schemes. It is generally in the range of 3-7 years.</p><h2><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/open-ended-funds">Open-Ended Mutual Funds</a></h2><h4><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/equity-funds">Equity Funds</a></h4><p>Equity Mutual Funds are those mutual fund schemes which invest in equity &amp; equity-related securities of the companies to generate returns for their investors. There are 10 different sub-categories of equity mutual funds as per SEBI categorization. And only ELSS (Equity Linked Savings Scheme) or Tax-saving Funds is the category which carries a lock-in period of 3 years.&nbsp;</p><h4><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/debt-fund">Debt Funds</a></h4><p>Debt Mutual Funds are those mutual funds which invest in debt securities like bonds, papers &amp; other money market instruments to generate returns for investors. They are comparatively stable than equity funds.&nbsp;</p><p>These funds do not have any lock-in period for investments.&nbsp;</p><p><strong>Also Read:</strong> <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/long-duration-debt-funds">Long Duration Debt Funds: Meaning, Type, Risk, Returns, Benefits</a></p><h4><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hybrid-fund">Hybrid Funds</a></h4><p>Hybrid Funds are those mutual funds which invest in equity as well as debt securities to generate returns for investors. They are comparatively stable than pure equity funds but volatile than debt mutual funds.</p><p>These funds also do not have any lock-in period for investments.</p><p><strong>Read:</strong> <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/conservative-hybrid-funds">Conservative Hybrid Funds: Meaning, Benefits, Returns</a></p><h2>2. Lock-in Period in Hedge Funds</h2><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hedge-funds">Hedge Funds </a>are those alternative investment vehicles which pool money from HNI, UHNI, pension funds, institutional investors &amp; other investors to invest in market securities using complex investment strategies. These funds aim to reduce downside risks by taking positions in other related securities.</p><p>They generally have a lock-in period to restrict investors from making redemptions. The lock-in period differs across funds as per their liquidity requirements.</p><h2>3. Lock-in Period in Tax saving FD</h2><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/fixed-deposit">Fixed Deposits</a> are one of the popular investments among Indian citizens for their safety &amp; simplicity. They offer a fixed rate of interest on the deposits made by depositors as per the tenure of investment.&nbsp;</p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/tax-saving-fixed-deposit">Tax-saving FDs</a> are those Fixed deposits which are eligible for claiming tax deductions under section 80C of the Income Tax Act,1961. These FDs offer dual benefits of long term investment &amp; tax advantages.</p><p>These FDs have a lock-in period of 5 years.</p><h2>4. Lock-in Period in Provident Public Fund (PPF)</h2><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/public-provident-fund-ppf">Public Provident Fund</a> is a long tenure savings scheme offered by India Post- a government-backed postal services entity. The 15-year long tenure of this scheme allows investors to build a large corpus over the long term through regular investments every year. Moreover, investments in PPF scheme are eligible for claiming tax deductions of up to Rs.1.5 lakhs under Section 80C of Income Tax Act,1961. Also, it comes under the EEE-Exempt category in terms of taxation which means contributions, withdrawals &amp; maturity proceeds are exempt from taxes.</p><p>The lock-in period in the PPF scheme is 15 years.</p><h2>5. Lock-in Period in National Pension Scheme (NPS)</h2><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/national-savings-certificate-nsc">National Pension Scheme is a retirement savings scheme</a> launched by the Government of India. The objective of the scheme is to ensure a systematic architecture for regular savings &amp; investments by investors for meeting their long-term needs. The subscribers need to choose the desired asset allocation or an auto allocation mode for their contributions. At retirement, they are allowed to withdraw 60% of the corpus as lump-sum &amp; the rest 40% needs to be used for buying an annuity which could offer regular pension to account holders.</p><p>The scheme has a lock-in till the retirement of an individual i.e 60 years of age.</p><p><strong>Must Read:</strong> <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nps-vs-ppf">NPS Vs PPF: Comparison, Tenure, Risks, Returns, Tax Benefits &amp; Which is Better</a></p><h2>6. Lock-in Period in National Savings Certificate (NSC)</h2><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/hindi/m/national-savings-certificate-nsc">National Savings Certificate (NSC)</a> is a small savings certificate scheme backed by the Government of India. The objective of the scheme is to encourage small savings and investments among citizens for meeting their financial goals &amp; requirements. The scheme offers tax deductions of up to Rs.1.5 lakhs under Section 80C of the Income Tax Act,1961.&nbsp;</p><p>The scheme has a mandatory lock-in period of 5 years during which withdrawals are not allowed.</p><p><strong>Also Read:</strong></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/open-ended-funds">Open Ended Mutual Funds: Meaning, Benefits, Comparison with Close Ended Funds</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-elss-mutual-funds">Best &nbsp;ELSS Tax Saving Mutual Funds in India</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/elss-vs-ulip">ELSS vs ULIP: Risk, Cost, Returns, Coverage, Tax Benefits, Which is Better</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/growth-funds">Growth Funds: Meaning, Risk, Returns, Benefits, Taxability</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/index-funds">Index Funds - Meaning, Purpose, How to Work, Risk, Returns</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/alternative-investment-funds">Alternative Investment Funds: Types, Risk, Investment, Taxation</a><br>&nbsp;</p>

म्यूचुअल फंड, NPS, NSC, PPF, टैक्स सेविंग FD में लॉक-इन पीरियड

<h2>लॉक इन पीरियड</h2><h2>लॉक इन पीरियड क्या है?</h2><p>लॉक-इन पीरियड वह समयावधि होती है, जिसके दौरान निवेशकों को रिडीम करने या अपना निवेश बेचने की अनुमति नहीं होती है। लॉक-इन अवधि समाप्त होने तक निवेशक अपनी इकाइयों को बेचने के लिए प्रतिबंधित हैं। उसके बाद, निवेशकों को उनकी इच्छा के अनुसार रिडीम करने या अपनी इकाइयों को बेचने की अनुमति दी जाती है।</p><p>ELSS फंड, हेज फंड, टैक्स-सेविंग FD और अन्य बचत योजनाओं सहित विभिन्न प्रकार के निवेशों के लिए लॉक-इन अवधि लागू है। लॉक-इन अवधि का उद्देश्य आम तौर पर निवेशकों को बाजार की घटनाओं और तर्कहीन व्यवहारों के आधार पर अपने निवेश को बेचने से प्रतिबंधित करना है और इसलिए तरलता बनाए रखना है। कभी-कभी निवेश में उच्च रिडीम दबाव से पूंजीगत नुकसान हो सकता है क्योंकि प्रबंधन को रिडीम से छूट के लिए अपनी होल्डिंग या अंतर्निहित प्रतिभूतियों को बेचना होगा।</p><p>साथ ही, कुछ विशिष्ट निवेशों के लिए लॉक-इन अवधि रखी गई है जो निवेशकों को दीर्घकालिक निवेश के लिए अनुशासनात्मक दृष्टिकोण प्रदान करने के लिए कर लाभ प्रदान करते हैं।</p><p>आइए विभिन्न प्रकार के निवेशों की लॉक-इन अवधि पर एक नज़र डालें:</p><h2>1. म्यूचुअल फंड में लॉक-इन पीरियड</h2><p>म्यूचुअल फंड, निवेशित वाहन हैं जो योजना के निवेश उद्देश्य के अनुसार विपणन योग्य प्रतिभूतियों में निवेश करते हैं।</p><p>म्यूचुअल फंड निवेश में अपने निवेशकों को ऋण रिडीम करने से रोकने के लिए लॉक-इन अवधि होती है और उन्हें निवेश के लिए दीर्घकालिक दृष्टिकोण का पालन करना चाहिए। विशेष रूप से इक्विटी आधारित फंडों में, लंबी अवधि के लिए निवेश करने से समय के साथ उच्च रिटर्न देने में मदद मिलती है।</p><h2>क्लोज-एंडेड म्यूचुअल फंड</h2><p>क्लोज-एंडेड&nbsp; म्यूचुअल फंड उन म्यूचुअल फंड योजनाएं हैं जहां निवेश केवल एनएफओ अवधि के दौरान किया जा सकता है। उसके बाद, निवेशकों को इन फंडों में निवेश या रिडीम करने की अनुमति नहीं है। निर्दिष्ट लॉक-इन अवधि की समाप्ति के बाद ही निवेशक रिडीम कर&nbsp; सकते हैं।</p><p>क्लोज-एंडेड फंडों में लॉक-इन अवधि रखने के पीछे उद्देश्य फंड में स्थिरता बनाए रखना है। चूंकि फंड मैनेजर उच्च रिडीम दबाव जैसी स्थितियों के अभाव में निवेश की रणनीति पर टिक सकता है।</p><h2>ओपन-एंडेड म्यूचुअल फंड</h2><h2>इक्विटी फंड</h2><p>इक्विटी म्यूचुअल फंड्स वे म्यूचुअल फंड स्कीम हैं, जो अपने निवेशकों के लिए रिटर्न जेनरेट करने के लिए कंपनियों की इक्विटी और इक्विटी संबंधित सिक्योरिटीज में निवेश करती हैं। सेबी वर्गीकरण के अनुसार इक्विटी म्यूचुअल फंड की 10 अलग-अलग उप-श्रेणियां हैं। और केवल ईएलएसएस (इक्विटी लिंक्ड सेविंग स्कीम) या टैक्स-सेविंग फंड्स वह श्रेणी है जो 3 साल की लॉक-इन अवधि होती है।</p><h2>डेब्ट फंड</h2><p>डेब्ट&nbsp; म्यूचुअल फंड्स वे म्यूचुअल फंड्स होते हैं जो डेब्ट&nbsp; सिक्योरिटीज जैसे बॉन्ड, पेपर और अन्य मनी मार्केट इंस्ट्रूमेंट्स में निवेश करके निवेशकों के लिए रिटर्न तैयार करते हैं। वे इक्विटी फंड्स की तुलना में स्थिर हैं।</p><p>इन निधियों में निवेश के लिए कोई लॉक-इन अवधि नहीं है।</p><h2>हाइब्रिड फंड</h2><p>हाइब्रिड फंड्स वे म्यूचुअल फंड हैं जो निवेशकों के लिए रिटर्न जेनरेट करने के लिए इक्विटी के साथ-साथ डेब्ट&nbsp; सिक्योरिटीज में भी निवेश करते हैं। वे इक्विटी फंडों की तुलना में स्थिर हैं, लेकिन डेब्ट म्यूचुअल फंडों की तुलना में अस्थिर हैं।</p><p>इन निधियों में निवेश के लिए कोई लॉक-इन अवधि भी नहीं है।</p><h2>2. हेज फंड में लॉक-इन पीरियड</h2><p>हेज फंड्स उन वैकल्पिक निवेश विकल्प हैं जो एचएनआई, यूएचएनआई, पेंशन फंड, संस्थागत निवेशकों और अन्य निवेशकों से पैसे लेते हैं जो जटिल निवेश रणनीतियों का उपयोग करके बाजार की प्रतिभूतियों में निवेश करते हैं। इन फंडों का उद्देश्य अन्य संबंधित प्रतिभूतियों में स्थान लेकर नकारात्मक जोखिम को कम करना है।</p><p>आम तौर पर निवेशकों को प्रतिदान करने से रोकने के लिए उनके पास लॉक-इन अवधि होती है। लॉक-इन अवधि उनकी तरलता आवश्यकताओं के अनुसार पूरे फंड में भिन्न होती है।</p><h2>3. टैक्स-बचत एफडी में लॉक-इन अवधि</h2><p>फिक्स्ड डिपॉजिट भारतीय नागरिकों के बीच अपनी सुरक्षा और सादगी के लिए लोकप्रिय निवेशों में से एक है। वे निवेश की अवधि के अनुसार जमाकर्ताओं द्वारा किए गए जमा पर ब्याज की एक निश्चित दर प्रदान करते हैं।</p><p>टैक्स-सेविंग FD वे फिक्स्ड डिपॉजिट हैं जो आयकर अधिनियम, 1961 की धारा 80 सी के तहत कर कटौती का दावा करने के योग्य हैं। ये FD दीर्घकालिक निवेश और कर लाभ के दोहरे लाभ प्रदान करते हैं।</p><p>इन FD में 5 साल की लॉक-इन अवधि होती है।</p><h2>4. पब्लिक प्रोविडेंट फण्ड&nbsp;(PPF) में लॉक-इन अवधि</h2><p>पब्लिक प्रोविडेंट फंड इंडिया पोस्ट द्वारा प्रदान की जाने वाली एक लंबी कार्यकाल बचत योजना है, जो सरकार समर्थित डाक सेवा इकाई है। इस योजना का 15 साल का लंबा कार्यकाल निवेशकों को हर साल नियमित निवेश के माध्यम से लंबी अवधि में एक बड़े कॉर्पस का निर्माण करने की अनुमति देता है। इसके अलावा, पीपीएफ योजना में निवेश आयकर अधिनियम, 1961 की धारा 80 सी के तहत 1 लाख रुपये तक की कर कटौती का दावा करने के लिए पात्र हैं। इसके अलावा, यह कराधान के संदर्भ में EEE-छूट श्रेणी के अंतर्गत आता है जिसका अर्थ है कि योगदान, निकासी और परिपक्वता आय करों से छूट प्राप्त है।</p><p>पीपीएफ योजना में लॉक-इन अवधि 15 वर्ष है।</p><h2>5. राष्ट्रीय पेंशन योजना (एनपीएस) में लॉक इन पीरियड</h2><p>राष्ट्रीय पेंशन योजना भारत सरकार द्वारा शुरू की गई एक सेवानिवृत्ति बचत योजना है। योजना का उद्देश्य निवेशकों द्वारा उनकी दीर्घकालिक जरूरतों को पूरा करने के लिए नियमित बचत और निवेश के लिए एक व्यवस्थित वास्तुकला सुनिश्चित करना है। ग्राहकों को अपने योगदान के लिए वांछित परिसंपत्ति आवंटन या ऑटो आवंटन मोड का चयन करने की आवश्यकता है। सेवानिवृत्ति पर, उन्हें एकमुश्त के रूप में 60% धनराशि निकालने की अनुमति है और बाकी 40% का उपयोग वार्षिकी खरीदने के लिए किया जाना चाहिए जो खाताधारकों को नियमित पेंशन की पेशकश कर सकता है।</p><p>योजना में एक व्यक्ति की सेवानिवृत्ति तक 60 वर्ष की आयु तक लॉक-इन है।</p><h2>6. राष्ट्रीय बचत प्रमाणपत्र (NSC) में लॉक-इन अवधि</h2><p>राष्ट्रीय बचत पत्र (NSC) भारत सरकार द्वारा समर्थित एक छोटी बचत प्रमाणपत्र योजना है। योजना का उद्देश्य नागरिकों को उनके वित्तीय लक्ष्यों और आवश्यकताओं को पूरा करने के लिए छोटी बचत और निवेश को प्रोत्साहित करना है। यह योजना आयकर अधिनियम, 1961 की धारा 80 सी के तहत 1.5 लाख रुपये तक की कर कटौती प्रदान करती है।</p><p>इस योजना में 5 साल की अनिवार्य लॉक-इन अवधि है, जिसके दौरान निकासी की अनुमति नहीं है।</p><p><strong>Also Read:</strong></p><p><a href="https://zfunds.in/m/open-ended-funds">Open Ended Mutual Funds: Meaning, Benefits, Comparison with Close Ended Funds</a><br><a href="https://zfunds.in/m/best-elss-mutual-funds">Best &nbsp;ELSS Tax Saving Mutual Funds in India</a><br><a href="https://zfunds.in/m/elss-vs-ulip">ELSS vs ULIP: Risk, Cost, Returns, Coverage, Tax Benefits, Which is Better</a><br><a href="https://zfunds.in/m/growth-funds">Growth Funds: Meaning, Risk, Returns, Benefits, Taxability</a><br><a href="https://zfunds.in/m/index-funds">Index Funds - Meaning, Purpose, How to Work, Risk, Returns</a><br><a href="https://zfunds.in/m/alternative-investment-funds">Alternative Investment Funds: Types, Risk, Investment, Taxation</a></p>

ਮਿਉਚੁਅਲ ਫੰਡਾਂ, ਐਨਪੀਐਸ, ਐਨਐਸਸੀ, ਪੀਪੀਐਫ, ਟੈਕਸ ਸੇਵਿੰਗ ਐਫਡੀ ਵਿਚ ਪੀਰੀਅਡ ਲੌਕ

ਮਿਉਚੁਅਲ ਫੰਡਾਂ, ਐਨਪੀਐਸ, ਐਨਐਸਸੀ, ਪੀਪੀਐਫ, ਟੈਕਸ ਸੇਵਿੰਗ ਐਫ.ਡੀ. ਵਿਚ ਪੀਰੀਅਡ ਲੌਕ

<h2>ਲਾਕ ਇਨ ਪੀਰਿਯਡ ਕੀ ਹੁੰਦਾ ਹੈ?</h2><p>ਲਾੱਕ-ਇਨ ਪੀਰੀਅਡ ਉਹ ਸਮਾਂ ਅਵਧੀ ਹੈ ਜਿਸ ਦੌਰਾਨ ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਆਪਣੇ ਨਿਵੇਸ਼ਾਂ ਨੂੰ ਮੁਕਤੀ ਅਤੇ ਵੇਚਣ ਦੀ ਆਗਿਆ ਨਹੀਂ ਹੁੰਦੀ. ਲਾੱਕ-ਇਨ ਪੀਰੀਅਡ ਖਤਮ ਹੋਣ ਤੱਕ ਨਿਵੇਸ਼ਕ ਆਪਣੀਆਂ ਇਕਾਈਆਂ ਵੇਚਣ ਤੇ ਪਾਬੰਦੀ ਲਗਾਉਂਦੇ ਹਨ. ਇਸ ਤੋਂ ਬਾਅਦ, ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਉਨ੍ਹਾਂ ਦੀ ਇੱਛਾ ਅਨੁਸਾਰ ਮੁਨਾਫਾ ਬਣਾਉਣ ਜਾਂ ਉਨ੍ਹਾਂ ਦੀਆਂ ਇਕਾਈਆਂ ਵੇਚਣ ਦੀ ਆਗਿਆ ਹੈ.</p><p>ਲਾੱਕ-ਇਨ ਪੀਰੀਅਡ ਵੱਖ ਵੱਖ ਕਿਸਮਾਂ ਦੇ ਨਿਵੇਸ਼ਾਂ ਤੇ ਲਾਗੂ ਹੁੰਦਾ ਹੈ ਜਿਸ ਵਿੱਚ ਈਐਲਐਸਐਸ ਫੰਡ, ਹੇਜ ਫੰਡ, ਟੈਕਸ-ਬਚਤ ਐਫਡੀ ਅਤੇ ਹੋਰ ਬਚਤ ਸਕੀਮਾਂ ਸ਼ਾਮਲ ਹਨ. ਲਾੱਕ-ਇਨ ਪੀਰੀਅਡ ਦਾ ਉਦੇਸ਼ ਆਮ ਤੌਰ 'ਤੇ ਮਾਰਕੀਟ ਦੀਆਂ ਘਟਨਾਵਾਂ ਅਤੇ ਤਰਕਹੀਣ ਵਿਵਹਾਰਾਂ ਦੇ ਅਧਾਰ' ਤੇ ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਉਨ੍ਹਾਂ ਦੇ ਨਿਵੇਸ਼ਾਂ ਨੂੰ ਵੇਚਣ ਤੋਂ ਰੋਕਣਾ ਹੈ ਅਤੇ ਇਸ ਲਈ ਤਰਲਤਾ ਬਣਾਈ ਰੱਖਣਾ ਹੈ. ਕਈ ਵਾਰ ਨਿਵੇਸ਼ਾਂ ਵਿੱਚ ਉੱਚ ਮੁਕਤੀ ਦੇ ਦਬਾਅ ਪੂੰਜੀ ਘਾਟੇ ਦਾ ਕਾਰਨ ਬਣ ਸਕਦੇ ਹਨ ਕਿਉਂਕਿ ਪ੍ਰਬੰਧਨ ਨੂੰ ਛੁਟਕਾਰਿਆਂ ਨੂੰ ਪੂਰਾ ਕਰਨ ਲਈ ਉਹਨਾਂ ਦੀਆਂ ਹੋਲਡਿੰਗਾਂ ਜਾਂ ਅੰਡਰਲਾਈੰਗ ਪ੍ਰਤੀਭੂਤੀਆਂ ਨੂੰ ਛੋਟਾਂ ਤੇ ਵੇਚਣਾ ਪੈਂਦਾ ਹੈ.</p><p>ਨਾਲ ਹੀ, ਕੁਝ ਖਾਸ ਨਿਵੇਸ਼ਾਂ ਲਈ ਇੱਕ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ ਰੱਖਿਆ ਗਿਆ ਹੈ ਜੋ ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਲੰਬੇ ਸਮੇਂ ਦੇ ਨਿਵੇਸ਼ ਲਈ ਅਨੁਸ਼ਾਸਨੀ ਪਹੁੰਚ ਪ੍ਰਦਾਨ ਕਰਨ ਲਈ ਟੈਕਸ ਲਾਭ ਪ੍ਰਦਾਨ ਕਰਦੇ ਹਨ.</p><p>ਆਓ ਦੇਖੀਏ ਕਈ ਕਿਸਮਾਂ ਦੇ ਨਿਵੇਸ਼ਾਂ ਦੀ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ:</p><h2>1. ਮਿਉਚੁਅਲ ਫੰਡਾਂ ਵਿਚ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ</h2><p>ਮਿਉਚੁਅਲ ਫੰਡ ਪੂਲਡ ਇਨਵੈਸਟਮੈਂਟ ਵਾਹਨ ਹੁੰਦੇ ਹਨ ਜੋ ਯੋਜਨਾ ਦੇ ਨਿਵੇਸ਼ ਦੇ ਉਦੇਸ਼ਾਂ ਅਨੁਸਾਰ ਮਾਰਕੀਟ ਹੋਣ ਵਾਲੀਆਂ ਪ੍ਰਤੀਭੂਤੀਆਂ ਵਿੱਚ ਨਿਵੇਸ਼ ਕਰਦੇ ਹਨ.</p><p>ਮਿਉਚੁਅਲ ਫੰਡ ਦੇ ਨਿਵੇਸ਼ਾਂ ਵਿੱਚ ਇੱਕ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ ਹੁੰਦਾ ਹੈ ਤਾਂ ਜੋ ਉਹ ਆਪਣੇ ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਮੁਆਵਜ਼ਾ ਦੇਣ ਤੋਂ ਰੋਕ ਸਕਣ ਅਤੇ ਉਨ੍ਹਾਂ ਨੂੰ ਨਿਵੇਸ਼ ਕਰਨ ਲਈ ਲੰਬੇ ਸਮੇਂ ਦੀ ਪਹੁੰਚ ਅਪਣਾਉਣ. ਖ਼ਾਸਕਰ ਇਕੁਇਟੀ ਅਧਾਰਤ ਫੰਡਾਂ ਵਿੱਚ, ਲੰਬੇ ਸਮੇਂ ਲਈ ਨਿਵੇਸ਼ ਕਰਨਾ ਸਮੇਂ ਦੇ ਨਾਲ ਉੱਚ ਰਿਟਰਨ ਦੀ ਪੇਸ਼ਕਸ਼ ਵਿੱਚ ਸਹਾਇਤਾ ਕਰਦਾ ਹੈ.</p><h2>ਬੰਦ-ਖਤਮ ਮਿਚੁਅਲ ਫੰਡ</h2><p>ਬੰਦ ਹੋਈਆਂ ਮਿਚੁਅਲ ਫੰਡਾਂ ਉਹ ਮਿਉਚੁਅਲ ਫੰਡ ਯੋਜਨਾਵਾਂ ਹੁੰਦੀਆਂ ਹਨ ਜਿੱਥੇ ਨਿਵੇਸ਼ ਸਿਰਫ ਐਨਐਫਓ ਅਵਧੀ ਦੇ ਦੌਰਾਨ ਕੀਤਾ ਜਾ ਸਕਦਾ ਹੈ. ਉਸਤੋਂ ਬਾਅਦ, ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਇਹਨਾਂ ਫੰਡਾਂ ਵਿੱਚ ਨਿਵੇਸ਼ ਕਰਨ ਜਾਂ ਮੁਕਤੀ ਦੇਣ ਦੀ ਆਗਿਆ ਨਹੀਂ ਹੈ. ਨਿਵੇਸ਼ਕ ਨਿਰਧਾਰਤ ਲੌਕ-ਇਨ ਪੀਰੀਅਡ ਦੀ ਮਿਆਦ ਦੇ ਬਾਅਦ ਹੀ ਛੁਟਕਾਰਾ ਪਾ ਸਕਦੇ ਹਨ.</p><p>ਬੰਦ-ਖ਼ਤਮ ਹੋਏ ਫੰਡਾਂ ਵਿੱਚ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ ਰੱਖਣ ਦੇ ਪਿੱਛੇ ਉਦੇਸ਼ ਫੰਡ ਵਿੱਚ ਸਥਿਰਤਾ ਬਣਾਈ ਰੱਖਣਾ ਹੈ. ਜਿਵੇਂ ਕਿ ਫੰਡ ਮੈਨੇਜਰ ਉੱਚ ਮੁਕਤੀ ਦੇ ਦਬਾਅ ਵਰਗੀਆਂ ਸਥਿਤੀਆਂ ਦੀ ਅਣਹੋਂਦ ਵਿੱਚ ਇੱਕ ਨਿਵੇਸ਼ ਦੀ ਰਣਨੀਤੀ ਉੱਤੇ ਚੱਲਣ ਦੇ ਯੋਗ ਹੁੰਦਾ|</p><p>ਇਸ ਲਈ, ਬੰਦ ਹੋ ਚੁੱਕੇ ਫੰਡਾਂ ਦੀ ਮਿਆਦ ਦੇ ਨਾਲ ਵੱਧ ਰਿਟਰਨ ਪੈਦਾ ਕਰਨ ਦੀ ਸੰਭਾਵਨਾ ਹੋਵੇਗੀ.</p><p>ਲਾਕ-ਇਨ ਪੀਰੀਅਡ ਯੋਜਨਾਵਾਂ ਵਿੱਚ ਵੱਖਰਾ ਹੁੰਦਾ ਹੈ. ਇਹ ਆਮ ਤੌਰ 'ਤੇ 3-7 ਸਾਲਾਂ ਦੀ ਰੇਂਜ ਵਿੱਚ ਹੁੰਦਾ ਹੈ.</p><h2>ਖੁੱਲੇ-ਸਮਾਪਤ ਮਿਚੁਅਲ ਫੰਡ</h2><h2>ਇਕਵਿਟੀ ਫੰਡ</h2><p>ਇਕੁਇਟੀ ਮਿਚੁਅਲ ਫੰਡ ਉਹ ਮਿਉਚੁਅਲ ਫੰਡ ਯੋਜਨਾਵਾਂ ਹਨ ਜੋ ਕੰਪਨੀਆਂ ਦੇ ਇਕੁਇਟੀ ਅਤੇ ਇਕੁਇਟੀ ਨਾਲ ਸਬੰਧਤ ਸਿਕਓਰਟੀਜ ਵਿੱਚ ਆਪਣੇ ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਰਿਟਰਨ ਪੈਦਾ ਕਰਨ ਲਈ ਨਿਵੇਸ਼ ਕਰਦੀਆਂ ਹਨ. ਸੇਬੀ ਦੇ ਸ਼੍ਰੇਣੀਕਰਨ ਅਨੁਸਾਰ ਇਕੁਇਟੀ ਮਿਚੁਅਲ ਫੰਡਾਂ ਦੀਆਂ 10 ਵੱਖ-ਵੱਖ ਉਪ-ਸ਼੍ਰੇਣੀਆਂ ਹਨ. ਅਤੇ ਸਿਰਫ ਈਐਲਐਸਐਸ (ਇਕੁਇਟੀ ਲਿੰਕਡ ਸੇਵਿੰਗਜ਼ ਸਕੀਮ) ਜਾਂ ਟੈਕਸ-ਬਚਤ ਫੰਡਾਂ ਦੀ ਸ਼੍ਰੇਣੀ ਹੈ ਜੋ 3 ਸਾਲਾਂ ਦੀ ਇਕ ਲਾਕ-ਇਨ ਅਵਧੀ ਰੱਖਦੀ ਹੈ|</p><h2>ਡੈਬਟ ਫੰਡ</h2><p>ਡੈਬਟ ਮਿਚੁਅਲ ਫੰਡ ਉਹ ਮਿਚੁਅਲ ਫੰਡ ਹੁੰਦੇ ਹਨ ਜੋ ਰਿਣ ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਰਿਟਰਨ ਪੈਦਾ ਕਰਨ ਲਈ ਰਿਣ ਦੀਆਂ ਪ੍ਰਤੀਭੂਤੀਆਂ ਜਿਵੇਂ ਬਾਂਡਾਂ, ਕਾਗਜ਼ਾਂ ਅਤੇ ਹੋਰ ਪੈਸਾ ਮਾਰਕੀਟ ਉਪਕਰਣਾਂ ਵਿੱਚ ਲਗਾਉਂਦੇ ਹਨ. ਉਹ ਇਕੁਇਟੀ ਫੰਡਾਂ ਨਾਲੋਂ ਤੁਲਨਾਤਮਕ ਤੌਰ ਤੇ ਸਥਿਰ ਹਨ|</p><p>ਇਨ੍ਹਾਂ ਫੰਡਾਂ ਵਿੱਚ ਨਿਵੇਸ਼ਾਂ ਲਈ ਕੋਈ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ ਨਹੀਂ ਹੁੰਦਾ|</p><h2>ਹਾਈਬ੍ਰਿਡ ਫੰਡ</h2><p>ਹਾਈਬ੍ਰਿਡ ਫੰਡ ਉਹ ਮਿਚੁਅਲ ਫੰਡ ਹੁੰਦੇ ਹਨ ਜੋ ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਰਿਟਰਨ ਪੈਦਾ ਕਰਨ ਲਈ ਇਕੁਇਟੀ ਦੇ ਨਾਲ ਨਾਲ ਰਿਣ ਦੀਆਂ ਪ੍ਰਤੀਭੂਤੀਆਂ ਵਿੱਚ ਨਿਵੇਸ਼ ਕਰਦੇ ਹਨ. ਉਹ ਸ਼ੁੱਧ ਇਕੁਇਟੀ ਫੰਡਾਂ ਨਾਲੋਂ ਤੁਲਨਾਤਮਕ ਤੌਰ ਤੇ ਸਥਿਰ ਹਨ ਪਰ ਡੈਬਟ ਮਿਚੁਅਲ ਫੰਡਾਂ ਨਾਲੋਂ ਅਸਥਿਰ ਹਨ.</p><p>ਇਹਨਾਂ ਫੰਡਾਂ ਵਿੱਚ ਵੀ ਨਿਵੇਸ਼ਾਂ ਲਈ ਕੋਈ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ ਨਹੀਂ ਹੁੰਦਾ.</p><h2>2. ਹੇਜ ਫੰਡਾਂ ਵਿੱਚ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ</h2><p>ਹੇਜ ਫੰਡ ਉਹ ਵਿਕਲਪਕ ਨਿਵੇਸ਼ ਵਾਹਨ ਹੁੰਦੇ ਹਨ ਜੋ ਗੁੰਝਲਦਾਰ ਨਿਵੇਸ਼ ਦੀਆਂ ਰਣਨੀਤੀਆਂ ਦੀ ਵਰਤੋਂ ਕਰਦਿਆਂ ਮਾਰਕੀਟ ਪ੍ਰਤੀਭੂਤੀਆਂ ਵਿੱਚ ਨਿਵੇਸ਼ ਕਰਨ ਲਈ ਐਚ.ਐਨ.ਆਈ., ਯੂ.ਐੱਨ.ਆਈ.ਆਈ., ਪੈਨਸ਼ਨ ਫੰਡਾਂ, ਸੰਸਥਾਗਤ ਨਿਵੇਸ਼ਕਾਂ ਅਤੇ ਹੋਰ ਨਿਵੇਸ਼ਕਾਂ ਤੋਂ ਪੈਸਾ ਜੋੜਦੇ ਹਨ. ਇਨ੍ਹਾਂ ਫੰਡਾਂ ਦਾ ਉਦੇਸ਼ ਹੋਰ ਸਬੰਧਤ ਸਿਕਓਰਟੀਜ ਵਿੱਚ ਅਹੁਦੇ ਲੈ ਕੇ ਨਨੁਕਸਾਨ ਦੇ ਜੋਖਮਾਂ ਨੂੰ ਘਟਾਉਣਾ ਹੈ.</p><p>ਉਨ੍ਹਾਂ ਕੋਲ ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਮੁਆਵਜ਼ਾ ਦੇਣ ਤੋਂ ਰੋਕਣ ਲਈ ਆਮ ਤੌਰ ਤੇ ਇਕ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ ਹੁੰਦਾ ਹੈ| ਲਾੱਕ-ਇਨ ਪੀਰੀਅਡ ਲੋੜੀਦੀਆਂ ਜ਼ਰੂਰਤਾਂ ਦੇ ਅਨੁਸਾਰ ਫੰਡਾਂ ਵਿੱਚ ਵੱਖਰਾ ਹੁੰਦਾ ਹੈ|</p><h2>3. ਲਾੱਕ-ਇਨ ਪੀਰੀਅਡ ਟੈਕਸ ਬਚਾਉਣ ਵਾਲੀ ਐਫਡੀ</h2><p>ਫਿਕਸਡ ਡਿਪਾਜ਼ਿਟ ਇਸ ਦੀ ਸੁਰੱਖਿਆ ਅਤੇ ਸਰਲਤਾ ਲਈ ਭਾਰਤੀ ਨਾਗਰਿਕਾਂ ਵਿਚ ਇਕ ਪ੍ਰਸਿੱਧ ਨਿਵੇਸ਼ ਹੈ. ਉਹ ਨਿਵੇਸ਼ ਦੇ ਕਾਰਜਕਾਲ ਦੇ ਅਨੁਸਾਰ ਜਮ੍ਹਾਂਕਰਤਾਵਾਂ ਦੁਆਰਾ ਜਮ੍ਹਾਂ ਜਮ੍ਹਾਂ ਜਮ੍ਹਾਂ ਰਕਮਾਂ 'ਤੇ ਵਿਆਜ ਦੀ ਇੱਕ ਨਿਸ਼ਚਤ ਦਰ ਦੀ ਪੇਸ਼ਕਸ਼ ਕਰਦੇ ਹਨ.</p><p>ਟੈਕਸ ਬਚਾਉਣ ਵਾਲੀਆਂ ਐਫਡੀ ਉਹੋ ਫਿਕਸਡ ਡਿਪਾਜ਼ਿਟ ਹਨ ਜੋ ਇਨਕਮ ਟੈਕਸ ਐਕਟ, 1961 ਦੀ ਧਾਰਾ 80 ਸੀ ਦੇ ਅਧੀਨ ਟੈਕਸ ਕਟੌਤੀ ਦਾ ਦਾਅਵਾ ਕਰਨ ਦੇ ਯੋਗ ਹਨ. ਇਹ ਐੱਫ ਡੀ ਲੰਮੇ ਸਮੇਂ ਦੇ ਨਿਵੇਸ਼ ਅਤੇ ਟੈਕਸ ਲਾਭਾਂ ਦੇ ਦੋਹਰੇ ਲਾਭ ਦੀ ਪੇਸ਼ਕਸ਼ ਕਰਦੇ ਹਨ.</p><p>ਇਨ੍ਹਾਂ ਐਫਡੀਜ਼ ਦੀ 5 ਸਾਲਾਂ ਦੀ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ ਹੁੰਦੀ ਹੈ.</p><h2>4. ਪ੍ਰੋਵਿਡੈਂਟ ਪਬਲਿਕ ਫੰਡ (ਪੀਪੀਐਫ) ਵਿਚ ਲਾਕ-ਇਨ ਪੀਰੀਅਡ</h2><p>ਪਬਲਿਕ ਪ੍ਰੋਵੀਡੈਂਟ ਫੰਡ ਇੱਕ ਲੰਬੀ ਮਿਆਦ ਦੀ ਬਚਤ ਸਕੀਮ ਹੈ ਜੋ ਇੰਡੀਆ ਪੋਸਟ ਦੁਆਰਾ ਪ੍ਰਦਾਨ ਕੀਤੀ ਜਾਂਦੀ ਹੈ- ਇੱਕ ਸਰਕਾਰ ਦੁਆਰਾ ਸਹਾਇਤਾ ਪ੍ਰਾਪਤ ਡਾਕ ਸੇਵਾਵਾਂ ਸੰਸਥਾ. ਇਸ ਯੋਜਨਾ ਦਾ 15 ਸਾਲਾਂ ਦਾ ਲੰਮਾ ਕਾਰਜਕਾਲ ਨਿਵੇਸ਼ਕਾਂ ਨੂੰ ਹਰ ਸਾਲ ਨਿਯਮਤ ਨਿਵੇਸ਼ਾਂ ਦੁਆਰਾ ਲੰਬੇ ਸਮੇਂ ਲਈ ਇਕ ਵੱਡਾ ਸੰਗ੍ਰਹਿ ਬਣਾਉਣ ਦੀ ਆਗਿਆ ਦਿੰਦਾ ਹੈ. ਇਸ ਤੋਂ ਇਲਾਵਾ, ਪੀਪੀਐਫ ਸਕੀਮ ਵਿਚ ਨਿਵੇਸ਼ ਆਮਦਨੀ ਟੈਕਸ ਐਕਟ, 1961 ਦੀ ਧਾਰਾ 80 ਸੀ ਦੇ ਤਹਿਤ 1.5 ਲੱਖ ਰੁਪਏ ਤਕ ਦੇ ਟੈਕਸ ਕਟੌਤੀ ਦਾ ਦਾਅਵਾ ਕਰਨ ਦੇ ਯੋਗ ਹਨ| ਇਸ ਦੇ ਨਾਲ, ਇਹ ਟੈਕਸ ਦੇ ਮਾਮਲੇ ਵਿਚ EEE- ਛੋਟ ਸ਼੍ਰੇਣੀ ਦੇ ਅਧੀਨ ਆਉਂਦਾ ਹੈ ਜਿਸਦਾ ਅਰਥ ਹੈ ਯੋਗਦਾਨ, ਕਢੱਵਾਉਣ ਅਤੇ ਮਿਆਦ ਪੂਰੀ ਹੋਣ ਵਾਲੀ ਆਮਦਨੀ ਨੂੰ ਟੈਕਸ ਤੋਂ ਛੋਟ ਹੈ|</p><p>ਪੀਪੀਐਫ ਸਕੀਮ ਵਿੱਚ ਲਾਕ-ਇਨ ਮਿਆਦ 15 ਸਾਲ ਹੈ|</p><h2>5. ਰਾਸ਼ਟਰੀ ਪੈਨਸ਼ਨ ਸਕੀਮ (ਐਨਪੀਐਸ) ਵਿੱਚ ਪੀਰੀਅਡ ਲੌਕ</h2><p>ਨੈਸ਼ਨਲ ਪੈਨਸ਼ਨ ਸਕੀਮ ਇੱਕ ਰਿਟਾਇਰਮੈਂਟ ਬਚਤ ਸਕੀਮ ਹੈ ਜੋ ਭਾਰਤ ਸਰਕਾਰ ਦੁਆਰਾ ਅਰੰਭ ਕੀਤੀ ਗਈ ਹੈ. ਇਸ ਯੋਜਨਾ ਦਾ ਉਦੇਸ਼ ਨਿਯਮਿਤ ਬਚਤ ਅਤੇ ਨਿਵੇਸ਼ਕਾਂ ਦੁਆਰਾ ਉਨ੍ਹਾਂ ਦੀਆਂ ਲੰਬੇ ਸਮੇਂ ਦੀਆਂ ਜ਼ਰੂਰਤਾਂ ਦੀ ਪੂਰਤੀ ਲਈ ਨਿਵੇਸ਼ਾਂ ਲਈ ਇਕ ਯੋਜਨਾਬੱਧ ਢਾਂਚੇ ਨੂੰ ਯਕੀਨੀ ਬਣਾਉਣਾ ਹੈ. ਗਾਹਕਾਂ ਨੂੰ ਉਨ੍ਹਾਂ ਦੇ ਯੋਗਦਾਨ ਲਈ ਲੋੜੀਂਦੀ ਸੰਪਤੀ ਦੀ ਵੰਡ ਜਾਂ ਇੱਕ ਆਟੋ ਨਿਰਧਾਰਣ ਢੰਗ ਦੀ ਚੋਣ ਕਰਨ ਦੀ ਜ਼ਰੂਰਤ ਹੈ. ਰਿਟਾਇਰਮੈਂਟ ਵੇਲੇ, ਉਹਨਾਂ ਨੂੰ 60% ਕਾਰਪੋਸਸ ਨੂੰ ਇਕਮੁਸ਼ਤ ਰਕਮ ਵਜੋਂ ਵਾਪਸ ਲੈਣ ਦੀ ਆਗਿਆ ਹੁੰਦੀ ਹੈ ਅਤੇ ਬਾਕੀ 40% ਨੂੰ ਸਾਲਨਾ ਖਰੀਦਣ ਲਈ ਇਸਤੇਮਾਲ ਕਰਨ ਦੀ ਜ਼ਰੂਰਤ ਹੁੰਦੀ ਹੈ ਜੋ ਖਾਤਾ ਧਾਰਕਾਂ ਨੂੰ ਨਿਯਮਤ ਪੈਨਸ਼ਨ ਦੀ ਪੇਸ਼ਕਸ਼ ਕਰ ਸਕਦੀ ਹੈ|</p><p>ਇਸ ਯੋਜਨਾ ਦਾ ਇਕ ਵਿਅਕਤੀ ਅਰਥਾਤ 60 ਸਾਲ ਦੀ ਉਮਰ ਦੇ ਸੇਵਾਮੁਕਤ ਹੋਣ ਤਕ ਲਾਕ-ਇਨ ਹੁੰਦਾ ਹੈ|</p><h2>6. ਨੈਸ਼ਨਲ ਸੇਵਿੰਗਜ਼ ਸਰਟੀਫਿਕੇਟ (ਐਨਐਸਸੀ) ਵਿੱਚ ਲੌਕ-ਇਨ ਪੀਰੀਅਡ</h2><p>ਨੈਸ਼ਨਲ ਸੇਵਿੰਗਜ਼ ਸਰਟੀਫਿਕੇਟ (ਐਨਐਸਸੀ) ਇੱਕ ਛੋਟੀ ਬਚਤ ਸਰਟੀਫਿਕੇਟ ਯੋਜਨਾ ਹੈ ਜੋ ਭਾਰਤ ਸਰਕਾਰ ਦੁਆਰਾ ਸਮਰਥਤ ਹੈ| ਇਸ ਯੋਜਨਾ ਦਾ ਉਦੇਸ਼ ਨਾਗਰਿਕਾਂ ਦੇ ਵਿੱਤੀ ਟੀਚਿਆਂ ਅਤੇ ਜ਼ਰੂਰਤਾਂ ਨੂੰ ਪੂਰਾ ਕਰਨ ਲਈ ਥੋੜ੍ਹੀ ਬਚਤ ਅਤੇ ਨਿਵੇਸ਼ਾਂ ਨੂੰ ਉਤਸ਼ਾਹਤ ਕਰਨਾ ਹੈ| ਇਹ ਸਕੀਮ ਇਨਕਮ ਟੈਕਸ ਐਕਟ, 1961 ਦੀ ਧਾਰਾ 80 ਸੀ ਦੇ ਤਹਿਤ 1.5 ਲੱਖ ਰੁਪਏ ਤਕ ਦੇ ਟੈਕਸ ਕਟੌਤੀ ਦੀ ਪੇਸ਼ਕਸ਼ ਕਰਦੀ ਹੈ|</p><p>ਸਕੀਮ ਦਾ ਲਾਜ਼ਮੀ ਲਾੱਕ-ਇਨ ਪੀਰੀਅਡ 5 ਸਾਲਾਂ ਹੈ ਜਿਸ ਦੌਰਾਨ ਕਢੱਵਾਉਣ ਦੀ ਆਗਿਆ ਨਹੀਂ ਹੈ|</p><p><strong>Also Read:</strong></p><p><a href="https://zfunds.in/m/open-ended-funds">Open Ended Mutual Funds: Meaning, Benefits, Comparison with Close Ended Funds</a><br><a href="https://zfunds.in/m/best-elss-mutual-funds">Best &nbsp;ELSS Tax Saving Mutual Funds in India</a><br><a href="https://zfunds.in/m/elss-vs-ulip">ELSS vs ULIP: Risk, Cost, Returns, Coverage, Tax Benefits, Which is Better</a><br><a href="https://zfunds.in/m/growth-funds">Growth Funds: Meaning, Risk, Returns, Benefits, Taxability</a><br><a href="https://zfunds.in/m/index-funds">Index Funds - Meaning, Purpose, How to Work, Risk, Returns</a><br><a href="https://zfunds.in/m/alternative-investment-funds">Alternative Investment Funds: Types, Risk, Investment, Taxation</a></p>

Let's look at the Top-3 foundational financial risks associated with your financial pyramid and how you can prepare for them

Top-3 financial foundation risks every Investor needs to tackle immediately

top-financial-foundation-risks-every-investor-needs-to-tackle

Top3 financial foundation risks every Investor needs to tackle immediately

<h2>Top-3 financial foundation risks every Investor needs to tackle immediately.</h2><p>The black swan event of COVID-19 has taken the world by a complete surprise and exposed you and many people across to assess, manage, and mitigate some of the foundational risks associated with your financial lives. Everyone faces risks of uncertainty and the possibility of financial losses good enough to shake your financial pyramid and even crush your family’s financial security. Therefore having a risk management plan to fix some of the important foundational financial risks will enable you to have more comprehensive control over uncertainty and financial wounds.&nbsp;</p><p>Let's look at the Top-3 foundational financial risks associated with your financial pyramid and how you can prepare for them:-</p><figure class="image"><img src="https://lh6.googleusercontent.com/fpfMNmR1NBR1NMXKp4CTzeE6y6KbbqZXLREu_uhV_J21VGVzo06mXAGy7iLNsvgz37SEzoCSOGBFJ0iU8HFwxAjaCkRPAMvgvG0Fh98rNcXTWqJLNCAiU4kt7jc-RU3VeTW7FWla"></figure><h2>1. Risk of High Uncertain Medical Expenses:&nbsp;</h2><p>If you were to be told that you need to undergo an urgent surgery which is a literal matter of life and death for you or your any family member and the cost of the procedure is Rs.12 lakhs and to make things worse, you don’t even have medical insurance! Now what?</p><p>That is how you can have a substantial amount saved for your short or long term goals but a simple miss on saving for this health uncertainty can easily leave a battering dent in your finances. But before rushing to buy any health cover for you and your family it’s important to check some basic parameters like knowing your needed risk cover sum, claim-settlement ratio, network hospitals, pre and post hospitalization, and other essentials.&nbsp;</p><h2>2. Risk of Premature Death and Disability:</h2><p>Given the gravity of the situation, COVID 19 has put people under into people more than ever before are aware and concerned about their and their families' financial survival in unpredictable times. If you are the primary income earner of your household and you not being able to earn anymore due to an accident or any specific disability brings in financial hardships to your family and if others depend on you financially or you have debt then it's crucial for you to have a life as well as disability insurance. Having disability insurance is not always prioritized but if you are an earning member of the family then it surely calls for profound understanding. Having Insurance is about transferring your life risks which you can’t afford it to a company that can afford it. There are various permutation and combination of life insurance products available and you need to be precise with your requirements before taking it. It is ideal to keep your investment and insurance separate but again it also matters what is it that you are looking for.</p><h2>3. Risk of inadequate cash flow:</h2><p>At a time where there are layoffs, pay cuts, job cuts, fall in profits for business owners, lower interest rates on deposits and other issues the need of liquidity is looking all-time higher and it has also highlighted the mistake done by the majority of the people who ignored or didn’t keep sufficient liquid assets to maintain adequate cash flows.</p><p>Budgeting is nothing but balancing your expenses with your income and it can help you fix this issue. Before it was believed that three months of salary worth in your bank account or in liquid assets is sufficient but now it’s time to re-evaluate and discuss your budgeting elements with your family as each individual's financial story is unique.</p><p>Although it may seem challenging or perhaps even pointless to live below your means though it’s important to acknowledge some prominent financial risks life pose and plan your financial roadmap accordingly with the help of a financial advisor who can help you understand your money habits as they come with an expertise in money sphere and can help you draw out your financial roadmap to thrive in chaos.</p><p>&nbsp;</p><p>&nbsp;</p>

Asset allocation is one of the most significant decisions that an investor will make for their future. Know types of Asset Class, factors affecting Asset Allocation and importance of Asset Allocation

Asset Allocation and Its Importance – Types of Asset Class and Factors Affecting Asset Allocation

asset-allocation-and-its-importance

<h2>ASSET ALLOCATION AND ITS IMPORTANCE</h2><p>Asset allocation has become a prime and gold standard in investing nationally and even internationally. Investors starting from office workers, students, professionals to HNIs in markets have adopted asset allocation as one of their primary investment strategies. In this article, we will discuss and gain a deeper understanding of asset allocation and discuss why it is so important in the modern investing age.&nbsp;</p><h2>WHAT IS ASSET ALLOCATION?</h2><p>Asset Allocation can be termed as an investment strategy that aims to balance the ratio of risk-reward by dividing an investment portfolio among different types of asset classes such as fixed income, real estate, equities among others. The rationale is that asset allocation assists the investor to lessen the impact of risk their portfolio carries as every class has a different correlation to others.&nbsp;</p><h2>TYPES OF ASSET CLASS</h2><p><strong>1. Cash and Cash Equivalents:</strong></p><p>This includes the cash you keep in your savings account and current accounts. These are said to be low-risk low return investments. Their main feature is their liquidity. However, this comes at a cost of lower interest rates.</p><p><strong>2. Fixed Income and Bond Investments:</strong></p><p>These include bonds, fixed deposits, money market instruments, and certificates of deposit. They are highly popular in India as they give a guaranteed payment at maturity along with the invested amount. These instruments earn through fixed or floating interest rates, thus making them more stable than equity and hence said to be of low to moderate risk. They come clubbed with moderate expected returns.</p><p><strong>3. Real Estate or Tangible Assets:</strong></p><p>Tangible/Physical assets are the assets owned in the form of commercial space, land, industrial space, or real estate. They can offer good returns in the long run and are a hedge against inflation. However, they are the most illiquid of assets. This asset class should only be considered for investments once a liquid portfolio is available to meet exigencies. In case of a distress sale, transaction costs can be very high.</p><p><strong>4. Equities or Stocks:</strong></p><p>Shares or stocks represent ownership of an entity. If you are holding stocks of a company, you are considered a part-owner of it to the extent of your holdings. Even though this is a highly volatile asset class in the short term, they have proven to be amongst the best investment options for the long term. Equities are generally considered high-risk - high-return investments.</p><p><strong>5. Others:</strong></p><p>The asset classes mentioned above are the more traditional investment options. Apart from these, there are a number of other asset classes that can be used for investment purposes. Some of the other popular ones are:</p><ul><li>Currencies</li><li>Commodities - Such as gold, silver and many others</li><li>Venture Capital</li><li>Hedge Funds</li><li>Financial Derivatives - futures/options/swaps</li><li>Cryptocurrencies</li></ul><h2>FACTORS AFFECTING ASSET ALLOCATION</h2><p><strong>1. Risk vs Returns:</strong></p><p>Risk and returns go hand in hand when it comes to investing. All classes of assets have some risks associated with them. The reward for undertaking risk results in the potential of gaining high returns. So the allocation will be affected if investors want to generate high returns or want to invest safely.</p><p><strong>2. Tenure:</strong></p><p>Tenure is the number of years or months an investor is looking forward to investing to accomplish a specific goal. Different investment tenures inculcate different risk tolerance. For example, a long-term investment tenure might prompt an investor to invest in a higher-risk portfolio as the high volatilities and slow economic cycles in the market tend to go away with time.&nbsp;</p><p><strong>3. Risk Appetite:</strong></p><p>Risk appetite refers to an investor's ability and willingness to lose some or all of their principal amount in anticipation of high potential returns. Aggressive investors are likely to risk most of their investments to get better returns. On the other side, conservative investors are likely to invest in securities that preserve their principal.</p><h2>IMPORTANCE OF ASSET ALLOCATION</h2><p>Asset allocation assists investors in various aspects which makes it very important especially in the modern age as more and more investors are becoming aware of the technicalities and rationale behind investing.&nbsp;</p><p>Some of the highlights are:</p><p><strong>1. Lower portfolio volatility:</strong></p><p>While every asset class possesses its risks and rewards, diversifying the investments also dilutes the volatility. For instance, investing in equity and debt will protect the portfolio from experiencing the impact of a dip in any unique asset class. Both markets will deliver different results. Since each is prone to a distinct set of market trends and challenges, their performance differs.&nbsp;</p><p><strong>2. Risk Diversification:</strong></p><p>Asset allocation diversifies the risk exposure significantly. A diverse portfolio is a mix of different market reactions at the time of an event.&nbsp;</p><p>For instance, in the 2008 and 2020 market crashes, the equity sectors were drastically affected. On the other side, gold, a very popular asset performed fiscally better, delivering profits to the commodity holders. Being spread across these assets would have reduced the portfolio volatility considerably.&nbsp;</p><p><strong>3. Discipline:</strong></p><p>When investors diversify their investments across assets, as a rule, they are teaching strong discipline and avoiding random and instant gratification. Asset allocation ensures the investor is not under-invested or over-invested in one particular area.&nbsp;</p><p><strong>4. Stable returns:</strong></p><p>It ensures that investors get stable returns over time. For instance, say Madhu wants to invest his savings of Rs. 5 lacs for a tenure of 5 years. Based on his ZFunds financial expert’s advice, he can divide and have a mix of 25% each for equity, gild, debt, and liquid fund which he rebalances each year.&nbsp;</p><p>This ensures that the exposure to risk is proportionally diversified, and over 5 years, Madhu gets stable returns on the invested funds.&nbsp;</p><h2>THE CRUX</h2><p>Asset allocation is one of the most significant decisions that an investor will make for their future. By choosing the right blend of bonds, stocks, cash and equivalents among other asset classes can ensure that investors are set up to accomplish their financial goals. For more information and expert financial advice, you can get in touch with ZFunds and plan to achieve your financial goals.&nbsp;</p><p>&nbsp;</p>

The Multicap funds are those which have to invest ​25% of their portfolio in each capitalization category, Invest in Top Performing Multicap Equity Mutual Funds for 2023.


Best Multicap Mutual Funds in 2023  | Invest in Top Multi Cap Funds

best-multi-cap-mutual-funds

Best Multi Cap Mutual Funds Investment in 2024

Best Multi Cap Mutual Funds for 10 Years

High Performing Multi Cap Mutual Funds

<h2>Understanding Multi Cap Mutual Funds:</h2><p>Multi Cap Mutual Funds fall within the category of equity mutual funds and are characterized by their diversified portfolio across companies of varying market capitalizations. Unlike specific-cap funds such as large-cap, mid-cap, or small-cap funds, Multi Cap funds do not have a rigid mandate to invest in a specific capitalization segment. Instead, they have the flexibility to allocate funds across companies of different sizes.</p><h2>Top Performing Multi Cap Mutual Funds to Invest in 2024</h2><p><strong>Multi Cap Funds</strong> are those <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds"><strong>mutual funds</strong></a> that invest across different market capitalization categories. They are not obligated to invest a certain proportion of their assets in any particular category.</p><p>Market Capitalization is defined as the market value of all outstanding shares and is achieved by multiplying the total number of shares outstanding by the market price per share.</p><p>Some of the characteristics of a multi-cap fund are as follows:</p><ul><li>They provide diversification since they invest across large caps, mid-caps, and small caps</li><li>Lower expected volatility</li><li>Suitable for investors with a medium investment horizon</li><li>Suitable for investors with medium risk appetite</li><li>The fund manager has the leeway to increase allocation to a particular category based on market view</li></ul><h3>Top 8 Multi-Cap Mutual Funds in 2024</h3><p>The following are the top-rated <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-multi-cap-mutual-funds">multi cap funds</a> as per Zfunds scoring for the quarter ended 30th June 2020. The funds with the highest ZF Score (refer to methodology here) are ranked at the top. A complete list of funds can be seen in the Annexure at the end of this article.</p><figure class="table"><table><thead><tr><th>Fund Name</th><th>3-Year Return (%)</th><th>5-Year Return (%)</th></tr></thead><tbody><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/nippon-india-multi-cap-fund-growth-plan-growth-option"><strong>Nippon India Multi Cap Fund</strong></a></td><td>38.8</td><td>17.4</td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/quant-active-fund-growth-option-regular-plan"><strong>Quant Active Fund</strong></a></td><td>34.5</td><td>23.2</td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/kotak-standard-multicap-fund-growth"><strong>Kotak India Growth Fund</strong></a></td><td>32.3</td><td>20.3</td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/mahindra-manulife-multi-cap-fund-regular-plan-growth"><strong>Mahindra Manulife Multi Cap Fund</strong></a></td><td>31.4</td><td>19.0</td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-multicap-fund-growth"><strong>ICICI Pru Multicap Fund&nbsp;</strong></a></td><td>29.0</td><td>14.2</td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/bnp-paribas-multi-cap-fund-growth-option"><strong>Baroda BNP Paribas Multi Cap Fund</strong></a></td><td>28.3</td><td>15.3</td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/invesco-india-multicap-fund-growth-option"><strong>Invesco India Multicap Fund</strong></a></td><td>27.4</td><td>13.7</td></tr><tr><td>Sundaram Multi Cap Fund</td><td>23.8</td><td>13.2</td></tr></tbody></table></figure><p>📊 <strong>Understanding the Data:</strong></p><ul><li><strong>Top Performers:</strong> Nippon India Multi Cap Fund and Quant Active Fund stand out with impressive returns over both 3 and 5 years.</li><li><strong>Consistent Growth:</strong> Kotak India Growth Fund showcases steady performance over the years.</li><li><strong>Stability in Returns:</strong> Mahindra Manulife Multi Cap Fund maintains a balanced approach with notable returns.</li><li><strong>Long-Term Potential:</strong> ICICI Pru Multicap Fund and Baroda BNP Paribas Multi Cap Fund exhibit potential for long-term growth.</li><li><strong>Strategic Choices:</strong> Invesco India Multicap Fund and Sundaram Multi Cap Fund offer strategic investment opportunities.</li></ul><h2>Let's have a closer look</h2><h3>👉1.) Nippon India Multi Cap Fund</h3><p>The Nippon India Multi Cap Fund is a popular mutual fund option in India, offering the potential for capital appreciation and long-term growth through diverse equity investments. Here's some key information about the fund:</p><p><strong>Other key information:</strong></p><ul><li>Asset Under Management (AUM): ₹22,695 Cr.</li><li>Expense Ratio: 1.67%</li><li>Risk Grade: Very High</li><li>Minimum Investment: ₹100 (SIP) or ₹100 (Lumpsum)</li><li>Exit Load: 1% if redeemed within 12 months (for investments &gt; 10%)</li></ul><figure class="table"><table><tbody><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/nippon-india-large-cap-fund-growth-plan--growth-option">Nippon India Large Cap Fund</a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/nippon-india-flexi-cap-fund-regular-plan-growth-plan-growth-option">Nippon India Flexi Cap Fund</a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/nippon-india-small-cap-fund-growth-plan-growth-option">Nippon India Small cap fund</a></td></tr></tbody></table></figure><h3>👉2.) Quant Active Fund</h3><p>The Quant Active Fund is another multi-cap mutual fund option in India, also aiming for long-term capital appreciation and growth through equity investments. Here's some key information about it:</p><p><strong>Other key information:</strong></p><ul><li>Asset Under Management (AUM): ₹6,681 Cr. (smaller than Nippon India)</li><li>Expense Ratio: 1.81% (slightly higher than Nippon India)</li><li>Risk Grade: Very High</li><li>Minimum Investment: ₹1000 (SIP) or ₹5000 (Lumpsum)</li><li>Exit Load: 1% if redeemed within 15 days (slightly stricter than Nippon India)</li></ul><figure class="table"><table><tbody><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/quant-large-cap-fund-growth-option-regular-plan">Quant Large Cap Fund</a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/quant-flexi-cap-fund-growth-option-regular-plan">Quant Flexi Cap Fund</a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/quant-small-cap-fund-growth-regular-plan">Quant Small cap fund</a></td></tr></tbody></table></figure><h3>👉3.) Kotak India Growth Fund</h3><p>There are several different Kotak India Growth Funds, with different series and launch dates. To provide you with the most accurate information, it would be helpful to know which specific series you're interested in. Some of the options include:</p><ul><li><strong>Minimum Investment:</strong> Varies depending on the series, typically ranging from ₹500 to ₹5000.</li><li><strong>Exit Load:</strong> Applicable only for closed-ended series, typically 1% within 1 year of investment.</li><li><strong>Awards and Recognition:</strong> KIGF has received various awards and accolades for its performance over the years.</li></ul><figure class="table"><table><tbody><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/kotak-bluechip-fund-growth">Kotak India Large Cap Fund</a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/kotak-flexicap-fund-growth">Kotak India Flexi Cap Fund</a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/kotak-small-cap-fund-growth">Kotak India Small cap fund</a></td></tr></tbody></table></figure><h3>👉4.) Mahindra Manulife Multi Cap Fund</h3><p>The Mahindra Manulife Multi Cap Fund is another interesting option in the multi-cap category.Invests in a mix of large, mid, and small-cap stocks with a current allocation of around 27% large-cap, 21% mid-cap, and 34% small-cap.</p><p><strong>Other key information:</strong></p><ul><li>Asset Under Management (AUM): ₹6,998 Cr.</li><li>Expense Ratio: 1.55% (Regular Plan) and 1.27% (Direct Plan)</li><li>Risk Grade: Moderate to High</li><li>Minimum Investment: ₹500 (SIP) or ₹1000 (Lumpsum)</li><li>Exit Load: 1% if redeemed within 1 year (for investments &gt; 10%)</li></ul><h3>👉5.) ICICI Pru Multicap Fund</h3><p>The ICICI Pru Multicap Fund has been a popular choice for long-term capital appreciation through equity investments across market capitalizations.Mandated to invest at least 25% of its assets in each of large, mid, and small-cap stocks, providing diversification across market segments.</p><p><strong>Other key information:</strong></p><ul><li>Asset Under Management (AUM): ₹9,515 Cr.</li><li>Expense Ratio: 1.82% (Regular Plan) and 1.22% (Direct Plan)</li><li>Risk Grade: Moderate to High</li><li>Minimum Investment: ₹500 (SIP) or ₹1000 (Lumpsum)</li><li>Exit Load: 1% if redeemed within 1 year (for investments &gt; 10%)</li></ul><h3>👉6.) Baroda BNP Paribas Multi Cap Fund</h3><p>&nbsp;Baroda BNP Paribas Multi Cap Fund is to generate capital appreciation and provide long-term growth opportunities by investing in a diversified portfolio of equity and equity-related securities across large, mid, and small-cap companies.</p><p><strong>Other key information:</strong></p><ul><li>Asset Under Management (AUM): ₹2,022.13 Cr.</li><li>Expense Ratio: 2.09% (Regular Plan) and 1.69% (Direct Plan)</li><li>Risk Grade: Very High</li><li>Minimum Investment: ₹500 (SIP) or ₹1000 (Lumpsum)</li><li>Exit Load: 1% if redeemed within 1 year (for investments &gt; 10%)</li></ul><h3>👉7.) &nbsp;Invesco India Multicap Fund</h3><p>Looking for a diversified, actively managed mutual fund to unleash long-term capital appreciation in the Indian market? Look no further than the Invesco India Multicap Fund. This powerhouse fund navigates across large, mid, and small caps, seeking hidden gems with high growth potential.</p><p><strong>Other Key Information:</strong></p><ul><li><strong>Asset Under Management (AUM):</strong> ₹2,894.53 Cr. (as of December 25, 2023)</li><li><strong>Expense Ratio:</strong> 1.94% (Direct Plan)</li><li><strong>Risk Grade:</strong> Very High</li><li><strong>Minimum Investment:</strong> ₹500 (SIP) or ₹1000 (Lumpsum)</li><li><strong>Exit Load:</strong> 1% if redeemed within 1 year (for investments &gt; 10%)</li></ul><h4>Watch Multi Cap Mutual Fund Video Here :&nbsp;</h4>

<h2>Why Choose Multicap Mutual Funds?</h2><p><strong>Multicap mutual funds</strong> are an excellent choice for investors looking for a diversified investment portfolio. With their ability to invest in stocks across different market capitalizations, these funds provide investors with flexibility and the potential for high returns. Here are some reasons why <strong>multi-cap mutual funds </strong>are a great investment option:</p><p><strong>⇛ ⇛ Diversification:</strong> One of the primary benefits of multi-cap mutual funds, such as <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/nippon-india-multi-cap-fund-direct-plan-growth-plan-growth-option">Nippon India Multi Cap Fund</a>, &nbsp;is that they offer diversification across market capitalizations. This means that these funds invest in stocks of companies across different sizes, from small cap to large cap. By investing in a mix of companies, multicap funds reduce the risk of concentration in any particular sector or size of companies, thus lowering overall portfolio risk.</p><p><strong>⇛ ⇛ Potential for High Returns: </strong>Multicap mutual funds have the potential to generate high returns since they invest in companies across different market capitalizations. Small-cap companies, for instance, have the potential to grow at a much faster pace than larger, more established companies. Therefore, by investing in small-cap companies, multicap funds can potentially generate higher returns.</p><p><strong>⇛ ⇛ Flexibility: </strong>Unlike other mutual funds that are restricted to investing in a specific category of companies, multicap mutual funds like <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/invesco-india-multicap-fund-growth-option">Invesco India Multicap Fund</a> have the flexibility to invest in companies across different market capitalizations. This flexibility allows fund managers to adjust the portfolio to take advantage of market conditions, which can result in better returns.</p><p><strong>⇛ ⇛ Dynamic Portfolio Management: </strong>Multicap mutual funds offer dynamic portfolio management, as fund managers can adjust the portfolio to take advantage of market trends. This means that fund managers can increase exposure to companies that are expected to perform well and reduce exposure to companies that are expected to underperform.</p><p><strong>⇛ ⇛ Low Expense Ratios: </strong>Multicap mutual funds, such as <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-multicap-fund-growth">ICICI Prudential Multicap Fund</a> and others, often have lower expense ratios than actively managed funds that invest in a single market capitalization. This is because multicap funds can invest in a range of stocks and do not need to pay for multiple funds to cover different market caps.</p><p>Start investing in multicap mutual fund schemes on ZFunds today. Our experts can help you pick the right MFs as per your risk appetite and financial goals.</p><h2>Multi-Cap Vs Small Cap Vs Large Cap Mutual Fund</h2><figure class="table"><table><thead><tr><th><strong>Aspect</strong></th><th><strong>Multi Cap Funds</strong></th><th><strong>Small Cap Funds</strong></th><th><strong>Large Cap Funds</strong></th></tr></thead><tbody><tr><td><strong>Investment Focus</strong></td><td>Diversified portfolio across various market segments</td><td>Primarily invests in small-cap companies</td><td>Focuses on investing in large-cap companies</td></tr><tr><td><strong>Diversification</strong></td><td>Offers moderate diversification</td><td>May have limited diversification</td><td>Potential for less diversification compared to multi cap</td></tr><tr><td><strong>Risk and Returns</strong></td><td>Balanced risk and potential returns</td><td>Higher risk, potential for greater returns</td><td>Lower risk, potential for moderate returns</td></tr><tr><td><strong>Growth Potential</strong></td><td>Aims to capture growth across market segments</td><td>Seeks higher growth in small-cap companies</td><td>Stable growth potential in established companies</td></tr><tr><td><strong>Market Flexibility</strong></td><td>Flexibility to adapt to changing market conditions</td><td>More susceptible to market volatility</td><td>May be less adaptable to rapidly changing markets</td></tr><tr><td><strong>Investment Horizon</strong></td><td>Suitable for short, medium, and long-term goals</td><td>Better suited for long-term goals</td><td>Suitable for long-term investment goals</td></tr><tr><td><strong>Volatility</strong></td><td>Moderate volatility due to diversified portfolio</td><td>High volatility due to small-cap exposure</td><td>Relatively lower volatility due to large-cap focus</td></tr><tr><td><strong>Risk Management</strong></td><td>Balanced risk due to diversified holdings</td><td>Requires strong risk management strategy</td><td>Risk management typically associated with large caps</td></tr><tr><td><strong>Fund Size and AUM</strong></td><td>May have varying fund sizes and AUM</td><td>Typically smaller fund sizes and AUM</td><td>Often have larger fund sizes and AUM</td></tr><tr><td><strong>Historical Performance</strong></td><td>Performance varies based on market cycles</td><td>Potential for significant outperformance in bull markets</td><td>Generally stable and more consistent performance</td></tr><tr><td><strong>Suitability</strong></td><td>Suitable for investors seeking diversified exposure</td><td>Suited for aggressive investors seeking higher returns</td><td>Ideal for conservative investors seeking stability</td></tr><tr><td><strong>Fund Manager Expertise</strong></td><td>Requires expertise in managing diverse portfolio</td><td>Demands strong understanding of small-cap companies</td><td>Focuses on established large-cap companies</td></tr></tbody></table></figure><h2>How to Invest in Multi Cap Funds: A Step-by-Step Guide</h2><h3>1. Invest through the ZFunds App:&nbsp;</h3><p>The ZFunds app provides a user-friendly platform to<a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-mutual-fund-to-invest"><strong> invest in mutual funds.</strong></a> Download the <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-mutual-fund-app"><strong>best mutual fund app</strong></a>, create an account, complete the KYC process, and explore a wide range of mutual fund options. The app offers convenience, real-time tracking, and easy investment management, making it an excellent choice for modern investors.</p><h3>2. Online Investment Platforms:</h3><p>&nbsp;Apart from the ZFunds app, there are other online investment platforms available, such as investment brokerage websites and financial service apps. These platforms allow you to research, compare, and invest in mutual funds with ease.</p><h3>3. Fund Houses' Websites:&nbsp;</h3><p>Most mutual fund companies have their official websites where you can directly invest in their funds. Visit the website of the fund house you're interested in, create an account, complete the necessary formalities, and start investing.</p><h3>4. Mutual Fund Advisors:&nbsp;</h3><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/become-mutual-fund-advisor"><strong>Consulting a mutual fund advisor</strong></a> is a traditional yet effective way to invest in mutual funds. These professionals possess expertise in financial planning and investment strategies. Mutual fund advisors can provide personalized investment advice tailored to your financial goals, risk tolerance, and investment horizon. They assess your individual needs and recommend suitable mutual fund options that align with your overall financial plan.</p><h3>5. Banks and Distributors:&nbsp;</h3><p>Many banks and financial distributors offer mutual fund investment services. Visit your local bank branch or a distributor's office to learn about the mutual fund options they offer and get assistance in the investment process. <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/mutual-fund-distributor"><strong>Mutual fund distributors </strong></a>are trained professionals who can help you navigate the various mutual fund choices available. They can provide insights into different funds, guide you through the investment process, and offer recommendations based on your investment preferences and objectives.</p><h2>Faqs</h2><h3>Q: How do Multi Cap Funds differ from other equity fund categories?</h3><p>A: Unlike specialized equity funds like small cap and large cap funds, Multi Cap Funds do not have a fixed mandate to invest only in specific market segments. They have the flexibility to allocate funds dynamically based on market conditions, aiming for a balanced risk-return profile.</p><h3>3. Q: Who should consider investing in Multi Cap Funds?</h3><p>A: Multi Cap Funds are suitable for a wide range of investors. They are ideal for those seeking diversified exposure to different market segments and looking for a balanced mix of growth potential and risk mitigation. They can be particularly beneficial for investors with medium to long-term investment horizons.</p><p><strong>More Information:&nbsp;</strong></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/axis-long-term-equity-fund-regular-plan-growth">Axis Long Term Equity Fund</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/axis-small-cap-fund-regular-plan-growth">Axis Small Cap Fund</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-large-cap-mutual-funds">Best Large Cap Mutual Funds to Invest in India</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-small-cap-mutual-funds">Best Small Cap Mutual Funds to Invest in India</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/what-is-expense-ratio-in-mutual-funds">What is Expense Ratio in Mutual Funds</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/what-are-shariah-compliant-mutual-funds">Shariah Compliant Mutual Funds</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/bharat-bond-etf">Bharat Bond ETF</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/become-mutual-fund-advisor">Mutual Fund Advisor Near Me</a></p>

INVESTMENT BANKS

investment-banks

<h2>INVESTMENT BANKS</h2><p>An investment bank is a larger and bigger financial institution that works primarily in high finance. The organisation helps companies access capital markets such as bond and stock markets. This helps raise funds for expansion and other needs. In this article, we are going to talk about what investment banks are, how they work and what is their role in the financial markets.&nbsp;</p><h2>WHAT IS AN INVESTMENT BANK?</h2><p>An investment bank is a special kind of financial institution which aims to help companies access capital markets to raise money and take good care of other business needs. A typical investment bank can raise equity and debt capital, insure launching new products and bonds, engage in proprietary trading, also the inhouse money managers team can trade or invest the companies own money for its private account.&nbsp;</p><p>For example, Lets say ABC company wants to sell Rs 100 Crore worth of bonds to build infra in Asia. An investment bank will help it to find buyers and handle the paperwork leg with a team of accountants and lawyers. Investment banks can also be actively involved in IPOs. This is when a private market goes public and lists into one of the stock exchanges.&nbsp;</p><h2>WORKING OF INVESTMENT BANKS&nbsp;</h2><p>Investment banks are often divided into 2 camps, the buy and sell sides. But many offer both types of services. The sell side often signifies to selling shares of fresh issue IPOs placing new bond issues, engaging in market making or helping in facilitating transactions.&nbsp;</p><p>But in contrast, the buy side works with mutual funds, pension funds, hedge funds and the investing public. The vision is to help them maximize their returns when investing or trading in securities such as bonds and stocks.</p><p>Many banks are divided into three categories or divisions as they are based on the services provided and the employees’ responsibilities i.e., Front office, Middle office and Back office.</p><p>The Front office services comprises of:</p><ul><li>Corporate financing (such as issuing crores of rupees in Commercial Paper to help fund day to day operations)</li><li>Strategy formulation</li><li>Merchant banking&nbsp;</li><li>Capital market and investment research reports prepared by professional experts and analysts.&nbsp;</li><li>Helping organisations and entities in mergers and acquisitions.&nbsp;</li><li>Professional investment management for HNIs or institutions.&nbsp;</li></ul><p>The Middle office services comprises of:</p><ul><li>Compliance with government restriction and regulations for professional clients such as insurance companies, banks and finance divisions as well as capital flows.&nbsp;</li><li>These are people who witness the funds coming in and out of the firm and this helps to determine the liquid amount the company needs to keep in hand so that it does not get into financial trouble.&nbsp;</li><li>The team of capital flows can use this information to restrict trades by reducing the trading and buying power available for other divisions.&nbsp;</li></ul><p>The Back office services comprises of:</p><ul><li>Making sure the technology and software platform that allow traders to do their jobs are functional and state of the art.</li><li>Creating new and innovative trading algorithms.</li><li>Ensuring that the correct securities are sold, brought and settled for the right amounts.&nbsp;</li></ul><h2>COMMERCIAL BANKS VS INVESTMENT BANKS</h2><p>There is one major difference between the two. Investment banks focus on helping businesses access capital markets. Commercial banks primarily deal with loans and deposit accounts for companies and individuals. Here is a quick summary of differences:</p><figure class="table"><table><tbody><tr><td><strong>Commercial Banks</strong></td><td><strong>Investment Banks</strong></td></tr><tr><td><strong>Provide loans&nbsp;</strong></td><td><strong>Does not provide loans</strong></td></tr><tr><td><strong>Accepts deposits</strong></td><td><strong>Does not accept deposits&nbsp;</strong></td></tr><tr><td><strong>Regulated by the country’s central bank&nbsp;</strong></td><td><strong>Regulated by security agency</strong></td></tr><tr><td><strong>Targets all consumer, whether small or large corporations and governments</strong></td><td><strong>Targets larger corporations and HNIs</strong></td></tr></tbody></table></figure>

Pradhan Mantri Vaya Vandana Yojana (PMVVY): Detailed information with PMVVY scheme eligibility, interest rate, objective, features, process to apply online, offline, tenure and tax benefits.

Pradhan Mantri Vaya Vandana Yojana | PM Vaya Vandana Scheme 2022

pm-vaya-vandana-yojana

Pradhan Mantri Vaya Vandana Yojana (PMVVY): Scheme Eligibility, Interest Rate, Process to Apply

<h2>Pradhan Mantri Vaya Vandana Yojana for senior citizens</h2><p>Pradhan Mantri Vaya Vandana Yojana (PMVVY) launched by the Government of India acts as an insurance policy cum pension scheme for senior citizens. The scheme promises guaranteed pay outs of pension at a certain rate of interest for the tenure. After retirement, there is a possibility of certain kinds of financial or social burden coming along and hence, it is important to financially protect senior citizens from such possibilities and help them in receiving socio-economic safety. The Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme is provided by the Life Insurance Corporation (LIC) of India. Life Insurance Corporation (LIC) is the only operator for this scheme. No banks or post offices have the privilege to operate this scheme. This scheme has been extended till March 31st, 2023 which is three years more. Earlier this year, this scheme was open till March 31st, 2020. There are certain changes made recently to this scheme.</p><h3>Eligibility Criteria</h3><p>There are certain eligibility criteria set for this scheme. The minimum age set for the scheme is 60 years and there is no maximum limit of age for this scheme.&nbsp;</p><h3>Interest Rate&nbsp;</h3><p>For the year 2020-2021, the scheme provides an assured rate of return of 7.40 % per annum. The rate of interest has seen a dip from 8 percent earlier to 7.4 percent now. Interest rate for the next period will be set from April 1st of next financial year.</p><p>Also Read : <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/sbi-fd-interest-rates">SBI Bank FD Interest Rates</a></p><h3>Features of PM Vaya Vandana Yojana Plan no 842</h3><figure class="image"><img src="https://lh6.googleusercontent.com/U0R81pYhy1GfAksKX4z7WlYokPyaR_JsYwwUDIsFk1ufYzsf6nkeTOBAp0Zaj4WFLl-j-wQ0hJ5DNU6zesrxewGaEeYI0YMV2r7vuYa6fLzOwSha1YNB82JxJvvuaw"></figure><p>The scheme has many great features for senior citizens which are mentioned below:</p><p><strong>Objective of the scheme</strong></p><p>Pradhan Mantri Vaya Vandana Yojana (PMVVY) is specially designed for senior citizens and to facilitate their financial needs and welfare for their lives after retirement.</p><p><strong>Policy Tenure</strong></p><p>For Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme, the policy tenure is of 10 years.&nbsp;</p><p><strong>Flexibility&nbsp;</strong></p><p>The scheme offers flexibility in providing options to individuals for pay out with plans such as monthly, quarterly, half yearly or yearly according to individual’s financial needs and convenience. The pension payment then is proceeded through options like NEFT or Aadhar Enabled Payment System.</p><p><strong>Maturity Benefits</strong></p><p>The scheme also offers maturity benefits to clients who have survived the tenure of 10 years. Policyholders after surviving and completing the tenure receive the whole lump sum purchase price of the scheme as well as the last pay out. The benefit is available till the end of the policy.</p><p><strong>5. Death Benefits</strong></p><p>&nbsp;scheme offers a death benefit in case of the sudden demise of the policyholder during the policy tenure. In such a case, the nominee is given the entire insured amount as claim.</p><p><strong>Free-look Term</strong></p><p>The scheme hosts a free of charge tenure after purchase of the scheme within which the policyholder is able to back down if he/she feels uncomfortable with terms and conditions of the policy. The period is 30 days if bought online and 15 days if bought offline. However, it is mandatory to mention the reason for returning the policy in this case.</p><p><strong>Loan Facility</strong></p><p>The scheme also offers a loan facility and the policyholder can avail loan up to 75% of purchase price against the policy after completion of three years of the policy.</p><p>The interest charges of 9.5% p.a. will be applicable on the entire term&nbsp; of the loans sanctioned till 30 April 2021.</p><p><strong>Premature Exit Facility</strong></p><p>The scheme offers the facility of premature exit for policyholders if there is a case of requirement of money for treatment of critical or terminal illness. And the surrender value will be 98% of the purchase price of the scheme.&nbsp;</p><p><strong>Tax benefits&nbsp;</strong></p><p>Investments in PM Vaya Vandana Yojana are not eligible for claiming tax deductions under Section 80C of Income Tax Act, 1961. The interest earned or the pension amount is taxable in the hands of investors as per their applicable slab rate. However for providing some relaxations to the senior citizens, this scheme has been exempted from GST(Goods &amp; Services Tax).</p><p><strong>Also Read:</strong> <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/tax-saving-options-under-section-80c">Tax Saving Investment Options under Section 80C</a></p><p><strong>10. Limits of investment</strong></p><p>There is flexibility in choosing the amount of investment or the pension. However, there are certain limits set up for investing in this scheme. The minimum &amp;&nbsp; maximum limits for different payout options are as follows:</p><figure class="table"><table><tbody><tr><td><strong>Payout Option</strong></td><td><strong>Minimum Investment Amount</strong></td><td><strong>Maximum Investment Amount</strong></td></tr><tr><td><strong>Monthly&nbsp;</strong></td><td><strong>1,62,162</strong></td><td><strong>15,00,000</strong></td></tr><tr><td><strong>Quarterly</strong></td><td><strong>1,61,074</strong></td><td><strong>14,89,933</strong></td></tr><tr><td><strong>Half-Yearly</strong></td><td><strong>1,59,574</strong></td><td><strong>14,76,064</strong></td></tr><tr><td><strong>Yearly</strong></td><td><strong>1,56,658</strong></td><td><strong>14,49,086</strong></td></tr></tbody></table></figure><p>Also, It is important to note that once the option is selected, it can not be altered.</p><p><strong>Limits of Pension&nbsp;</strong></p><p>The limits of the pension amount vary according to the payout frequency opted by the pensioner. The minimum amount of pension payable per month is Rs. 1000, Rs. 3000 for a quarter, Rs. 6,000 for half-yearly or Rs.12,000 for the yearly payout option.&nbsp;</p><p>The maximum amount of pension that can be payable per month is Rs. 9250, Rs. 27,750 for the quarterly option, Rs.55,500 for half-yearly and&nbsp; Rs. 1,11,000 for the yearly payout option.</p><p>The amount of pension payable to the pensioners in any frequency depends upon the amount of lump-sum investment made by them.&nbsp;</p><h3>Pradhan Mantri Vaya Vandana Yojana calculation</h3><figure class="table"><table><tbody><tr><td><strong>Payout Option</strong></td><td><strong>Minimum Pension Amount</strong></td><td><strong>Maximum Pension Amount</strong></td></tr><tr><td><strong>Monthly</strong></td><td><strong>Rs.1,000</strong></td><td><strong>Rs.9,250</strong></td></tr><tr><td><strong>Quarterly</strong></td><td><strong>Rs.3,000</strong></td><td><strong>Rs.27,750</strong></td></tr><tr><td><strong>Half-Yearly</strong></td><td><strong>Rs.6,000</strong></td><td><strong>Rs.55,500</strong></td></tr><tr><td><strong>Yearly</strong></td><td><strong>Rs.12,000</strong></td><td><strong>Rs.1,11,000</strong></td></tr></tbody></table></figure><p><strong>Also Read:</strong> <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/national-pension-scheme-a-beginners-guide-for-rules-and-benefits">National Pension Scheme</a></p><h3>How to Apply for Pradhan Mantri Vaya Vandana Yojana ?</h3><p>If interested in this scheme, one can apply either online or offline.</p><h4>Applying offline:</h4><p>When applying offline, individuals have to go to the nearest LIC branch and decide suitable pension payment. After that, a form is required to be filled up and certain documents are required to be attached along with the form. Documents required are mentioned below:</p><p>1. PAN Card</p><p>2. Proof of address like Aadhar Card, Passport, etc.&nbsp;</p><p>3. Bank details where pension is required to be credited.</p><h4>Pradhan Mantri Vaya Vandana Yojana form</h4><p><a target="_blank" rel="noopener noreferrer" href="https://www.insurance21.in/downloads/pradhan-mantri-vaya-vandana-plan-842-form.pdf">Click here</a> to download the offline application form. You can download this form and fill in the required details. Attach the required documents with the form and submit them to your nearest LIC office.</p><h4>Applying online:</h4><p>For individuals wanting to apply online, certain steps are required to be taken which are mentioned below:</p><p>1.&nbsp; Go to the official site of LIC India.</p><p>2. Under ‘Buy Policy Online’ heading, select the ‘Pradhan Mantri Vaya Vandana Yojana’ option.</p><p>3. A tab will open with four options. Choose the button no. 856 for the ‘Click to Buy Online’ option which will open a new page. Select the ‘Click to buy online’ option on the left side corner of the page.</p><p>4. For proceeding further, create an access ID and provide the necessary details for generating ID. The 9-digit access ID might be provided via SMS or mail.</p><p>5. Submit the access ID and hit the ‘Proceed’ button to proceed with your application.</p><p>6. Select preferred pension plan under Pradhan Mantri Vaya Vandana Yojana, fill the application form, upload scanned copies of necessary documents and proceed with payment.&nbsp;</p><p>7. After successfully submitting the application, the policy number along with acknowledgment will be provided.</p><p>Pradhan Mantri Vaya Vandana Yojana for senior citizens</p><h4>FAQs - Pradhan Mantri Vaya Vandana Yojana Scheme</h4><p>Q. Is there any maximum age limit on this scheme?<br>A. No, there is no maximum limit on age set for this scheme.</p><p>Q. What percentage of purchase price is receivable on premature exit?<br>98% of purchase price is given in the case of premature exit.</p><p>A. Can one apply for the scheme offline in any branch of a bank?<br>One can apply for schemes offline only in the nearest LIC of India branch.</p><p>Q. Is the scheme closed after March 2020?<br>A. No, the Pradhan Mantri Vaya Vandana Yojana scheme has been extended till 31st March, 2023.&nbsp;</p><p>Q. Is there any medical examination required for the scheme?<br>A. No, there is no requirement of any sort of medical examination for this scheme.</p><p>Q. Can the scheme be purchased online?<br>A. Yes, the scheme can be purchased or can be applied for through the online process for which one needs to visit the official website of LIC of India. There are certain steps to be followed on the website in order to make the application.</p><p>Q. What is the minimum age to be eligible for applying to this scheme?<br>Minimum age to be eligible to apply to this scheme is 60 years.</p><p>Q. Can payment be done on a per month basis?<br>A. Yes, there are different options for payment like per month, per quarter, per six months and annually.</p><p>Q. Is there a premature exit option offered by this scheme?<br>A. Yes, Premature exit option is offered only if there is a case of requirement of money for treatment of critical illness.</p><p>Q. Is there any death benefit offered by this scheme?<br>A. Yes. In case of sudden demise of the policyholder within the tenure, the purchase price is paid to the nominee.</p><p>Q. Is there any maturity benefit offered by this scheme?<br>A. Yes, there are maturity benefits offered by this scheme if the policyholder survives the tenure of the policy, i.e., 10 years. In such a case, the purchase price along with the latest pension instalment is payable.</p><p>Q. Is there any free-look period offered by this scheme?<br>A. Yes, the free-look period is 15-30 days depending upon how the scheme was purchased. During this period, the policyholder has the option to return the policy, by giving the reason for the return.</p><p>Q. Is there any upper limit set for investment in this PMVVY Scheme?<br>A. Yes, there is an upper limit of Rs. 15 Lakhs for investment in this scheme.</p><p><strong>More Information:</strong></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/axis-bank-fd-interest-rates">Axis Bank FD Interest Rates</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hdfc-bank-fd-interest-rates">HDFC Bank FD Interest Rates</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/mfd-karein-shuru">MFD Karein Shuru</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/kisan-vikas-patra-scheme">Kisan Vikas Patra Scheme</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/sukanya-samriddhi-yojana-ssy">Sukanya Samriddhi Yojana</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/kisan-credit-card-kcc">Kisan Credit Card Scheme</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/post-office-saving-schemes">Post Office Saving Scheme</a></p>

What are Equity Mutual Funds - Understand the meaning, type, risk, returns, benefits, FAQs, and Know how to invest in equity mutual funds.

Equity Funds - Meaning, Type, Risk, Returns, Benefits, Taxability, FAQs

equity-funds

<h2>What are Equity Funds?</h2><p>Equity Mutual Funds are a <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/type-of-mutual-funds"><strong>type of mutual fund </strong></a>scheme that invests their investments in shares/stocks of various firms, to achieve higher returns. Equity-oriented funds invest at least 65 percent of the corpus, as governed by SEBI, in equity-related instruments. Compared to debt funds, these funds are expected to produce higher returns but are riskier because they rely on market conditions. The business performance of the underlying companies plays a key role in determining the return to investors.</p><h2>Types of Equity Funds</h2><p>Equity Funds are categorized based on different parameters as explained below in detail-</p><h3>1.) Based on market capitalization&nbsp;</h3><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-large-cap-mutual-funds"><strong>Large Cap Funds </strong></a><strong>-&nbsp;</strong></p><p>Large Cap mutual fund schemes refer to funds that invest at least 80 % of the total assets in the shares of large-cap firms, i.e. the top 100 firms, in terms of market capitalization. These funds are also known as '<a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/blue-chip-mutual-funds">Bluechip funds</a>'. This term is derived from the poker game wherein blue chips are kept for the largest number on the table. BlueChip companies are likewise well-established enterprises with the highest market shares and more stable earnings.</p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-mid-cap-mutual-funds"><strong>Mid-Cap Funds </strong></a><strong>-&nbsp;</strong></p><p>Mid-cap mutual fund schemes are identified to be open-ended equity funds investing a majority of their gross assets in equity and equity-related instruments of mid-cap firms. These companies have generally been operating for quite some time and have a good track record as well. The well-managed and more successful companies would be expected to inevitably transform into large-cap companies eventually. This makes the mid-cap market an interesting chance for growth opportunities with managed obstacles.</p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-small-cap-mutual-funds"><strong>Small-Cap Funds</strong></a><strong> -&nbsp;</strong></p><p>Small Cap mutual&nbsp; funds refer to mutual funds that invest primarily in companies ranked below 250 in terms of market capitalization. These funds invest in equity &amp; equity-related instruments of smaller firms, which include start-ups or small income-generating businesses with a good business strategy and potential for success. At least 65 percent of the cumulative funds are invested in small-cap equity and the balance will be invested in some of the large or mid-cap ones along with debt instruments.</p><h3>2.) Based on Investment Style</h3><ol><li><strong>Active Funds - </strong>These schemes are professionally managed by the fund managers who carefully select the stocks that they'd like to invest in.</li><li><strong>Passive Funds - </strong>Typically, these funds track a market index or division that specifies the list of stocks in which the scheme will invest. In these schemes, there is no active role for the fund manager in the decision of stocks.</li></ol><h3>3.) Based on Investment Strategy</h3><ol><li><strong>Thematic and Sectoral Funds - </strong>An equity fund may adopt a particular theme of investment, such as an international stock theme or an emerging market theme, etc. Any schemes may also invest in a specific market area, such as BFSI, IT, pharmacy, etc. It is worth noting that sector or theme-based funds bear a higher risk when they concentrate on a single sector or theme.</li><li><strong>Focused Equity Funds –</strong> These funds invest in a restricted number of stocks, normally between 20 and 30 stocks. The objective of these funds is to generate higher returns by taking advantage of the higher concentration. However, on the flip side, these funds also carry a higher level of risk due to a lack of diversification.</li><li><strong>Contra Equity Funds -</strong> These schemes pursue a contrarian investment approach, as the name implies. To recognize underperforming stocks and buy them at low prices, these schemes evaluate the market, predicting that these stocks can stabilize in the long run.</li></ol><h3>4.) Based on tax treatments</h3><ol><li><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-elss-mutual-funds"><strong>ELSS</strong></a><strong> - </strong>The only equity scheme that provides tax advantages of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act is the Equity Linked Savings Scheme (ELSS). These schemes invest at least 80% of their net assets in securities and equity-related instruments. In addition, these schemes have a duration of lock-in of 3 years.</li><li><strong>Non-Tax Saving Funds - </strong>Apart from ELSS, all equity funds are non-tax-paying schemes. This means that the returns are liable to tax on capital gains.</li></ol><h2>Who should invest in equity funds?</h2><p>Those investors must invest in Equity Funds that are capable of coping with a reasonable amount of risk and volatility with a higher return opportunity. Risk-averse investors and investors who do not expect capital gains typically do not opt for these securities, so instead they invest in debt mutual funds, which are safer and relatively less volatile but have traditionally yielded much lower returns.</p><h2>Benefits of Equity Funds</h2><ol><li><strong>High Returns -</strong> Equity Mutual Funds are recognized for accruing higher returns than <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/debt-fund">debt funds</a>. Inflation-beating returns have always been delivered in the long term by investments directed towards equities, according to historical returns. The investment valuation displays immediate appreciation when the stock price rises.</li><li><strong>Diversified portfolio: </strong>Investing in an equity mutual fund scheme ensures that, through the company's various strategies, trends, markets, etc., the owner can own a large range of stocks and shares in different firms. Holding a wide range of stocks in one's portfolio ensures that there are no huge losses that can not be compensated for by gains in another segment of the portfolio.</li><li><strong>Lower Expense Ratio:</strong> Regular purchase and sale of shares in an Equity Fund will lead to a rise in the cost ratio of the scheme. An upper limit for the cost ratio of equity funds at 2.5% has been established by the Securities and Exchanges Board of India (SEBI). SEBI might reduce this even further. For investors, this implies more returns.</li><li><strong>Tax Exemption under Section 80C:</strong> Tax exemption under Section 80C of the Income Tax Act with equity exposure is offered by the Equity Linked Savings Scheme or ELSS. It has a small 3-year lock-in span and provides tremendous opportunities for positive returns to be made. Investors also could invest in an ELSS in installments.</li><li><strong>Liquidity:</strong> Stocks and shares become traded regularly through the global financial markets. Although the liquidity available is not instantly as liquid as the withdrawal of funds from a savings bank account, it is considerably better than that provided by most other mutual fund schemes or investment plans.</li></ol><h2>Taxation of Equity Mutual Funds</h2><p>The capital gains are considered Short-Term Capital Gains (STCG) if the units of the scheme are held for less than one year. These Capital gains are taxed at 15 percent on redemption.&nbsp;</p><p>In case the units are held for more than 1 year from the date of purchase, the gains are deemed as Long-Term Capital Gains (LTCG). A tax of 10% is levied on these gains without the advantage of indexation. However, LTCG up to Rs. 1 lakh in a financial year are exempt from tax.</p><h2>How to Invest in Mutual Funds?</h2><p>Just like every other investment decision, before signing the dotted line, you must properly determine your financial goals, risk tolerance, and investment horizon.</p><p>You can easily start investing in mutual funds through the <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-mutual-fund-app">Best mutual fund app</a> the ZFunds App available on the Google Play Store.</p><p><strong>Steps&nbsp;</strong></p><ul><li>Download the <a target="_blank" rel="noopener noreferrer" href="https://play.google.com/store/apps/details?id=com.zfunds.user&amp;hl=en_IN&amp;gl=US&amp;pli=1">ZFunds App</a> from the Play Store.</li><li>Select the “New User” option after opening the app, and enter your “Full Name” &amp; “Mobile Number”. Click “Submit”.</li><li>ZFunds homepage will be displayed on your screen showing different types of mutual funds &amp; their categories.</li><li>Select the “Please complete your profile” option appearing at the top of your screen. There, you would have to complete the KYC process if you haven’t done it already.</li><li>Enter your “PAN Card Number” &amp; “Date of Birth” to check the KYC Status, if it is done already then you don’t need to do it again.</li><li>If KYC not registered, then you will be redirected to a page for filling KYC Information.</li><li>After that, You will be asked to enter information like your Name, Gender, Marital Status, Father’s Name, Mother’s Name, Income Range, Mobile Number, Occupation, and other demographic details. Also, you will have to enter your Address(As per ID proof) along with Pincode.</li><li>After filling in the information, you have to upload the following pictures :</li><li>Your Signature (as on PAN Card)</li><li>Adhaar Card or any other ID proof.</li></ul><p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Then Click Next.</p><ul><li>After that, you will need to enter your Bank account details i.e Your Bank Account no., Bank IFSC Code &amp; MICR Code.</li><li>Tick the “I want to add a nominee” option if you want to add a nominee. Otherwise, leave it blank.</li><li>Then click “Finish”.</li><li>After that, you can choose from different mutual fund schemes to invest as per your needs &amp; requirements.</li></ul><p>You will receive a confirmation message &amp; a mail, once all your documents are verified &amp; KYC gets approved (For Non-KYC registered users). Also, you will receive confirmation regarding your investments in mutual fund schemes along with the status of the allotment of units.</p><h3>Frequently Asked Questions (FAQs)</h3><h3>1. Is ELSS a type of Equity Fund?</h3><p>Yes, ELSS is a type of Equity Fund.</p><h3>2. Does Equity Fund offer good liquidity?</h3><p>Yes, Equity Funds offer good liquidity.</p><h3>3. Can one apply for Equity Funds online?</h3><p>Yes, investors can choose to invite online as well.</p><h3>4. What are Equity Funds?</h3><p>Equity Mutual Funds are the type of mutual fund schemes that invest their investments in shares/stocks of various firms, with the goal of achieving higher returns.</p><p>&nbsp;</p>

इक्विटी म्यूचुअल फंड क्या हैं - अर्थ, प्रकार, जोखिम, रिटर्न, लाभ, अक्सर पूछे जाने वाले प्रश्न, और इक्विटी म्यूचुअल फंड में निवेश करने का तरीका समझें।

इक्विटी फंड्स | Equity Funds के अर्थ, प्रकार, जोखिम, रिटर्न और लाभ | Equity Funds in Hindi

इक्विटी फंड्स - अर्थ, प्रकार, जोखिम, रिटर्न, लाभ, कराधान, अधिकतर पूछे जाने वाले सवाल

AMFI पंजीकरण संख्या, जिसे लोकप्रिय रूप से ARN संख्या के रूप में जाना जाता है, एक अद्वितीय संख्या है जो प्रत्येक योग्य म्यूचुअल फंड वितरक या म्यूचुअल फंड विशेषज्ञ को योजनाओं में काम करने के लिए दी जाती है।

म्यूचुअल फंड में एआरएन नंबर | ARN Number in Hindi

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Bharat Bond ETF - Understand the meaning, benefits, features, portfolio constituents, bharat bond etf fund of fund comparison with other Investments.

Bharat Bond ETF Investment Option | Bharat ETF Bond Advantages

bharat-bond-etf

Bharat Bond ETF - Meaning, Benefits, Price, Interest Rate, Review

<h3>What is Bharat Bond ETF</h3><p>Bharat Bond ETF is an initiative by the Government of India which is exclusively managed by the Edelweiss Asset Management Company. The Bharat Bond ETF invests in AAA-rated instruments or debt papers issued by the public sector entities, units &amp; financial institutions. Earlier in December, Edelweiss came out with its first tranche offering the 3 year &amp; 10 year Bond ETF expiring in 2023 &amp; 2030.</p><p>Now, Edelweiss AMC has announced the second tranche of bond ETF issuance where it is coming out with 2 Bond ETFs maturing in April 2025 &amp; April 2031, carrying yields of 5.65% &amp; 6.76% at the current rates. The New Fund Offer (NFO) period in which the investors can apply for subscriptions is between 14 July to 17 July 2020.</p><p>The earlier issued ETFs have gained popularity among investors in the last months. It's offerings of roll down strategy, target maturity structure, efficient taxability, high safety along with liquidity have attracted many investors to consider this debt investment opportunity. Let's have a look at what the second tranche of Bharat Bond ETFs has in store for us.</p><p>Along with the Bharat Bond ETF, the AMC is also offering FOFs which will be investing in the Bharat Bond ETF. Fund of Funds(FOF) are the funds that invest their collected pool of money in other funds. Here, Bharat Bond FOF will be investing its assets in the Bharat Bond ETF.</p><p>The FOFs have been designed for investors not having Demat accounts as the former requires one along with the trading account for making investments.</p><h3>Features</h3><p><strong>Fund Management: </strong>The government of India has exclusively given mandate to Edelweiss AMC to operate &amp; manage the fund. The Fund will be managed by Mr. Dhawal Dalal.</p><p><strong>Cost Structure:</strong> The Bharat Bond ETF has a very low-cost structure. The cost of managing the fund is 0.0005% p.a. which comes out to be Rs.1 for Rs.2 lacs investment.</p><p>The expense ratio or fund management cost for Bharat Bond FOF is also very low i.e 0.0015% p.a.</p><p><strong>Portfolio: </strong>The Bharat Bond ETF invests in the high-quality AAA-rated securities issued by Public Sector entities. The ETF invests only in the bonds constituting a pre-defined index.</p><p>Bharat Bond ETF - April 2025 will invest in the bonds constituting the Nifty Bharat Bond Index- April 2025.</p><p>Bharat Bond ETF - April 2031 will invest in the bonds constituting the Nifty Bharat Bond Index - April 2031.</p><p>Along with the portfolio of AAA rated high credit quality papers, the fund will invest 5% of its portfolio in G-securities/ TREPS which will ensure liquidity in the fund.</p><p><strong>Risk: </strong>Given the ETF invests in high-quality AAA-rated debt papers of PSUs, there is a very low credit risk associated with investments in these funds.</p><p>Liquidity risks have been managed by an allocation of 5% in highly liquid g-securities and through open trading in secondary markets.</p><p>However, there are Interest Rate risks associated with these ETFs. The interest rate risks for the ETF would depend upon the modified durations of these ETFs. But it gets on reducing as the fund approaches its maturity. This is because of the targeted maturity structure in which the underlying bonds mature on or before the maturity of the ETF.</p><p><strong>Returns:</strong> The current Yield to Maturity which is essentially the returns expected if the investor holds the fund till maturity is 5.65% &amp; 6.76% for the ETFs maturing in April 2025 and April 2031.</p><p>The roll down or target maturity strategy ensures stable &amp; predictable returns from the fund. The coupon payments of the underlying bonds are not paid to investors till the maturity and are further reinvested in the fund to generate more returns.</p><p><strong>Investment Limits:</strong> For retail investors, the minimum amount of investments required is Rs.1000 and in multiples of Rs.1000 thereafter during the NFO period. And there is an upper limit of Rs.2 lacs.</p><p>For Retirement Funds, QIBs &amp; Non-Institutional Investors, the minimum amount of investments required is Rs. 2,01,000 and in multiples of Rs.1000 thereafter.</p><p><strong>Lock-in period: </strong>The ETF does not have any lock-in period. The investors can enter into transactions of buying &amp; selling any time through their trading account. Also, there is no exit load on Bharat Bond ETF.</p><p>However, Bharat Bond FOF(Fund of Fund) charges an exit load of 0.10% if units are redeemed within 30 days of purchase. After that, the exit load is not applicable.</p><p><strong>Targeted Maturity: </strong>The fund has adopted the strategy of target maturity wherein the investments in bonds with different maturities are made in such a way that they expire before the maturity of the fund. This roll down maturity strategy ensures that investors need not worry about switching to other low-risk instruments when approaching the maturity like what they do in mutual funds. Because the design of the fund ensures that risks are reduced at the time of maturity, as the fund automatically switches to short duration liquid instruments.</p><p><strong>Taxation: </strong>Bharat Bond ETFs will have the same taxability as of the debt mutual funds i.e units held for more than 3 years will be taxed at the rate of 20% after indexation benefits. And if the investor remains invested for less than 3 years, the returns earned will be subject to the tax rate as per the income tax slab rate applicable to the investor.</p><p><strong>Also Read: </strong><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/7-important-tips-for-mutual-fund-investments-">Important Tips to Invest in Mutual Funds</a></p><h4>Benefits</h4><p>Here are some the benefits of investing in Bharat Bond ETFs:</p><figure class="image"><img src="https://lh4.googleusercontent.com/vs6PQusJRt48bqORiLdzlNHszC2ZabXcqdmjsOlnMnvurFHw8E50xc67zY4lHbmrv04Z1E5ABpWU9OTCkwQjtpTFkG8gprhXOm_hm7vbopqdkEz28sjPasx1vK37XDL1lwOwZkA7" alt="Investing in Bharat Bond ETF"></figure><p><strong>Diversification</strong></p><p>The fund makes the portfolio comprising investments in various bonds issued by PSUs like IRFC, PFC, Indian Oil Corporation, HUDCO, NABARD, etc. which are the constituents of the Nifty Bharat Bond Index. This gives the benefit of diversification to the investors and thereby reducing the overall risk of the portfolio.</p><p>Also, maximum allocation to a single issuing entity has been capped at 15% to avoid high concentration.</p><p><strong>Indexation benefits</strong></p><p>Unlike other bonds, this Bond ETF has the same taxability as of the debt mutual funds. Investors holding the fund for more than 3 years would have to pay a 20% tax after indexation (inflation adjustment) on returns. This way the Bharat Bond ETFs are tax-efficient.</p><p><strong>High Safety</strong></p><p>Investments in the high-quality securities or bonds issued by the Public Sector Units make these funds very less risky. As the concerned entities are backed by the government and have high credit ratings, the chances of default are pretty less.</p><p><strong>Higher Liquidity</strong></p><p>These bond ETFs provide higher liquidity than the other debt schemes as the units are listed on exchange and investors can enter into transactions anytime as per their requirements.</p><p><strong>Low Investment Requirements</strong></p><p>Bharat bond ETFs allow the retail investors to subscribe for as low as Rs.1000, and thereby making it accessible &amp; affordable to a large number of investors.</p><p><strong>Low Costs</strong></p><p>The low fund management costs helps the investors to earn higher post-expense returns as compared to other high-cost debt products. In fact, the cost structure of the Bharat Bond ETF is the cheapest in the world to date.</p><p><strong>Return Predictability</strong></p><p>The target maturity structure of the fund helps to provide stable returns to the investors. As the maturity of all the bonds are before the fund's maturity, there is a higher predictability of the returns.</p><p><strong>Transparency</strong></p><p>The Bharat ETF presents higher transparency to its investors through the daily disclosures of portfolio holdings &amp; live NAV rates throughout the day.</p><h4>Bharat Bond ETF Maturity</h4><p>Bharat Bond ETF offers four maturities of 3 years, 5 years, 10 years, and 11 years. ETF with 3 years of maturity will mature in April 2023, ETF with 5 years of maturity will mature in April 2025, ETF with 10 years of maturity will mature in April 2030 and ETF with 11 years of maturity will mature in April 2031. Bharat Bond ETF invests its assets in bonds of the PSUs like PFC, National Housing Bank, NHPC, Indian Railway Finance Corporation, and many more. It invests in bonds with high-quality ratings such as AAA &amp; equivalent.</p><p><strong>Bharat Bond ETF - 3 years maturity</strong></p><p>Bharat bond ETF with 3 years of maturity will mature in April 2023. This ETF will track the Nifty Bharat Bond Index- April 2023. The portfolio yield of the Bharat Bond ETF - April 2023 is 5.08% as of 05th February 2021.</p><p><strong>Bharat Bond ETF - 5 years maturity</strong></p><p>Bharat bond ETF with 5 years of maturity will mature in April 2025. This ETF will track the Nifty Bharat Bond Index- April 2025. The portfolio yield of the Bharat Bond ETF - April 2025 is 5.74% as of 05th February 2021.</p><p><strong>Bharat Bond ETF - 10 years maturity</strong></p><p>Bharat bond ETF with 10 years of maturity will mature in April 2030. This ETF will track the Nifty Bharat Bond Index- April 2030. The portfolio yield of the Bharat Bond ETF - April 2030 is 6.88% as of 05th February 2021.</p><p><strong>Bharat Bond ETF - 11 years maturity</strong></p><p>Bharat bond ETF with 11 years of maturity will mature in April 2031. This ETF will track the Nifty Bharat Bond Index- April 2031. The portfolio yield of the Bharat Bond ETF - April 2031 is 6.93% as of 05th February 2021.</p><h4>Portfolio Constituents of Bharat Bond ETFs</h4><h4>Bharat Bond ETF - April 2025</h4><figure class="table"><table><tbody><tr><td><strong>Issuers</strong></td><td><strong>Weightages</strong></td></tr><tr><td>Power Finance Corporation Ltd.</td><td>15.00%</td></tr><tr><td>REC Ltd.</td><td>15.00%</td></tr><tr><td>Power Grid Corporation of India Ltd.</td><td>15.00%</td></tr><tr><td>National Housing Bank Ltd.</td><td>10.51%</td></tr><tr><td>Indian Oil Corporation Ltd.</td><td>8.58%</td></tr><tr><td>National Bank for Agriculture &amp; Rural Development Ltd.</td><td>8.02%</td></tr><tr><td>Hindustan Petroleum Corporation Ltd.</td><td>7.16%</td></tr><tr><td>NHPC Ltd.</td><td>6.00%</td></tr><tr><td>Export-Import Bank of India Ltd.</td><td>5.06%</td></tr><tr><td>Indian Railway Finance Corporation Ltd.</td><td>4.89%</td></tr><tr><td>NTPC Ltd.</td><td>3.63%</td></tr><tr><td>Nuclear Power Corporation of India Ltd.</td><td>1.15%</td></tr></tbody></table></figure><h4>Bharat Bond ETF - April 2031</h4><figure class="table"><table><tbody><tr><td><strong>Issuers</strong></td><td><strong>Weightages</strong></td></tr><tr><td>Power Finance Corporation Ltd.</td><td>15.00%</td></tr><tr><td>REC Ltd.</td><td>15.00%</td></tr><tr><td>Power Grid Corporation of India Ltd.</td><td>15.00%</td></tr><tr><td>National Highways Authority of India Ltd.</td><td>15.00%</td></tr><tr><td>Nuclear Power Corporation of India Ltd.</td><td>14.80%</td></tr><tr><td>Indian Railway Finance Corporation Ltd.</td><td>13.05%</td></tr><tr><td>Housing &amp; Urban Development Corporation Ltd.</td><td>9.92%</td></tr><tr><td>NHPC Ltd.</td><td>2.53%</td></tr></tbody></table></figure><h4>Who should invest in Bharat Bond ETFs?</h4><p>Bharat Bond ETFs are suitable for investors who look for high safety &amp; predictability of stable returns on their investments. The investors having an investment horizon equal to 5 or 10-11 years can look into subscribing to their respective offering options in Bharat Bond ETFs as a part of their debt portfolio.</p><p>However, the investors who have an investment horizon of less than 5 years could consider investing in Banking &amp; PSU Funds, Short term debt funds, or Low duration funds as per their average maturities. Also, it is important to look at the portfolio quality before making any investments.</p><h4>How to invest in Bharat Bond ETF?</h4><p>Investments in Bharat Bond ETF can be made in the following ways:</p><p><strong>NFO Offer: </strong>Edelweiss has announced the NFO(New Fund Offer) of the 2 new Bharat Bond ETFs which will open for subscription from 14 July to 17 July 2020. Investors can apply for the NFO on the official website of Bharat Bond. De-mat account is required to apply for the NFO.</p><p><strong>Buy from Exchange: </strong>Investors can also buy the already existing Bharat Bond ETFs maturing in 2023 &amp; 2031. The ETFs can be directly bought from the exchange. De-mat account is mandatory to purchase ETFs from the exchange.</p><p><strong>Bharat Bond FOF:</strong> Bharat Bond FOF is a fund of fund scheme investing in Bharat Bond ETF which is made for investors who do not hold a Demat account. With a marginally higher cost structure, the Bharat Bond FOF allows the purchase of units without the need of a Demat account. Also, SIP investments can be made in the Bharat Bond FOF.</p><p><strong>Also Read:</strong> <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/index-funds">Index Funds</a></p><h4>Bharat Bond ETF Comparison with Other Investments</h4><figure class="table"><table><tbody><tr><td><strong>Head</strong></td><td><strong>Bharat Bond ETF</strong></td><td><strong>Fixed Deposits</strong></td><td><p><strong>Banking &amp; PSU</strong></p><p><strong>Mutual funds</strong></p></td><td><strong>RBI Floating Rate Savings Bonds</strong></td></tr><tr><td><i><strong>Returns</strong></i></td><td><p><strong>YTM</strong></p><p><strong>ETF 2025 - 5.60%</strong></p><p><strong>ETF 2031 - 6.75%</strong></p></td><td><strong>5-7%</strong></td><td><strong>6-8%</strong></td><td><strong>7.15% (Currently)</strong></td></tr><tr><td><i><strong>Risk</strong></i></td><td><strong>Moderate</strong></td><td><strong>Low</strong></td><td><strong>Moderate</strong></td><td><strong>Zero-Risk</strong></td></tr><tr><td><i><strong>Investment tenure</strong></i></td><td><p><strong>5 &amp; 11 Years (NFO)</strong></p><p><strong>3 &amp; 10 Years (available on exchange)</strong></p></td><td><strong>Varying Maturities</strong></td><td><strong>No Investment Tenure or Lock-in</strong></td><td><strong>7 Years (Fixed)</strong></td></tr><tr><td><i><strong>Liquidity</strong></i></td><td><strong>High&nbsp;</strong></td><td><strong>Low</strong></td><td><strong>Very High</strong></td><td><strong>Low</strong></td></tr><tr><td><i><strong>Taxation</strong></i></td><td><p><strong>STCG (3 yrs or less) - as per IT Slab</strong></p><p><strong>LTCG (3 yrs or above) - 20% after indexation</strong></p></td><td><strong>As per Income Tax Slab rate</strong></td><td><p><strong>STCG (3 yrs or less) - as per IT Slab</strong></p><p><strong>LTCG (3 yrs or above) - 20% after indexation</strong></p></td><td><strong>As per Income Tax Slab rate</strong></td></tr></tbody></table></figure><p><strong>Frequently Asked Questions</strong></p><p><strong>Q. What is Bharat Bond ETF?</strong></p><p>A. Bharat Bond ETF is an initiative of the Government of India. Bharat Bond ETF invests in the PSU bonds with AAA credit ratings. It invests in bonds of PSUs like Hindustan Petroleum Corporation, National Bank for Agriculture &amp; Rural Development, IOC, and many more.</p><p><strong>Q. Who manages the Bharat Bond ETF?</strong></p><p>A. Bharat Bond ETF is managed by the Edelweiss Asset Management Company. Mr. Dhawal Dalal is the fund manager and Mr. Gautam Kaul is the Co-fund manager.</p><p><strong>Q. Where do the Bharat Bond ETF invest?</strong></p><p>A. Bharat Bond ETF invests in the AAA-rated bonds or papers of the public sector units, entities, or financial institutions.</p><p><strong>Q. Does the Bharat bond ETF have a lock-in period?</strong></p><p>A. As it is an ETF, it offers liquidity to the investors i.e they can buy or sell their units through the stock exchanges during the market hours.</p><p><strong>Q. What returns can Bharat Bond ETF generate?</strong></p><p>A. The returns are not fixed but the current portfolio yield as of 05th February 2021 is 5.08% for April 2023 maturity, 5.74% for April 2025 maturity, 6.88% for April 2030 maturity, and 6.93% for April 2031 maturity.</p><p><strong>Q. Does the Bharat Bond ETF have an expense ratio?</strong></p><p>A. The expense ratio or management cost for the Bharat Bond ETF is 0.0005% p.a. It will come out to be a maximum of Rs. 1 for an investment of Rs.2,00,000.</p><p>Read more articles :&nbsp;</p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-mock-test">NISM mock test</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-certification">NISM Mutual fund Certification Exam</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-va-certification">NISM VA Certificate</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-full-form">NISM Full Form</a></p>

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Check here best tips for retirement planning in India. Plan your tax free retirement income

Tips for Retirement Planning in India | Retirement Planning Guide

9-points-to-consider-before-retirement

9 Points to Consider Before Retirement

<h2>9 Points to Consider Before Retirement</h2><p>Retirement is no more a word which means life after 60. The kind of work load that is put on our heads, everybody wants to retire earlier. The question is how many Indians you have seen who retire wealthy and are able to maintain the same lifestyle? At the same time how many foreigners have you seen travelling, who are above 60? Let’s try and see some of the points that may help us plan a better retirement.</p><h2>What are the Tips for Retirement Planning?</h2><ol><li>Retirement is for everybody, whether it be a salaried, self-employed, businessman, or any other occupation. Today even if you are a businessman there is no surety that your next generation wants to join you, therefore you need to leave your business and make sure the income continues.</li><li>Retirement in technical terms is known as point of inflection or when your unearned income becomes more than your earned income. For e.g. if you last drawn salary is 2 Lakhs per month and you also have a corpus which at 6% can give you 2 Lakhs per month, you can retire and pursue your passion. You do not need to work for basic survival after this.</li><li>Most people start planning for retirement at the end, but that’s too late my friend. Retirement planning should ideally begin with your first earnings. A person who starts planning at 25 can retire at 50.</li><li>Don’t be a single asset class player. Most of the people in India become compulsive asset class investors. For e.g. a person who loves real estate will keep on investing in real estate and someone who has more liking for equity will continue to invest there no matter what happens. One needs to avoid such impulsive behaviour and concentrate on portfolio returns. If one asset is not looking convincing, then there is no point sticking to it.</li><li>Don’t underestimate interest rates and inflation. People, who are around 45-50, believe that with their corpus, they will make a FD at 8-9% with which they can manage their monthly income forever. They also believe that the inflation will keep falling in India. Now the above two thoughts are contrarian to each other and one needs to do realistic calculations.</li><li>Find a sound advisor who can help you lay down goals according to priority and then help you make a road map to achieve these goals. Lay emphasis on retirement. Now let’s not even discuss the fee that the advisor should be charging for his services. In the past not paying has proven more dangerous than paying to a genuine advisor.</li><li>Just imagine three phases of life:</li></ol><ul><li><i><strong>Accumulation Stage</strong></i>: When you are earning, you should be able to save higher and people just go opposite.</li><li><i><strong>Vesting stage</strong></i>: When you are nearing the age you have decided for retirement, be sure you reduce volatility in your portfolio. This is also the time to decide the amount you require per month and also a resultant of how much corpus have you finally accumulated.</li><li><i><strong>Reaping stage</strong></i>: Since now you have started getting the monthly income keep an eye on interest rates. Any fresh income that you earn from your occupation now should help you prolong your retirement income or increase the monthly outflow.</li></ul><p><strong>Also Read: </strong><a href="https://zfunds.in/m/7-important-tips-for-mutual-fund-investments-">Best Tips to Invest in Mutual Funds</a></p><ol><li>Ignore peers and concentrate on your court. Sometimes we tend to get carried away by financial decisions our friends have taken for their retirement and on the face of it might look great, but you need to examine the risks closely. Sometimes you can make an irreversible mistake which can prove disastrous.</li><li>If retirement doesn’t sound that interesting, ask your spouse about how she wants to lead her life post 55, give a thought to her desires as well and just filter these desires by what you have so far achieved….you could be shocked.</li></ol><p>Just plan in time for the wonderful years when your responsibilities are over, you can catch up and holiday with old friends, relatives and people whom you just missed being in touch while you were busy grinding in career. Just imagine your passion….is it travelling or photography or that painting you wanted to paint but couldn’t get time to. Retirement is all about planning and age is all about mindset….don’t mix them.</p><p><strong>Read More:&nbsp;</strong></p><p><a href="https://zfunds.in/m/deduction-under-section-80tta">Deduction under Section 80TTA</a><br><a href="https://zfunds.in/m/elss-vs-ppf">ELSS VS PPF? WHERE TO INVEST FOR TAX SAVING?</a><br><a href="https://zfunds.in/m/become-mutual-fund-advisor">How to become a Mutual Fund Advisor</a><br><a href="https://zfunds.in/m/major-mistakes-investors-make-in-their-life">Major Mistakes Investors Make in their Life</a><br><a href="https://zfunds.in/m/rupee-cost-averaging-power-of-systematic-investment-plan">What is Rupee Cost Averaging in SIP?</a><br><a href="https://zfunds.in/m/what-are-shariah-compliant-mutual-funds">Shariah Compliant Mutual Funds - Types, Who can Invest, Minimum Investment</a><br><a href="https://zfunds.in/m/how-to-invest-in-mutual-funds">How to Invest in Mutual Funds?</a><br><a href="https://zfunds.in/m/best-large-cap-mutual-funds">Best Large Cap Mutual Funds</a><br><a href="https://zfunds.in/m/best-small-cap-mutual-funds">Best Small Cap Mutual Funds</a><br><a href="https://zfunds.in/m/best-multi-cap-mutual-funds">Best Multi Cap Mutual Funds</a><br><a href="https://zfunds.in/m/arn-code">ARN Code - Purpose, Registration, Renewal, How to Apply Online</a><br><a href="https://zfunds.in/m/nism-va-certification">Nism VA Certification: Objective, Preparation Tips, Fees, Exam Certificate</a><br><a href="https://zfunds.in/m/mutual-fund-distributor-commission-structure">Mutual Fund Distributor Commission Structure</a><br><a href="https://zfunds.in/m/euin-number">EUIN Number: Purpose, Registration, Rules, Renewal Process</a></p>

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Is it good to invest in Debt Funds for the long-term? Read out the article and get the details on which one will be a better deal.

Is it good to invest in Debt Funds for the long-term? | ZFUNDS

is-it-good-to-invest-in-debt-funds-for-the-long-term

Is it good to invest in Debt Funds for the long-term?

<h2><strong>Is it good to invest in Debt Funds for the long-term?</strong></h2><p>Long-term debt funds, including <a href="https://zfunds.in/m/gilt-funds">gilt funds </a>and long-duration funds, have performed excellently in the last one year which has drawn the attention of a large bunch of investors. These funds have not only outperformed the short duration funds but have also performed better than their long-term average and almost all equity funds. After observing these returns you might be curious to know if you can invest in debt funds for the long-term. But before answering that, let us first understand how the long term <i>debt funds</i> make such high gains or losses even though they primarily invest in fixed income securities.</p><h2>How the debt funds make gains or losses?</h2><p>Long-duration debt, gilt and other funds which buy high-maturity papers take a high level of interest rate risk i.e. when interest rate rises, their returns fall sharply and vice-versa. This responsiveness to interest rates is given by a measure called “modified duration". A modified duration of 2 means that a 1% cut in interest rate will cause a roughly 2% gain in the fund. Long-duration funds typically have high modified durations, generally between 6-12, meaning that they are hypersensitive to interest rate movements—you can pocket huge gains or losses based on interest rate changes.&nbsp;</p><p>Same thing has happened last year, when interest rates in India have fallen on multiple rate cuts from the Reserve Bank of India (RBI). This caused long-duration funds to post great returns compared to their credit risk cousins who have struggled because of the ongoing crisis in the credit markets. The average one-year return for long-duration funds (as of 26 July 2019) was 19.04% and for gilt funds 14.17%. In comparison, short-duration funds fared poorly giving 5.18% and credit risk funds gave just 0.69% average one-year annual return.</p><figure class="image"><img src="https://lh5.googleusercontent.com/LJnenUznP5KvRNN3vrXfIC3Dt9cg9JuAjsQuE08V50LJmLHYYMJrND1IWDbg_t2R33ccaOeMxZtQHPaHOmV7ddQqRYcC4ixjtCL-rl4Gx9r3q1GFjzHjDNfQ6TQdkW6wl45tKWU" alt="invest in debt funds for long term"></figure><h3><strong>Where do the risks lie?</strong></h3><p>Though the returns from long-term <i>debt funds</i> in the past year have been good, investors need to be mindful of two factors.</p><p>The gains these funds make from interest rate cuts generally is a one-time gain. Unless rates continue to drop in the same dramatic fashion over the next three to five years, such gains are not likely to repeat themselves. In the last 20 years, a repo rate cut below 6% with an accommodative RBI stance has only ever happened on two other occasions. Even if rates go below 6%, historically they have not sustained there for a long time.</p><p>Interest rates can reverse themselves if inflation moves up. For example, currently the average CPI is 5% and therefore the repo rate can’t go below 5% under normal situation. The rule of thumb, especially for retail investors, is to be cautious if you observe double-digit returns in <i>debt funds</i>.</p><h3><strong>Should you invest in debt funds for long-term?</strong></h3><p>Now that you understand how the long term bonds have generated huge returns last year and how the same reason can result in huge losses or the loss of opportunity to generate huge gains in future, you should be cautious while investing in these funds.</p><p><strong>Read &nbsp;Also: </strong><a href="https://zfunds.in/m/deduction-under-section-80tta">Deductions Under Section 80tta</a></p><p>If you have a longer investment horizon, it is suggested to have <i>equity funds</i> as your ideal preference. But if you are a conservative investor and do not want to venture into the equity space, then here are some<i> debt funds</i> which you might fit to your investment horizon, risk appetite and return expectation.</p><p>1. <strong>Medium Duration Funds</strong></p><p>It is an open ended debt scheme that invests in debt/bonds and money market instruments such that the average maturity period is between 3-7 years.</p><p>2. <strong>Long Duration Debt Funds</strong></p><p>It is an open-ended debt scheme that invests in debt and money market instruments such that the average maturity period is more than 7 years.</p><p>3. <strong>Gilt Funds</strong></p><p>These <a href="https://zfunds.in/">mutual funds</a> mostly invest in government bonds, which make it the safest investment. These are preferred by investors who are most risk averse.</p><p>4. <strong>Short Term Debt Funds</strong></p><p>This refers to funds which invest in instruments with maturity of 1 to 3 years. This category of fund is usually accompanied by low risk and stable returns.</p><p>5. <strong>Liquid Funds</strong></p><p>These are very short-term funds which can give you returns of 6-8% at minimal risk. These funds invest in high-credit quality, fixed income generating short-term instruments, which may include, certificates of deposits (CD), Commercial Papers (CP), Treasury Bills (T-Bills), etc.</p><h3>Conclusion</h3><p>To conclude one may say that debt funds are a good investment when one needs to park money for the short to medium term. In the long term, the effect of interest rate fluctuations can make the invest in debt funds quite volatile. If one has a long-term horizon for investments, equity funds may be a better idea. In case someone is looking to diversify the risk of investing in an equity fund, they could consider the option of investing in a balanced fund. Balanced funds consist of investments in stocks, bonds and money market instruments in a single portfolio.</p><p><strong>More Information:</strong></p><p><a href="https://zfunds.in/m/index-funds">Index Funds - Meaning, Purpose, How to Work, Risk, Returns</a></p><p><a href="https://zfunds.in/m/best-large-cap-mutual-funds">Best Large Cap Mutual Funds</a></p><p><a href="https://zfunds.in/m/best-small-cap-mutual-funds">Best Small Cap Mutual Funds</a></p><p><a href="https://zfunds.in/m/best-multi-cap-mutual-funds">Best Multi Cap Mutual Funds</a></p><p><a href="https://zfunds.in/m/bharat-bond-etf">Bharat Bond ETF - Meaning, Benefits, Price, Interest Rate, Review</a></p><p><a href="https://zfunds.in/m/what-are-shariah-compliant-mutual-funds">Shariah Compliant Mutual Funds - Types, Who can Invest, Minimum Investment</a></p><p><a href="https://zfunds.in/m/how-to-invest-in-mutual-funds">How to Invest in Mutual Funds?</a></p><p><a href="https://zfunds.in/m/equity-balanced-funds">Equity Balanced Funds - Benefits, Taxation, How to Choose</a></p><p><a href="https://zfunds.in/m/how-to-invest-in-mutual-funds">How to Invest in Mutual Funds?</a></p><p><a href="https://zfunds.in/m/what-to-do-when-mutual-funds-underperform">What to do when Mutual Funds underperform?</a></p><p><a href="https://zfunds.in/m/how-to-select-the-best-mutual-fund">How to select the best Mutual Fund ?</a></p><p><a href="https://zfunds.in/m/best-mutual-funds-to-invest-for-long-term">Best Mutual Funds to Invest in for Long Term in India</a></p>

REVENUE AND EARNINGS : COMPARISON

revenue-and-earnings-comparison

<h2>REVENUE AND EARNINGS : COMPARISON</h2><p>The prime difference between earnings and revenue is that revenue refers to the amount generated by a business entity by selling their goods or by providing their services during the normal course of its operations before deduction the expenses, whereas, the earnings refers to the earnings generated by any business entity after deducting the cost and expenses incurred during the period.&nbsp;</p><p>Revenue is also an identical word with income, which is what an entity generated from their daily business activities. In simple terms, revenue is the income a business generates when it provides a product or service to a consumer.&nbsp;</p><p>Earnings on the other hand are the inflow of money after all the expenses i.e. profit from a business in their daily operations. It is the amount earned by a business from their daily activities. It can be achieved by a product sold or a service availed by a customer.&nbsp;</p><p>Revenue is calculated as the number of units of goods or products sold price per unit. Earnings are the amount remaining after taking out the expenses or the amount of depreciation of the asset underlying.&nbsp;</p><p>It can also be stated that revenue - expenses will be equal to earnings, assuming the expenses are less than the revenue in totality, the company will have a profit.&nbsp;</p><h2>PRIME DIFFERENCES</h2><ol><li>Revenue is related to the top line of the statement of the company. Earnings are associated with the bottom line profits of the entity.&nbsp;</li><li>Revenue is the ability of the firm to generate income and to earn better returns. On the other hand, earnings are the profit of the firm by doing daily business activities.&nbsp;</li><li>Revenue can be computed by multiplying the number of units to the price per unit. Earnings can be computed as the difference between total revenue and expenses, taxes, depreciation and interest paid.&nbsp;</li><li>Revenue is of lower preference. Nevertheless, it does help to identify the profitability of the company. Earning is given much higher preference by companies as it is an inflow to the firm and adds to the profitability of the company.&nbsp;</li><li>Revenue refers to the operating income. On the other hand, earnings denote profitability financially.&nbsp;</li></ol><h2>COMPARISON TABLE&nbsp;</h2><figure class="table"><table><tbody><tr><td><strong>BASIS</strong></td><td><strong>REVENUE</strong></td><td><strong>EARNINGS</strong></td></tr><tr><td><strong>What is it about?</strong></td><td><strong>Income of the company</strong></td><td><strong>Profit made by the company</strong></td></tr><tr><td><strong>Measurement</strong></td><td><strong>Revenue measures the income generation of business</strong></td><td><strong>It measures the profit of the company</strong></td></tr><tr><td><strong>Calculation</strong></td><td><strong>By multiplying number of units to the price per unit</strong></td><td><strong>Revenue minus the taxes, expenses, interest etc.</strong></td></tr><tr><td><strong>Impact</strong></td><td><strong>When the revenue is medium, it depicts more income and inflow for the firm and vice versa.</strong></td><td><strong>When the degree of earning is high, it denotes profits for the company and vice versa</strong></td></tr><tr><td><strong>Preference</strong></td><td><strong>Lower</strong></td><td><strong>Higher</strong></td></tr><tr><td><strong>Relation</strong></td><td><strong>The degree of revenue is usually medium, as it does not account for expenses in the income statement.</strong></td><td><strong>Earning has a direct relationship with the cash gains and profits in the income statement.&nbsp;</strong></td></tr></tbody></table></figure><h2>THE CRUX&nbsp;</h2><p>Earnings and Revenue are both significant in their respective considerations. And they both are related to the company’s inflow of liquidity or cash which assists the company to decide whether the company has gains or losses after calculating the net income and net earnings.&nbsp;</p><p>For example, there is an FMCG store and you were to define the revenue and earnings for the store. Revenue is what you get from customers buying goods from your store. Whereas, earnings are the profit that you derive after reducing all the expenses and taxes (cost) involved to purchase those goods and eventually generate income.&nbsp;</p><p>So the query for a company is easy, are the revenue and earnings identical or same? The answer is a clear No. Using them is the most basic way to know and improve the money inflow of the company during a particular period and define the top and bottom line of the company.&nbsp;</p>

Aditya Birla Sun Life Nifty Midcap 150 Index Fund NFO starts from 01st September 2021 and will end on 15th September 2021. Check all sip details, risk, returns, taxation, who should invest.

Mirae Asset S&P 500 Top 50 ETF Fund of Fund NFO -  Investment Objective, Returns, Taxation & SIP

mirae-asset-sp-500-top-50-etf-fof-nfo

<h2>Mirae Asset S&amp;P 500 Top 50 ETF Fund of Fund NFO</h2><p>Mirae Asset Mutual Fund has announced the launch of the Mirae Asset S&amp;P 500 Top 50 ETF Fund of Fund. The scheme would be predominantly investing its assets in units of Mirae Asset S&amp;P 500 Top 50 ETF.</p><p>The New Fund Offer (NFO) starts on 01st September 2021 and will end on 15th September 2021. The scheme will open for continuous sale and repurchase from 23rd September 2021.</p><h2>Investment Objective&nbsp;</h2><p>The scheme’s investment objective is to generate long-term capital growth by predominantly investing its assets in units of Mirae Asset S&amp;P 500 Top 50 ETF.</p><h2>Features</h2><ol><li>The fund will be investing a minimum of 95% of its assets in units of Mirae Asset S&amp;P 500 Top 50 ETF.</li><li>The underlying ETF consists of the top 50 mega-cap companies of the US.</li><li>20 companies of S&amp;P 500 Top 50 Index are also a part of the world's most innovative companies of 2021.</li><li>S&amp;P 500 Top 50 index provides exposure to all sectors with lower volatility.</li></ol><h2>S&amp;P 500 Top 50 Index&nbsp; - Most Innovative Companies</h2><figure class="table"><table><tbody><tr><td><strong>Company</strong></td><td><strong>Sector</strong></td><td>&nbsp;</td><td><strong>Company&nbsp;</strong></td><td><strong>Sector</strong></td></tr><tr><td><strong>Procter &amp; Gamble</strong></td><td rowspan="4"><strong>Consumer Staples</strong></td><td>&nbsp;</td><td><strong>Johnson &amp; Johnson</strong></td><td rowspan="4"><strong>Healthcare</strong></td></tr><tr><td><strong>Coca-Cola</strong></td><td>&nbsp;</td><td><strong>Pfizer</strong></td></tr><tr><td><strong>Pepsico</strong></td><td>&nbsp;</td><td><strong>Abbott Laboratories</strong></td></tr><tr><td><strong>Walmart</strong></td><td>&nbsp;</td><td><strong>Merck &amp; Co</strong></td></tr><tr><td><strong>Walt Disney</strong></td><td rowspan="4"><strong>Communication Services</strong></td><td>&nbsp;</td><td><strong>Apple</strong></td><td rowspan="5"><strong>Information Technology</strong></td></tr><tr><td><strong>Comcast</strong></td><td>&nbsp;</td><td><strong>Microsoft</strong></td></tr><tr><td><strong>Facebook</strong></td><td>&nbsp;</td><td><strong>Salesforce</strong></td></tr><tr><td><strong>Alphabet</strong></td><td>&nbsp;</td><td><strong>Cisco</strong></td></tr><tr><td><strong>Amazon</strong></td><td rowspan="3"><strong>Consumer Discretionary&nbsp;</strong></td><td>&nbsp;</td><td><strong>Oracle</strong></td></tr><tr><td><strong>Tesla</strong></td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr><tr><td><strong>Nike</strong></td><td>&nbsp;</td><td>&nbsp;</td><td>&nbsp;</td></tr></tbody></table></figure><h2>S&amp;P 500 Top 50 Index - Past Returns</h2><figure class="table"><table><tbody><tr><td>&nbsp;</td><td><strong>1 Year</strong></td><td><strong>3 Years</strong></td><td><strong>5 Years</strong></td><td><strong>10 Years</strong></td></tr><tr><td><strong>S&amp;P 500 Top 50 Index</strong></td><td><strong>33.6%</strong></td><td><strong>24.2%</strong></td><td><strong>21.7%</strong></td><td><strong>22.6%</strong></td></tr><tr><td><strong>S&amp;P 500 Index</strong></td><td><strong>35.7%</strong></td><td><strong>21.4%</strong></td><td><strong>19.8%</strong></td><td><strong>21.5%</strong></td></tr><tr><td><strong>Nifty 50 Index</strong></td><td><strong>44.2%</strong></td><td><strong>12.9%</strong></td><td><strong>14.2%</strong></td><td><strong>12.5%</strong></td></tr></tbody></table></figure><p>*As of 30th July 2021</p><h2>Why invest in Mirae Asset S&amp;P 500 Top 50 ETF Fund of Fund?</h2><ul><li>The fund provides exposure to 50 bluest of the bluechip mega-cap companies.</li><li>A portfolio that offers exposure to multiple sectors by capturing sector leaders.</li><li>The fund gives exposure to the US with low cost and also benefits from INR depreciation.</li><li>The underlying index has delivered better returns and risk-adjusted returns than NIFTY 50 and S&amp;P 500.</li></ul><h2>Who Should Invest?</h2><p>This scheme is suitable for investors who are -</p><ul><li>Interested in long-term capital growth.</li><li>Investors who want to invest in the top 50 companies of S&amp;P 500.</li><li>Recommended for investors with an investment horizon of 5 years &amp; above.</li></ul><h2>Asset Allocation Pattern</h2><figure class="table"><table><tbody><tr><td><strong>Instruments</strong></td><td><strong>Minimum % of total assets (Indicative)</strong></td><td><strong>Maximum % of total assets (Indicative)</strong></td></tr><tr><td><strong>Units of Mirae Asset S&amp;P 500 Top 50 ETF</strong></td><td><strong>95%</strong></td><td><strong>100%</strong></td></tr><tr><td><strong>Money market instruments or debt securities</strong></td><td><strong>0%</strong></td><td><strong>5%</strong></td></tr></tbody></table></figure><h2>About the Scheme</h2><figure class="table"><table><tbody><tr><td><strong>Name of the fund</strong></td><td><strong>Mirae Asset S&amp;P 500 Top 50 ETF Fund of Fund</strong></td></tr><tr><td><strong>Fund launched by</strong></td><td><strong>Mirae Asset Mutual Fund</strong></td></tr><tr><td><strong>Asset Management Company</strong></td><td><strong>Mirae Asset Investment Managers (India) Private Limited</strong></td></tr><tr><td><strong>Type of scheme</strong></td><td><strong>An open-ended fund of fund scheme investing its assets in units of Mirae Asset S&amp;P 500 Top 50 ETF.</strong></td></tr><tr><td><strong>Investment Objective</strong></td><td><strong>The scheme’s investment objective is to generate long-term capital appreciation by predominantly investing its assets in units of Mirae Asset S&amp;P 500 Top 50 ETF.</strong></td></tr><tr><td><strong>Benchmark</strong></td><td><strong>S&amp;P 500 Top 50 Index TRI</strong></td></tr><tr><td><strong>Entry Load</strong></td><td><strong>Not Applicable</strong></td></tr><tr><td><strong>Exit Load</strong></td><td><p><strong>- Redemption of units within 3 months - 0.50%</strong></p><p><strong>- Redemption of units after 3 months - NIL</strong></p></td></tr><tr><td><strong>Taxation</strong></td><td><p><strong>Taxed as Non-Equity</strong></p><p><strong>-If units are sold within 3 years, gains will be added to income and taxed as per the investor's tax slab</strong></p><p><strong>-If units are sold after 3 years, gains are taxed with long-term capital gain tax @20% after indexation benefits</strong></p></td></tr><tr><td><strong>Minimum Application Amount&nbsp;</strong></td><td><strong>₹ 5,000 &amp; in multiples of ₹ 1 thereafter</strong></td></tr><tr><td><strong>Minimum Additional Amount</strong></td><td><strong>₹ 1,000 &amp; in multiples of ₹ 1 thereafter</strong></td></tr><tr><td><strong>Minimum SIP Amount&nbsp;</strong></td><td><strong>₹ 5,000 &amp; in multiples of ₹ 1 thereafter</strong></td></tr><tr><td><strong>STP &amp; SWP</strong></td><td><strong>Available</strong></td></tr><tr><td><strong>Plans Available</strong></td><td><ul><li><strong>Regular</strong></li><li><strong>Direct</strong></li></ul></td></tr><tr><td><strong>Options</strong></td><td><ul><li><strong>Growth</strong></li></ul></td></tr><tr><td><strong>Fund Managers</strong></td><td><strong>Ms. Ekta Gala</strong></td></tr></tbody></table></figure>

Unit Linked Insurance Plan (ULIP) is a type of life insurance plan which is multifaceted in nature and provides an opportunity to invest along with an insurance cover. 

Unit Linked Insurance Plans Online in India | ULIP Insurance Policy

unit-linked-insurance-plans

Unit Linked Insurance Plans

Rs.3 Lac ka Cover at Just Rs.390/Month*

<h2>Unit Linked Insurance Plans</h2><p>Unit Linked Insurance Plan (ULIP) is a type of life insurance plan which is multifaceted in nature and provides an opportunity to invest along with an insurance cover. ULIP was initially presented in our country by Unit Trust of India (UTI) in 1971. While investing in ULIP, the insurance company invests a portion of the amount of premium into different types of investment instruments like equities, bonds, money market instruments etc. The balance of the premium is used in offering the insurance coverage. ULIPs also provide certain benefits and hassle-free management for keeping the record of investments.&nbsp;</p><h3>Types of ULIPs</h3><p>There are different types of ULIPs available in the market. ULIPs are classified on the basis of the purpose that they serve.</p><p><strong>For funding child’s education</strong></p><p>Some ULIPs help investors save to fund their child’s education. These plans are suitable for parents who are looking for options to save for their child’s future. Many of these ULIPs also help in providing money for important events occurring in their kid’s life.</p><p><strong>For wealth collection</strong></p><p>Some ULIPs are aimed to help investors to start saving and accumulate a great amount of wealth for the future. People who have any kind of financial aim to attain in future can look at these plans as an option. There are many plans which help in wealth creation and give good returns on investments.</p><p><strong>For health benefits</strong></p><p>Some ULIPs help in providing any monetary assistance in the times of healthcare or medical emergencies of investors. Riders are also available specifically to cover major problems concerning health. At times of visiting hospitals or medical institutions, such plans can help in relieving one from stress of bills and charges.</p><p><strong>For retirement</strong></p><p>Some ULIPs help investors plan the flow of money during their lives as per requirement. One such event in life that can be planned through ULIPs is retirement. Once a person retires, there is no regular income, so it is very important to sort out financial plans for retirement to live a stress free life later.</p><p>On the basis of ULIPs investments:</p><p><strong>Equity Funds</strong></p><p>Some ULIPs invest a portion of the amount paid as premium by the investor in equity and stocks. These plans involve a higher level of risk.&nbsp;</p><p><strong>Cash Funds</strong></p><p>Some ULIPs invest the premium paid by investors in cash funds. Cash funds imply that the amount gets invested in cash, money market instruments, bank deposits, etc. These funds are also called money market funds. These plans hence involve lower levels of risk.</p><p><strong>Debt Funds</strong></p><p>Some ULIPs invest the premium paid by investors in debt funds. It gets invested in debt instruments like corporate bonds, fixed income instruments, government securities, etc. These funds involve a moderate level of risk.</p><p><strong>Balanced Funds</strong></p><p>Some ULIPs invest premium paid by investors in both equity and debt in order to reduce the levels of risk involved for investors. These balanced funds are also called hybrid funds. These are considered to be a very sensible type of investment considering the stability and promising results.</p><p><strong>On the basis of death benefit:</strong></p><p><strong>Type 1 ULIPs</strong></p><p>In Type 1 ULIPs, if sudden demise of the life insured takes place, the nominee receives higher of the sum value assured or fund value from the insurance companies. In this type, mortality charge is usually seen decreasing annually.&nbsp;</p><p><strong>Type 2 ULIPs</strong></p><p>In Type 2 ULIPs, in case of sudden demise of the life insured takes place, the nominee receives the sum value assured along with the fund value from the insurance companies.</p><p>On the basis of premium:</p><p><strong>Single Premium</strong></p><p>These ULIPs offer investors to pay a one-time amount as premium during the start of the plan.</p><p><strong>Regular Premium</strong></p><p>These ULIPs offer investors to pay premium at regular intervals like monthly, quarterly or annually.</p><p>On the basis of guarantee:</p><p><strong>Guaranteed ULIPs</strong></p><p>These ULIPs offer guaranteed benefits which are usually for longer periods of time. These plans also involve lower levels of risks.</p><p><strong>Non-Guaranteed ULIPs</strong></p><p>These ULIPs don’t make any promises and usually provide a variety of investments for choice.</p><h3>Features of ULIPs</h3><figure class="image"><img src="https://lh6.googleusercontent.com/PjRuUbxnNAMs2zXGcwkaCP3xKU0oHXDbEA3HZNQexPLYBR-RELrelSnlrYOln0-jmf0422O7MEMwvBhOtsl9z3i3kwkcH_IavweW_kv93lC9tTvkY_mcV4cXKItS9g"></figure><p>Some of the features of ULIP plans include:</p><p><strong>Flexibility</strong></p><p>ULIPs provide high flexibility to policyholders in terms of having a choice to switch between different funds according to varying requirements. There are different types of funds like equity funds, cash funds, etc. to choose from.</p><p><strong>Liquidity</strong></p><p>ULIPs offer very limited and low liquidity. Liquidity usually depends on insurance companies that offer plans.</p><p><strong>Life Cover</strong></p><p>ULIPs provide life coverage along with investments to the policyholders and provide security. Life coverage is&nbsp; provided by ULIPs that offer a variety of choices so a person can select on the basis of financial capabilities.</p><p>However, these plans generally offer low coverage to the policyholders and levy extra charges for increasing the coverage amount which lead to high costs.&nbsp;&nbsp;</p><p><strong>Transparency</strong></p><p>ULIP Plans have very low transparency. It becomes very difficult to find information about the plans regarding its investments, structure, holdings etc.</p><p><strong>Tax benefits</strong></p><p>Premium paid for ULIPs is eligible for tax deductions of up to Rs.1.5 Lacs under Section 80C of Income Tax Act, 1961. Maturity benefits of ULIPs are exempt from taxes under section 10(10D) of IT Act,1961 on certain conditions. Hence, ULIPs offer many tax benefits.</p><p><strong>Returns</strong></p><p>The returns from ULIP plans vary across different funds like equity, debt, cash &amp; balanced as per the choices made by the investors for investments. However, the returns offered by Ulip plans are generally lower than the other investment products like mutual funds, stocks because of their high-cost structures, especially in the initial years of the plan.</p><p><strong>Long term investments</strong></p><p>ULIPs is an option for longer-term investments.</p><p><strong>Risk Involvement</strong></p><p>There are a variety of funds to choose in ULIPs and hence risk levels also vary. ULIPs can be considered by investors with any level of risk tolerance.</p><h3><strong>Death Benefits and Maturity Benefits</strong></h3><p>Death benefits are provided by ULIPs in case of sudden demise of policyholders. Depending upon the cause of death, death benefits may differ. Maturity benefits are provided by ULIPs when the policy gets matured or passes the maturity period.</p><p><strong>Lock-in Period</strong></p><p>ULIPs usually have a lock-in term of 5 years.&nbsp;</p><p><strong>Premature Withdrawal</strong></p><p>Premature Withdrawals from ULIPs are allowed before the lock-in period. However, money is paid back to the policyholders only after the completion of 5 years. Also, the plans levy heavy discontinuance &amp; other charges due to which the policyholders have to suffer significant cuts on their accumulated investments.</p><p>Withdrawals after the lock-in period are allowed subject to charges as per the plan terms.&nbsp;&nbsp;</p><h4>Eligibility for ULIPs</h4><p>Eligibility criteria usually varies from policy to policy on the basis of minimum and maximum limit set for age, ability to pay premium. Usually, minimum age to be eligible is set to be 18 years and maximum age is usually set around 70-75 years.&nbsp;</p><p>Read more : <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-certification">NISM Certification Exam</a></p><h4>How to Apply for ULIPs?</h4><p>There are certain documents required to apply for ULIPs which are mentioned below:</p><p><strong>Age Proof</strong></p><p>Documents like driving license, passport, voter’s ID, etc. are needed as a proof for age.&nbsp;</p><p><strong>Identity Proof</strong></p><p>Documents like PAN Card, Aadhar Card can be used as proof for identity.&nbsp;</p><p><strong>Address Proof</strong></p><p>Documents like Driving License, Passport, Voter’s ID are required as proof for address.</p><p><strong>Income Proof</strong></p><p>Documents like Income Tax return details, passbook, bank statements can be required as proof for income.</p><p>Other documents like medical certificates, records may also be required.</p><p>Read More : <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/arn-number">ARN Number</a></p><h4>How to choose the best ULIP?</h4><p>Choosing the right ULIP for one could be a tough task since it involves taking care of many aspects such as tenure, goals, returns, etc.</p><p><strong>Goals</strong></p><p>ULIPs always provide a variety of objectives to cover like helping in retirement, funding for children’s future, medical facilities, etc. and helping in achieving financial goals. Since there is flexibility in switching between funds, it gets even more easier to attain financial goals.</p><p><strong>Life Insurance Cover</strong></p><p>ULIPs also provide cover in case of sudden demise of the policyholder, hence it is suggested to take life insurance cover requirements into consideration while selecting the right plan for yourself.</p><p><strong>Comparing offers</strong></p><p>It is very necessary to compare the offers provided by various plans to get a bigger picture of what is suitable. Compare all the factors and benefits regarding various ULIPs.</p><p>Also Read : <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/new-india-assurance-health-insurance">New India Assurance Health Insurance Plans</a></p><h3>Should You Invest in ULIP Plans ?</h3><p>Talking about investments in ULIPs, these plans intend to provide a solution for both insurance &amp; investment needs. However, as both the needs are of different nature, one being an expense (Insurance) and the other an investment (Investment needs), these plans are not able to offer efficient returns for a number of reasons, especially because of the exorbitant charges levied on these plans in the initial years.</p><p>Getting an adequate cover for meeting the family needs from the ULIP plans becomes quite expensive as one would have to pay hefty premiums for that. Also, the part of premium which is actually invested for generating returns is reduced with the high management &amp; other charges imposed on them, which would mean lower returns on investments.</p><p>Another major disadvantage of ULIPs is their lock-in period. ULIPs have a 5 year lock-in period. Even beyond that, in case of redemption the surrender value is much lower than the value of the units held. So, in case you are in need of funds you need to forego a fairly substantial amount.</p><p>Also Read : <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/arn-number">Amfi Registration Number</a></p><h3>What are the alternatives ?</h3><p>Investors should consider making separate purchases for meeting both their insurance &amp; investment needs. A great option would be to&nbsp; buy a term insurance policy with adequate cover as per the needs of the family. For investments, it would be better to invest in more conventional investment products, such as mutual funds - equity, debt or hybrid funds, stocks, small savings instruments, bonds, etc. The choice of instrument would depend on the investors risk appetite, investment horizon &amp; financial goals. It would also depend on the investors comfort and understanding of each of these products. For amateurs, mutual funds are surely the most suited product.</p><p>Choosing these alternatives in place of the Combo (Insurance + Investment) providing ULIP plans, investors would be better off in terms of both costs &amp; returns.</p><h4>FAQs&nbsp;</h4><p>Q. What is NAV ?</p><p>A. NAV is Net Asset Value which is the cost of units of a fund and is estimated in Indian Rupees.</p><p>Q.&nbsp; What is the lock-in period ?&nbsp;</p><p>A. Lock-in period is the period for which money invested in ULIP is kept locked and can’t be withdrawn in this period.&nbsp;</p><p>Q. Are there any charges related to ULIP ?</p><p>A. Yes, there are two types of charges usually namely mortality charge and premium allocation.</p><p>Q. Is it possible to surrender ULIP ?</p><p>A. Yes, as per IRDA guidelines, it is possible to surrender ULIPs after paying surrender charges.</p><p>Q. What is a free-look period ?</p><p>A. Free-look period is a period starting from the date of commencement of the policy till a few days in which it is possible to cancel the plan without any penalties.</p><p>Q. Is there any free-look period in ULIPs ?</p><p>A. Yes, usually there is a free-look period of around 30 days offered by some insurance companies.</p><p>Q.&nbsp; What is a unit ?</p><p>A. Unit is a constituent of a fund in Unit Linked Policy.</p><p>Read More Articles :&nbsp;</p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/mfd-karein-shuru">MFD Karein Shuru</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-mock-test">Free NISM Mock Test Series</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/reliance-health-insurance-plan">Reliance Health Insurance Policy</a></p>

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NISM Series VIII - Equity Derivatives Mock Test

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NISM Series VIII - Equity Derivatives Mock Test | ZFunds

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<p>Unlock unlimited access to 600+ FREE NISM Series VIII Mock Tests Q&amp;A with easy-to-understand explanations at ZERO cost – no hidden charges! Join the 5400+ successful candidates who have passed their exams with ZFunds. Prepare effectively with the 50 most common Q&amp;A and guarantee your success.</p><h2>NISM Series VIII Mock Test&nbsp;</h2><figure class="table"><table><tbody><tr><td><strong>Exam</strong></td><td><strong>Question&nbsp;</strong></td><td><strong>Marks</strong></td><td><strong>Free Mock Test</strong></td></tr><tr><td>NISM Series VIII</td><td>50</td><td>50</td><td><a target="_blank" rel="noopener noreferrer" href="https://forms.office.com/Pages/ResponsePage.aspx?id=DQSIkWdsW0yxEjajBLZtrQAAAAAAAAAAAAO__VnqvuNUN1ZKMkEzOEIyNE5OMzJJNUFEVzZINE5NMS4u">Free Mock Test 1</a></td></tr><tr><td>NISM Series VIII</td><td>50</td><td>50</td><td><a target="_blank" rel="noopener noreferrer" href="https://forms.office.com/Pages/ResponsePage.aspx?id=DQSIkWdsW0yxEjajBLZtrQAAAAAAAAAAAAO__VnqvuNUNUxVODZRRk9XVDc2M1BTTTdHWkMxOVRUSS4u">Free Mock Test 2</a></td></tr><tr><td>NISM Series VIII</td><td>50</td><td>50</td><td><a target="_blank" rel="noopener noreferrer" href="https://forms.office.com/Pages/ResponsePage.aspx?id=DQSIkWdsW0yxEjajBLZtrQAAAAAAAAAAAAO__VnqvuNUMFE0N041UE5ITUxQR1JCOEFWMlhQRzNZSy4u">Free Mock Test 3</a></td></tr><tr><td>NISM Series VIII</td><td>50</td><td>50</td><td><a target="_blank" rel="noopener noreferrer" href="https://forms.office.com/Pages/ResponsePage.aspx?id=DQSIkWdsW0yxEjajBLZtrQAAAAAAAAAAAAO__VnqvuNUMVpRQjlVTURVS1NXQk5WSFRLSUZEQlhWMi4u">Free Mock Test 4</a></td></tr><tr><td>NISM Series VIII</td><td>50</td><td>50</td><td><a target="_blank" rel="noopener noreferrer" href="https://forms.office.com/Pages/ResponsePage.aspx?id=DQSIkWdsW0yxEjajBLZtrQAAAAAAAAAAAAO__VnqvuNUMDc5TlFGMFRXR0pEQVdFSEEyVlhBQlAzNC4u">Free Mock Test 5</a></td></tr><tr><td>NISM Series VIII</td><td>50</td><td>50</td><td><a target="_blank" rel="noopener noreferrer" href="https://forms.office.com/Pages/ResponsePage.aspx?id=DQSIkWdsW0yxEjajBLZtrQAAAAAAAAAAAAO__VnqvuNUNVNUNkdFMTVZQjJTSk83MjBQWFBHNkMyVC4u">Free Mock Test 6</a></td></tr><tr><td>NISM Series VIII</td><td>100</td><td>100</td><td><a target="_blank" rel="noopener noreferrer" href="https://forms.office.com/Pages/ResponsePage.aspx?id=DQSIkWdsW0yxEjajBLZtrQAAAAAAAAAAAAO__VnqvuNUREU2UkNWR002TVJYSlVPMkxKTEhGNlNaTi4u">Last Day Revision Mock Test 7</a></td></tr><tr><td>NISM Series VIII</td><td>100</td><td>100</td><td><a target="_blank" rel="noopener noreferrer" href="https://forms.office.com/Pages/ResponsePage.aspx?id=DQSIkWdsW0yxEjajBLZtrQAAAAAAAAAAAAO__VnqvuNUNlhHNEhHSFpRTlM5QlY1TElRVkE3RDlMOC4u">Last Day Revision Mock Test 8</a></td></tr><tr><td>NISM Series VIII</td><td>100</td><td>100</td><td><a target="_blank" rel="noopener noreferrer" href="https://forms.office.com/Pages/ResponsePage.aspx?id=DQSIkWdsW0yxEjajBLZtrQAAAAAAAAAAAAO__VnqvuNUQzVIWTQ4VzU0VVc0TUZEU09WU0k2VU1JWS4u">Last Day Revision Mock Test 9</a></td></tr></tbody></table></figure><h2>What is NISM Series VIII - Equity Derivatives Mock Test?</h2><p>NISM Series VIII - Equity Derivatives Mock Test is designed for individuals preparing for the NISM Series VIII Certification Exam. It checks individuals' knowledge and skills in the equity derivatives market. Whether you’re just starting your journey or looking to enhance your skills in this dynamic field, ZFunds offers an excellent opportunity to prepare for the NISM Series VIII exam with free mock tests and certification courses. In this article, we will explore the importance of the NISM Series 8 exam, its structure, the topics it covers, and how ZFunds' free mock test can help you ace the exam at zero cost.</p><h2>What is NISM Series VIII - Equity Derivatives Certification Exam?</h2><p>NISM Series VIII - Equity Derivatives Certification Exam is a specialized exam that is conducted by the National Institute of Securities Market. This certification is mandatory for positions such as traders, salespeople, research analysts, and other individuals who are working directly or indirectly with equity derivatives products, including stock futures, options, and index derivatives. As equity derivatives are highly complex and risky, this certification exam aims for a better understanding in various derivatives products available in equity derivatives markets, regulations and risks associated with the products, and the exchange mechanisms of clearing and settlement. It&nbsp; adds value to your resume as NISM, an institution that is recognized by SEBI (Securities and Exchange Board of India) and aims to elevate the competence and standards of professionals in the securities market.</p><h2>Exam Format of NISM Equity Derivatives Exam:</h2><ol><li>NISM Equity Derivatives Exam has Multiple-choice questions (MCQs).</li><li>There are a total of 100 Questions in the exam.</li><li>Each question carries 1 Mark and the total mark is 100.</li><li>The duration of the exam is 120 minutes (2 hours).</li><li>You need to score at least 60% (which means at least 60 marks) to pass the exam.</li><li>There is a 25% negative marking for wrong answers, so it’s advised to attempt questions that you are sure about.</li></ol><h2>New Syllabus of NISM Series 8 Certification ( NISM Equity Derivative Exam VIII)</h2><ul><li>Basics of Derivatives</li><li>Understanding Index</li><li>Introduction to Forwards and Futures</li><li>Introduction to Options</li><li>Option Trading Strategies</li><li>Introduction to Trading Systems</li><li>Introduction to Clearing and Settlement System</li><li>Legal and Regulatory Environment</li><li>Accounting and Taxation</li><li>Sales Practices and Investor Protection Services</li></ul><h2>Eligibility Criteria of&nbsp; NISM Series VIII - Equity Derivatives Certification Exam</h2><p>The NISM Series VIII certification exam does not have any specific educational or professional prerequisites. It is open to anyone interested in gaining knowledge in equity derivatives and seeking employment in the relevant fields. However, individuals involved in the trading, advising, or analysis of equity derivatives products are the most likely candidates for the exam. The eligibility criteria for the NISM Series VIII certification exams in India are:</p><ul><li>Age Requirement: There is no specific age requirement for NISM series VIII exams but the candidates should be at least 18 years old.</li><li>Educational Qualification: There are no specific educational qualification requirements but he/she should be 12th pass and have basic understanding of equity derivatives products will be beneficial.</li><li>Professional Background: No prior experience is required to opt for NISM Series VIII certificate</li><li>Nationality: NISM Series 8 certifications are open to both Indian and international candidates, with no restrictions based on nationality.</li><li>Validity: The equity derivatives certification is valid for 3 years. After that, you have to apply again.</li></ul><p>These criteria allow a wide range of individuals, including students, professionals, and those new to the financial industry, to pursue <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-certification">NISM certifications</a>.</p><h2>Mode to Appear in the &nbsp;NISM Series VIII - Equity Derivatives Certification Exam:</h2><ol><li>A person can apply for the NISM Series 8 in both online and offline mode.</li><li>A person can apply for a NISM series VIII in both English and Hindi whichever language he is comfortable with.</li></ol><ul><li>Sample <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-mock-test">NISM Mock Test</a> in English</li><li>Sample <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hindi/nism-mock-test">NISM Mock Test in Hindi</a></li></ul><h2>Benefits of NISM Certification</h2><ol><li>Mandatory Requirement: There are many positions in the financial industry in which NISM Series 8 certification is a mandatory requirement.</li><li>Enhancing Professional Credibility: NISM Series VIII certification ensures credibility with clients, employers, and regulatory authorities and shows the knowledge and skills of the person who wants to pursue a career in the equity derivative market.</li><li>Continuous Learning: The validity of NISM Series VIII is 3 years. It ensures continued learning and stays up-to-date with the derivative market.</li><li>Investor Protection: NISM Series VIII Certificates provide investors protection so that only professional individuals can give services and advice&nbsp;to investors.</li><li>Higher salary: After doing NISM Series VIII certification, candidates can get a high salary as they are more valuable to your employees.</li><li>Exam Structure: NISM Series VIII exams consist of multiple-choice questions covering both theoretical knowledge and practical aspects.</li><li>Preparation Resources: Numerous resources, including study material, online courses, and <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-mock-test">sample nism mock tests Paper</a>, are available to help candidates prepare for NISM Series VIII exams.</li></ol><h2>ZFunds NISM certification series 8 mock tests&nbsp;</h2><p>We at ZFunds have designed various sample <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-mock-test">Nism mock tests</a> for NISM Equity Derivatives and even provide free online sessions so that you can easily clear the NISM Series 8 exam. So start your online preparation at zero cost with FREE NISM Certifications + ARN worth Rs. 5040</p><p>NISM certification series 8 mock tests cover all the topics included in the NISM Equity Derivatives syllabus, such as derivatives market structure, trading strategies, and risk management. It includes a wide range of questions, like multiple-choice, true/false, and scenario-based questions, to ensure candidates are well-prepared for any question format they may encounter during the exam. By attempting the NISM certification mock test, candidates become more comfortable with the exam format, improve their time management skills, assess their knowledge, identify areas for improvement, and it also boost their confidence.&nbsp;</p><h2>NISM Series VIII Equity Derivatives Exam Preparation</h2><p>Preparing for the NISM Series VIII exam requires a focused approach, as it is both vast and complex. Here are some tips to help you prepare effectively:</p><ul><li>Study the NISM Series VIII Material: ZFunds provides study material and helps in preparation for NISM Series VIII Equity Derivatives Certification Exam. You can enroll in the free <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-certification-training-program">NISM Certification Training Program</a> which is the best resource for exam preparation.</li><li>Take Practice Tests: You can also check out some free mock tests available online to improve your time management and identify areas where you need to focus further.</li><li>Stay Updated with Market Developments: As the financial markets are constantly evolving, it is important to stay updated on recent trends and regulatory changes, especially related to the equity derivatives market.</li><li>Join Training Programs: You can join some institutions that offer NISM Series VIII courses. These programs often include mock tests, study sessions, and guidance from industry experts.</li></ul><h2>Conclusion</h2><p>The NISM Series VIII - Equity Derivatives Certification Exam is an essential and mandatory certificate if you are looking to work in the equity derivatives market in India. Whether you want to pursue your career or meet regulatory requirements, passing the NISM Series 8 exam helps you manage the risk and complexities of equity derivatives trading. With the right preparation, candidates can understand market mechanics, risk management, time management, and trading strategies, which will enhance their skills in this dynamic derivative segment of the financial markets.</p><p>By obtaining the NISM Series VIII certification, professionals can gain the knowledge, credibility, and confidence to make their place in the fast-growing world of equity derivatives.</p><h4>Also Read:</h4><figure class="table"><table><tbody><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-mock-test">NISM Mock Test</a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hindi/nism-mock-test">NISM Mock Test In Hindi</a></td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-series-v-a-mutual-fund-distributors">NISM VA Mock Test</a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-series-xxi-b-portfolio-management-pms-mock-test">Portfolio Management (PMS) Mock Test</a></td></tr></tbody></table></figure><h2>Frequent Ask Questions about NISM Series VIII - Equity Derivatives Certification Exam&nbsp;&nbsp;</h2><h3>Q. What is NISM VIII certification?</h3><p>The NISM Series VIII certification is the NISM exam that is conducted by the National Institute of Securities Markets (NISM). It is for individuals who wish to work in the equity derivatives market.&nbsp;</p><h3>Q. Is the NISM 8 exam tough?</h3><p>NISM Series 8 exam is not tough, you can easily crack it with courses or by practicing Mock Tests. If you are going to apply to NISM Series VIII, you should thoroughly study the syllabus and take mock tests in order to practice it regularly.</p><h3>Q. What are the passing criteria for the NISM Series 8 exam?</h3><p>The passing criteria for the NISM Series 8 exam is a minimum of 60% marks.</p><h3>Q. Why should I take the NISM 8 certification exam?</h3><p>A. Taking the <a href="\&quot;https://zfunds.in/m/nism-certification\&quot;">NISM exam</a> validates your expertise and knowledge in equity derivatives. It enhances your credibility and increases your career prospects. It is also mandatory for several positions in the equity derivatives market.&nbsp;</p><h3>Q. Is this course provided by ZFunds?</h3><p>A. The NISM 8 certificate exam is conducted by the National Institute of Securities Markets (NISM), an educational institution established by the <a href="\&quot;https://zfunds.in/m/what-is-sebi\&quot;">Securities and Exchange Board of India</a> (SEBI). NISM is responsible for developing and conducting various certification examinations for individuals seeking to build a career in the Indian securities market.&nbsp;</p><h3>Q. What are the different names of the Equity Derivatives Exam?</h3><p>A. Some common alternative names for the Equity Derivatives Exam include NISM Series VIII Certification, NISM 8 Certification, Equity Derivatives Certification Examination, Equity Derivatives Module Exam, Derivatives Market Certification, etc.&nbsp;</p><h3>Q. What are the fees for NISM 8 certification?&nbsp;</h3><p>A. The fee for the NISM Series 8 certification is Rs 1500. But it can vary so it is recommended to visit the official NISM website or contact NISM directly for the most up-to-date information regarding the certification fees.</p><h3>Q. How long is NISM Series 8 valid for?&nbsp;</h3><p>A. The validity period of the NISM Series 8 certification typically lasts for three years from the date of successfully passing the examination. After this period, individuals may need to renew or reappear for the certification examination to maintain the validity of their certification. Renewal requirements might involve completing continuing education or refresher courses to ensure that certified professionals stay updated with the latest developments in equity derivatives and related areas.</p>

Pradhan Mantri Fasal Bima Yojana (PMFBY): Check here PMFBY crop insurance benefits, objective, eligibility criteria, risk coverage and all other details.

Pradhan Mantri Fasal Bima Yojana (PMFBY): PMFBY Crop Insurance Benefits, Eligibility, Coverage

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<h2>Pradhan Mantri Fasal Bima Yojna (PMFBY)</h2><p>Pradhan Mantri Fasal Bima Yojna was launched by prime minister Narendra Modi on 18 February 2016. It offers insurance coverage to the farmers in case of crop damage/failures. This crop insurance was in line with the One Nation-One Scheme as it was launched by replacing the previously launched schemes like National Agricultural Insurance Scheme (NAIS) and Modified National Agricultural Insurance Scheme (MNAIS). PMFBY is designed in a way that it comprises the best features of previous schemes while removing their drawbacks. The scheme aims to give early settlement of the sum assured and reducing the premium burden on farmers.</p><p>PMFBY provides comprehensive insurance cover for the failure of the crop which helps in reviving the income of the farmers. The scheme covers all annual commercial and horticultural crops along with all food and oilseed crops. This scheme is compulsory for farmers availing crop loan or KCC account for notified crops. While it is voluntary for others.</p><p>The Ministry of Agriculture has been administering the PMFBY.</p><h2>Objectives of PMFBY:</h2><ul><li>The scheme aims to provide financial and insurance coverage to the farmers who notified any crop failure because of any natural calamities, pests, or disease.</li><li>The scheme will aim to stabilize the income of farmers to ensure that they continue to do farming.</li><li>The scheme will encourage farmers to adopt modern and innovative agricultural practices.</li><li>The scheme will ensure the flow of credit in the agricultural sector.</li></ul><h2>Highlights of PMFBY:</h2><ul><li>The premium to be paid by the farmers is only 2% for all Kharif crops and for all rabi crops, it is 1.5%. In the case of annual commercial or horticultural crops, only a 5% premium is to be paid by the farmers. The premium rates to be paid by farmers are very low and the rest will be borne by the government to provide the whole sum assured against crop loss on natural calamities.</li><li>There is no limit for the coverage. Even if the balance premium is high then also it will be borne by the government.</li><li>Previously, there was a capping on premium rates which resulted in lower claims to farmers. The objective behind this capping was to limit the Government outgo on subsidies for premiums. Now, this capping has been removed and the scheme will ensure full sum insured to farmers.</li><li>The scheme will encourage the use of the latest technology. To bring down the delay in claims to farmers, smartphones will be used to capture and upload data of crop cutting.</li><li>As NAIS and MNAIS have been replaced with the newly launched PMFBY, the exemption from the service tax liability will be given to all services which are involved in the implementation of the scheme. The new scheme is expected to offer subsidies of up to 75-80% of insurance premiums to farmers.</li></ul><h2>Coverage of PMFBY:</h2><p>The farmers who are growing specific crops in a notified area in the crop season and also have insurable interests are eligible for PMFBY.</p><p>With a high demand among farmers, the scheme has now been made voluntary for all the farmers from Kharif 2020.</p><p>Earlier, the enrollment for the scheme was compulsory for the farmers of the below categories:</p><ul><li>Farmers who grow crops in the notified area and have a crop loan or KCC account.</li><li>Such other farmers as per the decision of the government.</li></ul><p>Voluntary Coverage: It can be obtained by all the farmers who are not covered under the above category. It also allows coverage to farmers who hold crop loans or KCC accounts whose credit limit is not renewed.</p><h2>Coverage of crops:</h2><ol><li><strong>Oilseeds</strong></li><li><strong>Food crop</strong></li><li><strong>Annual Commercial or Annual Horticultural crops.</strong></li></ol><h2>Coverage of Risks:</h2><ol><li><strong>Prevented snowing, planting, and Germination Risk: </strong>In this risk, the area which is insured is prevented from sowing, planting, and germination because of deficit rainfall or adverse seasonal or weather conditions.</li><li><strong>Standing crop: </strong>A comprehensive risk insurance is given to cover yield losses because of non-preventable risks which are drought, dry spell, fire due to natural causes, and many more.</li><li><strong>Post-harvest losses: </strong>In this, the coverage is only given for up to a maximum period of two weeks from harvesting for the crops which are dried, cut, and spread after harvesting.</li><li><strong>Localized calamities:</strong> The losses and damages of notified crops arising from occurrences of identified localized risk of hailstorm, landslide, cloudburst, inundation, and natural fire due to lightning.</li><li><strong>Add-on coverage for crop loss: </strong>The coverage is also given for crop loss because of the attack of wild animals wherever the risk is perceived to be sustainable and is identified.</li></ol><h2>Comparison of Pradhan Mantri Fasal Bima Yojana with other schemes</h2><figure class="table"><table><tbody><tr><td>&nbsp;</td><td><strong>Pradhan Mantri Fasal Bima Yojana</strong></td><td><strong>National Agricultural Insurance Scheme (NAIS) - 1999</strong></td><td><strong>Modified National Agricultural Insurance Scheme (MNAIS) - 2010</strong></td></tr><tr><td><strong>Premium Rate</strong></td><td><strong>Low (Lower even than NAIS), Contribution will be done 5 times more by the government</strong></td><td><strong>Low</strong></td><td><strong>High (9% to 15%)</strong></td></tr><tr><td><strong>Insurance amount cover</strong></td><td><strong>Full</strong></td><td><strong>Full</strong></td><td><strong>Capped</strong></td></tr><tr><td><strong>On account payment</strong></td><td><strong>Yes&nbsp;</strong></td><td><strong>No</strong></td><td><strong>Yes</strong></td></tr><tr><td><strong>Localized risk coverage</strong></td><td><strong>Hail storm, Landslide, and inundation</strong></td><td><strong>No</strong></td><td><strong>Hail storm and Landslide</strong></td></tr><tr><td><strong>Prevented sowing coverage</strong></td><td><strong>Yes</strong></td><td><strong>No</strong></td><td><strong>Yes</strong></td></tr><tr><td><strong>Post-Harvest losses coverage</strong></td><td><strong>All India for cyclonic and unseasonal rain</strong></td><td><strong>No</strong></td><td><strong>For only cyclonic rain in coastal areas&nbsp;</strong></td></tr><tr><td><strong>Use of technology</strong></td><td><strong>Mandatory</strong></td><td><strong>No</strong></td><td><strong>Intended</strong></td></tr><tr><td><strong>Awareness</strong></td><td><strong>Yes and has a target to double the coverage to 50%</strong></td><td><strong>No</strong></td><td><strong>No</strong></td></tr></tbody></table></figure><h2>How to apply for Pradhan Mantri Fasal Bima Yojana?</h2><p>The crop insurance can be applied online by the farmers.</p><p><a href="https://pmfby.gov.in/">Click here</a> to go to the official website from where the scheme can be applied or the calculation of the insurance premium can be done.</p><p>&nbsp;</p>

प्रधानमंत्री फसल  बीमा योजना (PMFBY) PMFBY फसल बीमा लाभ, पात्रता, कवरेज

<h2>प्रधानमंत्री फसल&nbsp; बीमा योजना (PMFBY)</h2><p>प्रधानमंत्री फसल&nbsp; बीमा योजना, प्रधानमंत्री नरेंद्र मोदी द्वारा 18 फरवरी 2016 को शुरू की गई थी। यह किसानों को फसल क्षति / विफलताओं के मामले में बीमा कवरेज प्रदान करती है। यह फसल बीमा वन नेशन-वन स्कीम के अनुरूप था क्योंकि इसे पहले लॉन्च की गई योजनाओं जैसे राष्ट्रीय कृषि बीमा योजना (NAIS) और संशोधित राष्ट्रीय कृषि बीमा योजना (MNAIS) के द्वारा लॉन्च किया गया था। PMFBY को इस तरह से डिज़ाइन किया गया है कि इसमें कमियों को दूर करते हुए पिछली योजनाओं की सर्वोत्तम विशेषताएं शामिल हैं। इस योजना का उद्देश्य किसानों को बीमा राशि का शीघ्र निपटान और किसानों पर प्रीमियम बोझ को कम करना है।</p><p>PMFBY फसल की विफलता के लिए व्यापक बीमा कवर प्रदान करता है जो किसानों की आय को पुनर्जीवित करने में मदद करता है। यह योजना सभी वार्षिक वाणिज्यिक और बागवानी फसलों के साथ-साथ सभी खाद्य और तिलहनी फसलों को कवर करती है। अधिसूचित फसलों के लिए फसल ऋण या केसीसी खाते वाले किसानों के लिए यह योजना अनिवार्य है। जबकि यह दूसरों के लिए स्वैच्छिक है।</p><p>कृषि मंत्रालय PMFBY का प्रशासन करता रहा है।</p><h2>PMFBY के उद्देश्य:</h2><p>● इस योजना का उद्देश्य किसानों को वित्तीय और बीमा कवरेज प्रदान करना है जिन्होंने किसी भी प्राकृतिक आपदा, कीट या बीमारी के कारण किसी भी फसल की विफलता को अधिसूचित किया है।</p><p>● इस योजना का उद्देश्य किसानों की आय को स्थिर करना होगा ताकि वे खेती करना जारी रख सकें।</p><p>● योजना किसानों को आधुनिक और नवीन कृषि पद्धतियों को अपनाने के लिए प्रोत्साहित करेगी।</p><p>● यह योजना कृषि क्षेत्र में ऋण के प्रवाह को सुनिश्चित करेगी।</p><h2>PMFBY की मुख्य विशेषताएं:</h2><p>● किसानों द्वारा भुगतान की जाने वाली प्रीमियम सभी खरीफ फसलों के लिए केवल 2% है और सभी रबी फसलों के लिए, यह 1.5% है। वार्षिक वाणिज्यिक या बागवानी फसलों के मामले में, किसानों द्वारा केवल 5% प्रीमियम का भुगतान किया जाना है। किसानों द्वारा भुगतान की जाने वाली प्रीमियम दरें बहुत कम हैं और शेष राशि सरकार द्वारा प्राकृतिक आपदाओं पर फसल क्षति के लिए पूरी बीमा राशि प्रदान की जाएगी।</p><p>● कवरेज के लिए कोई सीमा नहीं है। अगर बैलेंस प्रीमियम अधिक है, तो भी यह सरकार द्वारा वहन किया जाएगा।</p><p>● इससे पहले, प्रीमियम दरों पर एक कैपिंग थी, जिसके परिणामस्वरूप किसानों को कम दावे मिलते थे। इस कैपिंग के पीछे उद्देश्य प्रीमियम के लिए सरकार की सब्सिडी को सीमित करना था। अब, इस कैपिंग को हटा दिया गया है और यह योजना किसानों को पूर्ण बीमा राशि सुनिश्चित करेगी।</p><p>● योजना नवीनतम प्रौद्योगिकी के उपयोग को प्रोत्साहित करेगी। किसानों को दावों में देरी को कम करने के लिए, स्मार्टफोन का उपयोग फसल काटने के डेटा को रिकॉर्ड करने और अपलोड करने के लिए किया जाएगा।</p><p>● चूंकि एनएआईएस और एमएनएआईएस को नए लॉन्च किए गए PMFBY के साथ बदल दिया गया है, सेवा कर देयता से छूट उन सभी सेवाओं को दी जाएगी जो योजना के कार्यान्वयन में शामिल हैं। नई योजना से किसानों को 75-80% तक का बीमा प्रीमियम देने की उम्मीद है।</p><h2>PMFBY का कवरेज:</h2><p>वे किसान जो फसल के मौसम में अधिसूचित क्षेत्र में विशिष्ट फसलें उगा रहे हैं और जिनके पास बीमा योग्य हित हैं, वे PMFBY के लिए पात्र हैं।</p><p>किसानों के बीच एक उच्च मांग के साथ, इस योजना को अब खरीफ 2020 से सभी किसानों के लिए स्वैच्छिक कर दिया गया है।</p><p>इससे पहले, योजना के लिए नामांकन निम्न श्रेणियों के किसानों के लिए अनिवार्य था:</p><p>● वे किसान जो अधिसूचित क्षेत्र में फसल उगाते हैं और जिनके पास फसली ऋण या KCC खाता है।</p><p>● सरकार के निर्णय के अनुसार ऐसे अन्य किसान।</p><p>स्वैच्छिक कवरेज: यह उन सभी किसानों द्वारा प्राप्त किया जा सकता है जो उपरोक्त श्रेणी के अंतर्गत नहीं आते हैं। यह उन किसानों को भी कवरेज देता है जो फसल ऋण या केसीसी खाते रखते हैं जिनकी ऋण सीमा का नवीनीकरण नहीं किया जाता है।</p><h2>फसलों का कवरेज:</h2><p>1. तिलहन</p><p>2. खाद्य फसल</p><p>3. वार्षिक वाणिज्यिक, या वार्षिक बागवानी फसलें।</p><h2>जोखिम का कवरेज:</h2><p>1. रोका बर्फ, रोपण, और अंकुरण जोखिम: इस जोखिम में, जिस क्षेत्र का बीमा किया जाता है उसे बुवाई, रोपण और नुकसान की बारिश या प्रतिकूल मौसमी या मौसम की स्थिति के कारण अंकुरण से रोका जाता है।</p><p>2. स्थायी फसल: गैर-रोके जाने वाले जोखिमों के कारण उपज के नुकसान को कवर करने के लिए एक व्यापक जोखिम बीमा दिया जाता है जो प्राकृतिक कारणों से सूखा, सूखा जादू, आग और कई और अधिक हैं।</p><p>3. फसल कटाई के बाद के नुकसान: इसमें फसल की कटाई के बाद केवल दो सप्ताह तक की अवधि के लिए कवरेज दिया जाता है।</p><p>4. स्थानीयकृत आपदाएँ: बिजली के कारण ओलावृष्टि, भूस्खलन, बादल फटने, बाढ़ और प्राकृतिक आग सहित पहचाने गए स्थानीयकृत जोखिमों की घटनाओं से उत्पन्न अधिसूचित फसलों के नुकसान।</p><p>5. फसल हानि के लिए कवरेज जोड़ें: जंगली जानवरों के हमले के कारण फसल नुकसान के लिए भी कवरेज दिया जाता है, जहां जोखिम को स्थायी माना जाता है और पहचाना जाता है।</p>

ਪ੍ਰਧਾਨ ਮੰਤਰੀ ਫਸਲ ਬੀਮਾ ਯੋਜਨਾ (ਪੀਐਮਐਫਬੀਵਾਈ): ਇੱਥੇ ਪੀਐਮਐਫਬੀਵਾਈ ਫਸਲ ਬੀਮਾ ਲਾਭ, ਉਦੇਸ਼, ਯੋਗਤਾ ਦੇ ਮਾਪਦੰਡ, ਜੋਖਮ ਕਵਰੇਜ ਅਤੇ ਹੋਰ ਸਾਰੇ ਵੇਰਵਿਆਂ ਦੀ ਜਾਂਚ ਕਰੋ

ਪ੍ਰਧਾਨ ਮੰਤਰੀ ਫਸਲ ਬੀਮਾ ਯੋਜਨਾ (ਪੀਐਮਐਫਬੀਵਾਈ): ਪੀਐਮਐਫਬੀਵਾਈ ਫਸਲ ਬੀਮਾ ਲਾਭ, ਯੋਗਤਾ, ਕਵਰੇਜ

<h2>ਪ੍ਰਧਾਨ ਮੰਤਰੀ ਫਾਸਲ ਬੀਮਾ ਯੋਜਨਾ (ਪੀਐਮਐਫਬੀਵਾਈ)</h2><p>ਪ੍ਰਧਾਨ ਮੰਤਰੀ ਫਸਲ ਬੀਮਾ ਯੋਜਨਾ 18 ਫਰਵਰੀ, 2016 ਨੂੰ ਪ੍ਰਧਾਨ ਮੰਤਰੀ ਨਰਿੰਦਰ ਮੋਦੀ ਦੁਆਰਾ ਸ਼ੁਰੂ ਕੀਤੀ ਗਈ ਸੀ। ਇਹ ਫਸਲਾਂ ਦੇ ਨੁਕਸਾਨ / ਅਸਫਲਤਾਵਾਂ ਦੇ ਮਾਮਲੇ ਵਿੱਚ ਕਿਸਾਨਾਂ ਨੂੰ ਬੀਮਾ ਕਵਰੇਜ ਦੀ ਪੇਸ਼ਕਸ਼ ਕਰਦੀ ਹੈ। ਇਹ ਫਸਲ ਬੀਮਾ ਵਨ ਨੈਸ਼ਨ-ਵਨ ਸਕੀਮ ਦੇ ਅਨੁਕੂਲ ਸੀ, ਕਿਉਂਕਿ ਇਹ ਪਹਿਲਾਂ ਸ਼ੁਰੂ ਕੀਤੀ ਗਈ ਯੋਜਨਾਵਾਂ ਜਿਵੇਂ ਕਿ ਰਾਸ਼ਟਰੀ ਖੇਤੀਬਾੜੀ ਬੀਮਾ ਯੋਜਨਾ (ਐਨ.ਏ.ਆਈ.ਐੱਸ.) ਅਤੇ ਸੋਧੀ ਹੋਈ ਰਾਸ਼ਟਰੀ ਖੇਤੀਬਾੜੀ ਬੀਮਾ ਯੋਜਨਾ (ਐਮ.ਐਨ.ਏ.ਆਈ.ਐੱਸ.) ਦੀ ਥਾਂ ਲੈ ਕੇ ਸ਼ੁਰੂ ਕੀਤੀ ਗਈ ਸੀ। ਪੀਐਮਐਫਬੀਵਾਈ ਨੂੰ ਇਸ ਤਰੀਕੇ ਨਾਲ ਤਿਆਰ ਕੀਤਾ ਗਿਆ ਹੈ ਕਿ ਇਹ ਪਿਛਲੀਆਂ ਸਕੀਮਾਂ ਦੀਆਂ ਸਭ ਤੋਂ ਵਧੀਆ ਵਿਸ਼ੇਸ਼ਤਾਵਾਂ ਨੂੰ ਸ਼ਾਮਲ ਕਰਦਾ ਹੈ ਜਦੋਂ ਕਿ ਉਨ੍ਹਾਂ ਦੀਆਂ ਕਮੀਆਂ ਨੂੰ ਦੂਰ ਕਰਦਾ ਹੈ| ਯੋਜਨਾ ਦਾ ਉਦੇਸ਼ ਹੈ ਕਿ ਬੀਮੇ ਦੀ ਰਕਮ ਦਾ ਛੇਤੀ ਨਿਪਟਾਰਾ ਕਰਨਾ ਅਤੇ ਕਿਸਾਨਾਂ 'ਤੇ ਪ੍ਰੀਮੀਅਮ ਦਾ ਬੋਝ ਘੱਟ ਕਰਨਾ|</p><p>ਪੀਐਮਐਫਬੀਵਾਈ ਫਸਲ ਦੀ ਅਸਫਲਤਾ ਲਈ ਵਿਆਪਕ ਬੀਮਾ ਕਵਰ ਪ੍ਰਦਾਨ ਕਰਦਾ ਹੈ ਜੋ ਕਿ ਕਿਸਾਨਾਂ ਦੀ ਆਮਦਨੀ ਨੂੰ ਮੁੜ ਸੁਰਜੀਤ ਕਰਨ ਵਿੱਚ ਸਹਾਇਤਾ ਕਰਦਾ ਹੈ| ਇਸ ਯੋਜਨਾ ਵਿੱਚ ਭੋਜਨ ਅਤੇ ਤੇਲ ਬੀਜ ਦੀਆਂ ਸਾਰੀਆਂ ਫਸਲਾਂ ਦੇ ਨਾਲ-ਨਾਲ ਸਾਰੀਆਂ ਸਲਾਨਾ ਵਪਾਰਕ ਅਤੇ ਬਾਗਬਾਨੀ ਫਸਲਾਂ ਨੂੰ ਸ਼ਾਮਲ ਕੀਤਾ ਗਿਆ ਹੈ| ਇਹ ਸਕੀਮ ਫਸਲੀ ਕਰਜ਼ੇ ਜਾਂ ਕੇਸੀਸੀ ਖਾਤੇ ਪ੍ਰਾਪਤ ਕਰਨ ਵਾਲੀਆਂ ਨੋਟੀਫਾਈਡ ਫਸਲਾਂ ਲਈ ਲਾਜ਼ਮੀ ਹੈ| ਜਦ ਕਿ ਇਹ ਦੂਜਿਆਂ ਲਈ ਸਵੈਇੱਛੁਕ ਹੈ|</p><p>ਖੇਤੀਬਾੜੀ ਮੰਤਰਾਲਾ ਪੀਐਮਐਫਬੀਵਾਈ ਨੂੰ ਚਲਾ ਰਿਹਾ ਹੈ|</p><h2>ਪੀਐਮਐਫਬੀਵਾਈ ਦੇ ਉਦੇਸ਼:</h2><p>ਇਸ ਯੋਜਨਾ ਦਾ ਉਦੇਸ਼ ਉਨ੍ਹਾਂ ਕਿਸਾਨਾਂ ਨੂੰ ਵਿੱਤੀ ਅਤੇ ਬੀਮਾ ਕਵਰੇਜ ਪ੍ਰਦਾਨ ਕਰਨਾ ਹੈ ਜਿਨ੍ਹਾਂ ਨੇ ਕਿਸੇ ਵੀ ਕੁਦਰਤੀ ਆਫ਼ਤਾਂ, ਕੀੜਿਆਂ ਜਾਂ ਬਿਮਾਰੀ ਕਾਰਨ ਕਿਸੇ ਵੀ ਫਸਲ ਦੀ ਅਸਫਲਤਾ ਨੂੰ ਸੂਚਿਤ ਕੀਤਾ ਸੀ|</p><p>ਇਸ ਯੋਜਨਾ ਦਾ ਉਦੇਸ਼ ਕਿਸਾਨਾਂ ਦੀ ਆਮਦਨੀ ਨੂੰ ਸਥਿਰ ਕਰਨਾ ਹੈ ਤਾਂ ਜੋ ਇਹ ਯਕੀਨੀ ਬਣਾਇਆ ਜਾ ਸਕੇ ਕਿ ਉਹ ਖੇਤੀ ਕਰਨਾ ਜਾਰੀ ਰੱਖਦੇ ਹਨ|</p><p>ਇਹ ਯੋਜਨਾ ਕਿਸਾਨਾਂ ਨੂੰ ਆਧੁਨਿਕ ਅਤੇ ਨਵੀਨਤਾਕਾਰੀ ਖੇਤੀਬਾੜੀ ਢੰਗ ਅਪਣਾਉਣ ਲਈ ਉਤਸ਼ਾਹਤ ਕਰੇਗੀ.</p><p>ਇਹ ਯੋਜਨਾ ਖੇਤੀਬਾੜੀ ਸੈਕਟਰ ਵਿੱਚ ਉਧਾਰ ਦਾ ਪ੍ਰਵਾਹ ਯਕੀਨੀ ਬਣਾਏਗੀ|</p><h2>PMFBY ਦੀਆਂ ਮੁੱਖ ਗੱਲਾਂ:</h2><p>ਕਿਸਾਨਾਂ ਦੁਆਰਾ ਭੁਗਤਾਨ ਕੀਤਾ ਜਾਣ ਵਾਲਾ ਪ੍ਰੀਮੀਅਮ ਸਾਰੀਆਂ ਸਾਉਣੀ ਦੀਆਂ ਫਸਲਾਂ ਅਤੇ ਸਾਰੀਆਂ ਹਾੜ੍ਹੀ ਦੀਆਂ ਫਸਲਾਂ ਲਈ ਸਿਰਫ 2% ਹੈ, ਇਹ 1.5% ਹੈ. ਸਾਲਾਨਾ ਵਪਾਰਕ ਜਾਂ ਬਾਗਬਾਨੀ ਫਸਲਾਂ ਦੇ ਮਾਮਲੇ ਵਿੱਚ, ਕਿਸਾਨਾਂ ਦੁਆਰਾ ਸਿਰਫ 5% ਪ੍ਰੀਮੀਅਮ ਦਾ ਭੁਗਤਾਨ ਕੀਤਾ ਜਾਣਾ ਹੈ. ਕਿਸਾਨਾਂ ਦੁਆਰਾ ਅਦਾ ਕੀਤੇ ਜਾਣ ਵਾਲੇ ਪ੍ਰੀਮੀਅਮ ਰੇਟ ਬਹੁਤ ਘੱਟ ਹਨ ਅਤੇ ਬਾਕੀ ਸਰਕਾਰ ਕੁਦਰਤੀ ਆਫ਼ਤਾਂ 'ਤੇ ਫਸਲਾਂ ਦੇ ਨੁਕਸਾਨ ਦੇ ਵਿਰੁੱਧ ਪੂਰੀ ਰਕਮ ਮੁਹੱਈਆ ਕਰਵਾਏਗੀ।</p><p>ਕਵਰੇਜ ਦੀ ਕੋਈ ਸੀਮਾ ਨਹੀਂ ਹੈ. ਇਥੋਂ ਤੱਕ ਕਿ ਜੇਕਰ ਬਕਾਇਆ ਪ੍ਰੀਮੀਅਮ ਉੱਚਾ ਹੈ ਤਾਂ ਇਹ ਵੀ ਸਰਕਾਰ ਸਹਿਣ ਕਰੇਗੀ.</p><p>ਪਹਿਲਾਂ, ਪ੍ਰੀਮੀਅਮ ਰੇਟਾਂ 'ਤੇ ਜ਼ੋਰ ਸੀ ਜਿਸ ਦੇ ਨਤੀਜੇ ਵਜੋਂ ਕਿਸਾਨਾਂ ਦੇ ਘੱਟ ਦਾਅਵੇ ਹੋਏ| ਇਸ ਕੈਪਿੰਗ ਦੇ ਪਿੱਛੇ ਦਾ ਉਦੇਸ਼ ਪ੍ਰੀਮੀਅਮਾਂ ਲਈ ਸਬਸਿਡੀਆਂ 'ਤੇ ਸਰਕਾਰ ਦੇ ਵਾਧੇ ਨੂੰ ਸੀਮਤ ਕਰਨਾ ਸੀ. ਹੁਣ, ਇਸ ਕੈਪਿੰਗ ਨੂੰ ਹਟਾ ਦਿੱਤਾ ਗਿਆ ਹੈ ਅਤੇ ਯੋਜਨਾ ਕਿਸਾਨਾਂ ਨੂੰ ਪੂਰੀ ਰਕਮ ਦਾ ਬੀਮਾ ਕਰਵਾਏਗੀ|</p><p>ਇਹ ਯੋਜਨਾ ਆਧੁਨਿਕ ਤਕਨਾਲੋਜੀ ਦੀ ਵਰਤੋਂ ਨੂੰ ਉਤਸ਼ਾਹਤ ਕਰੇਗੀ| ਕਿਸਾਨਾਂ ਦੇ ਦਾਅਵਿਆਂ ਵਿੱਚ ਦੇਰੀ ਨੂੰ ਦੂਰ ਕਰਨ ਲਈ, ਸਮਾਰਟਫੋਨ ਦੀ ਵਰਤੋਂ ਫਸਲਾਂ ਦੀ ਕਟਾਈ ਦਾ ਡਾਟਾ ਹਾਸਲ ਕਰਨ ਅਤੇ ਅਪਲੋਡ ਕਰਨ ਲਈ ਕੀਤੀ ਜਾਏਗੀ।</p><p>ਜਿਵੇਂ ਕਿ ਐਨਏਆਈਐਸ ਅਤੇ ਐਮਐਨਏਆਈਐਸ ਨੂੰ ਨਵੀਂ ਸ਼ੁਰੂਆਤ ਕੀਤੀ ਗਈ ਪੀਐਮਐਫਬੀਵਾਈ ਨਾਲ ਤਬਦੀਲ ਕਰ ਦਿੱਤਾ ਗਿਆ ਹੈ, ਸੇਵਾ ਕਰ ਦੇਣਦਾਰੀ ਤੋਂ ਛੋਟ ਉਨ੍ਹਾਂ ਸਾਰੀਆਂ ਸੇਵਾਵਾਂ ਨੂੰ ਦਿੱਤੀ ਜਾਏਗੀ ਜੋ ਇਸ ਯੋਜਨਾ ਨੂੰ ਲਾਗੂ ਕਰਨ ਵਿੱਚ ਸ਼ਾਮਲ ਹਨ| ਨਵੀਂ ਸਕੀਮ ਦੁਆਰਾ 75-80% ਤੱਕ ਦੇ ਬੀਮਾ ਪ੍ਰੀਮੀਅਮਾਂ ਨੂੰ ਸਬਸਿਡੀ ਦੇਣ ਦੀ ਉਮੀਦ ਕੀਤੀ ਜਾ ਰਹੀ ਹੈ।</p><h2>ਪੀਐਮਐਫਬੀਵਾਈ ਦੇ ਕਵਰੇਜ:</h2><p>ਉਹ ਕਿਸਾਨ ਜੋ ਫਸਲਾਂ ਦੇ ਸੀਜ਼ਨ ਵਿੱਚ ਇੱਕ ਸੂਚਿਤ ਖੇਤਰ ਵਿੱਚ ਖਾਸ ਫਸਲਾਂ ਉਗਾ ਰਹੇ ਹਨ ਅਤੇ ਬੀਮਾਯੋਗ ਹਿੱਤ ਵੀ ਹਨ, ਉਹ ਪੀਐਮਐਫਬੀਵਾਈ ਲਈ ਯੋਗ ਹਨ|</p><p>ਕਿਸਾਨਾਂ ਵਿਚ ਭਾਰੀ ਮੰਗ ਹੋਣ ਨਾਲ ਇਹ ਸਕੀਮ ਹੁਣ ਸਾਉਣੀ 2020 ਤੋਂ ਸਾਰੇ ਕਿਸਾਨਾਂ ਲਈ ਸਵੈਇੱਛਤ ਬਣਾਈ ਗਈ ਹੈ।</p><p>ਪਹਿਲਾਂ, ਯੋਜਨਾ ਲਈ ਦਾਖਲਾ ਹੇਠ ਲਿਖੀਆਂ ਸ਼੍ਰੇਣੀਆਂ ਦੇ ਕਿਸਾਨਾਂ ਲਈ ਲਾਜ਼ਮੀ ਸੀ:</p><p>ਉਹ ਕਿਸਾਨ ਜੋ ਸੂਚਿਤ ਖੇਤਰ ਵਿੱਚ ਫਸਲਾਂ ਉਗਾਉਂਦੇ ਹਨ ਅਤੇ ਫਸਲੀ ਕਰਜ਼ਾ ਜਾਂ ਕੇਸੀਸੀ ਖਾਤਾ ਹੈ|</p><p>ਸਰਕਾਰ ਦੇ ਫੈਸਲੇ ਅਨੁਸਾਰ ਅਜਿਹੇ ਹੋਰ ਕਿਸਾਨ।</p><p>ਸਵੈਇੱਛੁਕ ਕਵਰੇਜ: ਇਹ ਉਹਨਾਂ ਸਾਰੇ ਕਿਸਾਨਾਂ ਦੁਆਰਾ ਪ੍ਰਾਪਤ ਕੀਤਾ ਜਾ ਸਕਦਾ ਹੈ ਜੋ ਉਪਰੋਕਤ ਸ਼੍ਰੇਣੀ ਦੇ ਅਧੀਨ ਨਹੀਂ ਹਨ| ਇਹ ਉਨ੍ਹਾਂ ਕਿਸਾਨਾਂ ਨੂੰ ਵੀ ਕਵਰੇਜ ਦੀ ਆਗਿਆ ਦਿੰਦਾ ਹੈ ਜਿਹੜੇ ਫਸਲੀ ਕਰਜ਼ੇ ਜਾਂ ਕੇ ਸੀ ਸੀ ਖਾਤਿਆਂ ਰੱਖਦੇ ਹਨ ਜਿਨ੍ਹਾਂ ਦੀ ਕ੍ਰੈਡਿਟ ਸੀਮਾ ਨਵੀਨੀਕਰਣ ਨਹੀਂ ਕੀਤੀ ਜਾਂਦੀ|</p><h2>ਫਸਲਾਂ ਦੇ ਕਵਰੇਜ:</h2><ol><li>ਤੇਲ ਬੀਜ</li><li>ਭੋਜਨ ਦੀ ਫਸਲ</li><li>ਸਾਲਾਨਾ ਵਪਾਰਕ ਜਾਂ ਸਾਲਾਨਾ ਬਾਗਬਾਨੀ ਫਸਲਾਂ|</li></ol><h2>ਰਿਸ੍ਕ ਦੀ ਕਵਰੇਜ:</h2><ol><li>ਬਰਫਬਾਰੀ, ਪੌਦੇ ਲਗਾਉਣਾ ਅਤੇ ਗਰਿਮਿਸ਼ਨ ਦੇ ਜੋਖਮ ਨੂੰ ਰੋਕਿਆ: ਇਸ ਜੋਖਮ ਵਿੱਚ, ਬੀਮਾ ਕੀਤਾ ਗਿਆ ਖੇਤਰ ਬਿਜਾਈ, ਬੀਜਣ ਅਤੇ ਉਗਣ ਤੋਂ ਰੋਕਦਾ ਹੈ ਕਿਉਂਕਿ ਘਾਟ ਬਾਰਸ਼ ਜਾਂ ਗਲਤ ਮੌਸਮੀ ਜਾਂ ਮੌਸਮ ਦੇ ਕਾਰਨ|</li><li>ਖੜ੍ਹੀ ਫਸਲ: ਪੈਦਾਵਾਰ ਦੇ ਨੁਕਸਾਨ ਨੂੰ ਪੂਰਾ ਕਰਨ ਲਈ ਇੱਕ ਵਿਆਪਕ ਜੋਖਮ ਬੀਮਾ ਦਿੱਤਾ ਜਾਂਦਾ ਹੈ ਕਿਉਂਕਿ ਬਚਾਅ ਨਾ ਹੋਣ ਵਾਲੇ ਜੋਖਮਾਂ ਦੇ ਕਾਰਨ ਹਨ ਜੋ ਸੋਕਾ, ਸੁੱਕਾ ਜਾਦੂ, ਕੁਦਰਤੀ ਕਾਰਨਾਂ ਕਰਕੇ ਅੱਗ ਅਤੇ ਹੋਰ ਬਹੁਤ ਸਾਰੇ ਹਨ|</li><li>ਵਾਢੀ ਤੋਂ ਬਾਅਦ ਹੋਣ ਵਾਲੇ ਨੁਕਸਾਨ: ਇਸ ਵਿੱਚ, ਕਵਰੇਜ ਸਿਰਫ ਫਸਲਾਂ ਦੀ ਵਾਢੀ ਤੋਂ ਲੈ ਕੇ ਵੱਧ ਤੋਂ ਵੱਧ ਦੋ ਹਫ਼ਤਿਆਂ ਲਈ ਦਿੱਤੀ ਜਾਂਦੀ ਹੈ ਜੋ ਸੁੱਕੀਆਂ, ਕੱਟੀਆਂ ਅਤੇ ਵਾਢੀ ਤੋਂ ਬਾਅਦ ਫੈਲਦੀਆਂ ਹਨ|</li><li>ਸਥਾਨਕ ਤੌਰ 'ਤੇ ਆਈਆਂ ਬਿਪਤਾਵਾਂ: ਗੜੇਮਾਰੀ, ਜ਼ਮੀਨ ਖਿਸਕਣ, ਬੱਦਲ ਫਟਣ, ਡੁੱਬਣ ਅਤੇ ਕੁਦਰਤੀ ਅੱਗ ਕਾਰਨ ਹੋਈ ਬਿਜਲੀ ਦੇ ਪ੍ਰਭਾਵਿਤ ਸਥਾਨਕ ਖਤਰੇ ਦੀਆਂ ਘਟਨਾਵਾਂ ਤੋਂ ਪੈਦਾ ਹੋਈਆਂ ਸੂਚਿਤ ਫਸਲਾਂ ਦੇ ਨੁਕਸਾਨ ਅਤੇ ਨੁਕਸਾਨ।</li><li>ਫਸਲ ਦੇ ਨੁਕਸਾਨ ਲਈ ਐਡ-ਓਨ ਕਵਰੇਜ: ਫਸਲ ਦੇ ਨੁਕਸਾਨ ਲਈ ਕਵਰੇਜ ਵੀ ਦਿੱਤੀ ਗਈ ਹੈ ਕਿਉਂਕਿ ਜੰਗਲੀ ਜਾਨਵਰਾਂ ਦੇ ਹਮਲੇ ਕਾਰਨ ਜਿਥੇ ਵੀ ਜੋਖਮ ਨੂੰ ਜ਼ਿਆਦਾ ਮੰਨਿਆ ਜਾਂਦਾ ਹੈ|</li></ol>

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What is Fund Management? | Objectives and Benefits

fund-management

<h2>WHAT IS FUND MANAGEMENT?</h2><p>Fund Management refers to the function and operations of the fund managers who supervise and handle the financial assets of investors. The fund managers ensure that the investor’s goals are accomplished through appropriate investment strategies &amp; plans and in the course of doing so, they keep track of both investments and obligations of the investors. Usually, the term ‘Asset management is also used in place of fund management.</p><p>It refers to the systematic procedure in which a manager maintains, deploys, operated, and upgrade assets in a cost-effective manner while they ensure optimum return on investment. Usually, a manager has to pay detailed attention to the return along with the associated cost and risk with the available opportunities. Another significant aspect of fund management is the maintenance of apt liquidity of funds to meet upcoming obligations.&nbsp;</p><h2>OBJECTIVES OF FUND MANAGEMENT</h2><p>The primary objective of fund management is to manage and operate investments on the investor’s behalf. Apart from this, some other objectives are:</p><ol><li>Work on generating long-term capital appreciation of the investments.</li><li>Ensure the highest level of stability and safety for the investors by focusing on opportunities that offer the right blend of risk and return.</li><li>Generate cash flow through returns and dividend income on the investments made.</li></ol><h2>WORKING OF FUND MANAGERS</h2><p>Most fund managers follow a disciplined investment system in place that eliminates the emotion from investing. If investors bought a share and in case the share price increases, they may not be willing to sell as they believe that they can always select winners. If they sell at a loss, it is going to be a defeat.&nbsp;</p><p>A fund manager posses an emotional free process and thinking ability. They set out reasons to buy or sell shares. If the prices go down, they will want to see the reason behind it, and if they still believe in the entity, they will generally see the decrease in price as an opportunity to purchase more units at a lower cost.&nbsp;</p><h2>SIGNIFICANCE OF FUND MANAGEMENT</h2><p><strong>1. Asset Allocation:</strong></p><p>Fund Management assures proper asset allocation to match the long-term as well as short-term goals of the investors. It is closely related to diversification. While diversification aims at reducing the risks involved in investments, asset allocation aims at maximizing the reuters from the benefits.&nbsp;</p><p><strong>2. Diversification:</strong></p><p>It is a key area of managing funds, It is the procedure of allocating money across asset classes to reduce the overall portfolio risks while maintaining the desired potential return. Based on investor expectations, there is a distribution of funds in securities and assets that match the risk tolerance of investors.&nbsp;</p><p><strong>3. Performance Tracking:</strong></p><p>Fund management makes sure that the fund performance is being tracked which ensures that the investment strategies are adjusted to achieve the goals of investors and the fund as a whole. They use various techniques and metrics to carefully analyze fund performance.&nbsp;</p><p><strong>4. Strategy Based Investing:</strong></p><p>There are various styles of fund management that these professionals follow and adopt while making investment-related decisions. For example, a manager may opt top-down investing where they look for the best investments based on how bad or good the economy is performing. This strategy-based investing makes sure that the fund remains true to its goals for investors.&nbsp;</p><h2>OPTING FOR A RELIABLE FUND MANAGER</h2><p>Fund management is a complex procedure that involves a lot of research and financial knowledge. This is the reason why investors should opt for a reliable and experienced fund manager while selecting a mutual fund. Some factors to have a look into are as follows:</p><ol><li>Rankings by credible bodies.</li><li>Industry experience</li><li>Past performance of the funds actively managed by them.</li></ol><p>Investors should perform a thorough check and do the needful research on the fund managers and check the track record before opting for a mutual fund. They should also make sure that they are very clear on the T&amp;C’s of the investments and the risk involved with the same.&nbsp;</p>

Loan against FD (Fixed Deposit) is a type of secured loan where customers can assure their fixed deposit as security and get a loan in return.

Loan Against Fixed Deposit 2025: Everything You Need to Know

loan-against-your-fixed-deposit

<h2>Loan Against Fixed Deposit Overview</h2><p>When things get out of control financially, most people search for dependable funding sources like loans and other solutions. A loan&nbsp;against fixed deposit is one of the resources that might be helpful in this kind of circumstance.</p><p>A loan against fixed deposit is highly advantageous. This is because it saves time and is available for a short time from multiple financial institutions. Additionally, you avoid breaching early fixed deposits by choosing this loan option. Because early withdrawals from a fixed deposit account result in penalties that eventually reduce the total amount deposited. A loan secured by a fixed deposit is therefore a preferable choice.</p><p>In addition to the benefits mentioned above, you can use a credit card to offset your FD. This is an option that many banks provide, but it's a tale for another time. Focus, let's investigate, and discover more about loans secured by fixed deposits.</p><h2>What is a Loan against FD?</h2><p>In short, a loan against fixed deposit is a special kind of loan where you can take out a loan against your term deposit. Your FD provider will let you use their overdraft facility as a secured credit instrument against the FD amount deposited in an emergency.&nbsp;</p><p>The organization that approves your loan application on fixed deposit gives you the requested amount in one lump sum; nevertheless, you have to choose a favorable amortization period and adhere to it when repaying the loan.&nbsp;</p><p>The maximum amount that can be selected for a loan against FD is subject to variation depending on the lender. Therefore, it is advised to review the information on the lender's website before applying.</p><h2>Features &amp; Benefits of Loan against FD</h2><p>A loan against fixed deposit&nbsp;has several advantageous characteristics. Hence,&nbsp;it&nbsp;is a terrific concept, particularly for long-term fixed deposits.&nbsp;</p><ul><li><strong>Minimal paperwork needed: </strong>When you apply for a loan against a fixed deposit account, any bank where you have an account will need the minimum amount&nbsp;of paperwork. As a result, the minimal paperwork requirement always exists. Furthermore, you are not required to turn in any paperwork, including income proofs and income tax returns.</li><li><strong>No Minimum Credit Score:</strong> Before approving a loan application, a lender (bank or individual) will always examine a borrower's credit score. Nonetheless, your credit score or CIBIL will not be considered when processing a loan if the applicant is seeking a loan secured by a fixed deposit. Thus, for those with bad or no credit, this loan on FD is a smart choice.</li><li><strong>Low-interest rates: </strong>When applying for a loan, fixed deposit accounts serve as collateral. Additionally, these loans have a lower loan against FD interest rates. Interest rates for loans secured by federal departments are typically two to three percentage points lower than those on personal loans from banks. As a result, the loans secured by fixed deposits have low EMIs (Equated Monthly Instalments).</li><li><strong>Loan amount as per the FD fund:</strong> If you'd like to apply for a personal loan, the maximum amount you can request will be determined by several variables, including your income bracket, credit score, and individual taxpayer ratio, among many others. However, the maximum loan amount you can apply for if you're seeking a loan against a fixed deposit is determined by the principal amount you placed in your fixed deposit account. Consequently, you qualify for a large loan if you have made significant investments in your fixed deposit rates.</li><li><strong>No prepayment penalty:</strong> Generally speaking, banks impose penalties on early loan repayments since they forfeit some of the interest. However, since banks do not forfeit any interest, there is no prepayment penalty for loans secured by federal funds. They don't charge because they make money from early repayment and don't have to pay additional interest on the principal amount of the loan.</li><li><strong>No need to break a fixed deposit: </strong>Unfortunate incidents, crises, and abrupt events can frequently lead people to break their fixed deposit accounts to&nbsp;provide instant cash flow. On the other hand, you can take care of your urgent financial demands and preserve your deposit by choosing to apply for a loan against the fixed deposit.</li><li><strong>No processing charge: </strong>This type of financing is quite simple. As opposed to other loans, there is no necessity for an extra processing charge to be paid. Thus, the total cost of the loan is decreased.</li><li><strong>Flexible&nbsp;payment process</strong>:&nbsp;It's crucial to remember that the loan term against a fixed deposit is equal to the fixed deposit's term. The loan's duration cannot be longer than the fixed deposits, but it cannot be shorter than that of the deposit. For instance, if the Fixed Deposit has a five-year term, the loan may be for five years or less, but not longer.</li></ul><h2>Banks Offering Loans Against Fixed Deposits</h2><p>The loan limit and loan against fixed deposit interest rate of India's leading banks are shown&nbsp;below. Select the best bank that meets your needs when it comes to loans secured by fixed deposits.</p><h3>1.) State Bank of India Loan Against Fixed Deposit: Features</h3><ul><li>1% more than the actual fixed deposit rates</li><li>₹25,000 – ₹5 crores loan amount</li><li>Demand loans and overdrafts are two types of loans that are offered.</li><li>Prepayment has no penalty.</li><li>There are no processing fees for the loan.</li></ul><h3>2.) HDFC Loan Against Fixed Deposit: Features</h3><ul><li>2% more than the actual FD rate</li><li>Offers up to 90% of the FD amount as a loan</li><li>Choosing between linking your savings or current account to your FD</li><li>Overdraft loans against federal savings accounts are offered by HDFC Bank.</li><li>Only the amount that is withdrawn will be subject to interest; interest will still be accrued on the remaining FD.</li></ul><h3>3.) Federal Bank Loan Against Fixed Deposit: Features</h3><ul><li>2% more than the actual FD rate</li><li>Offers up to 90% of the FD amount as a loan</li><li>There are no penal interest or processing fees involved.</li><li>Cash certificates, FDs, and recurring deposits (RDs) can all be used as collateral for loans.</li><li>Loan against FD is available at any&nbsp;Federal Bank&nbsp;branch.&nbsp;</li></ul><h3>4.) ICICI Bank Loan Against Fixed Deposit: Features</h3><ul><li>2%-3% more than the actual FD rate</li><li>Offers up to 90% of the FD amount as a loan</li><li>In the case of NRI accounts, loans may be availed&nbsp;by account holders or other third parties.</li><li>Easy disbursement procedure.</li><li>Straightforward application procedure.</li></ul><h3>5.) Axis Bank Loan Against Fixed Deposit: Features</h3><ul><li>2% more than the specific FD rate</li><li>Loan amount starts from ₹25,000</li><li>You can apply for an overdraft loan against FD from Axis Bank.</li></ul><h2>Who can Apply for a Loan against FD?</h2><p>Anybody with a fixed deposit (FD), either alone or through a joint account, is eligible to apply for a loan against the FD in question. But the only kinds of fixed deposits that aren't eligible to be used as collateral are</p><ul><li>Fixed Deposits held in a minor's name</li><li>Tax-Saver Fixed Deposits for 5 Years</li></ul><h2>Eligibility Criteria for Availing Loan Against Fixed Deposit</h2><p>The requirements listed below must be satisfied to apply for a loan against FD:</p><ul><li>The applicant must be a resident citizen of India.</li><li>They must come from a Hindu Undivided Family (HUF)</li><li>Partnerships, sole proprietorships, and businesses, including group companies</li><li>Societies, clubs, and associations are also eligible to apply for a loan against fixed deposit.</li><li>Family trusts</li><li>This loan is available to all holders of fixed deposits, regardless of whether they have joint accounts or are individual holders.</li><li>This feature is available to non-resident Indians through several banks in India.</li></ul><p>∙ Non-Resident Indians (NRIs) who have bought term deposits, including Non-Resident External (NRE), Non-Resident Ordinary (NRO), and deposits that are Foreign Currency Non-Repatriable (FCNR) may also be qualified to apply for a loan against a particular fixed deposit.</p><h2>Documentation Required to Avail Loan Against Fixed Deposit (FD)</h2><p>The following documents are necessary when applying for a personal loan against FD:</p><p><strong>1. Aadhar card: </strong>The main document needed for the loan application is usually the Aadhar card.</p><p><strong>2. Aadhar alternatives: </strong>You can present alternative identity documents, such as a PAN card or driver's license if you don't have an Aadhar card.</p><p><strong>3. Financial and professional details:</strong> You will be required to submit your financial and professional details in addition to the identity document.</p><p><strong>4. Statement of bank account: </strong>The bank account statement is one of the crucial documents. A six-month bank statement is usually needed to confirm your financial stability.</p><p><strong>5. Banks that are accepted:</strong> Make sure your bank account is from a bank approved by the loan provider.</p><h2>How to apply for a loan against a fixed deposit online?</h2><p>Following are the steps to apply for a loan against FD online.</p><p><strong>Step 1:</strong> Enter your username and password to access Internet banking after logging in to your bank portal.</p><p><strong>Step 2:</strong> Next, select the "fixed deposit" tab.</p><p><strong>Step 3:</strong> Select the option for "Overdraft against FD."</p><p><strong>Step 4:</strong> Complete the application by entering all necessary information, including the amount of the loan, its duration, and any other details that are needed.</p><p><strong>Step 5:</strong> The loan will be approved online, and you will receive a notification via registered email and SMS once it has been approved.</p><h3>Conclusion</h3><p>You can probably get a loan against a mutual fund or an FD no matter if your bank is a cooperative, a public sector enterprise, or even nationalized. Furthermore, getting one of these loans is thought to be far safer than choosing another. The FD is a quick and simple means for borrowers to obtain money in an emergency, while it provides security for the bank. But always have a plan in place for paying back your loans.</p>

<h3>Frequently Asked Questions - Loan against Fixed Deposit Interest Rates</h3><h4>Q: Can I get a loan against my fixed deposit?</h4><p>A: Loan against Fixed Deposit is a type of secured loan where customers can assure their fixed deposit as security and get a loan in return.&nbsp;</p><h4>Q. What is a loan against a Fixed Deposit?</h4><p>A. Most of the banks give the facility to avail the loan against the fixed deposit made by the depositor. The FD holders can apply for a secured loan against their FD.&nbsp;</p><h4>Q. How much loan can be availed against their FD?</h4><p>A. Most of the banks give the loan against the fixed deposit made by the depositor of the amount up to 90% to 95% of the fixed deposit value.</p><h4>Q. Is the interest applicable on loans against Fixed Deposit?</h4><p>A. Yes, banks charge the interest for offering loans. The loan is considered to be a secured loan because of is backed by the deposit. The interest is charged as per the rates applicable to a secured loan.</p><h4>Q. Can Fixed Deposit be used as collateral?</h4><p>A. Fixed deposits can be used as collateral to take loans from banks. Most of the banks and NBFCs accept the fixed deposit as collateral and give the loans against the fixed deposit.</p><h4>Q. Who can apply for the loan against FD?</h4><p>A. Any person who has a fixed deposit account can apply for the loan against their FD.&nbsp;&nbsp;</p><h4>Q. What is the tenure for the loan against FD?</h4><p>A. The tenure of the loan can be decided by the person who is taking the loan but the tenure cannot exceed the maturity of the fixed deposit.</p><h4>Q. Can we make a premature withdrawal from the fixed deposit if we have taken a loan against the fixed deposit?</h4><p>A. If an individual has availed a loan against FD, then he/she cannot make a premature withdrawal from the fixed deposit. But to do so, an investor has to first repay the full loan amount, and then they can premature the fixed deposit.</p><p><strong>Read More Articles :</strong></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/how-to-close-fd-in-sbi-online">How to Close SBI FD Online</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/canara-bank-fd-interest-rates">Canara Bank Interest Rates</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/icici-prudential-freedom-sip">ICICI Prudential Freedom SIP Plan</a></p>

FLEXICAP VS MULTICAP FUNDS

flexicap-vs-multicap-funds

<h2>FLEXI CAP VS MULTICAP FUNDS</h2><h2>WHAT ARE FLEXI CAP FUNDS?</h2><p>As per the guidelines of SEBI, a <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-flexi-cap-mutual-funds"><i><strong>best flexi cap funds</strong></i></a>&nbsp;scheme is an open ended dynamic scheme which is equity based and invests a minimum of 65% of its total assets in equity related instruments across small, mid and large cap stocks.&nbsp;</p><p>A flexi cap fund gives investors exposure to small, mid and large cap stocks through a single <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds"><i><strong>mutual funds scheme</strong></i></a>. Nevertheless, in a flexi cap fund, the fund managers have the flexibility to decide how much is to be invested in each asset class, without any minimum requirement of investment in each category. The investment in each category is managed as per the market situations.&nbsp;</p><h2>WHAT ARE MULTICAP FUNDS?</h2><p>As per the guidelines of SEBI, a multi cap fund is open ended scheme which invests a minimum 75% in equity and related instruments across market caps such that:</p><ul><li>A minimum of 25% are invested in equity and related instruments of small cap companies.</li><li>A minimum of 25% are invested in equity and related instruments of Mid cap companies.</li></ul><p>A minimum of 25% are invested in equity and related instruments of large cap companies.</p><p>So a multicap mutual fund can give exposure to all market caps through a single scheme.&nbsp;</p><h2>DIFFERENCE</h2><figure class="table"><table><tbody><tr><td>&nbsp;</td><td><strong>Flexi Cap Funds</strong></td><td><strong>Multiple Cap Funds</strong></td></tr><tr><td><strong>Equity Exposure</strong></td><td><strong>Minimum 65% in equities</strong></td><td><strong>Minimum 70% in equities</strong></td></tr><tr><td><strong>Fund Manager Discretion</strong></td><td><strong>Fund managers have the freedom to choose across market cap and securities.</strong></td><td><strong>Fund managers have freedom but it is limited while choosing securities.</strong></td></tr><tr><td><strong>Market Cap Allocation</strong></td><td><strong>No mandate is there regarding this; here, the investment is made freely across market caps.</strong></td><td><strong>Minimum 25% each in small, mid and large cap stocks and rest as per manager’s discretion.</strong></td></tr></tbody></table></figure><h2>WHY SHOULD YOU INVEST IN FLEXI-CAP OR MULTI-CAP FUNDS?</h2><p>When an investor invests in a multi or flexi-cap fund, they get exposure to various market caps companies. Each of them have their own benefits and merits. So in the crux, these funds are a combination, potential of smallcaps, growth of midcaps and stability of large caps. So these funds create a win-win situation for investors.&nbsp;</p><p>To describe this a little, large caps have the potential to provide stability to the portfolio, mid caps can boost the gains, and small caps have the potential of giving extraordinary returns as they give higher risk.</p><h2>CHOOSING BETWEEN FLEXI CAP FUNDS AND MULTI CAP FUNDS</h2><p>Flexi and <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-multi-cap-mutual-funds"><strong>multi-cap funds </strong></a>can give investors the exposure to all market caps in a single mutual fund scheme. Nevertheless, when it comes to opting between the 2 types of mutual fund schemes, it all depends on how much exposure an investor wishes to have in small, mid and large cap stocks.</p><p>If an investor wishes a minimum of 25% exposure to each - small mid and large cap stocks, they can opt to invest in a multi cap scheme. However, if they are good with the fund manager opting how much exposure to take towards different market cap shares and managing it dynamically as per the market scenario, investors can opt to invest in flexi cap funds.</p>

Indigo Paints Ltd IPO launch date, review, financial performance, purpose, valuation & strength of the company, share price and all other details.

Indigo Paints Limited IPO: Date, Review, Share Price, Financial Performance & Valuation

indigo-paints-limited-ipo

<h2>INDIGO PAINTS LIMITED IPO</h2><p>Indigo Paints started in the year 2000. The company started its business with the manufacturing of lower-end cement paints. After some time, it expanded its range to cover more segments of water-based paints like Distempers, Primers, Exterior Emulsions, Interior Emulsions, etc. From an early stage, the company expanded its footprints across the country with its extensive distribution network. Now, Indigo paints is one of the strongest players in the Indian Paint Industry known for offering innovative &amp; unique products in the industry.</p><p>Indigo paints is the 5th largest company in the Indian Paint Industry as per the sales numbers for FY 2019-20. The company has expanded its business across the country with a distribution network in 27 states and 7 UTs.</p><p>Indigo paints have 74% of the market share in India in the segment of decorative paints which include wall finishes for interior &amp; exterior use, wood finishes, enamels, primers, etc. The company’s decorative paints segment has grown at a CAGR of 11.5% from the fiscal year 2014 to 2019.</p><p>The philosophy of the company has been to set new strategies, market research fundamentals, and innovative product development to stand out in its own class from its competitors.</p><p>The Sequoia Capital-backed Indigo Paints has received approval from SEBI to raise around Rs.1,000 crores through fresh issuance of Rs.300 crores worth of shares and an offer for sale of 58,40,000 equity shares by PE Firm Sequoia Capital through 2 of its funds.</p><p>Promoters of the company are Hemant Jalan, Anita Jalan, Parag Jalan, Kamala Prasad Jalan, Tara Devi Jalan, and Halogen Chemicals Private Limited.</p><h2>Strengths of the company:</h2><ul><li>The company has a good track record of consistent growth in the industry.</li><li>The company offers differentiated products leading to good brand recognition and expansion through a wide range of paint products.</li><li>The company has an extensive distribution network for good brand penetration.</li><li>The company has a management team of well-qualified experts &amp; professionals enabling sound management.</li><li>The company is the fastest-growing company among the Top 5 companies in the Indian paint industry.</li><li>It has strategically located manufacturing facilities with proximity &amp; easy access to raw materials for its production activities.</li></ul><h2>Purpose of the IPO:</h2><ul><li>To purchase tinting machines and gyro shakers.</li><li>To make repayments or prepayment of all or some portion of its borrowings.</li><li>For funding the capital expenditure used in the expansion of the existing manufacturing facility in Pudukkottai, Tamil Nadu by setting-up an additional unit along with the existing facility.</li><li>To meet the general corporate purposes.</li></ul><h2>Financial Performance of the company:</h2><figure class="table"><table><tbody><tr><td>&nbsp;</td><td><strong>6 month period ended 30th September 2020</strong></td><td><strong>FY 2020</strong></td><td><strong>FY 2019</strong></td><td><strong>FY 2018</strong></td></tr><tr><td><strong>Total Revenue</strong></td><td><strong>260.24</strong></td><td><strong>626.43</strong></td><td><strong>537.26</strong></td><td><strong>403.10</strong></td></tr><tr><td><strong>Total Expenses</strong></td><td><strong>225.01</strong></td><td><strong>559.00</strong></td><td><strong>503.24</strong></td><td><strong>389.23</strong></td></tr><tr><td><strong>Profit after tax</strong></td><td><strong>27.20</strong></td><td><strong>47.81</strong></td><td><strong>26.87</strong></td><td><strong>12.86</strong></td></tr><tr><td><strong>Total Assets</strong></td><td><strong>411.29</strong></td><td><strong>421.95</strong></td><td><strong>373.18</strong></td><td><strong>297.39</strong></td></tr></tbody></table></figure><p>*All the values are in crores and as per DRHP.</p><h2>Valuation of the company:</h2><figure class="table"><table><tbody><tr><td>&nbsp;</td><td>6 month period ended 30th September 2020</td><td>FY 2020</td><td>FY 2019</td><td>FY 2018</td></tr><tr><td>Basic Earnings per Share (EPS)</td><td>6.03</td><td>10.61</td><td>5.98</td><td>2.88</td></tr><tr><td>Diluted Earnings per Share (EPS)</td><td>5.97</td><td>10.49</td><td>5.90</td><td>2.82</td></tr><tr><td>Return on Net Worth (%)</td><td>12.12%</td><td>24.27%</td><td>18.22%</td><td>10.09%</td></tr><tr><td>Net Assets Value per Equity Share</td><td>49.75</td><td>43.69</td><td>32.84</td><td>28.53</td></tr></tbody></table></figure><p>*as per DRHP</p><h2><a href="https://www.sebi.gov.in/filings/public-issues/nov-2020/indigo-paints-limited-drhp_48167.html">Indigo Paints DRHP</a></h2><h2>IPO details:</h2><figure class="table"><table><tbody><tr><td><strong>Face Value</strong></td><td><strong>₹10 Per Equity Share</strong></td></tr><tr><td><strong>Market Lot</strong></td><td><strong>10 Shares</strong></td></tr><tr><td><strong>Minimum Order Quantity</strong></td><td><strong>10 Shares</strong></td></tr><tr><td><strong>Price Band</strong></td><td><strong>₹1,488 - ₹1,490 Per Equity Share</strong></td></tr><tr><td><strong>Issue type</strong></td><td><strong>Book Built Issue IPO</strong></td></tr><tr><td><strong>Issue Size</strong></td><td><strong>Approx ₹1,000&nbsp; Crores</strong></td></tr><tr><td><strong>Fresh Issue</strong></td><td><strong>₹300 Crores</strong></td></tr><tr><td><strong>Offer for Sale</strong></td><td><strong>58,40,000 Equity Shares</strong></td></tr><tr><td><strong>Listing&nbsp;</strong></td><td><strong>BSE, NSE</strong></td></tr></tbody></table></figure><h2>Important IPO dates:</h2><figure class="table"><table><tbody><tr><td><strong>Open Date</strong></td><td><strong>20th January 2021</strong></td></tr><tr><td><strong>Close Date</strong></td><td><strong>22nd January 2021</strong></td></tr><tr><td><strong>Allotment Date</strong></td><td><strong>28th January 2021</strong></td></tr><tr><td><strong>Refunds</strong></td><td><strong>29th January 2021</strong></td></tr><tr><td><strong>Credit of shares to Demat Account</strong></td><td><strong>01st February 2021</strong></td></tr><tr><td><strong>Listing Date</strong></td><td><strong>02nd February 2021</strong></td></tr></tbody></table></figure><h2>Allocation Quota:</h2><figure class="table"><table><tbody><tr><td><strong>Category</strong></td><td><strong>Portion</strong></td></tr><tr><td><strong>Qualified Institutional Buyers (QIBs)</strong></td><td><strong>Not more than 50%</strong></td></tr><tr><td><strong>Non- Institutional Buyers (NIIs)</strong></td><td><strong>Not less than 15%</strong></td></tr><tr><td><strong>Retail Investors</strong></td><td><strong>Approx 35%</strong></td></tr></tbody></table></figure><h2>Check your Indigo Paints IPO allotment status here:</h2><p>Linkline IPO allotment Status: <a href="https://linkintime.co.in/MIPO/Ipoallotment.html">Click here</a></p><p>BSE IPO Allotment Status: <a href="https://www.bseindia.com/investors/appli_check.aspx">Click here</a></p><p>NSE IPO Allotment Status: <a href="https://www1.nseindia.com/products/dynaContent/equities/ipos/ipo_login.jsp">Click here</a></p>

इंडिगो पेंट्स लिमिटेड आईपीओ लॉन्च की तारीख, समीक्षा, वित्तीय प्रदर्शन, उद्देश्य, मूल्यांकन और कंपनी की ताकत, शेयर की कीमत और अन्य सभी विवरण।

इंडिगो पेंट्स लिमिटेड आईपीओ: तिथि, समीक्षा, शेयर मूल्य, वित्तीय प्रदर्शन और मूल्यांकन

<h2>इंडिगो पेंट्स लिमिटेड IPO</h2><p>इंडिगो पेंट्स की शुरुआत वर्ष 2000 में हुई थी। कंपनी ने अपने कारोबार की शुरुआत लो-एंड सीमेंट पेंट्स के निर्माण के साथ की थी। कुछ समय के बाद, इसने डिफेम्पर्स, प्राइमर, एक्सटर्नल इमल्शन, इंटीरियर इमल्शन आदि जैसे जल-आधारित पेंट्स के अधिक सेगमेंट को कवर करने के लिए अपनी सीमा का विस्तार किया, एक प्रारंभिक चरण से, कंपनी ने अपने व्यापक वितरण नेटवर्क के साथ देश भर में खुद का विस्तार किया। अब, इंडिगो पेंट्स भारतीय पेंट उद्योग के सबसे मजबूत खिलाड़ियों में से एक है जो उद्योग में नवीन और अद्वितीय उत्पादों की पेशकश के लिए जाना जाता है।</p><p>वित्त वर्ष 2019-20 के लिए बिक्री संख्या के अनुसार इंडिगो पेंट्स भारतीय पेंट उद्योग की 5 वीं सबसे बड़ी कंपनी है। कंपनी ने 27 राज्यों और 7 केंद्र शासित प्रदेशों में वितरण नेटवर्क के साथ देश भर में अपने कारोबार का विस्तार किया है।</p><p>इंडिगो पेंट्स का भारत में बाजार में 74% हिस्सा सजावटी पेंट्स के हिस्से में है, जिसमें आंतरिक और बाहरी उपयोग, लकड़ी की फिनिश, एनामेल्स, प्राइमर आदि के लिए दीवार फिनिश शामिल हैं। कंपनी का सजावटी पेंट सेगमेंट वित्तीय वर्ष 2014 से 2019 तक 11.5% के सीएजीआर में बढ़ा है।</p><p>कंपनी का दर्शन नई रणनीतियों, बाजार अनुसंधान बुनियादी बातों, और अभिनव उत्पाद विकास को अपने प्रतिद्वंद्वियों से अपने वर्ग में अलग होने के लिए निर्धारित किया गया है।</p><p>सिकोइया कैपिटल-समर्थित इंडिगो पेंट्स को सेबी से 1000 करोड़ रुपये जुटाने के लिए मंजूरी मिल गई है, जो कि 300 करोड़ रुपये मूल्य के शेयर जारी करने के साथ-साथ पीई फर्म सेक्वो कैपिटल द्वारा 58,40,000 इक्विटी शेयरों की बिक्री इसकी 2 निधि के माध्यम से करने का प्रस्ताव है।&nbsp;</p><p>कंपनी के प्रवर्तक हेमंत जालान, अनीता जालान, पराग जालान, कमला प्रसाद जालान, तारा देवी जालान और हैलोजन केमिकल्स प्राइवेट लिमिटेड हैं।</p><h2>कंपनी की ताकत:</h2><p>● कंपनी का उद्योग में लगातार विकास का अच्छा ट्रैक रिकॉर्ड है।</p><p>● कंपनी पेंट उत्पादों की एक विस्तृत श्रृंखला के माध्यम से अच्छे ब्रांड की पहचान और विस्तार के लिए विभेदित उत्पाद प्रदान करती है।</p><p>● कंपनी के पास अच्छे ब्रांड के प्रवेश के लिए एक व्यापक वितरण नेटवर्क है।</p><p>● कंपनी के पास ध्वनि प्रबंधन को सक्षम करने वाले अच्छी तरह से योग्य विशेषज्ञों और पेशेवरों की एक प्रबंधन टीम है।</p><p>● कंपनी भारतीय पेंट उद्योग में शीर्ष 5 कंपनियों में सबसे तेजी से उभरती कंपनी है।</p><p>● इसकी उत्पादन गतिविधियों के लिए कच्चे माल के निकटता और आसान पहुंच के साथ रणनीतिक रूप से स्थित विनिर्माण सुविधाएं हैं।</p><h2>IPO का उद्देश्य:</h2><p>● टिनिंग मशीन और गायरो शेकर खरीदने के लिए।</p><p>● अपने उधार के सभी या कुछ हिस्से का पुनर्भुगतान या पूर्व भुगतान करना।</p><p>● तमिलनाडु के पुदुक्कोट्टई में मौजूदा विनिर्माण सुविधा के विस्तार में उपयोग किए गए पूंजीगत व्यय के लिए, मौजूदा सुविधा के साथ एक अतिरिक्त इकाई स्थापित करके।</p><p>● सामान्य कॉर्पोरेट उद्देश्यों को पूरा करने के लिए।</p><h2>कंपनी का वित्तीय प्रदर्शन:</h2><figure class="table"><table><tbody><tr><td>&nbsp;</td><td><strong>6 महीने की अवधि 30 सितंबर 2020 को समाप्त हो गई</strong></td><td><strong>वित्त 2020</strong></td><td><strong>वित्त वर्ष 2019</strong></td><td><strong>वित्त वर्ष 2018</strong></td></tr><tr><td><strong>कुल मुनाफा</strong></td><td><strong>260.24</strong></td><td><strong>626.43</strong></td><td><strong>537.26</strong></td><td><strong>403.10</strong></td></tr><tr><td><strong>कुल खर्च</strong></td><td><strong>225.01</strong></td><td><strong>559.00&nbsp;</strong></td><td><strong>503.24</strong></td><td><strong>389.23</strong></td></tr><tr><td><strong>कर के बाद लाभ</strong></td><td><strong>27.20</strong></td><td><strong>47.81</strong></td><td><strong>26.87</strong></td><td><strong>12.86&nbsp;</strong></td></tr><tr><td><strong>कुल संपत्ति</strong></td><td><strong>411.29</strong></td><td><strong>421.95</strong></td><td><strong>373.18</strong></td><td><strong>297.39</strong></td></tr></tbody></table></figure><p>* सभी मूल्य करोड़ों में और DRHP के अनुसार हैं।</p><h2>कंपनी का मूल्यांकन</h2><figure class="table"><table><tbody><tr><td>&nbsp;</td><td><strong>6 महीने की अवधि 30 सितंबर 2020 को समाप्त हो गई</strong></td><td><strong>वित्त 2020</strong></td><td><strong>वित्त वर्ष 2019</strong></td><td><strong>वित्त वर्ष 2018</strong></td></tr><tr><td><strong>प्रति शेयर बेसिक कमाई (EPS)</strong></td><td><strong>6.03</strong></td><td><strong>10.61</strong></td><td><strong>5.98</strong></td><td><strong>2.88</strong></td></tr><tr><td><strong>प्रति शेयर आय (EPS) पतला</strong></td><td><strong>5.97</strong></td><td><strong>10.49</strong></td><td><strong>5.90</strong></td><td><strong>2.82</strong></td></tr><tr><td><strong>रिटर्न नेट वर्थ (%)</strong></td><td><strong>12.12%</strong></td><td><strong>24.27%</strong></td><td><strong>18.22%</strong></td><td><strong>10.09%</strong></td></tr><tr><td><strong>नेट एसेट्स प्रति इक्विटी शेयर</strong></td><td><strong>49.75&nbsp;</strong></td><td><strong>43.69&nbsp;</strong></td><td><strong>32.84&nbsp;</strong></td><td><strong>28.53&nbsp;</strong></td></tr></tbody></table></figure><p>* DRHP के अनुसार</p><p>इंडिगो पेंट्स DRHP</p><h2>IPO विवरण:</h2><figure class="table"><table><tbody><tr><td><strong>अंकित मूल्य</strong></td><td><strong>₹ 10 प्रति इक्विटी शेयर</strong></td></tr><tr><td><strong>बाजार लॉट</strong></td><td><strong>10 शेयर</strong></td></tr><tr><td><strong>न्यूनतम आदेश मात्रा</strong></td><td><strong>10 शेयर</strong></td></tr><tr><td><strong>मूल्य बैंड</strong></td><td><strong>₹ 1,488 - 90 1,490 प्रति इक्विटी शेयर</strong></td></tr><tr><td><strong>विषय वर्ग</strong></td><td><strong>पुस्तक निर्मित मुद्दा IPO</strong></td></tr><tr><td><strong>अंक का आकार</strong></td><td><strong>1,176 करोड़</strong></td></tr><tr><td><strong>अंक</strong></td><td><strong>300 करोड़</strong></td></tr><tr><td><strong>बिक्री के लिए प्रस्ताव</strong></td><td><strong>876 करोड़</strong></td></tr><tr><td><strong>लिस्टिंग</strong></td><td><strong>BSE, NSE</strong></td></tr></tbody></table></figure><h2>महत्वपूर्ण IPO दिनांक</h2><figure class="table"><table><tbody><tr><td><strong>खुलने की तारीख</strong></td><td><strong>20 जनवरी 2021</strong></td></tr><tr><td><strong>करीबी तारीख</strong></td><td><strong>22 जनवरी 2021</strong></td></tr><tr><td><strong>आबंटन तिथि</strong></td><td><strong>28 जनवरी 2021</strong></td></tr><tr><td><strong>रिफंड</strong></td><td><strong>29 जनवरी 2021</strong></td></tr><tr><td><strong>डीमैट खाते में शेयरों का क्रेडिट</strong></td><td><strong>01 फरवरी 2021</strong></td></tr><tr><td><strong>लिस्टिंग की तारीख</strong></td><td><strong>02 फरवरी 2021</strong></td></tr></tbody></table></figure><h2>आवंटन कोटा</h2><figure class="table"><table><tbody><tr><td><strong>वर्ग</strong></td><td><strong>हिस्से</strong></td></tr><tr><td><strong>योग्य संस्थागत खरीदार (QIB)</strong></td><td><strong>50%</strong></td></tr><tr><td><strong>गैर संस्थागत खरीदार (NII)</strong></td><td><strong>15%</strong></td></tr><tr><td><strong>खुदरा निवेशक</strong></td><td><strong>35%</strong></td></tr></tbody></table></figure><p><strong>अपने इंडिगो पेंट्स IPO आवंटन स्थिति की जाँच करें:</strong></p><p>लिंकलाइन IPO अलॉटमेंट स्टेटस: यहां क्लिक करें</p><p>BSE IPO आवंटन स्थिति: यहां क्लिक करें</p><p>NSE IPO आवंटन की स्थिति: यहां क्लिक करें</p>

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Understand the difference between ELSS and PPF. Know ELSS vs PPF comparision, risks, returns, investment limit, tenure, tax benefits, etc

ELSS VS PPF - Comparison, Tenure, Risks, Returns, Tax Benefits

elss-vs-ppf

<figure class="table"><table><tbody><tr><td>&nbsp;</td><td><strong>ELSS</strong></td><td><strong>PPF</strong></td></tr><tr><td><strong>Meaning</strong></td><td><strong>ELSS or Equity-linked Saving Scheme is a </strong><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/type-of-mutual-funds"><strong>type of mutual fund</strong></a><strong> which invests primarily in equity and equity-related securities. In addition, these funds also offer tax benefits under Section 80C.</strong></td><td><strong>PPF or Public Provident Fund is a long-tenure investment product backed by the Government of India. The scheme offers a fixed rate of interest to investors.</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>Moderate to high risk</strong></td><td><strong>Low risk</strong></td></tr><tr><td><strong>Return</strong></td><td><strong>Returns are market-linked, can expect around 12% p.a. on long term investments</strong></td><td><strong>The current interest rate is 7.10% but is subject to revisions every quarter by the GOI</strong></td></tr><tr><td><strong>Lock-in period</strong></td><td><strong>3 Years</strong></td><td><strong>15 years</strong></td></tr><tr><td><strong>Tenure</strong></td><td><strong>No fixed tenure, investors can stay invested for as long as they want</strong></td><td><strong>15 years and can be extended for additional 5 years</strong></td></tr><tr><td><strong>Limit for investments</strong></td><td><strong>There is no upper limit for investments in ELSS and the minimum investment varies across fund house or AMCs</strong></td><td><strong>Minimum- Rs. 500 Maximum- Rs.1,50,000</strong></td></tr><tr><td><strong>Premature Withdrawals</strong></td><td><strong>Withdrawals are not allowed during the lock-in period</strong></td><td><strong>Can withdraw up to 50% of the corpus after the completion of 5 years</strong></td></tr><tr><td><strong>Tax Benefits</strong></td><td><strong>Offers tax deductions of up to Rs.1.5 lakh per financial year under Section 80C</strong></td><td><strong>Tax deductions of up to Rs.1.5 lakh per financial year under Section 80C</strong></td></tr><tr><td><strong>Tax on interest earned</strong></td><td><strong>Gains are taxed at the LTCG rate of 10% on the gains exceeding Rs.1 lakh in a financial year</strong></td><td><strong>Interest earned is exempt from taxes</strong></td></tr></tbody></table></figure><h2>ELSS VS PPF? WHERE TO INVEST FOR TAX SAVING?</h2><p>There are many investment products available in the market such as equity, debt, money market instruments, <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds">mutual funds,</a> ELSS, <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/public-provident-fund-ppf">PPF</a>, etc. Every investment product or scheme has its own features combined with different risk/return characteristics. Investments with high returns also carry high risks.</p><p>In today’s article, we will talk about what are considered 2 of the best and most popular tax saving options available to investors i.e ELSS &amp; PPF. In both of them, an individual can claim deductions under section 80C of the Indian Income Tax Act.</p><p><strong>Section 80C:</strong> Section 80C as per the Income Tax Act, 1961 allows tax deductions up to an amount of Rs.1.5 lacs in a financial year. These deductions are allowed by the government to encourage individuals and households to park their savings in investments that will help them to meet their financial goals.</p><p><strong>Also Read:</strong> <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/tax-saving-options-under-section-80c">Best Tax Saving Options under Sector 80C</a></p><h3>What is ELLS?</h3><p>ELSS also known as Tax Saving Funds are the only mutual fund schemes which provide the benefit of tax deduction under section 80c. ELSS funds invest primarily in equity and equity-related securities. Due to their high exposure in equities, the risks involved in ELSS are also high. ELSS schemes are provided by several asset management companies and are managed by professional fund managers.</p><p><strong>Also Read: </strong><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-elss-mutual-funds">Best ELSS Mutual Funds to Invest</a></p><h3>What is PPF?</h3><p>PPF is a popular long term investment instrument provided by the Government of India. It comes with guarantee from the central government on the interest &amp; corpus. They have been considered as the safest financial product with decent returns. PPF invests mostly in fixed income securities which have a low risk component.</p><p>You can take the help of the below-listed points to understand the difference between PPF &amp; ELSS and accordingly make a decision on where to invest.</p><h2>Understand the Difference Between ELSS and PPF</h2><ul><li><strong>RISK FACTOR</strong></li></ul><p>PPF is completely backed by the Government of India, and the investments are made in fixed income securities. So the risk involved in PPF is almost negligible. Also, the interest rate is decided every quarter and there is no daily volatility.</p><p>ELSS is provided by the AMCs, they do not guarantee the returns as their investments are in equity securities. They are risky compared to PPF and are suitable for long term investments.</p><ul><li><strong>RETURNS</strong></li></ul><p>The return on PPF is announced by the central government every quarter. Currently (first quarter of 2020-21) the interest rate is 7.10%.</p><p>The best performing ELSS mutual funds can provide 12-15% returns annually over a period of 5 years or more.</p><ul><li><strong>INVESTMENT HORIZON &amp; LOCK-IN PERIOD</strong></li></ul><p>In PPF, there is a lock-in period of 15 years and after which a 5 year extension can be made by the investor.</p><p>ELSS carries a lock-in period of 3 years and an investor can stay invested in the fund as long as he wishes to.</p><ul><li><strong>WITHDRAWALS</strong></li></ul><p>An investor can only withdraw partially i.e 50% of the amount subject to certain conditions like health emergencies, child education etc. after the completion of 5 financial years in PPF.&nbsp;</p><p>However, in the case of ELSS one cannot withdraw any amount before the lock-in period of 3 years.</p><p>So an investor should analyse this before entering into investment as how prepared he is to meet emergency requirements.</p><ul><li><strong>TAX ADVANTAGE</strong></li></ul><p>PPF comes under the category of EEE(EXEMPT-EXEMPT-EXEMPT) as the amount at the time of investment, the interest earned, as well as the amount at the time of withdrawal all are completely exempted from tax.</p><p>On the other hand in ELSS, an investor can claim tax deductions to an extent of Rs.1.5 Lacs under section 80C. However, Long Term Capital Gains of value more than 1 lacs in a year are taxed at the rate of 10%.</p><ul><li><strong>INVESTMENT LIMITS</strong></li></ul><p>In both PPF &amp; ELSS, one can make investments either through a lump-sum or monthly installments.</p><p>In PPF, one can start with an amount of minimum Rs. 500 and is allowed a maximum to invest 1.5 lacs annually.</p><p>ELSS have no limit on maximum investment in a financial year, but have a minimum amount of Rs.500 to enter into a fund. An investor can invest as much as he wants but can claim deductions up to 1.5 Lacs as per section 80C.</p><h2>Is ELSS better than PPF?</h2><p>Both ELSS &amp; PPF are excellent tax-saving instruments. They have very different features in terms of risk, return, investment limits &amp; others. An investor should make the decision to invest in them very wisely and as per his risk appetite &amp; tolerance. One who is risk-averse and just wants stable returns can go for PPF for his tax-saving investment otherwise he can go for ELSS which provides a high return over a period of time. Careful attention needs to be given to the withdrawal part where one can withdraw early from ELSS as compared to PPF.</p><p>So which is the better option completely depends upon the investor’s risk profile &amp; his financial goals.</p><h2>Top Performing ELSS funds</h2><figure class="table"><table><tbody><tr><td><strong>Fund Name</strong></td><td><strong>1-year Return</strong></td><td><strong>3-year Return</strong></td><td><strong>5-year Return</strong></td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/dsp-tax-saver-fund-regular-plan-growth"><strong>DSP Tax Saver Fund</strong></a></td><td><strong>21.19%</strong></td><td><strong>10.26%</strong></td><td><strong>15.98%</strong></td></tr><tr><td><strong>ABSL Tax Relief 96 Fund</strong></td><td><strong>16.09%</strong></td><td><strong>6.88%</strong></td><td><strong>12.21%</strong></td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-long-term-equity-fund-tax-saving-growth"><strong>ICICI Pru Long Term Equity Fund</strong></a></td><td><strong>19.90%</strong></td><td><strong>9.84%</strong></td><td><strong>12.86%</strong></td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/mirae-asset-tax-saver-fund-regular-plan-growth"><strong>Mirae Asset Tax Saver Fund</strong></a></td><td><strong>28.33%</strong></td><td><strong>13.61%</strong></td><td><strong>21.03%</strong></td></tr><tr><td><strong>Canara Robeco Equity Tax Saver Fund</strong></td><td><strong>33.21%</strong></td><td><strong>16.07%</strong></td><td><strong>17.18%</strong></td></tr></tbody></table></figure><p>*Returns are as of 02nd February 2021</p><figure class="table"><table><tbody><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/etf-vs-mutual-funds"><strong>ETF vs. mutual fund</strong></a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/elss-vs-ppf"><strong>ELSS vs PPF</strong></a></td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nps-vs-ppf"><strong>NPS vs PPF</strong></a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hedge-funds-vs-mutual-funds"><strong>Hedge Funds vs Mutual Funds</strong></a></td></tr><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/etf-vs-index-funds"><strong>ETF vs. Index Funds</strong></a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/elss-vs-ulip"><strong>ELSS vs ULIP</strong></a></td></tr></tbody></table></figure><h3><strong>Frequently Asked Questions (FAQs)</strong></h3><h4>1.) Which is best, ELSS or PPF?</h4><p>Both the instruments are best in their respective features. However, ELSS funds are preferable as they offer more liquidity to investors and carry the capability to generate higher returns than investments in PPF.</p><h4>2.) What is the lock-in period for ELSS?</h4><p>ELSS has a <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/lock-in-period">lock-in period </a>of 3 years and after that investors can stay invested as per their goals.</p><h4>3.) What is the lock-in period for PPF?</h4><p>PPF has a lock-in period of 15 years which can also be extended for an additional 5 years and after that investor will get the total corpus collected in the account.</p><h4>4.) Does the interest earned from the PPF account is taxable?</h4><p>Interest earned from the PPF account is exempted from tax under the Income Tax Act.</p><h4>5.) What is the maximum limit of investment for PPF?</h4><p>The maximum limit for investment in the PPF account is Rs.1.5 lakh in a financial year.</p><h4>6.) What are the returns offered by the ELSS?</h4><p>ELSS does not have a fixed rate of return. ELSS returns are subject to market conditions. These funds have the potential to offer annual returns up to 12% p.a. on long-term investments.</p><h4>7.) What is the interest rate offered by the PPF?</h4><p>PPF offers a fixed rate of interest which is subject to revisions every quarter by the Government of India. Currently, it is fixed at 7.10% p.a.</p><h4>8.) Are partial withdrawals allowed in the ELSS?</h4><p>After the completion of the lock-in period of 3 years, investors can make withdrawals from their ELSS investments at any time as per their requirements.</p><p><strong>More Information:</strong></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/elss-vs-ulip">Understand the difference between ELSS and ULIP</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nps-vs-ppf">NPS Vs PPF: Comparison, Tenure, Risks, Returns, Tax Benefits &amp; Which is Better</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/what-is-expense-ratio-in-mutual-funds">What is Expense Ratio in Mutual Funds</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-large-cap-mutual-funds">Best Large Cap Mutual Funds to Invest in India</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-small-cap-mutual-funds">Best Small Cap Mutual Funds to Invest in India</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-small-cap-mutual-funds">Best Multi Cap Mutual Funds to Invest in India</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/bharat-bond-etf">Bharat Bond ETF - Meaning, Benefits, Price, Interest Rate, Review</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/what-are-shariah-compliant-mutual-funds">Shariah Compliant Mutual Funds - Types, Who can Invest, Minimum Investment</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/deduction-under-section-80tta">Deduction under Section 80TTA</a></p>

Niva Bupa Insurance provides the budget-friendly health insurance plans for Individuals, Family and Senior Citizens. Get a claim status, new policy or online renewal, calculator, Policy downloads etc.

Buy Niva Bupa Health Insurance Plans Online | Check Benefits and Renewal Criteria

niva-bupa-health-insurance-plan

Everything to know about Niva Bupa Health Insurance Plans

Rs.3 Lac ka Cover at Just Rs. 390*/Month

<h2>Niva Bupa Health Insurance 2023</h2><p>Formerly known was Max Bupa Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited is a joint venture between Fettle Tone LLP, which is an affiliate of True North Fund (a leading Indian private equity firm), and Bupa Singapore Holdings PTE Limited, a UK-based healthcare services expert. It is one of the most well-known insurers in India. Among the gamut of products and services offered by Niva Bupa is health insurance solutions for individuals, families, etc. If you are looking to buy a new health insurance plan or port your existing policy to a new one, then Niva Bupa health insurance plans can be a great choice. Read on to know about the reasons to purchase a Niva Bupa health insurance plan, its features, exclusions, eligibility, and much more. You will also find answers to some frequently asked questions about Niva Bupa health insurance.</p><h3>Why Choose Niva Bupa Health Insurance Plans for Yourself &amp; Your Family</h3><p>Niva Bupa is one of the best known health insurance providers in the country. It has been operating since 2008 and has covered more than 70 Lac customers under its health plans. The company has a remarkable claim settlement ratio of 92 percent. Claim settlement ratio or CSR is the ratio of total claims settled and total claim received by an insurance company during a financial year. What sets Niva Bupa health insurance plans apart from other options available in the market is that the insurer settles claims directly, without the involvement of any TPA or third party administrator, which allows for speedy processing.</p><p>In addition to the above, Niva Bupa offers critical illness coverage across its massive international network spanning 190 countries. In case you were wondering about its network of hospitals, then rest assured as the insurer boasts more than 8600 hospitals in its network. Therefore, with Niva Bupa health insurance, you can easily find a hospital with cashless treatment facility across India. Moreover, all medical and health insurance-related processes are online, adding to the convenience of insured people and their families.</p><h3>Eligibility for Niva Bupa Health Insurance Plans</h3><p>The following factors are critical in determining the eligibility for a Niva Bupa health insurance plan.</p><p>Age: The entry age of the insured person is typically between 18 and 65 years of age. In some cases, the maximum age to purchase a Niva Bupa health insurance plan can be 70 years.</p><p>Pre-Existing Medical Conditions: It is essential to disclose all relevant pre-existing medical conditions at the time of purchasing the Niva Bupa health insurance plan. These medical conditions can trigger waiting period and affect the overall premium for the health insurance plan.</p><p>Tests: Niva Bupa Health Insurance Company Limited may ask for some medical test reports before insuring an individual. These may include routine urine and blood tests, as well as some other major organ-related tests. However, these medical tests are generally not requested for people below the age of 45 years.</p><h3>Watch this Video to get Detailed Information Here:</h3><figure class="media"><oembed url="https://www.youtube.com/embed/Z04Xo1gs24c"></oembed></figure><h3>&nbsp;Saving Tax with Niva Bupa Health Insurance Plans</h3><p>Individuals and Hindu undivided families (HUFs) can claim tax deductions for premiums paid for a Niva Bupa health insurance plan. An annual deduction of INR 25000 is available for premium paid for a health insurance plan covering self, spouse, and dependent children. Another INR 25000 deduction is available for plans that include parents, who are not senior citizens. In case any of the parents is a senior citizen, then an additional tax deduction of INR 25000 is available. Insurance plan premium, health check-up cost, contribution towards a central government or notified health insurance scheme, and medical expenses incurred on a senior citizen not covered under health insurance are eligible for tax deduction.</p><h3>Different Niva Bupa Health Insurance Plans</h3><p>Depending on your requirement or need, you can choose from myriad Niva Bupa health insurance plans. Some popular Niva Bupa health insurance policies for individuals are Reassure, Health Companion, GoActive, Money Saver, Health Pulse, Health Premia, Senior First, and Super Saver. Reassure, Health Companion, HeartBeat, and Health Premia are some sought-after Niva Bupa health insurance plans for families. Apart from these, you can also opt for Niva Bupa health insurance plans for specific needs. For instance, Accident Care for accident-related medical expenses, Criti Care for 20 critical illnesses, Corona Kavach for COVID-19 infection, and more.</p><h3>Features of Niva Bupa Health Insurance Plans</h3><p>The policy features may vary depending on the type of health insurance plan. Following are some common inclusions of most, regular Niva Bupa health insurance policies.</p><ul><li>Coverage for hospitalization as well as in-patient care</li><li>ICU charges and hospital room rent, with and without limitations</li><li>Pre and post-hospitalization expenses coverage for a pre-defined number of days</li><li>Coverage of at-home medical treatment due to unavailability of beds at the hospital</li><li>Day care treatments, including out-patient department treatment, dental, ENT, and other procedures</li><li>Cashless diagnostic tests and health check-ups</li><li>Ambulance charges</li><li>In-patient procedures done on organ donor for organ harvesting</li><li>A waiting period of between two and six years for pre-existing illnesses</li></ul><p>While these are general features, you are requested to check your policy documents thoroughly to understand all the policy inclusions.</p><h3>Niva Bupa Health Insurance Plans Exclusions</h3><p>Dental treatments, unless necessary due to cancer or acute trauma.</p><p>Expenses towards purchase of external devices, such as hearing aids, spectacles, crutches, artificial limbs, veneers, artificial teeth, etc.</p><p>Treatment of self-inflicted injuries by the insured person.</p><p>Any cosmetic surgery, including botox and plastic surgery. Exceptions here are surgery for accidental bodily injuries, burns and surgeries necessary for the treatment of cancer.</p><h3>Essential Documents for Niva Bupa Health Insurance Claim Reimbursement</h3><p>In case of cashless hospitalization, the network hospital shares all the necessary documents with the insurer (Niva Bupa in this case). If there is request for reimbursement, then submission of a set of documents is required for Niva Bupa to process and approve the claim. These include the following documents:</p><ul><li>Diligently filled and signed claim form</li><li>Discharge certificate received from the hospital</li><li>All consultation documents and receipts</li><li>Bbills signed &amp; stamped by the concerned hospital</li><li>All relevant reports, such as X-ray films, blood tests, urine tests, etc.</li><li>Medical invoices and other treatment-related documents</li></ul><h3>Frequently Asked Questions about Niva Bupa Health Insurance Plans</h3><p>Q. Niva Bupa Health Insurance Review and Benefits ? &nbsp;</p><p>A. Buying health insurance Policy which is offering by Niva Bupa health insurance has a lot of benefits. It provides an excellent claim settlement ratio at the same time satisfactory incurred claim ratio.</p><p>Q. Niva Bupa Health Insurance Hospital List ?</p><p>A. Niva Bupa has cashless hospital network of NIVA Bupa. Complete Hospital Details including address, Phone no, website, google map on niva bupa official website.</p><p>Q. Can I buy Niva Bupa health insurance plan online ?</p><p>A. Yes. ZFunds allow you to purchase Niva Bupa health insurance plans for yourself and your loved ones online without any hassles.</p><p>Q. What are the documents required to purchase Niva Bupa health insurance plan ?</p><p>A. Age proof (Passport, Aadhaar Card, Driving License, PAN Card, Voter’s ID, or Birth Certificate), identity proof (Passport, Aadhaar Card, Driving License, PAN Card, or Voter’s ID), address proof (Passport, Aadhaar Card, Driving License, Ration Card, Electricity Bill, or Telephone Bill), passport size photographs, medical reports (if needed), and signed and duly filled Niva Bupa insurance policy form.</p><p>Q. What is the minimum age to get Niva Bupa health insurance plan?</p><p>A. The minimum age for a dependent child is 15 days. Also, the child can be covered up till the age of 18 &nbsp;years. Adults with the minimum age of 18 years can get health insurance for themselves. The maximum age to get Niva Bupa health insurance is 65 years.</p><p>Q. I am in my 20s. When should I get health insurance ?</p><p>A. It is advised that you get a health insurance plan as early as possible since premiums increase with age. Moreover, medical emergencies can occur at any time. Thus, it is best to have a health insurance plan at all times for its plethora of benefits, such as wealth preservation, tax benefits, etc. &nbsp;</p><p>Q. Can I add riders to my Niva Bupa health insurance plan ?</p><p>A. Yes, several riders are available with Niva Bupa health insurance policies. Standard plans do not cover everything, but you have to option to add riders to increase coverage and inclusions of your Niva Bupa health insurance plan.</p><p>Q. What factors affect the premium for Niva Bupa health insurance plan ?</p><p>A. There are numerous factors that affect insurance premiums. These include age of the person to be insured, pre-existing illness, city of residence, family medical history, the BMI (body mass index) of the person to be insured, and lifestyle choices of the person to be insured, such as smoking and drinking habits.</p><p>Q. What factors should I consider while choosing a Niva Bupa health insurance plan ?</p><p>A. Room rent limit, co-payment, waiting period, period for pre and post hospitalization coverage, ambulance charges, and coverage of alternate treatments are among the most important factors to take into account while purchasing a health insurance plan.</p><p>Also Read :&nbsp;</p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/bajaj-allianz-health-insurance">Bajaj Allianz Health Insurance Plan</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/manipalcigna-health-insurance-plan">ManipalCigna Health Insurance Policy</a></p>

What is Internal Rate of Return  -  Understand the meaning, formula, calculation, benefits and limitation of IRR

What is Internal Rate of Return (IRR) - Meaning, Formula, Calculation

internal-rate-of-return

What is Internal Rate of Return - Meaning, Formula, Calculation of IRR

<h2>INTERNAL RATE OF RETURN&nbsp;</h2><p>IRR (Internal Rate of Return) Method takes into account the time value of money as we do in the calculation of NPV i.e. Net Present Value. It helps us to analyze an investment plan by comparing the IRR to the minimum rate of return required by the entity. Often referred to as the project yield, it is the rate at which an investment project assures to generate a return during its usable life and at which the PV of a project’s net cash outflows becomes equal to the PV of net cash inflows. In simpler words, we can say that IRR is the discount rate where NPV becomes zero.</p><p>In this article, we will discuss the concept of IRR in detail including its formula, calculation, example, and major aspects.&nbsp;</p><h2>WHAT IS INTERNAL RATE OF RETURN i.e. IRR?</h2><p>IRR is a financial phenomenon that assists in estimating the profitability of a potential investment project and is widely used in discounted cash flow analysis. It is the discount rate at which the NPV of a project becomes zero and tells the expected annual growth rate of an investment. It assists in comparing the potential annual return rate over tenure and is best suited for analyzing capital budgeting projects. While its calculation will yield the Present value of future cash flows as zero, thus it is the rate of interest that makes the PV of the estimated cash inflows equal to the PV of the cash outflow required by the investment.</p><p>For instance, while making an investment decision, if the IRR is greater than the required rate of return or cost of capital, then the project is a profitable option to opt for. On the other side, if the IRR is lower than the CoC, then the project won’t be an ideal option. Apart from IRR, many other quantitative and qualitative factors play their role while making an investment decision.&nbsp;&nbsp;</p><h2>FORMULA AND CALCULATION</h2><p>IRR uses the same formula as NPV&nbsp;</p><p>i.e.,&nbsp;</p><p>NPV = (Cash Flows/(1+r)^t) - I</p><p>Where,&nbsp;</p><p>Cash Flows: All the cash flows during the tenure of investment&nbsp;</p><p>R = IRR&nbsp;</p><p>t= Tenure&nbsp;</p><p>I = Initial Investment (FIrst investment made in the project)</p><p>IRR is the rate at which the investor will be in an ideal position i.e. profitable. Hence, IRR is the rate at which the present value of all future cash flows matches the cost of investment. While IRR can be calculated manually through a trial and error basis, one can also use the IRR function in MS Excel to ascertain the same.&nbsp;<br><br>For better understanding, let’s take an illustration.&nbsp;</p><p>There are 2 investment projects which require an initial investment of Rs. 10,00,000. A company has to opt between the 2 projects. The cash flows are as follows:</p><figure class="table"><table><tbody><tr><td>&nbsp;</td><td><strong>Project 1</strong></td><td><strong>Project 2</strong></td></tr><tr><td><strong>Year 0</strong></td><td><strong>-10,00,000</strong></td><td><strong>-10,00,000</strong></td></tr><tr><td><strong>Year 1</strong></td><td><strong>2,00,000</strong></td><td><strong>6,50,000</strong></td></tr><tr><td><strong>Year 2</strong></td><td><strong>6,00,000</strong></td><td><strong>3,50,000</strong></td></tr><tr><td><strong>Year 3</strong></td><td><strong>2,50,000</strong></td><td><strong>2,00,000</strong></td></tr><tr><td><strong>Year 4</strong></td><td><strong>3,50,000</strong></td><td><strong>2,00,000</strong></td></tr></tbody></table></figure><p>By using the excel function, the IRR of project 1 comes out to be 15% and project 2 gives an IRR of 20%. So now, if the company is to opt on the basis of IRR, they will go forward with project 2 as it offers high IRR and is more desirable.&nbsp;</p><p><strong>Points to remember&nbsp;</strong></p><ol><li>The figures included should be a set of positive and negative values.</li><li>Amount invested in the project should be shown in negative figures.</li><li>The amount received should be shown in positive figures.</li><li>All investments are done at regular intervals.</li><li>All the payments have been assumed to be made on a yearly basis.</li></ol><h2>WHAT DOES IRR INDICATES?</h2><p>IRR, to be termed as layman language, evaluates investment returns and is used by entities to determine which project is ideal and more profitable to invest in. As IRR is calculated as a percentage it makes it easier to compare it with the company’s financing cost. And if the cost is less than the rate of return that the project can be opted for.&nbsp;</p><p>This concept is majorly applied with WACC (Working Average Cost of Capital) and NPV (Net Present Value). As we discussed earlier, it is a discount rate at which NPV is zero. This indicates that at zero NPV, the value of IRR will be more than the WACC.</p><p>In theory, what we study is that the project with higher IRR should be opted for. But in practicality, usually, companies determine the minimum required rate of return referred to as RRR and this rate is compared with IRR and if the IRR is greater than this, then the project is considered.&nbsp;</p><h2>IRR &amp; MUTUAL FUNDS&nbsp;</h2><p>Apart from playing a key role for businesses to evaluate different investment opportunities, IRR is also used by many investors as a phenomenon to calculate the return on their investments. Actual SIP returns can be calculated by investors investing in MF through SIP by using IRR. In excel, this can be done by using the XIRR function.&nbsp;&nbsp;&nbsp;</p><h2>LIMITATIONS OF IRR</h2><p>1. Assumption of reinvestment:</p><p>IRR assumes that the cash flows generated are reinvested at the same rate as that of the project’s IRR rather than at the CoC. Thus, it may not give the correct representation of profitability. To counter this, MIRR i.e. Modified Internal Rate of Return can be used as it is considered as the reinvestment rate.</p><p>2. Economies of scale is ignored:</p><p>One drawback of the IRR is that it ignores the actual money value of benefits. One should always prefer a project value of Rs.1,00,00,000 with a 19% return over a project value of Rs. 1,00,000 with a 45% return. There is no need for in-depth analysis as we can see the former will reap more benefits. But here, the IRR will rank the latter project—with a much lower benefit—first, simply because the IRR of 50% is higher than 18%.</p><p><strong>FAQs</strong></p><p><strong>1. What is IRR?</strong></p><p>IRR is a financial phenomenon that assists in estimating the profitability of a potential investment project and is widely used in discounted cash flow analysis.&nbsp;</p><p><strong>2. What is the formula to calculate IRR?</strong></p><p>IRR uses the same formula as NPV&nbsp;</p><p>i.e.,&nbsp;</p><p>NPV = (Cash Flows/(1+r)^t) - I</p><p>Where,&nbsp;</p><p>Cash Flows: All the cash flows during the tenure of investment&nbsp;</p><p>R = IRR&nbsp;</p><p>t= Tenure&nbsp;</p><p>I = Initial Investment (FIrst investment made in the project)</p><p>NPV = 0 (Zero)</p><p><strong>3. What are the limitations of IRR?</strong></p><p>The limitations of IRR are that it does not consider the tenure of the options and reinvestment rate.&nbsp;</p><p><strong>4. How can IRR be calculated through excel?</strong></p><p>IRR can be calculated by using the IRR function in MS Excel by putting correct values.</p><p><strong>5. How IRR is helpful in Mutual Funds?</strong></p><p>Actual SIP returns can be calculated by investors investing in MF through SIP by using IRR. In excel, this can be done by using the XIRR function.</p>

In this article, we'll delve into what Alternate Investment Funds are, different types of AIFs available in the market, their benefits and risks, and the regulatory framework of these investment vehicles.

Alternative Investment Funds (AIFs) in India: Types, Risk, Investment, Who should Invest, Taxation

alternative-investment-funds

Alternative Investment Funds - A Complete Guide to AIFs

<p>In the world of investing, traditional asset classes like equities, bonds, and real estate have been replaced with Alternate Investment Funds (AIFs). They have reshaped the investment landscape, offering investors access to another range of investment opportunities and strategies. In this article, we'll delve into what AIFs are, different types of AIFs available in the market, their benefits and risks, and the regulatory framework of these investment vehicles.</p><p>In the world of investing, traditional asset classes like equities, bonds, and real estate have been replaced with Alternate Investment Funds (AIFs). They have reshaped the investment landscape, offering investors access to another range of investment opportunities and strategies. In this article, we'll delve into what Alternate Investment Funds are, different types of AIFs available in the market, their benefits and risks, and the regulatory framework of these investment vehicles.</p><h2>What are Alternative Investment Funds (AIFs)?</h2><p>Alternate Investment Fund (AIF) is a privately pooled investment vehicle which collects funds from investors for the purpose of investing. They are the special investment category that adhere to SEBI Rule and Regulations, 2012. These can be in the form of company, trust or&nbsp; Limited Liability Partnership (LLP), etc.</p><p>Generally, big institutions and HNIs invest in AIFs as these funds invest in a wide range of asset classes like equity, real estate, debt, commodities, and even in venture capital or hedge funds. These funds allow for greater flexibility in terms of investment strategies and provide a wide variety of investment options outside of the common asset classes like <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/equity-funds">equity Fund</a>,<a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hedge-funds"> hedge funds</a>, venture capital,<a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/real-estate-mutual-funds"> real estate funds</a>, PIPEs, and others. This flexibility can be lucrative for investors who are looking for diversification and higher returns.</p><p>As per the latest data available, currently Rs. 1.4 lakh crores of investments have been made by AIFs in India.</p><h2>Different Types of Alternative Investment Funds (AIFs):</h2><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/what-is-sebi">Securities and Exchange Board of India</a> (SEBI) have classified Alternative Investment Funds (AIFs) into three types which are mentioned below:</p><figure class="image"><img src="https://lh5.googleusercontent.com/H3huQCp4ChZdNvvvtynyjXD5e-wOjJBT1xTDdw9kB5UaNSH6eA3UHkX8Ba3nVkuFgs1X0qU9ER3Cb9u5ieTY_OvAGHTsdPn-ay3AkfbTXxyE8oCCq0roAOw-6VCP3g"></figure><h3>Category 1 AIFs</h3><p>Alternative Investment Funds (AIFs) that invest in ventures being in their initial or beginning stage, social ventures, small and medium enterprises also called SMEs, infrastructure, or other sectors that are considered potentially advantageous in social and economic aspects by government or regulators. The funded ventures are expected to generate economic benefits for the country including generating employment, innovative offerings &amp; promoting economic growth.&nbsp;</p><p>Category 1 comprises different funds such as:</p><h4>Infrastructure Fund&nbsp;</h4><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/infrastructure-mutual-funds">Infrastructure funds</a> are those funds that invest in companies that are either directly or indirectly involved in infrastructure development-related projects in the nation. Corporates involved in industries such as power, metals, estate, etc. come under the infrastructure sector.</p><h3>Venture Capital Fund (VCF)</h3><p>Venture Capital Funds are those funds that provide funding to start-ups in their initial stage to help them expand their business. The funded start-ups carry a high potential of growth and the investors can expect to earn good returns over time on their share of investments.&nbsp;</p><h4>Angel Fund</h4><p>Angel funds are those funds which the investors facilitate by providing funding in exchange for receiving an equity position in the company. The angel fund makes investments in startups or businesses in their early stage and generally requires its investors to have prior experience as an investor, entrepreneur, or senior management professional which will help in guiding the funded start-ups. These funds are a sub-category of the Venture Capital funds in the Category-1 AIF.</p><p>These funds are considered a kind of equity funding.</p><h4>Social Venture Fund (SVF)</h4><p>Social Venture Funds are those funds in which social venture capitalists or groups facilitate funding in ventures that have the potential to become a social boon as an enterprise. The Social Venture Funds promote investments in ventures or businesses that aim to operate their activities in a socially responsible manner i.e without harming the environment or social values. These funds want to generate returns for their investors by investing in companies incorporating the best practices of corporate governance, protecting the environment &amp; deploying advanced technologies.</p><p>Also Read :<a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-va-certification"> Nism VA Certification</a></p><h3>Category 2</h3><p>These Alternative Investment Funds (AIFs) do not undertake leverage or borrowings other than to achieve operative objectives on a daily basis and as allowed by regulations set by the SEBI for the AIF Category 2. This category includes different types of funds, such as:</p><h4>Private Equity (PE) Funds</h4><p>Private Equity Funds (PE Funds) are those funds that make investments in unlisted companies which can’t use other sources of funding. The investors in these funds are generally called limited partners and are given a share in the invested companies in proportion to their investments. Investments in these funds are directly made into different private companies to diversify investments.</p><h4>Real Estate Funds&nbsp;</h4><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/real-estate-mutual-funds">Real Estate Funds</a> are funds that invest in securities issued by corporations or companies that further invest in projects in the real estate sector.</p><h4>Debt Funds</h4><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/debt-fund">Debt funds</a> are those funds that invest in debt or debt-related securities issued by the unlisted or listed companies to generate returns as per the investment objective of the AIF. Debt funds are also called fixed-income funds.</p><h4>Fund of Funds</h4><p>Fund of Funds is the Alternative Investment Funds that follow the investment strategy of holding a diversified portfolio of other investment funds rather than directly making investments in investment instruments or securities.</p><p>Also Read :<a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-mock-test"> Nism Mock Test</a></p><h3>Category 3</h3><p>These Alternative Investment Funds (AIFs) are funds that deploy different complex investment strategies to generate returns for the investors. These funds may also use leverage to make investments in listed and unlisted equity or other derivative products. These AIFs include different funds such as:</p><h4>Hedge Funds</h4><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hedge-funds">Hedge Funds</a> are those funds that are built as limited liability partnerships. These funds deploy complex investment strategies including using technical analysis, algorithmic trading, derivative trading, etc. to make investment-related decisions. As the name implies "hedge", these funds aim to protect against downside risks through their exposures in related instruments available in the market.&nbsp;</p><h4>PIPE Funds</h4><p>Private Investment in Public Equity Funds (PIPE) are those funds that involve private investments made by investment organizations, mutual funds, and other investors into publicly traded equities. These funds invest in equity stocks of corporations or companies at a discounted price of the current value in the market. PIPE funds are of different types such as traditional, structured, etc.</p><p>Also Read :<a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-full-form"> Nism Full Form</a></p><h2>Key Benefits of Alternative Investment Funds (AIFs)</h2><ol><li>It allows investors to diversify their investment to alternative markets like real estate, private equity, commodities, venture capital or hedge funds. By diversifying, we can reduce risk and potentially increase overall portfolio returns.</li><li>These investments target high-growth orientation sectors, like start-ups or infrastructure, that can provide you with high returns compared to traditional asset classes. However, this comes with a higher risk, as they are highly volatile.</li><li>Unlike traditional funds, AIFs offers a wide range of investment strategies, such as leveraging, short-selling, and derivatives, which provide flexibility in achieving the fund’s investment goals.</li><li>AIFs can open doors to asset classes and markets that are not available for investment directly like investors can access private equity, pre-IPO investments, or even real estate projects.</li><li>AIFs may offer favourable tax treatment. For example, they invest in investment options that can give investors minimize tax liabilities.</li></ol><h2>Investment in Alternative Investment Funds (AIFs)</h2><p>Investments in AIFs are suitable for high-net-worth investors because of the higher minimum ticket size for investments. The investments can be made by Indian residents, NRIs, and foreign Investors as well.</p><p>AIFs other than Angel Funds have criteria of a minimum investment size of Rs.1 crores as per SEBI rules. For angel funds, the minimum investment size is Rs.25 lacs.</p><h2>Who should invest in Alternative Investment Funds (AIFs)?</h2><p>Investments in AIFs are somewhat different than the other traditional investments available in the market due to their basic characteristics. Their very high-risk nature coupled with higher minimum investment requirements makes it only suitable for High high-net-worth investors (HNIs). Also, these investments are suitable for sophisticated investors who have an understanding of the markets &amp; similar investments and the risks associated with such investments.</p><h2>Risks Involved in Alternative Investment Funds (AIFs)</h2><ol><li>Lock-in period - Many AIFs have a lock-in period, during which investors cannot withdraw their funds.&nbsp;</li><li>Regulatory Risk - AIFs are less regulated compared to traditional mutual funds or stocks, which can expose investors to more risks. While regulators in countries like India and the UK have put in place frameworks to protect investors, AIFs are still subject to less oversight than mainstream funds.</li><li>High Minimum Investment - AIFs usually require a high investment amount that is why it is best for investors or institutional investors who are looking to invest a high amount of investment.&nbsp;</li><li>Complexity and Lack of Transparency - The investment strategies used by AIFs, particularly those in Category II and III, can be complex and difficult for average investors to understand. Some AIFs also have a lack of transparency, making it challenging for investors to calculate the risks associated with the fund.</li><li>Higher Fees - AIFs have higher management fees and performance fees than traditional investment vehicles. These fees can lower the investor returns.</li></ol><h2>Regulatory Framework for Alternative Investment Funds (AIFs)</h2><p>In many countries, including India, AIFs are subject to regulatory frameworks set out by financial regulatory authorities to ensure transparency, fairness, and investor protection. For instance:</p><ul><li>India: The Securities and Exchange Board of India (SEBI) regulates AIFs in India under SEBI (Alternative Investment Funds) Regulations, 2012. These regulations govern the operations, registration, and reporting requirements for AIFs, ensuring that they operate in a structured and compliant manner.</li><li>United States: AIFs are generally regulated under the Securities and Exchange Commission (SEC), with some funds needing to comply with regulations like the Investment Company Act of 1940, while hedge funds and private equity funds fall under more specific rules depending on their structure and investment approach.</li></ul><h2>Taxation of Alternative Investment Funds (AIFs)</h2><p>Under the Finance Act 2015, categories 1 and 2 of the Alternative Investment Funds (AIFs) have been granted special pass-through tax status under section 115UB of the Income Tax Act of India, 1961. This means that incomes or gains received by AIFs get taxed in the hands of investors in AIFs in a way that assumes investments have been made directly by the investors and so, the tax would need to be paid by the investors at the slab rates applicable to them.&nbsp;</p><p>However, the Category-3 AIF which includes investment in hedge funds, PIPEs, etc. has still not been given pass-through status by the Indian tax law which leads to higher taxes on these investments. The taxes on these investments need to be paid at the fund level and are not passed on to the investors. The effective taxation rate for AIF Category-3 comes out to be around 42.7% including the highest tax slab rate of 30%, a surcharge of 37.5% on the tax, and applicable cess rates.</p><p>Read More:<a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/aditya-birla-investment-plans"> Aditya Birla Investment Plans: A Comprehensive Guide</a></p><h2>Conclusion</h2><p>Alternate Investment Funds is one of the attractive and popular investment options for investors who are looking to diversify their investment beyond traditional assets and pursue potentially higher returns. However, they come with their own set of risks that investors must look at carefully. Understanding the different types of AIFs, their investment strategies, and the regulatory environment is essential. It can be a powerful tool in an investor's portfolio, they can diversify their investment through it. AIFs provide a wide range of opportunities to dynamic global markets.</p><h2>Frequently Asked Questions (FAQs) - Alternative Investment Funds</h2><h3>Q. Are AIFs open-ended?</h3><p>A. AIFs under Category 3 do have a choice to be open-ended in nature.</p><h3>Q. What is the corpus of the AIF?</h3><p>A. 'Corpus' is the complete amount of funds committed by investors to the AIFs through a written contract or any document.</p><h3>Q. Can AIF launch schemes?</h3><p>A. Yes, AIF can launch schemes under certain terms.</p><h3>Q. How many categories do AIF have?</h3><p>A. AIFs have been classified into three sub-categories.</p><h3>Q. Is a Real estate fund an AIF?</h3><p>A. Yes, Real estate funds come under category 2 in AIF.</p><p><strong>More Information:</strong></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/bharat-bond-etf">Bharat Bond ETF</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/what-are-shariah-compliant-mutual-funds">Shariah Compliant Mutual Funds</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/what-is-expense-ratio-in-mutual-funds">What is Expense Ratio in Mutual Funds</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-large-cap-mutual-funds">Best Large Cap Mutual Funds to Invest in India</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-small-cap-mutual-funds">Best Small Cap Mutual Funds to Invest in India</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/rupee-cost-averaging-power-of-systematic-investment-plan">What is Rupee Cost Averaging in SIP</a> ?<br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/become-mutual-fund-advisor">Steps to Become Mutual Fund Advisor</a></p>

Life Insurance Vs Mutual Funds : With the increase in financial knowledge and awareness, everybody today is becoming more concerned about financial planning to achieve their goals.

Difference Between Life Insurance and Mutual Funds Investments

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<h2>Life Insurance vs Mutual Funds Investment</h2><p>With the increase in financial knowledge and awareness, everybody today is becoming more concerned about financial planning to achieve their goals. And to do this, investors have a number of options available to choose from and they often get confused while opting for the same. What holds the most significance is the end goal. You can be a person having dependents to look after, or a single person, or someone who invests to meet specific financial targets.&nbsp;</p><p>Two of the most popular options which come to investors mind while doing financial planning are Life Insurance and <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds">Mutual Funds</a>. But most of us often fail to understand that both of them serve a different purpose. While a mutual fund is an investment alternative, life insurance is not and is simply a way to secure life and health. As the goals differ from person to person, the choice of the option also differs. In this article, we will discuss these two in detail and talk about various aspects.&nbsp;&nbsp;</p><h3>What is Life Insurance ?</h3><p>Life Insurance is a protection offering plan that makes sure the beneficiaries well being in case of unfortunate events in the policyholder’s life. When you opt for life insurance, the issuing entity or insurer is bound and liable to pay the sum assured to your nominee/beneficiary in case of any unfortunate event, provided that the policy is not expired or matured. Life insurance has many types which include Whole Life insurance, Term Insurance, Money Back, Endowment, Retirement plans among others.&nbsp;</p><h3>What are Mutual Funds</h3><p>Mutual funds are investment alternatives that pool funds from many individuals, put them together, and purchase a collection of bonds, stocks, or other securities as per the investment objective of the scheme. This is usually termed a portfolio. The NAV(Net Asset Value) or price per unit of the mutual fund scheme is ascertained by the total value of the securities in the portfolio divided by the fund’s outstanding stocks. Based on the value of securities at the end of each trading day, the NAV of the scheme fluctuates. It is very important to take note that investors do not own the securities in which the fund invests, they are owners of the units in the fund itself.&nbsp;<br>When we talk about actively managed mutual funds, the decision and authority to buy &amp; sell the underlying securities are made by professional fund managers which are supported through research. The primary goal of these managers is to seek out investment opportunities that can help the fund to surpass the returns of its benchmark which generally is the index, such as Sensex or Nifty. A simple way to tell the fund’s performance is to compare it with a set benchmark.</p><h3>Key Aspects to Consider</h3><p>Before opting for any of these options, the following things should be considered:</p><p><strong>Goals and Vision:</strong></p><p>Without a goal or vision, you can not decide on what to opt for as there doesn’t exist any blueprint. The goal will help you to make a blueprint and invest according to the needs and best fit. Life insurance plans are also an important part for an investor as it covers the financial security of dependent members of the family. Whereas, mutual funds are a disciplined commitment to meet your goals, short or long term, whether it is for buying a home, starting a venture, or for higher studies.</p><p><strong>Risk:</strong></p><p>Risk plays a very important role in financial planning as the options and subcategories to be selected are totally relied on the risk appetite of the investor. Investors having less risk appetite might go forward with term insurance while the high ones can look upto market-linked insurance plans like whole life, etc. However, in most cases term insurance plans are good to go. Also, they are the most affordable option among all life policies.&nbsp;</p><p>Similarly, in MFs investors can opt between debt funds, equity-based funds, or hybrid funds according to their risk profile &amp; investment requirements. Nevertheless, the returns are better in relation to risk when we talk about mutual funds.&nbsp;</p><p><strong>Liquidity:</strong></p><p>Liquidity is termed as the ease with which security or asset can be converted to cash or cash equivalents. In the case of MFs (other than ELSS), you can withdraw funds within a year with some percent of exit load being levied if units are withdrawn before a specific period.</p><p>In the case of market-linked life insurance plans like ULIPs, you will get a liquidity constraint due to a minimum lock period of 5 years in insurance. Talking about general term insurance, individuals just need to make premium payments to avail risk coverage. As it is not a market-linked or profit participating product, the liquidity doesn’t come to picture here.</p><p><strong>Returns:</strong></p><p>In general, Life insurance plans are not meant for investment purposes. But with the changing times, the insurers have started to offer combo plans offering insurance and investment in a single plan. Nevertheless, most often it is seen that such market-linked plans do not promise identical returns to the mutual funds. So, it automatically makes the mutual funds a better choice as premiums for such plans have proven to be too expensive.&nbsp;&nbsp;&nbsp;</p><p>The best way is to opt for separate investment &amp; insurance plans to earn efficient returns along with lower costs.&nbsp;</p><h2>Merits, Demerits, and Risks Associated With Mutual Funds</h2><p>Mutual funds are investment alternatives that aim to generate income or returns over the short or long term as per the investment objective of the fund. The returns on these investments come in the form of dividends, stock, coupon payments or capital appreciation and are reflected in the NAV of the fund. Investors can conveniently diversify their portfolios with the help of mutual funds so as to maximize the returns on investments and reduce the overall portfolio risks. However, investing in MFs involves risks.</p><h2>Merits, Demerits, and Risks Associated With Life Insurance</h2><p>As discussed, Life insurance most often offers returns that are lower than that of mutual funds. But at the same time, the risk is less. Life insurance policies have certain features and add ons which makes them a good choice for investors. These include tax-free insurance proceeds, tax-deferred payments in growth dividends among others. Borrowing money against the insurance policy is possible but it will reduce the death benefits and cash surrender value. One of the major demerit and concern with life insurance plans is, as an investment option, these have high fees and expenses making it difficult to compete with the returns of mutual funds.&nbsp;</p><h2>SUMMARY TABLE&nbsp;</h2><figure class="table"><table><tbody><tr><td><strong>BASIS&nbsp;</strong></td><td><strong>LIFE INSURANCE&nbsp;</strong></td><td><strong>MUTUAL FUNDS&nbsp;</strong></td></tr><tr><td><strong>Meaning&nbsp;</strong></td><td><strong>Life Insurance is a protection offering plan that makes sure the beneficiaries’ well-being in case of unfortunate events in an individual's life.&nbsp;</strong></td><td><strong>Mutual funds are investment alternatives that pool funds from many individuals, put them together, and purchase a collection of bonds, stocks, or other securities as per the investment objective of the scheme.</strong></td></tr><tr><td><strong>Goal&nbsp;</strong></td><td><strong>The goal is to offer financial protection to the policyholder’s dependents.</strong></td><td><strong>The goal is to provide income or capital appreciation to investors.</strong></td></tr><tr><td><strong>Types</strong></td><td><strong>Have different types namely Whole Life, Term, Endowment, Money back, Retirement, and Investment and Saving plans.&nbsp;</strong></td><td><strong>Namely 3 broad categories: Equity funds, Debt funds, and Hybrid funds.&nbsp;</strong></td></tr><tr><td><strong>Risk</strong></td><td><strong>There can be risks in market-linked life insurance plans like ULIPs.</strong></td><td><strong>Risks vary across funds based on their investment objective and asset allocation</strong></td></tr><tr><td><strong>Liquidity&nbsp;</strong></td><td><strong>Have liquidity constraints due to the lock-in period in the case of ULIPs.&nbsp;</strong></td><td><strong>Investments in mutual funds offer good liquidity and allow withdrawals at any time except for tax-saver funds.</strong></td></tr><tr><td><strong>Returns&nbsp;</strong></td><td><strong>Lower returns in market-linked plans as compared to mutual funds due to high costs</strong></td><td><strong>Returns vary across schemes &amp; MF categories. However, returns higher than ULIPs with similar allocations.&nbsp;</strong></td></tr></tbody></table></figure><h2>THE CRUX</h2><p>A well-done financial planning is one that incorporates mutual funds as well as life insurance. This is because mutual funds will generate the required returns and gains which will help investors to reach their financial goals and the life insurance policy will cover the life of the investor so that in case of his/her unfortunate demise, the dependent family should not suffer. Including both the options is called ideal by many financial experts and professionals. Nevertheless, which mutual fund and which life insurance to opt for are subjective questions and differ from investor to investor due to many factors involved.&nbsp;</p><p>Also Read :&nbsp;</p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/mutual-fund-distributor">Mutual fund distributor Registration</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/become-mutual-fund-advisor">Become Mutual Fund Advisor</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/become-mutual-fund-agent ">how to become mutual fund agent</a></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/mfd-karein-shuru">mfd mutual fund</a></p>

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