NISM VA vs NISM 8: Which Certification Should You Choose?

In this article, we’ll explore the differences between NISM VA and NISM 8, their career paths, eligibility, syllabus, exam patterns, and you should choose which certification is a difficult task.

NISM VA vs NISM 8: Which Certification Should You Choose? | ZFunds

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<p>If you're looking to enter the financial services industry in India, clearing NISM certification exams is the first step. Two of the most popular and career-defining certifications are NISM Series V-A (Mutual Fund Distributors) and NISM Series VIII (Equity Derivatives). But which one is right for you?</p><p>In this article, we’ll explore the differences between NISM VA and NISM 8, their career paths, eligibility, syllabus, exam patterns, and you should choose which certification is a difficult task.</p><h2>What is NISM VA?</h2><p>NISM VA is the <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-va-certification">Mutual Fund Distributors Certification Examination</a>. It’s designed for individuals who want to become certified <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/become-mutual-fund-advisor">mutual fund advisors</a> or distributors and guide clients in investing in mutual fund products. The main focus of this certification is on a basic understanding of Mutual funds, SIPs, NAV, KYC, taxation, and client onboarding.</p><p>The objective of certification is to educate distributors on mutual fund products and regulatory compliance. It is suitable for anybody who is a beginner, a retiree, or wants to change their career in the mutual fund industry. Also, it is suitable for anyone who wants to understand mutual funds and wants to manage their long-term investing.</p><h2>What is NISM 8?</h2><p>NISM Series VIII, or NISM 8, is the Equity Derivatives Certification. It focuses on trading and risk management in the equity derivatives (Futures and Options) market. The main focus of this certification is to understand the concept of futures, options, hedging strategies, risk, and settlement mechanisms.</p><p>The objective of the certification is to certify professionals who wish to trade or advise in the equity derivatives segment. It is suitable for anybody who wants to become a trader, finance students, analysts, and those interested in stock market trading.</p><h2>Comparison: NISM VA vs NISM 8</h2><figure class="table"><table><tbody><tr><td><strong>Feature</strong></td><td><strong>NISM VA</strong></td><td><strong>NISM 8</strong></td></tr><tr><td><strong>Full Name</strong></td><td>Mutual Fund Distributors Certification</td><td>Equity Derivatives Certification</td></tr><tr><td><strong>Target Audience</strong></td><td>Mutual Fund Advisors, Beginners, Retirees</td><td>Traders, Analysts, Finance Students</td></tr><tr><td><strong>Focus Area</strong></td><td>Mutual Funds, SIPs, NAV, Taxation</td><td>Futures, Options, Hedging, Derivatives</td></tr><tr><td><strong>Job Roles</strong></td><td>Mutual Fund Distributor, Wealth Advisor</td><td>Equity Dealer, Derivatives Analyst</td></tr><tr><td><strong>Income Potential</strong></td><td>Trail Commissions from Client Investments</td><td>Brokerage, Incentives, or Salary</td></tr><tr><td><strong>Exam Duration</strong></td><td>2 hours (100 MCQs)</td><td>2 hours (100 MCQs)</td></tr><tr><td><strong>Passing Marks</strong></td><td>50%</td><td>60%</td></tr><tr><td><strong>Negative Marking</strong></td><td>No</td><td>Yes (25% per wrong answer)</td></tr><tr><td><strong>Certification Validity</strong></td><td>3 Years</td><td>3 Years</td></tr><tr><td><strong>Regulator</strong></td><td>SEBI via AMFI</td><td>SEBI via Exchanges</td></tr></tbody></table></figure><h3>Target Audience</h3><p>NISM VA certification is ideal for beginners, mutual fund advisors, retirees, or anyone interested in building a second income through <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-fund-distributor">mutual fund distribution</a>. Whereas NISM 8 is best suited for traders, stock market enthusiasts, analysts, and finance students aiming to work in the derivatives segment.</p><h3>Focus Area</h3><p>NISM VA certification covers mutual funds, SIPs, NAV calculation, taxation, and investor onboarding. Whereas NISM 8 focuses on equity derivatives such as futures, options, hedging strategies, and market operations.</p><h3>Job Roles After Certification</h3><p>After doing the NISM VA certification, you can work as a Mutual Fund Distributor or a financial Advisor. Whereas after doing NISM 8, you can become an Equity Dealer or Derivatives Analyst.</p><h3>Income Potential</h3><p>You can earn <i>trail commissions</i> based on clients’ invested amount in Nism Va. It is ideal for building long-term passive income. Whereas in NISM 8, income comes through <i>brokerage, incentives, or salary</i>. It is typically from working with stockbrokers or trading firms.</p><h3>Exam Duration</h3><p>The exam duration of NISM VA and <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-equity-derivatives">NISM 8 certification</a> is 2 hours with 100 multiple-choice questions.</p><h3>Passing Marks</h3><p>To pass the NISM VA exam, you need just 50% marks. Whereas to pass the NISM series 8 exam you need 60%, making it slightly more difficult.</p><h3>Negative Marking</h3><p>No negative marking in the NISM VA certification exam, it is safer for first-time candidates. But in NISM 8, there is a negative marking of&nbsp; 25% marks deducted for each wrong answer, which means 0.25 marks for each question, so you need to carefully answer the questions.</p><h3>Certification Validity</h3><p>Both certificates remain valid for 3 years from the date of passing.</p><h3>Regulator</h3><p>NISM VA certification is conducted by SEBI in partnership with AMFI (Association of Mutual Funds in India). Whereas the NISM 8 certification is conducted by SEBI via stock exchanges, like NSE and BSE.</p><h2>Preparation Tips for Both Exams</h2><p>Whether you're preparing for <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-series-v-a-mutual-fund-distributors">NISM VA mock tests</a> or <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-series-8">NISM 8 mock tests</a>, these core strategies apply:</p><ol><li><strong>Know the Exam Syllabus:</strong> Download the latest official <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/download-nism-study-material-and-workbook">nism study material</a> workbooks. Focus on key chapters relevant to your chosen certification.</li><li><strong>Use Free Mock Tests:</strong>&nbsp; Practice with ZFunds NISM mock tests to simulate the real exam. Also, use chapter-wise tests to focus on weak areas.</li><li><strong>Make a Study Plan: </strong>Divide your syllabus and allot time daily, and increase practice in the final week.</li><li><strong>Track Your Progress:</strong> Note your scores and performance per mock test, and identify low-scoring chapters, revise them again.</li><li><strong>Utilize Timer-Based Practice:</strong> Practice under time pressure to improve speed and accuracy for exams.</li><li><strong>Revise With Quick Tests:</strong> Use last-day revision tests for daily warm-ups and focus on the most frequently asked and high-weightage topics</li></ol><h2>&nbsp;Conclusion</h2><p>Both NISM VA and NISM 8 certifications open doors to rewarding careers in the financial services industry, but they cater to very different interests and career goals.</p><ul><li>Choose NISM VA if you're interested in building a long-term, relationship-based business helping clients invest in mutual funds. It’s ideal for beginners, retirees, homemakers, or anyone looking to earn passive trail income with minimal risk. With no negative marking and easier concepts, it’s a great starting point.</li><li>Choose NISM 8 if you’re excited about the stock market, trading, and derivatives, and aim to work in more analytical or market-facing roles. It’s best suited for finance students, traders, and analysts who want to explore futures, options, and hedging. It offers higher potential rewards but requires deeper market understanding and includes negative marking, making it more challenging.</li></ul><p>Ultimately, your decision should be based on your career interests, comfort with financial concepts, and how you want to engage with the investment world, whether through long-term advisory or active market participation.</p><p>Whichever certification you choose, consistent preparation, smart use of <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/nism-mock-test">free nism mock tests</a> from platforms like ZFunds, and a focused study plan will ensure you pass the exam and start your financial career with confidence.</p>

List of Best Thematic Equity Funds in India | ZFunds

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List of Best Thematic Equity Funds in India

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.

Top Fund Managers in India 2025 | ZFunds

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Top Fund Managers in India 2025

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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>

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Do you want to save rs.5000 every month and get a high return only in 5 to 10 years? If so, this article will help you to enhance your portfolio. Also, we have mentioned the best SIP Plans for Rs 5000 Per Month in India. 

10 Best SIP Plans for 5000 Per Month in 2024 | ZFunds

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10 Best SIP Plans for Rs 5000 Per Month

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Best Plans to invest Rs.5000/month in Mutual Funds

Discover the top mutual funds to invest in 2024 for optimal growth and returns. Explore expert insights and recommendations to make informed investment decisions.

Best Mutual Funds to Invest in 2024: Top Picks for Growth and Returns

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Best Mutual Funds for 2024

Best Mutual funds to Invest in 2024

<p><strong>Are you still confused about Which is the best mutual fund to invest in 2024? </strong>Do you wanna know where to invest, and how much to invest in a Mutual fund? Then you are on the right page as we provide you with the best and the top-performing funds to invest in 2024. &nbsp;In this blog, you will come across all types of funds i.e. <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/equity-funds"><strong>equity</strong></a>, <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/hybrid-fund"><strong>hybrid</strong></a>, <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/debt-fund"><strong>debt</strong></a>, and <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/index-funds"><strong>index funds.</strong></a></p><p>This blog gonna provide you with a detailed study of which is the best mutual fund fund to invest in 2024 as well as a deep analysis by our mutual fund experts about each<strong> </strong><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/type-of-mutual-funds"><strong>type of &nbsp;Mutual fund.</strong></a></p><h2>Best Mutual Funds to Invest In 2024 for SIP</h2><p>A collection of carefully chosen mutual fund schemes known as "<strong>Best SIP Funds</strong>" has produced superior SIP returns than other funds in the same category. As a result, these Funds are the <strong>best mutual funds to invest in India</strong>, which provides greater long-term returns for their SIP participants by sticking to their investing philosophy through challenging economic periods and not being scared of brief price fluctuations in the stocks in their portfolios.</p>

<h3>1. Best Mutual Funds to Invest in 2024 - Equity Fund</h3><p>Equity mutual funds help you to generate good returns over a long period. To know which fund is the best equity fund to invest in 2024 and get higher returns.</p><figure class="table"><table><thead><tr><th><strong>S.No</strong></th><th><strong>Name</strong></th><th><strong>1 Year</strong></th><th><strong>3 Years</strong></th><th><strong>5 Years</strong></th></tr></thead><tbody><tr><td>1</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 Growth</a></td><td>29.92%</td><td>41.77%</td><td>28.34%</td></tr><tr><td>2</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/quant-infrastructure-fund-growth-option">Quant Infrastructure Fund Growth</a></td><td>10.18%</td><td>38.37%</td><td>26.93%</td></tr><tr><td>3</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 - Growth</a></td><td>31.55%</td><td>41.97%</td><td>26.18%</td></tr><tr><td>4</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/hdfc-small-cap-fund-growth-option">HDFC Small Cap Fund Growth</a></td><td>32.01%</td><td>38.16%</td><td>20.39%</td></tr><tr><td>5</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/quant-tax-plan-growth-option-regular-plan">Quant Tax Plan-Growth</a></td><td>8.97%</td><td>31.72%</td><td>25.61%</td></tr></tbody></table></figure><figure class="table"><table><tbody><tr><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-sip-plan-for-1-year">Best SIP Plan for 1 Year</a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-sip-plans-for-3-years">Best SIP Plan for 3 Year</a></td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-sip-plan-for-5-years">Best SIP Plan for 5 Year</a></td></tr></tbody></table></figure><h3>2. Best Mutual Funds to Invest in 2024 - (Hybrid Fund)</h3><p>Hybrid mutual funds, are the only mutual fund that allows you to invest diversfically across many funds. This fund provides you the ability to understand which fund is best suited for you and whose risk you will be able to tolerate. To know more, about which fund is best suited and where to invest, have a look at the list below and get your best mutual fund to invest in.&nbsp;</p><figure class="table"><table><thead><tr><th><strong>S.No</strong></th><th><strong>Name</strong></th><th><strong>1 Year</strong></th><th><strong>3 Years</strong></th><th><strong>5 Years</strong></th></tr></thead><tbody><tr><td>1</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>18%</td><td>30%</td><td>18%</td></tr><tr><td>2</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/kotak-equity-hybrid-growth">Kotak Equity Hybrid Fund - Growth</a></td><td>12%</td><td>19%</td><td>16%</td></tr><tr><td>3</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/edelweiss-aggressive-hybrid-fund-regular-plan-growth-option">Edelweiss Aggressive Hybrid Fund - Growth</a></td><td>15%</td><td>20%</td><td>15%</td></tr><tr><td>4</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/sbi-arbitrage-opportunities-fund-regular-plan-gr">SBI Arbitrage Opportunities Fund - Regular Plan-Growth</a></td><td>7%</td><td>5%</td><td>5%</td></tr><tr><td>5</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/invesco-india-arbitrage-fund-growth-option">Invesco India Arbitrage Fund - Growth</a></td><td>7%</td><td>5%</td><td>5%</td></tr></tbody></table></figure><h3>3. Best Mutual Funds to Invest in 2024 - (Debt Fund)</h3><p>Debt mutual funds are the least volatile and generate a steady income. These funds provide a fixed income which helps you to grow at a fixed pace.&nbsp;</p><figure class="table"><table><thead><tr><th><strong>S.No</strong></th><th><strong>Name</strong></th><th><strong>1 Year</strong></th><th><strong>3 Years</strong></th><th><strong>5 Years</strong></th></tr></thead><tbody><tr><td>1</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-banking-and-psu-debt-fund-growth">ICICI Prudential Banking &amp; PSU Debt Fund - Growth</a></td><td>7%</td><td>5%</td><td>7%</td></tr><tr><td>2</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/dsp-banking-psu-debt-fund-regular-plan-growth">DSP Banking &amp; PSU Debt Fund - Regular Plan-Growth</a></td><td>6%</td><td>4%</td><td>7%</td></tr><tr><td>3</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/nippon-india-corporate-bond-fund-growth-plan-growth-option">Nippon India Corporate Bond Fund - Growth</a></td><td>7%</td><td>5%</td><td>7%</td></tr><tr><td>4</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/invesco-india-credit-risk-fund-regular-plan-growth">Invesco India Credit Risk Fund - Regular Plan-Growth</a></td><td>11%</td><td>5%</td><td>4%</td></tr><tr><td>5</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/aditya-birla-sun-life-credit-risk-fund-regular-plan-growth">Aditya Birla Sun Life Credit Risk Fund - Regular Plan-Growth</a></td><td>7%</td><td>7%</td><td>6%</td></tr></tbody></table></figure><h3>4. Best Mutual Funds to Invest in 2024 - (Index Fund)</h3><p>Index mutual funds, these mutual funds invest in a particular index. The basic goal is to replicate their stock market index. To invest in a particular index and get better returns, you have a bunch of funds to understand and invest.&nbsp;</p><figure class="table"><table><thead><tr><th><strong>S.No</strong></th><th><strong>Legal Name</strong></th><th><strong>1 Year</strong></th><th><strong>3 Years</strong></th><th><strong>5 Years</strong></th></tr></thead><tbody><tr><td>1</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/uti-nifty-50-index-fund-regular-plan-growth-option">UTI Nifty 50 Index Fund Regular Plan-Growth</a></td><td>10.48</td><td>19.28</td><td>14.44</td></tr><tr><td>2</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/bandhan-nifty-50-index-fund-regular-plan-growth">Bandhan Nifty 50 Index Fund Growth</a></td><td>10.12</td><td>18.85</td><td>14.3</td></tr><tr><td>3</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/icici-prudential-nifty-next-50-index-fund-growth">ICICI Prudential Nifty 50 Index Plan Regular Growth</a></td><td>10.29</td><td>14.87</td><td>14.14</td></tr><tr><td>4</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/hdfc-index-fund-nifty-50-plan-growth-plan">HDFC Nifty 50 Index fund</a></td><td>10.31%</td><td>19.35%</td><td>14.85</td></tr><tr><td>5</td><td><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/mutual-funds/tata-nifty-50-index-fund-regular-plan">Tata Nifty 50 Index Fund</a></td><td>10.07%</td><td>19.07%</td><td>14.62</td></tr></tbody></table></figure>

<h2>What are the Different Ways to Invest in Mutual Funds?</h2><p>Mutual fund investments can be made offline or online. However, the online technique is now among the simplest ways to invest in mutual funds because of growing digitalization and convenience.</p><p>Some of the finest ways to <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/how-to-invest-in-mutual-funds">invest in mutual funds</a> are as follows:</p><h4>#1. Financial Investment Apps</h4><p>You may utilize one of the many investment applications on the Indian market to invest in the mutual funds of your choosing.</p><p>You may invest in direct mutual funds with no fees using <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/best-mutual-fund-app">Best Mutual fund Apps</a> like <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"><strong>Zfunds</strong></a>. One of Zfund's biggest features is that you can start SIPs with a minimum cost of Rs.100 and you can invest it daily on a regular basis.</p><h4>#2. Website of Asset Management Company (AMC)</h4><p>You must go to AMC's website to begin investing in mutual funds through them, but there are a few easy steps you can take.</p><p>You must submit your KYC (know your customer) paperwork online, and when it has been verified, you may start investing in mutual funds. By investing directly with AMC, you can avoid paying extra costs like distributor commissions. This will lower your overall costs and, over time, may produce greater returns than conventional plans.</p><h4>#3. Registrar at AMC</h4><p>Organizations known as mutual fund registrars monitor all actions taken by AMC investors. Investors can request personalized statements from them that include the history of transactions and the current value of their assets.</p><p>In India, <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/cams-online-mutual-fund-distributor-services"><strong>CAMS </strong></a>is the primary registrar transfer agent. Both have websites and mobile apps that provide the necessary information to investors and mutual fund firms. They also let investors invest in mutual funds in addition to this.</p><p>You must open an account with registrars and comply with KYC requirements in order to<strong> invest in mutual funds </strong>through them. After that, you may begin investing in the mutual funds they are offering. You can only invest in the funds of the several AMCs that are registered under CAMS.</p><h4>#4. Separate portals</h4><p>You may invest in mutual funds via online platforms like Zfunds. While some provide direct plans, others offer regular plans. But you may instantly, without any paperwork, <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/how-to-invest-in-mutual-funds"><strong>invest in mutual funds</strong></a> using any independent portal by just clicking on it.</p><p>These platforms provide distinctive products, such as goal-based investing, which enables you to make investments in accordance with your financial objectives. In addition, they provide other services, including portfolio scanning, monitoring, and rebalancing.</p><p>Because you may suspend, cancel, and step up SIPs with the push of a button whenever you want, investing through these portals is incredibly convenient. You can keep track of every best mutual fund investment you make in one location..</p>

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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>

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

Invest Rs. 100/day in India's Top Mutual Funds

Save Rs. 100 with Daily SIP

<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>

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

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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>

How long should you hold a share or stock? Market expert and veteran Warren Buffett says if you do not feel comfortable owning a stock for ten year, you should not purchase it for ten minutes. 

Merits of Long Term Investments in Stock Market

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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>

HOW IS IPO PRICE BAND DECIDED?

how-is-ipo-price-band-decided

<h2>HOW IS IPO PRICE BAND DECIDED?</h2><h2>WHAT IS IPO PRICE BAND?</h2><p>Before we dive deep into the understanding of how the price band of an IPO is determined and what are the rationales behind the same, first let us understand the meaning of Price Band to gain a better understanding.&nbsp;</p><p>Usually, the term price band refers to the highest and lowest price which the seller decides and lets the buyer bid for the shares during the launch of an IPO. Let us take a very recent example of food delivery platform Zomato IPO where the range i.e. the price band of the IPO was Rs 72 to Rs 76. However, the face value of the share was hardly Rs 1 per share. Just to gain understanding of the zomato IPO, we say the entity wants to issue ten thousand shares and their underwriter banks have decided on a price band of Rs 72 to Rs 76 and investors bid between this range and at the cut offs.&nbsp;</p><p>Now let's assume the IPO got oversubscribed and zomato received ids of 16,600 shares against that of 10,000 shares. So as per the Act, the bidding company will only allocate shares for Rs 75 and above. Rest of the investors will get a refund and Rs 75 will be the cutoff price as all shares get allocated on this price mark up.&nbsp;</p><p>Determining this bank is a crucial stage in deciding the share price as it enables a company to gain understanding of how much money investors are willing to pay for an ownership stake in their organisation.&nbsp;</p><h2>HOW IS PRICE BAND DECIDED?</h2><p>The price band is decided by the entity owners in consultation with investment bankers who are involved with the IPO launch and the factors that they consider in doing so are as follows:</p><ul><li>Company potential to grow in future&nbsp;</li><li>The quality of shares currently being sold in an IPO</li><li>The current market prices of the stocks of identical companies in the same sector</li><li>The management and organisational set up of the private company&nbsp;</li><li>Overall market trend</li><li>Financial effectiveness of company’s business model</li><li>The demand for company’s shares</li><li>And sometimes, any type of positive news like any recent achievements, product offering, success story may also affect the pricing.&nbsp;</li></ul><h2>UNDERSTANDING&nbsp;</h2><p>As we have taken the Zomato IPO instance, let’s get into fundamentals and financials which the bankers have considered while selecting a price band to assess the suitable issue price for the company's shares. Zomato’s IPO has done pretty well given the entity’s strong growth over the years. They have generated tremendous revenue across all the business verticals over the past months but due to the pandemic they encountered a loss in the financial year 2021.&nbsp;</p><p>Nevertheless, the company closed revenue of around Rs 1300 Crs for the first quarter of FY21, higher expenses led to a loss of Rs 684 crores.</p><p>Zomato’s revenue rose up sharply by 96% from Rs 1300 crore in FY19 to Rs 2743 crore in FY20. It’s business got slowed down during the coronavirus but it is not only their business that got impacted as well.</p><p>And therefore analysts were positive about the company’s future given that it is one of the most dominant players in the food delivery segment along with the rival swiggy. By the end of the FY20, the company offered its delivery services in approx more than 500 cities across the country with more than 2 lacs delivery partners and over 3.6 lacs active restaurants under their network.</p><h2>HOW IS THE BAND CALCULATED?</h2><p>A lot of complex calculations, research, quantitative analysis goes behind the calculation of a rational price band that we have discussed earlier. To decide the price band entity go for a book building process. In which the securities are offered to various big processes to assess the demand of the shares in the market and therefore the price is discovered for the shares. The price under the book building process is the price that the share market and accordingly the price for the shares is discovered.</p><p>The price under the book building process is the price which is bearable by the market. And generally the same would be more than the price under the fixed pricing method.</p><h2>LOWER BANK AND UPPER BAND</h2><p>This year, a lot of IPOs are coming up and a lot have come in the previous year using a book building process, where the price band is decided by entities issuers and their bankers. The highest point is called the upper band and the lowest point is the lower band. On the basis of bidding received from investors, issue price will be decided.&nbsp;</p><p>And then the shares will be allocated to only those investors who bid equal and above the price of issue. As in Zomato’s IPO instance, Rs. 72 was the lower band and Rs. 76 was the upper band.&nbsp;</p><p>&nbsp;</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>

FLEXICAP VS MULTICAP FUNDS

flexicap-vs-multicap-funds

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<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>

The interest rates on fixed deposits in AU Small Finance Bank vary in the range between 5.75% and 8.00% per annum. The Latest rate interest for fixed deposits provided by AU Finance.

AU Small Finance Bank FD Interest Rates 2023 | AU Small Finance Bank FD Rates Today

au-small-finance-bank-fd-interest-rates

AU Small Finance Bank FD Rates April 2023

Fund Management – Objective of fund management, working of fund managers, significance of fund management and opting for a reliable fund managers


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>

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>

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>

NISM Certification Course - Eligibility, NISM Exam Pattern, Syllabus & Fees

NISM is a public trust/institution that offer certain nism certification, courses, and exams to help individuals get a good job in the financial services industry, along with equipping them with the knowledge of the subject matter of the securities market. 

NISM Certification Course - Eligibility, NISM Exam Pattern, Syllabus & Fees | ZFunds

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The New Fund Offer (NFO) starts from 23rd April 2021 and will end on 07th May 2021. Check all sip details, risk, returns, taxation, who should invest

Canara Robeco Focused Equity Fund NFO  - Investment Objective, Returns, Taxation, SIP Details

canara-robeco-focused-equity-fund-nfo

Canara Robeco Focused Equity Fund NFO

<h2>Canara Robeco Focused Equity Fund NFO</h2><p>Canara Robeco Mutual Fund has announced the launch of the Canara Robeco Focused Equity Fund. The scheme would be predominantly investing its assets in a maximum of 30 equity stocks across the market capitalizations.</p><p>The New Fund Offer (NFO) starts from 23rd April 2021 and will end on 07th May 2021. The scheme will reopen for continuous sale and repurchase from 18th May 2021.</p><h2>Investment Objective&nbsp;</h2><p>The investment objective of the scheme is to generate long-term capital growth by investing its assets in equity and equity-related securities of a maximum of 30 companies across large, mid, and small cap market capitalizations.</p><h2>Features</h2><ol><li>The fund will be investing a minimum of 65% of its assets in equity and equity-related securities.</li><li>The fund will invest in companies of every market capitalization like large-cap, mid-cap, and small-cap.</li><li>Along with the equities, the fund may also take exposure to debt securities,money market instruments, and units issued by REITs, and InvITs.</li><li>As it is a focused fund, the fund will invest in a maximum of 30 high conviction stocks of any sector or market capitalization.</li><li>The fund will actively allocate the assets on the basis of different ideas.</li></ol><h2>Why invest in a Focused Equity Fund?</h2><ul><li>Focused funds have a nature of a concentrated portfolio of high conviction stocks that signifies the quality of portfolio and its potential to generate returns over the long term.</li><li>The fund only invests in the high conviction stocks that have the capability to offer higher alpha returns.</li><li>The significance is to have an active portfolio management across every sector and market capitalization with optimum weight allocation.</li></ul><p>Why Invest in Canara Robeco Focused Equity Fund NFO?</p><ul><li>The fund will have a concentrated portfolio of high-growth and quality companies.</li><li>The scheme is a “Market capitalization agnostic” while being sensitive to liquidity constraints.</li><li>The fund will select the leaders of the sectors which have a proven track record.</li><li>The fund will invest in challengers to generate the alpha to the portfolio through superior earnings growth.</li></ul><h2>Fund approach for portfolio creation:</h2><p>The fund will invest in:</p><ol><li>Leaders: Stocks that have the highest market share in the industry and with average ROCE or ROE more than 18%-20% in the last 10 years.</li><li>Challengers: &nbsp;The stocks that gain possible market share through superior execution and have an acceptable ROCE or ROE of more than 15%.</li><li>Emerging Themes: The fund will identify the new themes and stocks or sectors which are showing cyclical tailwinds.</li></ol><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 are having a higher risk appetite.</li><li>Investors who are looking for higher returns and have the ability to withstand higher volatility.</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><td><strong>Risk Profile</strong></td></tr><tr><td><strong>Equity and Equity related stocks across market capitalization&nbsp;</strong></td><td><strong>65%</strong></td><td><strong>100%</strong></td><td><strong>Moderate to High</strong></td></tr><tr><td><strong>Equity ETFs</strong></td><td><strong>0%</strong></td><td><strong>10%</strong></td><td><strong>Moderate to High</strong></td></tr><tr><td><strong>Money Market or Debt instruments</strong></td><td><strong>0%</strong></td><td><strong>35%</strong></td><td><strong>Low to Moderate</strong></td></tr><tr><td><strong>Units of InvITs or REITs</strong></td><td><strong>0%</strong></td><td><strong>10%</strong></td><td><strong>Moderate to High</strong></td></tr><tr><td><strong>Units of other mutual funds schemes</strong></td><td><strong>0%</strong></td><td><strong>5%</strong></td><td><strong>Moderate to High</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>Canara Robeco Focused Equity Fund</strong></td></tr><tr><td><strong>Fund launched by</strong></td><td><strong>Canara Robeco Mutual Fund</strong></td></tr><tr><td><strong>Asset Management Company</strong></td><td><strong>Canara Robeco Asset Management Company Limited</strong></td></tr><tr><td><strong>Type of scheme</strong></td><td><strong>An open-ended fund of fund scheme primarily investing its assets in 30 companies across the market capitalization.</strong></td></tr><tr><td><strong>Investment Objective</strong></td><td><strong>The investment objective of the scheme is to generate long-term capital appreciation by investing its assets in equity and equity-related securities of a maximum of 30 companies across large, mid, and small cap.</strong></td></tr><tr><td><strong>Benchmark</strong></td><td><strong>S&amp;P BSE 500 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>-If units redeemed or switched out within 365 days - 1% of applicable NAV</strong></p><p><strong>-If units are redeemed or switched out after 365 days - NIL</strong></p></td></tr><tr><td><strong>Taxation</strong></td><td><p><strong>Taxed as Equity</strong></p><p><strong>-If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15%</strong></p><p><strong>-If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year</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>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><li><strong>Dividend Payout</strong></li><li><strong>Dividend Reinvestment</strong></li></ul></td></tr><tr><td><strong>Fund Managers</strong></td><td><strong>Mr. Shridatta Bhandwaldar</strong></td></tr></tbody></table></figure><h2>SIP Details</h2><figure class="table"><table><tbody><tr><td><strong>Type&nbsp;</strong></td><td><strong>Minimum Amount</strong></td></tr><tr><td><strong>Monthly SIP</strong></td><td><strong>₹1,000 &amp; in multiples of ₹1 thereafter</strong></td></tr><tr><td><strong>Quarterly SIP</strong></td><td><strong>₹2,000 &amp; in multiples of ₹1 thereafter</strong></td></tr></tbody></table></figure>

How to Invest In IPO? Know the full process to invest in IPO, eligibility, types of investors, risks involved with IPO application, 

How to Invest In IPO | Full Process to Invest in IPO

how-to-invest-in-ipo

How to Invest in IPO

<h3>WHAT IS AN IPO ?</h3><p><a href="https://zfunds.in/m/ipo">Initial Public Offer</a> (IPO) is a way through which private firms go public and make their stocks available to the general public for investment. This application is made available in some assigned banks and in online mode for investors to bid. In the previous financial year, there were many IPOs that gave amazing results and since then, bidding for IPOs has become a popular trend. In this article, we will discuss the application procedure so that all the investors out there can learn how to invest in an IPO.</p><h4>ELIGIBILITY FOR INVESTING IN IPOs</h4><p>Any adult individual investor is permitted to invest or apply in the IPO of any company. Nevertheless, there are some more aspects an investor needs to meet. The eligibility criteria is as follows:</p><ol><li>Investors should have a valid <a href="https://zfunds.in/m/demat-account">Demat account</a>.</li><li>Investors applying for IPO should have a PAN card issued by the Income Tax authorities.</li><li>It is not necessary to have a trading account. But, if the investor is planning to sell the stocks on the day of listing, a trading account will be required.</li></ol><h4>TYPES OF INVESTORS WHO APPLY FOR IPO</h4><p>The underwriters make decisions regarding the types of investors who can apply for the IPO of the entity. The broad types are as follows:</p><ol><li><strong>NII:</strong><br>These are Non Qualified Institutional Investors(NIIs) who apply for large value. This category includes NRIs, societies, firms, and trusts.</li><li><strong>QIB:</strong></li></ol><p>These are Qualified Institutional Buyers(QIBs) means financial institutions that are registered with SEBI.</p><p><strong>3. RII:</strong></p><p>These are Retail Individual Investors(RIIs) who apply for a small value when compare to NII and QIB.</p><h4>THE DETAILED 6 STEP PROCESS</h4><p>Investing in IPO involves certain steps to ensure that they are on the right path. Proper knowledge of the following steps will assist an investor to apply in IPOs without facing any hurdles. Discussed below is the ideal and simplest IPO process in India that investors can follow.</p><p><strong>Step 1: Do your research</strong></p><p>The first and foremost step for investing in an IPO is to research and study the company that you want to apply for. An ideal way to get insights and information for going public is to go through the prospectus issued by the entity. Further, gather information and statistics about the company’s past performance and how it plans to invest the funds raised through IPO in the future. After understanding and gathering all the data and information, make a wise decision before investing.&nbsp;</p><p><strong>Step 2: Get your funds</strong></p><p>After deciding the company for which you want to apply for IPO, the next step is to arrange the funds. Savings of the investors can be used to apply for an IPO as a good amount of funds is required because the shares can be bought only in lots.&nbsp;<br>Lots mean the minimum number of shares that the entity offers in a single transaction. You can not go forward with buying one or two shares according to your will.</p><p><strong>Step 3: Having a Demat &amp; Trading Account&nbsp;</strong></p><p>Investors willing to apply for an IPO should compulsorily have a Demat account and this is the most significant prerequisite for investing in an IPO. If you don’t have one, you can open one with a bank, AMC, or online applications in a day’s time. <a href="https://zfunds.in/m/demat-account">Demat account</a> facilitates the purchasing and selling of securities online. To open a Demat, certain documents like PAN, Aadhar, Identity proof among others are required.</p><p><strong>Step 4: The Application Procedure</strong></p><p>After opening a Demat-cum-trading account, you need to be well versed with ASBA i.e., Application Supported by Blocked Account. This is an application that enables the bank to block funds in the investor’s bank account. The ASBA application forms are available in physical as well as Demat form and you will need to specify your Demat number, PAN, bank, and bidding details in the application.&nbsp;</p><p><strong>Step 5: Bid for the lot:</strong></p><p>Here, the investors are required to bid a price from the price range decided by the entity. In the range, the lower price is the floor price and the higher price is the cap price. Once this is done, the total amount is blocked in your bank until the allotment procedure is finished.&nbsp;</p><p><strong>Step 6: Allotment Procedure</strong></p><p>Once all the above steps are completed, the final step is the allotment of shares. There are possibilities that you may get fewer shares than you demanded or no shares at all. This situation arises when the offer is oversubscribed. In this case, the banks will unlock the blocked amount in your bank account but if you get the full allotment, you will get a CAN (Confirmatory Allotment Note) within 6 working days from the closure of the issue.</p><p>Also Read : &nbsp;<a href="https://zfunds.in/m/nism-mock-test">NISM Mock Test</a> conducted by National Institute of Securities Markets</p><h4>WHY YOU SHOULD APPLY ONLINE ?</h4><p>There are several reasons for the same. Let’s discuss:</p><ol><li>The applicants get to bid online without any hindrance. The bidding process is easy and takes only a few minutes to accomplish.</li><li>Shares are automatically deposited in the Demat and refunds are also automated.</li><li>You can sell shares on a listing day is shared list at higher prices and book profits.</li></ol><h4>RISK ASSOCIATED WITH IPO APPLICATION</h4><p>Like any other investment option, IPO also carries some risk. It may happen sometimes that data of the firm is not available for proper study and research and no investor knows the future performance of the company. Some of the firms are volatile and vulnerable as they are in the growth phase so don’t get into the trap of fake hype in the market. Do your own needful research and stick to the facts and figures. Check the reputation and background of the promoter and invest as per your risk appetite.&nbsp;<br>Not all IPOs are gold mines and will give you mind-blowing gains. Some IPOs crash after all the hype and many investors face huge losses. So consult your financial advisor, study, and make a sound decision.&nbsp;</p><h4>WHERE TO FIND ABOUT UPCOMING IPOs ?</h4><p>Many investors wonder how to get updates about the upcoming IPOs. <a href="https://zfunds.in/">ZFunds</a> keep coming up with IPO details regularly along with all the analysis, research, and necessary aspects. The details regarding the upcoming IPOs or current IPOs can be found here.</p><p><strong>Latest IPO List:</strong></p><p><a href="https://zfunds.in/m/aadhar-housing-finance-limited-ipo">Aadhar Housing Finance Limited IPO</a><br><a href="https://zfunds.in/m/macrotech-developers-ltd-ipo">Macrotech Developers Limited IPO</a><br><a href="https://zfunds.in/m/barbeque-nation-hospitality-ltd-ipo">Barbeque Nation Hospitality Limited IPO</a><br><a href="https://zfunds.in/m/suryoday-small-finance-bank-ltd-ipo">Suryoday Small Finance Bank Ltd IPO</a><br><a href="https://zfunds.in/m/rupee-cost-averaging-power-of-systematic-investment-plan">Rupee cost averaging</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>&nbsp;</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

life-insurance-vs-mutual-funds

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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>

The SBI offers its customers a deposit facility of RD (Recurring Deposits) to invest a certain amount every month and earn decent interest rates on it over a specific period.

State Bank of India Fixed Deposit Interest Rates 2022 | SBI RD Rates Online

sbi-rd-interest-rates

SBI RD Interest Rates - Current SBI Rate 2021 

<h2>SBI Recurring Deposit Interest Rates&nbsp;</h2><figure class="table"><table><tbody><tr><td><strong>Period&nbsp;</strong></td><td><strong>Rates for General Public</strong></td><td><strong>Rates for Senior Citizen</strong></td></tr><tr><td><strong>1 year to less than 2 years&nbsp;</strong></td><td><strong>5.00%</strong></td><td><strong>5.50%</strong></td></tr><tr><td><strong>2 years to less than 3 years&nbsp;</strong></td><td><strong>5.10%</strong></td><td><strong>5.60%</strong></td></tr><tr><td><strong>3 years to less than 5 years&nbsp;</strong></td><td><strong>5.30%</strong></td><td><strong>5.80%</strong></td></tr><tr><td><strong>5 to 10 years&nbsp;</strong></td><td><strong>5.40%</strong></td><td><strong>6.20%</strong></td></tr></tbody></table></figure><p><strong>Check -</strong> <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/rd-interest-rates">Current RD Interest Rates of Popular Banks</a></p><h3>What is a Recurring Deposit ?</h3><p>A <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/recurring-deposit">Recurring Deposit</a> is a special type of term deposit offered by the banks and post office which lets people deposit a specific amount every month into their RD account and earn returns at the rates offered for FDs. It is similar to initiating an <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/fixed-deposit">Fixed Deposit</a> of a specific amount in monthly installments. This scheme matures on a specific future date along with all the deposit amounts made every month. This scheme allows individuals an opportunity to build up their savings through regular monthly deposits of a fixed amount over a fixed tenure. The minimum tenure for an RD is generally 6 months and the maximum varies from institution to institution. RDs can be funded by standing mandates which are the orders by the depositors to their bank to withdraw a specific amount from their current/saving account and credit to the recurring deposit account.</p><h3>State Bank of India Recurring Deposit</h3><p>The State Bank of India (SBI) is one of the largest financial institutions, operational since 1955 in India. It offers various types of financial products &amp; services to individuals to meet their banking, financial, and investment needs. The bank offers its customers a deposit facility of RD (Recurring Deposits) to invest a certain amount every month and earn decent interest rates on it over a specific period. The depositors simply need to deposit the amount per month from the time of opening the account and choose a term/tenure that seems convenient and feasible to them. SBI RD rates are quite decent and competitive compared to the rates offered by other banks. Let us have a look at certain aspects and rates of these RDs as SBI has revised the rates.</p><p>Also Read : <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/icici-fd-rates">ICICI Bank Fixed Deposit Interest Rates</a></p><h3>ELIGIBILITY</h3><ol><li>Every Indian resident is eligible to open an RD account.</li><li>Minors can open their RD account under the supervision of the guardian which must act as the operating member.</li><li>Members of Hindu Undivided Families (HUF)</li><li>Societies, Clubs, Associations, etc.</li><li>NRIs are also eligible to open an RD account</li><li>Depositors are required to open a savings account with SBI before opening an RD account.</li></ol><h3>Documents Required&nbsp;</h3><p><strong>Identity Proof:</strong></p><p>For this, you can submit Aadhaar Card, PAN Card, Voter ID, Ration Card, or any other Government ID proof.</p><p><strong>Address Proof:</strong></p><p>You can submit an account statement, passport, electricity, telephone bill, or any other document as address proof.&nbsp;</p><p>Read More : <a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/bandhan-bank-fd-interest-rates">Bandhan Bank FD Interest Rates</a></p><h3>Features of SBI RD Account</h3><p><strong>Tenure:</strong></p><p>The minimum tenure for an SBI RD account should be 12 months and the maximum tenure can be 10 years i.e. 120 months.</p><p><strong>Amount:</strong></p><p>The minimum deposit amount can start from Rs. 100 per month and thereafter, depositors can invest in multiples of Rs. 10. There is no maximum cap on deposit.</p><p><strong>Nomination:</strong></p><p>Nomination facility is available for RD account at the time of opening of the account and also during the tenure of RD.</p><p><strong>Transferability:</strong></p><p>Transferability of RD account among SBI branches is allowed PAN India.</p><p><strong>Senior Citizens Interest Rate:</strong></p><p>The interest rate offered to senior citizens will be 0.50% more than the applicable rate.</p><p><strong>Interest Rates for SBI staff and pensioners:</strong></p><p>The Interest rate offered to SBI Staff and pensioners will be 1% more than the applicable rate.&nbsp;</p><p><strong>Loan Facility:</strong></p><p>A loan against the funds invested in the SBI RD account can be used by investors to avail loan/ overdraft of up to 90% of the amount against their account.&nbsp;</p><h4>Types of SBI Recurring Deposit&nbsp;</h4><p><strong>SBI Regular RD account:</strong></p><p>It is the most preferred and the basic RD account offered by the SBI and is suitable for all investors. It has a minimum tenure of 1 year and comes with a maximum tenure of up to 10 years. The monthly installment starts from Rs. 100 and thereafter in multiples of Rs 10.</p><p><strong>SBI Flexi Deposit Scheme:</strong></p><p>As the name suggests, in this scheme, investors are allowed to deposit varying amounts instead of paying a fixed amount every month. Here, the minimum deposits should be Rs. 5,000 in a year and maximum deposits are capped at Rs. 50,000. The tenure of this scheme ranges from 5 to 7 years.</p><p><strong>SBI Holiday Saving account:</strong></p><p>This scheme is specially developed to help vacation and travel enthusiasts in affiliation with Thomas Cook. The maturity amount is decided based on the package opted by the depositors on the Thomas Cook website. The cost will be divided into 13 installments from which 12 will be paid by the depositors and the 13th one will be contributed by Thomas Cook after considering the maturity proceeds upon completion of 12 installments.&nbsp;</p><h4>Premature Withdrawal</h4><p>SBI allows its investors to withdraw their funds from RD prematurely and if it’s withdrawn before maturity, a nominal penalty will be levied. Nevertheless, partial withdrawal of funds from the RD account is not allowed.&nbsp;</p><h3>Penalty and Charges&nbsp;</h3><p>Penalty charges for non-deposit of monthly installments in RD account for:</p><ul><li>An account with a tenure of 5 years or less: Rs. 1.50 per Rs.100 every month.</li><li>An account with a tenure above 5 years: Rs. 2 per Rs.100 every month.</li></ul><p>A service charge of Rs. 10 is levied on RD accounts paid out on or after the maturity date wherein there has been a default in payment of 3 or more installments and the account is not being regularized.</p><p>In case 6 consecutive installments are not made into the RD account, the account will be prematurely closed and the balance amount shall be paid to the depositor.</p><h3>Taxation on SBI RD Account</h3><p>RDs are taxable under the provision of the Income Tax Act, 1961. The amount deposited in the RD account is liable for tax in the annual income of an individual and the interest received thereon will be subject to 10% TDS. TDS on RD account is only levied in a financial year if the gross interest being received is more than Rs. 10,000. Investors can also avoid TDS applicable on their interest income by submitting Form 15H or 15G (as applicable).&nbsp;&nbsp;</p><p><strong>Also Read:</strong></p><p><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/icici-fd-rates">ICICI Bank Fixed Deposit 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><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/post-office-rd-interest-rate">Post Office RD Interest Rates</a><br><a target="_blank" rel="noopener noreferrer" href="https://zfunds.in/m/fd-interest-rates">Latest FD Interest Rates</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>

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

nazara-technologies-ltd-ipo

Nazara Technologies LTD IPO

<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>

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>

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

pradhan-mantri-fasal-bima-yojna-pmfby

<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>

Kotak International REIT FOF NFO starts from 07th December and will end on 21st December 2020. Check here investment objective, features, entry & exit load, asset allocation pattern & knw who should invest 

Kotak International REIT FOF NFO - Investment Objective, SIP Details, Who Should Invest

kotak-international-reit-fof-nfo

<h2>Kotak International REIT FOF NFO</h2><p>Kotak Mutual Fund has announced the launch of Kotak International REIT FOF (Fund of Funds). The scheme would be investing in units of SMAM ASIA REIT Sub Trust fund and other overseas REIT funds.</p><p>The New Fund Offer (NFO) starts from 07th December 2020 and will end on 21st December 2020.</p><h2>Investment Objective&nbsp;</h2><p>The investment objective of the scheme is to provide long term capital growth by investing in units of SMAM ASIA REIT Sub Trust fund and/or other similar overseas REIT funds.</p><h2>What is REIT?</h2><p>REIT stands for Real Estate Investment Trust which owns, operates, and finances income-generating real estate assets.REITs pool investments from numerous investors just like mutual funds. REIT helps the investors benefit from the growth in the real estate markets without buying, managing, or financing any property by themselves.</p><h2>Why Asia-Pacific REIT FOF?</h2><ol><li>It can offer an attractive dividend yield.</li><li>With the strong economic growth, it shows strong growth potential by an increase in demand for commercial facilities, office buildings, and logistic properties.</li><li>Robust economic growth and rising rents can lead to a rise in the prices of property in the APAC region.</li><li>REIT market development in the APAC region is expected to result in increased earning opportunities and therefore generate stable income.</li><li>Dividend Yields from REITs in APAC have been higher than in developed markets.</li><li>Growth in consumer spending is expected to increase retail sales &amp; a rise in demand for commercial spaces.</li><li>Urbanization is leading to a rise in commercial as well as housing markets.</li></ol><h2>Exposure of Kotak International REIT FOF:</h2><p>Kotak REIT offers exposure to various REIT across the geographies and also to various real estate segments like Data Centres, Residential, Warehouses, Logistics, and Offices.</p><p>Following is the allocation of the underlying SMAM Asia Sub Trust Fund as of October 2020:</p><figure class="table"><table><tbody><tr><td><strong>Countries</strong></td><td><strong>Allocation</strong></td></tr><tr><td><strong>Singapore</strong></td><td><strong>48.8%</strong></td></tr><tr><td><strong>Australia</strong></td><td><strong>33.7%</strong></td></tr><tr><td><strong>Hong Kong</strong></td><td><strong>9.0%</strong></td></tr><tr><td><strong>New Zealand</strong></td><td><strong>3.1%</strong></td></tr><tr><td><strong>Thailand</strong></td><td><strong>1.2%</strong></td></tr></tbody></table></figure><h2>Features</h2><ul><li>The Fund will be investing at least 95% of its assets in units of SMAM ASIA REIT Sub trust Fund and other overseas REIT funds.</li><li>The Fund has an experienced investment team including:</li></ul><p>- Expert Portfolio managers in the real estate sector</p><p>- An expert team of 10 professionals who will be monitoring the Asia and Pacific REITs market.</p><ul><li>The fund will follow a bottom-up approach for investments by focusing on profit and capital growth, Dividend yield, valuation, and market liquidity.</li><li>The portfolio will be formed with a combination of Asian REITs with major investments in Singapore &amp; Hong Kong and Pacific REITs with a major allocation in Australian market.</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>Interested in capital growth and income by making investments in units of SMAM ASIA REIT Sub trust Fund and other overseas REIT funds.</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><td><strong>Risk Profile</strong></td></tr><tr><td><strong>Units of SMAM ASIA REIT Sub Trust Fund&nbsp; and other overseas REIT funds</strong></td><td><strong>95</strong></td><td><strong>100</strong></td><td><strong>High</strong></td></tr><tr><td><strong>Debt and money market instruments&nbsp; and units of other domestic debt &amp; liquid schemes&nbsp;</strong></td><td><strong>0</strong></td><td><strong>5</strong></td><td><strong>Low to Moderate</strong></td></tr></tbody></table></figure><p><strong>About the scheme-</strong></p><figure class="table"><table><tbody><tr><td><strong>Name of the fund</strong></td><td><strong>Kotak International REIT FOF</strong></td></tr><tr><td><strong>Fund launched by</strong></td><td><strong>Kotak Mahindra Mutual Fund&nbsp;</strong></td></tr><tr><td><strong>Asset Management Company</strong></td><td><strong>Kotak Mahindra Asset Management Limited</strong></td></tr><tr><td><strong>Type of scheme</strong></td><td><strong>An open-ended fund of fund scheme investing in units of SMAM ASIA REIT Sub Trust fund and/or other similar overseas REIT funds.</strong></td></tr><tr><td><strong>Investment Objective</strong></td><td><strong>The investment objective of the scheme is to generate long term capital growth through investments in units of SMAM ASIA REIT Sub Trust fund and other similar overseas REIT funds.</strong></td></tr><tr><td><strong>Benchmark</strong></td><td><strong>S&amp;P Asia Pacific ex Japan REIT 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>1% of applicable NAV - If units are redeemed or switched out within 12 months.</strong></p><p><strong>Nil - If units are redeemed or switched out after 12 months.</strong></p></td></tr><tr><td><strong>Minimum Application Amount&nbsp;</strong></td><td><strong>₹ 5,000 &amp; in multiple of ₹ 1 thereafter</strong></td></tr><tr><td><strong>Minimum Additional Amount</strong></td><td><strong>₹ 1,000 &amp; in multiple of ₹ 1 thereafter</strong></td></tr><tr><td><strong>SIP Top-up, STP,DTP &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><li><strong>Dividend Payout</strong></li><li><strong>Dividend Reinvestment</strong></li></ul></td></tr><tr><td><strong>Fund Managers</strong></td><td><strong>Mr. Arjun Khanna</strong></td></tr></tbody></table></figure><p><strong>SIP Details</strong></p><figure class="table"><table><tbody><tr><td><strong>Type&nbsp;</strong></td><td><strong>Minimum Installments</strong></td><td><strong>Minimum Amount</strong></td></tr><tr><td><strong>Monthly SIP</strong></td><td><strong>6</strong></td><td><strong>₹ 1,000 &amp; in multiple of ₹ 1 thereafter</strong></td></tr><tr><td><strong>Quarterly SIP</strong></td><td><strong>6</strong></td><td><strong>₹ 1,000 &amp; in multiple of ₹ 1 thereafter</strong></td></tr></tbody></table></figure><figure class="table"><table><thead><tr><th colspan="2">Latest Launched NFO</th></tr></thead><tbody><tr><td><a href="https://zfunds.in/m/edelweiss-msci-india-domestic-world-healthcare-45-index-fund">Edelweiss MSCI India Domestic &amp; World Healthcare 45 Index Fund NFO</a></td><td><a href="https://zfunds.in/m/icici-prudential-esg-fund-nfo">ICICI Prudential ESG Fund NFO Scheme Detail</a></td></tr><tr><td><a href="https://zfunds.in/mutual-funds/icici-prudential-balanced-advantage-fund-growth">ICICI Prudential Balanced Advantage Fund</a></td><td><a href="https://zfunds.in/m/invesco-india-focused-20-equity-fund-nfo">Invesco India Focused 20 Equity Fund- NFO</a></td></tr><tr><td><a href="https://zfunds.in/m/sbi-magnum-childrens-benefit-fund-investment-plan-nfo">SBI Magnum Children’s Benefit Fund- Investment Plan NFO</a></td><td><a href="https://zfunds.in/m/kotak-esg-opportunities-fund-nfo">Kotak ESG Opportunities Fund NFO</a></td></tr><tr><td><a href="https://zfunds.in/m/nippon-india-nifty-smallcap-250-index-fund-nfo">Nippon India Nifty Smallcap 250 Index Fund- NFO</a></td><td><a href="https://zfunds.in/m/baroda-banking-psu-bond-fund-nfo">Baroda Banking &amp; PSU Bond Fund NFO</a></td></tr><tr><td><a href="https://zfunds.in/m/dsp-value-fund-nfo">DSP Value Fund NFO</a></td><td><a href="https://zfunds.in/m/aditya-birla-sun-life-esg-fund-nfo">Aditya Birla Sun Life (ABSL) ESG Fund NFO</a></td></tr><tr><td><a href="https://zfunds.in/m/icici-prudential-quant-fund-nfo">ICICI Prudential Quant Fund NFO</a></td><td><a href="https://zfunds.in/m/invesco-global-consumer-trends-fof-nfo">Invesco Global Consumer Trends Fund of Fund NFO</a></td></tr><tr><td><a href="https://zfunds.in/m/hdfc-dividend-yield-fund-nfo">HDFC Dividend Yield Fund NFO</a></td><td><a href="https://zfunds.in/m/kotak-international-reit-fof-nfo">Kotak International REIT FOF NFO</a></td></tr><tr><td><a href="https://zfunds.in/m/iti-large-cap-fund-nfo">ITI Large Cap Fund NFO</a></td><td><a href="https://zfunds.in/m/icici-prudential-esg-fund-nfo">ICICI Prudential ESG Fund NFO</a></td></tr></tbody></table></figure>

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

what-is-stp

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>

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>

Kotak ESG Opportunities Fund NFO - Know investment objective, returns, suitability, risks, asset allocation pattern, entry & exit load and all other details

Kotak ESG Opportunities Fund NFO - Investment Objective, Returns, Risk, Scheme Details

kotak-esg-opportunities-fund-nfo

<h3>Kotak ESG Opportunities Fund - NFO</h3><p>Kotak Mutual Fund has announced the launch of the Kotak ESG Opportunities Fund. The scheme would be investing in companies that adopt the theme of Environment, Social, and Governance (ESG). As per the press release, a composite ESG score based on different factors will be assigned to companies, and exposures will be taken in companies on the basis of their ESG scores.&nbsp;</p><p>The New Fund Offer (NFO) starts from 20th November 2020 and will end on 4th December 2020.</p><h4>Investment Objective</h4><p>The investment objective of the scheme is to provide long-term capital appreciation by investing in a portfolio of stocks which are determined on the basis of the Environmental, Social, and Corporate Governance criteria (ESG).</p><h4>What is ESG Investing ?</h4><p>ESG investing targets on ‘How companies make money’ rather than just targeting ‘How much money they make’. ESG investing is making investments while incorporating other non-financial parameters like Environment, Social &amp; Corporate Governance. Also known as sustainable investing, ESG investing encourages investments in those companies which follow the ESG theme wherein they take care of the following things:</p><p><strong>Environmental empathy:</strong> Duty &amp; responsibility towards the environment like making use of renewable energy, doing waste management, etc.</p><p><strong>Social Responsibility:</strong> Relationships with internal &amp; external stakeholders by making working conditions policy, discrimination policy, etc.</p><p><strong>Corporate Governance: </strong>Efficiency, conduct &amp; practices of the management like Whistle Blower programs, Board diversity, etc.</p><p>Also Read : Now you can get the <a href="https://zfunds.in/m/nism-courses">free nism certification courses</a> which is provided by Zfunds.</p><h4>Features</h4><ul><li>The Fund will be investing 80% of its assets in the companies with strong ESG scores.</li><li>The Fund can also invest in foreign companies with high ESG scores.</li><li>The Fund aims to identify companies reflecting high strength &amp; stability through their quality ESG practices.</li><li>The selection of companies for the portfolio will be from the NIFTY 100 ESG universe.</li><li>The Fund will avoid investing in companies with corporate governance issues or any other ESG related issues. It will avoid any investments in companies with product lines of alcohol, tobacco, weapons etc.</li></ul><h4>Why invest in Kotak ESG Opportunities Fund ?</h4><p>Reasons to Invest in Kotak ESG Opportunities Fund:</p><p>-&nbsp; Kotak AMC has signed UNPRI and has become the first Indian AMC to sign this United Nations principles agreement.</p><p>- Responsible Investment policies for Equity and Debt investments have been actively implied by Kotak Mutual Fund.</p><p>- Kotak Mutual Fund has partnered with Sustainalytics - A company that rates the sustainability of listed companies based on their environmental, social, and corporate governance performance.</p><p>- Kotak Mutual Fund is measuring the impact of ESG parameters by doing an active engagement with Investee companies.</p><p>Also Read : <a href="https://zfunds.in/m/nism-certification">Nism Certification Exam</a></p><h4>Suitability</h4><p>This scheme is suitable for investors who are -</p><ul><li>Interested in Long term wealth creation.</li><li>Interested In investing in a diversified basket of stocks determined on the basis of the Environmental, Social and Governance criteria (ESG).</li><li>Recommend for investing with a time horizon of 5+ years.</li></ul><h4>Assets Allocation Pattern :&nbsp;</h4><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><td><strong>Risk Profile</strong></td></tr><tr><td><strong>Equity and Equity related securities</strong></td><td><strong>80</strong></td><td><strong>100</strong></td><td><strong>High</strong></td></tr><tr><td><strong>Equity &amp; Equity related instruments of companies as per ESG criteria</strong></td><td><strong>80</strong></td><td><strong>100</strong></td><td><strong>High</strong></td></tr><tr><td><strong>Equity and Equity related instruments other than mentioned above&nbsp;</strong></td><td><strong>0</strong></td><td><strong>20</strong></td><td><strong>Moderate to High</strong></td></tr><tr><td><strong>Debt and Money market instruments</strong></td><td><strong>0</strong></td><td><strong>20</strong></td><td><strong>Low to Moderate</strong></td></tr><tr><td><strong>Units that are issued by REITs and INVITs</strong></td><td><strong>0</strong></td><td><strong>10</strong></td><td><strong>Moderate to High</strong></td></tr></tbody></table></figure><h4>About the Scheme :&nbsp;</h4><figure class="table"><table><tbody><tr><td><strong>Name of the fund</strong></td><td><strong>Kotak ESG Opportunities Fund</strong></td></tr><tr><td><strong>Fund launched by</strong></td><td><strong>Kotak Mutual Fund</strong></td></tr><tr><td><strong>Asset Management Company</strong></td><td><strong>Kotak Mahindra Asset Management Company Limited</strong></td></tr><tr><td><strong>Type of scheme</strong></td><td><strong>An open ended equity scheme investing on the basis of the Environmental, Social and Governance (ESG) theme.</strong></td></tr><tr><td><strong>Investment Objective</strong></td><td><strong>The investment objective of the scheme is to generate capital appreciation over the long term through investments in different stocks using ESG theme.</strong></td></tr><tr><td><strong>Benchmark</strong></td><td><strong>Nifty 100 ESG 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>1% of applicable NAV - If units are redeemed or switched out within 12 months.</strong></p><p><strong>Nil - If units are redeemed or switched out after 12 months.</strong></p></td></tr><tr><td><strong>Minimum Application Amount&nbsp;</strong></td><td><strong>Rs. 5,000 &amp; in multiple of Rs.1 thereafter</strong></td></tr><tr><td><strong>Minimum Additional Amount</strong></td><td><strong>Rs. 1,000 &amp; in multiple of Rs.1 thereafter</strong></td></tr><tr><td><strong>STP &amp; SWP</strong></td><td><strong>Available</strong></td></tr><tr><td><p><strong>Capital Appreciation STP</strong></p><p><strong>SIP Plus</strong></p><p><strong>SIP Pause</strong></p></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>Fund Managers</strong></td><td><strong>Mr. Harsha Upadhyaya and Mr. Arjun Khanna (for investments in foreign securities)</strong></td></tr></tbody></table></figure><h2>SIP Details</h2><figure class="table"><table><tbody><tr><td><strong>Type&nbsp;</strong></td><td><strong>Minimum Installments</strong></td><td><strong>Minimum Amount</strong></td></tr><tr><td><strong>Monthly SIP</strong></td><td><strong>6</strong></td><td><strong>Rs.1,000 &amp; in multiple of Rs.1 thereafter</strong></td></tr><tr><td><strong>Quarterly SIP</strong></td><td><strong>6</strong></td><td><strong>Rs. 1,000 &amp; in multiple of Rs.1 thereafter</strong></td></tr></tbody></table></figure>

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>

Conquer Your Fear of Money

conquer-your-fear-of-money

Conquer Your Fear of Money with These 8 Healthy Tools

<h2>Conquer Your Fear of Money with These 7 Healthy Tools</h2><p>Chrometophobia is the fear of money, and if you think about it, money is such a thing that you can just not avoid it. Like other phobias, it is an abnormal and irrational fear that carries with it many symptoms that vary in severity. Like, hesitate to spend money, even on items which you know are necessary, because you’re afraid you might run out of money. You may feel powerless to manage your finances, so you stop saving money. You might like doing certain activities or going out for that matter but you start avoiding or canceling plans to save on money. You're constantly logging into your checking account or counting and recounting the cash in your wallet several times a day and feeling stressed about what you find then you might be suffering from this. This fear of money can be a roadblock on your way to financial freedom so there are some healthy tools you can opt for.</p><figure class="image"><img src="https://lh4.googleusercontent.com/lma9yYQpn71IACxhShwoi7GgbIlRDlfh5_VCK3isqjOtnRfLdP0__N20ETZzCD37mnwiocx_yi30If926dn2ShMcymPmHshrZb-bDnGIOEr1yuLrjKNCvCuOhtNY1BbFQBIf_KaS"></figure><p><strong>1. Bravely Sit Down And Face Your Finances Head-On:</strong></p><p>Take a hard look at your bank accounts and other financial account balances, including credit cards, home loans, car loans, and any other debts. Knowing how much money you have and what you owe tells you exactly where you are right now. And knowing exactly where your standing is a well-defined beginning to maneuver your financial future.</p><p><strong>2. Create A Budget Right Now:</strong></p><p>Making a plan for how you are going to spend money each week and month can be reassuring if you are afraid of overspending. It makes it a lot easier to check if you have gone beyond your means if you have already set aside funds for each recurring expense. An easy way to do this is to use a budgeting app there are plenty available on your smartphone just check which one caters to your need aptly. These can connect to your bank account, credit cards, and other creditor accounts to look at your spending and make suggestions on where to cut back. It makes the process a lot simpler if you do not have the time to regularly check multiple accounts. You can even sign up for alerts that warn you if you are coming close to overspending and tell you when your bills are due.</p><p><strong>3. Start With An Emergency Fund Immediately:</strong></p><p>Having saved money gives you a cushion for when the unexpected happens, this might provide you some relief from your chrometophobia. Most financial experts recommend having at least 3-6 months of personal expenses saved up for emergencies, such as if you were to lose your job or incur an unexpected medical bill. Because any uncertain income loss or salary reduction can take a toll on your monthly budget and put you under a lot of anxiety to find a solution. Make sure that you discuss your financial grounds with your financial coach to ascertain the needed ideal emergency corpus so that you can prepare for the future living in present.&nbsp;</p><p><strong>4. If you need to borrow or go for EMIs, compare all options and primarily your need of it:</strong></p><p>Going into debt should be approached in the same say you might consider jumping out of an airplane with a fire onboard. Neither option is a good idea. In a very few understandable cases, though, you will probably need a loan. These include buying a house, child education, or even starting a business. While buying a product on EMI takes away the burden of paying the huge cost upfront, there is always a cost that one has to bear on 'no-cost EMI' schemes. So be wise with your buying decisions.</p><p><strong>5. Come up with a plan to pay off your debt:</strong></p><p>The best way to fight a mountain of debt is to attack with a well-researched plan. Start by reading about all your options before you make any decisions. If loan repayments are eating up a large chunk of your budget, a debt consolidation loan can seem easier to manage although it may be difficult to qualify for one at a decent rate. Balance transfer credit card offers might also seem like good moves, but beware!&nbsp;</p><p><strong>6. Set coherent short and long-term financial goals:</strong></p><p>Once you have started paying off your debts and building your savings, having your financial goals figured out can help you look at the investment avenues that can help you move ahead slowly but steadily towards achieving your financial dreams. You can think about how you want your future to look in the next few decades. Do you want to own a home? How much do you need to save for retirement? Are there any other personal goals that financial planning can help you meet — like quitting your job to travel?</p><p><strong>7. Reach out to money experts your financial coach:</strong></p><p>Properly managing your investments and making the right financial decisions takes time, skill, and effort. It's not a one-time thing and a professional brings with him the needed knowledge and expertise to fasten your speed in reaching your financial dreams.</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>

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>

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

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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>

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

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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>

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>

Understanding the linkages between past financial evidence and present events

connecting-the-financial-linkages

Connecting the financial linkages of the past to guide the present!

<h2>Connecting the financial linkages of the past to guide the present!</h2><p>Understanding the linkages between past financial evidence and present events is absolutely basic for a good understanding of how the whole financial system has gone through everything that time has presented.&nbsp;</p><p>Let us start with a glimpse of the Worst recession in 40 years that occurred when the debt crisis started emerging clearly in august 1982. When Mexico was not able to service its external debt obligations, marking the start of the debt crisis. After years of accumulating external debt, risen world interest rates, the <strong>worldwide recession and sudden devaluations of the peso </strong>caused external debt payments to rise sharply. The world experienced a<strong> debt crisis </strong>in which highly indebted Latin America and other developing regions were unable to repay the debt, asking for help. The IMF coordinated the global response, even engaging the commercial banks. It realized that nobody would benefit if the country after the country failed to repay its debts.</p><p>The very next year in 1983, the Market hits new high and gave S&amp;P performance of 22.51%. With the <strong>market soaring high</strong> the very next year 1984-USA recorded a <strong>federal deficit.</strong></p><p>In 1985, the dollar starts to decline, and bull market soars. Dow nears the record high of 2000 in 1986 and this bull market crashes the very next year in the market <strong>massacre of Black Monday</strong> happens in October 1987.&nbsp;</p><p>In 1988, the <strong>Election-year jitters </strong>giving hopes to the people but even the signs of recession start commanding backed by <strong>junk bond collapse</strong> shaking the market in 1989 with a mini-crash.</p><p>In 1990, the<strong> Persian Gulf crisis</strong> occurred with the gulf war creating the worst market decline in the last 16 years. The Soviet Union collapsed in 1991 and next year markets were flat with a global recession. During 1993 the businesses started recovering on a global level also the interest rates were going up simultaneously. Markets were <strong>too high in 1995</strong> and then the fear of inflation took a hid in the economy.</p><p>The government borrowing rose, and firms overstretched themselves in a ‘dash for growth.’ When market sentiment changed foreign investors sought to reduce their stake in Asian economies causing destabilizing capital outflows, which caused rapid devaluation and further loss of confidence. These Asian economies faced macroeconomic shock resulting in “<strong>The Asian financial crisis of 1997</strong>”. It affected countries like Thailand, the Philippines, Malaysia, South Korea, and Indonesia. Typically these countries experienced rapid devaluation and capital outflows as investor confidence turned from over-exuberance to contagious pessimism as the structural imbalances in the economy became more apparent.</p><p>From about 1997 to early 2000, there was a pervasive feeling and an induced actuality of wealth among those who invested in the stock market. This led investors to be willing to invest in more elaborate housing, and this likely contributed to<strong> rising housing prices </strong>each year from 1997 to 2001. In the 1990s, a period of massive growth in the use and adoption of the Internet the dot-com bubble burst; it was caused by excessive speculation in internet-related companies. The <strong>dot-com bubble </strong>was a stock market bubble caused by excessive speculation in Internet-related companies in the late 1990s.</p><p>These lists of economic events were followed by 2001 - Recession, World Trade Center Attack, 2002 - Corporate Accounting Scandals, 2003 - War in Iraq, 2004 - the U.S. has massive trade &amp; budget deficits, 2005 - Record oil &amp; gas prices, 2006 - Housing bubble bursts, 2007 - <strong>Sub-prime mortgage crisis</strong>, 2008 - <strong>Banking &amp; Credit crisis</strong>, 2009 - Recession - "<strong>Credit Crunch</strong>", 2010 - Sovereign debt crisis, 2011 – <strong>Eurozone crisis,</strong> 2012 - U.S. fiscal cliff, 2013 - Federal Reserve to "taper" stimulus, 2014 -<strong> Oil prices plunge</strong>, 2015 - Chinese stock-market sell-off, 2016 - <strong>Brexit and US presidential elections</strong>, 2017 - Stocks at a record high,<strong> Bitcoin mania</strong>, 2018 - Trade wars and rising interest rates, 2019 - India GSP at 5 %, and who can afford to miss the on-going <strong>2020- COVID-19</strong>.</p><p>These glimpses of market events expose the variety of emotions that are involved with investing in the stock market. It has never followed a linear curve and never would there have been worst times and can come newer awaiting ones. There will be ups and downs, bullish and bearish markets but at least looking at the history it is easy to say that yes there’s a bright light at the end of the tunnel and Mr. Market is strong enough to survive and thrive through all.</p><p><strong>More Information:</strong></p><p><a href="https://zfunds.in/m/impact-of-coronavirus-on-economy-and-finance">Impact of COVID-19 on Business and Economy</a></p><p><a href="https://zfunds.in/m/decoding-corona-rakshak-and-corona-kavach-policy">Corona Health Rakshak &amp; Corona Kavach Policy: Eligibility, Tenure, Coverage, Difference</a></p><p><a href="https://zfunds.in/m/7-important-tips-for-mutual-fund-investments-">Important Tips to Invest in Mutual Funds</a></p><p><a href="https://zfunds.in/m/rupee-cost-averaging-power-of-systematic-investment-plan">What is Rupee Cost Averaging in SIP?</a></p><p><a href="https://zfunds.in/m/how-to-invest-in-mutual-funds">How to Invest in Mutual Funds?</a></p>

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>

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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.