What is the risk of investing in Mutual Funds?
We have all heard: “Mutual Fund investments are subject to market risks.” Ever wondered what are these risks? The image on the left talks about the various types of risks. Read more
We have all heard: “Mutual Fund investments are subject to market risks.” Ever wondered what are these risks? The image on the left talks about the various types of risks. Read more
KYC is an acronym for "Know Your Customer" and is a term used for Customer Identification Process as a part of Account Opening process with any financial entity. KYC establishes an investor’s identity & address through relevant supporting documents such as prescribed photo id (e.g., PAN card, Aadhar card) and address proof and In-Person Verification (IPV). Read more
There is a beautiful Chinese proverb, “The best time to plant a tree was 20 years ago. The second best time is now.” Read more
Do you visualize roller-coasters or toy trains first when you think of an amusement park? Probably the former. These rides are usually the biggest attractions in such parks which create a certain perception about amusement parks. ‘Mutual funds’ too carry a similar perception that they invest only in stocks and hence are risky. Read more
You must properly evaluate before picking up the right Mutual Fund scheme to invest your hard-earned money. While investors often go by scheme category and top performing schemes in the category, they ignore risk indicators for these schemes. Read more
If you are wondering how to invest in a Mutual Fund, remember it is mandatory to have an account with any bank, KYC / CKYC, PAN and Aadhaar cards. This has been made mandatory to ensure Mutual Funds are not used for money laundering purposes by few unscrupulous investors. Read more
Risks appear in many forms. For example, if you own a share of a company, there is a Price Risk or a Market Risk or a Company Specific Risk. The share of just that company may dip or even crash due to any of the above reasons or even a combination of these reasons. Read more
All mutual fund ads contain a message: “Read all scheme related documents carefully.” What are these documents? There are 3 important documents: Key Information Memorandum (KIM), Scheme Information Document (SID) and Statement of Additional Information (SAI). Read more
Banks are in the business of savings and loans while Mutual Funds are for investments. When you put your money in a savings account or in a fixed deposit, you are making savings whereas when you put your money in Mutual Funds, you are making investments. Banking and Mutual Funds are two completely different businesses, requiring specific domain and organizational expertise. Read more
Mutual Fund investors with long-term investments through SIPs constantly worry about market falls during this period. SIPs are well-designed to overcome some of the Mutual Fund risks like market timing and volatility. Read more
In Mutual Funds, one often hears, ‘more the risk, more the return’. Is there truth in this? If ‘risk’ is measured as either, probability of loss of capital or as swings and fluctuations in investment value, then asset classes like equity are undoubtedly the riskiest, and money in a savings bank account or in a government bond is of course least risky. Read more
When a Mutual Fund Company shuts down or gets sold off, it is a serious matter to note for any existing investor. However, as Mutual Funds are regulated by SEBI, events of such kind have a prescribed process. Read more
Mutual Funds invest in securities and the nature of securities depends on the scheme’s objective. For instance, an equity or growth fund would invest in company shares. A liquid fund would invest in Certificates of Deposit and Commercial Paper. Read more
Yes, there are several types of Mutual Fund schemes – Equity, Debt, Money Market, Read more
Many investors worry about loss in Mutual Funds if they are unable to make SIP payments during its tenure. Read more
It’s a misconception that Debts Fund have no risk just because they don’t invest in equities. It’s true that Debt Funds are less risky compared to Equity Funds but that doesn’t mean Debt Funds guarantee that your money will never face any loss. Read more
Imagine you have to fly to a country far away and a plane is the only choice. Under what circumstances do you need to understand the various controls for flying the plane? Or the various signals that the pilot receives from the different control towers? Or how to operate the radio system? Read more
4-6 years is considered medium-term in savings and investment decisions and hence capital appreciation should be your objective here. Read more
Mutual Fund schemes usually don’t have a maturity date unless you have invested in a close-ended ELSS or other close-ended schemes like FMPs. Read more
Mutual Funds are market-linked products that carry various kinds of risks and their returns are not guaranteed. Choosing the right mutual fund involves not only looking at its investment objective, return potential but also an evaluation of its riskiness. Since every investor has a unique personality including risk preference, the choice of mutual funds will be unique to each investor. Read more
Every investment we make involves a risk, only its nature and degree varies. The same applies to Mutual Funds too. All Mutual Fund schemes do not carry the same risk when it comes to returns on investment. Read more
Risks could be controlled. And Mutual Funds can be rewarding! Read more
Systematic risk is the risk that impacts the whole market or a big part of it. It's also known as market risk,. It is known as market risk. It is the risk inherent to the entire market, attributable to a mix of factors including economic, socio-political, and market-related events. Read more
The answer is a huge, resounding YES! It is important to note that experience in managing money/making investments plays a vital role in generating good performance. The more the experience, the better is the probability of making profitable investment decisions. Read more
Many of us dread the thought of managing our own investments. With a professional fund management company, people are put in charge of various functions based on their education, experience and skills. As an investor, you can either manage your finances yourself, or hire a professional firm. You opt for the latter when: Read more
To many people, Mutual Funds can seem complicated or intimidating. We are going to try and simplify it for you at its very basic level. Essentially, the money pooled in by a large number of people (or investors) is what makes up a Mutual Fund. This fund is managed by a professional fund manager. Read more
Once an investor has decided to invest in Mutual Funds, he has to make a decision of which scheme to invest in– Fixed Income Fund, Equity Fund or Bal Read more
Every individual investor is unique. Not only with regards to investment objectives but even in approach and view of risk. This is what makes Risk Profiling absolutely crucial before investing. A Risk Profiler is essentially a questionnaire that seeks an investor’s answers to questions about both “ability” and “willingness”. Read more
The riskometer attempts to give you a complete ‘risk’ picture for the mutual fund scheme. It does this by putting a risk score on every asset class held by the mutual fund scheme. Read more
All Mutual Funds in India are regulated by the Securities and Exchange Board of India (SEBI). Mutual Fund regulations clearly define the roles and responsibilities of Asset Management Companies (AMC) and Custodians. Read more
In a way, both are supposed to help with your investment decisions, which may include selection of Mutual Fund schemes. Read more
Making a mistake while investing happens across all investments, and Mutual Funds are no different. Some of the common mistakes while investing in Mutual Fundsare: Read more
Stock market investing can be intimidating, especially if you are a beginner. However, there's a tried and tested investment strategy that not only makes investing in the stock market simple and easy but can also help you build long-term wealth: SIPs or Systematic Investment Plans. Read more
An open end fund permits redemptions on all business days. If a redemption request is handed over at an Investor Service Centre on a non-business day, or after a specified cut-off time, say 3:00 p.m., then it is processed on the next business day. Read more
Imagine asking: At what speed do vehicles run? Can you generalize the answer for the whole category? Different vehicles run at different speeds – even within one category, e.g. cars, while a car made for city roads may run at a certain maximum speed, the one made for racing can run much faster. Read more
Invest for long term – an advice routinely given by many Mutual Fund distributors and investment advisors. Read more
Majority of Mutual Fund schemes are open end schemes, which allow an investor to redeem the entire invested amount without any time restrictions. Only under few instances schemes impose a restriction on redemption, under extraordinary circumstances, as decided by the Board of Trustees. Read more
The National Pension Scheme, or NPS, is a retirement benefit scheme introduced by the Indian government in 2004. Read more
An investor has no restriction on redeeming money from an open ended scheme. While there may be an exit load in certain cases, which impacts final amount realised, all open end schemes offer liquidity as a great benefit. Read more
Like other asset classes, Mutual Funds returns are calculated by computing appreciation in the value of your investment over a period as compared to the initial investment made. Read more
Investments in Mutual Funds require the appropriate time horizon. Having the right time horizon, not only provides a better chance of getting expected, investment returns, but also lowers the risk in the investment. Read more
Mutual Funds are one of the most liquid assets, i.e. it is one of the easiest to convert into cash. In order to redeem funds through offline mode, the unit holder needs to submit a signed Redemption Request form to the AMC's or the Registrar’s designated office. The form requires details like unit holder’s name, folio number, scheme name, and number of units to redeem. Read more
Two famous investment options are PPF (Public Provident Fund) and Mutual Funds. Both these investment choices have their own sets of differences. Read more
There are so many elements involved in providing an investor various services so that he/she can achieve their financial goals. Read more
In Mutual Funds, money doesn’t get locked up. It gets invested! When investing in Mutual Funds,one of the most common questions is, ‘Does my money get locked up?’ It is important to note two facts: Read more
On a long-distance road journey, sometimes a toll is charged when you enter the road or the bridge, and sometimes when you exit. In many cases, the toll bridge company is allowed to charge the toll only for a certain number of years to recover the building costs. After that period is over, the company is not allowed to charge the passengers any toll. Read more
One of the biggest advantages of Mutual Funds is liquidity – the ease of converting an investor’s units into cash. Read more
An investment in an open end scheme can be redeemed at any time. Read more
A Dividend is a distribution of earnings from a stock or a Mutual Funds . In Mutual Fund schemes, dividends are distributed when the fund has booked profits on the sale of securities in its portfolio. Read more
One of the biggest advantages in a Mutual Fund scheme is Liquidity, i.e. ease of converting investment into cash. Read more
A gold ETF is an exchange-traded fund with the objective of tracking the domestic physical gold price. It is a passive investment instrument that invests in gold bullion according to current gold prices. Read more
Let’s consider a Balanced Fund, which aims to provide growth and capital appreciation from the equity portion, and income and stability from the debt portion. This scheme still carries considerable risk, as the portion of equity could be as high as 60%. This is recommended only for investors with a healthy risk appetite and long term time horizon. Read more
Imagine asking a travel agent, “How should I choose my mode of transport?” The first thing he/she will say is, “Depends on where you want to go.” If I were to travel to a distance of 5 kms, an auto rickshaw might be the best option, while for a journey from New Delhi to Kochi, a flight might be the best. Read more
The performance of a particular scheme of a Mutual Fund is denoted by Net Asset Value (NAV). In simple words, NAV is the market value of the securities held by the scheme. Mutual Funds invest the money collected from investors in securities markets. Read more
When it comes to investing, people have different financial goals and risk appetites. Read more
Investing in mutual funds is already convenient at your fingertips. They are easy to invest in instruments, they are flexible, and investors can even start with as little as Rs. 500 through the systematic investment plan method. Read more
People often wait until later in life to start investing, even though it is the most effective way to safeguard their financial future. It is more common for first-time jobbers to upgrade their lifestyle than to plan for their future. In other words, they don't start investing until later in life. Read more
Two friends, Lata and Neha , started investing in mutual funds at different ages. When Lata was aged 25, she began investing Rs 5,000 each month, and Neha did the same when she was aged 35. Assuming an average annual return of 12%, here’s what their investment portfolios would look like at age 60: Read more
What is wealth? What purpose does it serve? Many answer these questions as “living a life of one’s dreams”, or “not having to worry about money”, or “having financial freedom”. Being wealthy means having enough money to spend for one’s responsibilities and dreams. Read more
Some people like to play safe and opt for familiar options. Suppose you are in a new restaurant. The menu has exotic dishes, but you still order something familiar just to be sure you don’t regret it later. You may choose a regular ‘Paneer Kathi Roll’ over a ‘Couscous Paneer Salad’ to be safe. Read more
Do different types of Mutual Fund schemes offer different kinds of returns? Read more
Recurring Deposits (RDs) and Fixed Deposits (FDs) are some of the most popular savings instruments in our country. They are safe and offer a guaranteed rate of return. Read more
The returns in a Mutual Fund portfolio are a function of many things, like the avenues one has invested in, the way various markets move, the ability of the fund management team, and the investment period. Read more
Business and commerce allows us to create wealth by investing our money with those who are on the path to creating wealth. We can be investors in businesses of entrepreneurs, by investing in stocks of various companies. As the entrepreneurs and the managers run their businesses efficiently and profitably, the shareholders get the benefits. Read more
Every Mutual Fund (MF) scheme has an investment objective and is managed by a designated fund manager, who is responsible for the fund performing optimally to achieve that objective. Read more
Simply put, inflation is the rise in prices over time, relative to the money available. In relatable terms, a certain amount of money buys you much less today, than it did years ago. Read more
If you are looking for a regular income inflow to manage your monthly household expenses, you should go for Systematic Withdrawal Plans (SWPs)in a Mutual Fund. Read more
There are various ways one can save up for their child's educational expenses. Considering the rate of inflation, investing is an even better option than saving to accumulate a corpus as an educational fund. Read more
Mutual funds are commonly viewed as tools to build long term wealth, but there are types of mutual funds which are suited for short term goals also. Mutual funds for short-term goals are investment instruments designed to cater to financial objectives with a relatively brief time horizon. Read more
Market capitalisation is the average of full market capitalisation of the stock on all recognised stock exchanges where it’s listed, or the full market capitalisation of the stock on the single exchange where it’s listed. Fund managers invest in companies as per the fund’s investment objective and investors know what they are investing in. Read more
Narendra aims to accumulate enough to make the down payment for his dream house. He started an SIP in some Mutual Fund schemes. Though he was falling a tad short, he was comfortable with what he had accrued. Read more
In this digital and information age, it has become relatively easy to keep track of investment and portfolio performance. While financial experts like mutual fund distributors or investment advisors are irreplaceable partners in your financial journey, it is best for investors to have a little knowledge about their own investments. Read more
From where do you get the vegetables for dinner? Do you grow them in your backyard, or purchase it from the nearest mandi/supermarket depending on what you need? Growing your own veggies is a great way of eating healthy food, but effort is spent on seed selection, manuring, watering, pest control, etc. Read more
One must keep in mind that the regular expenses as well as the cost for various financial goals rise over a period. If the inflation is at 6% per year, the cost of a goal doubles over approximately 12 years. However, if the inflation is at 7%, the doubling happens roughly in ten years. Read more
Pension plans provide a guaranteed source of income in the form of annuity during retirement. However, they don’t provide immediate liquidity for emergencies and offer limited choice in terms of diversification and investment styles. The premium paid towards a pension plan is tax deductible. Read more
Yes, Mutual Funds are ideal to help you plan your life goals! · Mr. Rajput eventually wants to move away from the city, into a farmhouse on a hill station when he plans to retire after 15-20 years. Read more
SIP (Systematic Investment Plan) is a disciplined manner of investing in mutual funds. In this plan, an investor can invest a fixed amount in mutual fund schemes (of their own choice) at a fixed interval (daily, weekly, monthly, or quarterly). Read more
Anyone under the age of 18 (minor) can invest in Mutual Funds, with the help of parents/legal guardians until the age of 18. The minor must be the sole account holder represented by the parent/guardian. Read more
Long-term investments aim to finance distant future goals, like college education, home, retirement, etc. Hence, choose a fund suitable for wealth creation. Read more
“My son is in the 9th grade. I am not sure what his interests are or what stream in education he should pursue. Should he go for Science, Commerce or Arts? Can someone help?” Many parents have such concerns. That is where one may approach an education, or a career, counselor, who has evaluated various options available for youngsters. Read more
A ULIP is Unit-Linked Insurance Plan. It is a life insurance policy with an investment component that is invested in various financial markets. The returns generated by the investment component determine the value of the policy. However, the sum assured on the death of the policy holder may not be a function of the market – the minimum sum assured may remain unaffected. Read more
With so many Mutual Funds schemes in the market, often one may wonder which scheme may be the best. But, understanding the meaning of “best” is more important. Read more
To begin with, it is important to select the right scheme for your investment need. Look at it this way. How do you decide what mode of transport you should take when you travel? Whether you want to walk it up, take an auto rickshaw, a train or a flight, it all depends on your destination, on your budget and travel time available. Read more
While banks and certain small savings schemes issue a passbook, Mutual Funds do not issue a passbook, they issue an Account Statement instead. The main purpose of a passbook is to keep track of all transactions with a bank: deposit, withdrawals, credit of interest etc. Read more
An ELSS is an Equity Linked Savings Scheme, that allows an individual or HUF a deduction from total income of up to Rs. 1.5 lacs under Sec 80C of Income Tax Act 1961. Read more
SIP in Mutual Fund is like running a marathon. Marathon runners practice throughout the year but keep stepping-up their targets every year starting from dream run, moving to half marathon and finally a full marathon. The same goes with SIPs. Read more
The best part about Mutual Funds is that no matter what your financial goal is, you can find an appropriate scheme for it. Read more
An ETF is an Exchange Traded Fund, which unlike regular Mutual Funds trades like a common stock on a stock exchange. Read more
Mutual Fund investments are subject to capital gains tax. It’s paid on the profit we make while redeeming / selling our Mutual Fund holdings (units). Read more
We grew up listening to the famous hare and tortoise story that taught us - slow and steady wins the race. This moral takeaway finds relevance in all spheres of life including investments. Read more
Retired people usually have their savings and investments locked up in bank FDs, PPFs, gold, real estate, insurance, pension plans etc. Most of these options are difficult to convert to cash immediately. Read more
Investors often wonder how to go about tracking the progress of my investments. It is like chasing a target in a cricket match. In a cricket match, the team batting second knows the equation – how many runs, how many wickets and how many overs. Read more
Yes! Even for an investor with modest savings or small beginnings, Mutual Funds are an ideal investment vehicle. Read more
To many, the power of compounding seems like a difficult topic. But it is not so. We’ll help you understand this in a simple manner. Read more
There are several ways to start investing in a Mutual Fund scheme. Read more
Imagine a 50-overs cricket match in which #6 batsman walks in to bat only in the 5th over. His job is to first ensure he does not lose the wicket, and then focus on scoring runs. Read more
You can start investing in Mutual Funds with just ₹ 500 a month! Read more
While most Indian Mutual Funds invest only in India, there are quite a few schemes that invest in overseas securities. Read more
Once you invest in a Mutual Fund scheme, you will get an account statement with details like the date of the transaction, the amount invested, and the price at which the units are bought and the number of units allotted to you. Read more
The popular investment concept for creating wealth is ‘Start Early. Invest Regularly. Stay invested for Long Term’. Even if the investment is as low as ₹ 500, it is important as it marks the beginning of a journey. Read more
Investing in Mutual Funds has now become so easy and simple that one can think of investing in any number of funds without much additional documentation. First-time Mutual Fund investors need to complete their KYC which is a one-time process. Read more
Yes, Non Resident Indians (NRI) and Persons of Indian Origin (PIO) can invest in Indian Mutual Funds on a full repatriation as well as non-repatriation basis. Read more
Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals– say once a month or once a quarter, instead of making a lump-sum in Read more
Invest in SIP or a one-time investment (lumpsum)? Choosing one depends on your familiarity with Mutual Funds, the fund you want to invest in and your goal. Read more
Collective and pooled investments have existed in various traditional formats across the world for some time. Mutual Funds as we know it came into existence in 1924, with the creation of Massachusetts Investors Trust. The Mutual Fund industry growth was accompanied by three broad trends: Read more
Before you make any Mutual Fund investment, you need to complete a KYC process. This is done through submission of certain documents as proof of identity and proof of address. Read more
Articles about Mutual Fund (MF) investments typically speak about fulfilling long-term goals. So naturally, investors assume that MFs cannot help achieving short-term goals. Let us break this myth with the example of Ramesh, a travel junkie. Read more
Investors switch their investment from one open-ended scheme to another within the same fund house for better financial planning. To switch within the same fund house, fill up a switch form specifying the amount/no. Read more
A Gold ETF is an exchange-traded fund (ETF) that aims to track the domestic physical gold price. They are passive investment instruments that are based on gold prices and invest in gold bullion. Read more
Are Mutual Funds ideal for short term or long term Investment? “Mutual Funds could be a good saving tool for short term.” “You must be patient with your Mutual Fund investments. It takes time to deliver results.” Read more
Let us understand what could be a proper answer to the above question. Through numerous interactions with investors, we feel that in most cases the hidden, oft-unexpressed need is to find out the scheme that would deliver outstanding returns over the period that the investor plans to invest. Read more
Investing in Mutual Fund through SIP offers a lot of flexibility. Investors can control the amount they want to invest, tenure for which they want to invest, frequency with which they want to invest (weekly, monthly, quarterly, etc.). Read more
A Mutual Fund invests in various asset classes, as per the Scheme Information Document (SID). Typical examples of proposed asset allocation for a scheme could be: Read more
Various types of Mutual Fund schemes exist to cater to different needs of different people. Largely there are three types mutual funds. Read more
On watching the video on the left, you will notice that in all the situations, the money is lying idle for a short period of time. In certain cases, the exact time when the money needs to be taken out may not be known. What does the investor do? Where should the money be parked? One must consider a few things here: Read more
Some people invest in Mutual Funds for a regular income, and they usually look at options of getting a dividend. Thus many schemes, especially debt oriented schemes, have monthly or quarterly dividend options. Read more
Debt funds are for investors who seek safety of capital or regular income from investment and/or want to park money for short periods. But debt funds are of various types. Read more
There are different equity funds catering to various needs of investors. The broad objective of all is to generate appreciation over long periods. Read more
All Mutual Fund Schemes offer two plans- Direct and Regular. In a Direct Plan, an investor has to invest directly with the AMC, with no distributor to facilitate the transaction. Read more
Mutual Fund schemes investing in a single asset category are like specialist bowlers or batsmen. Whereas certain other schemes, known as hybrid funds, invest in more than one asset categories, e.g. some invest in equity and debt both. Some may also invest in gold apart from equity and debt. Read more
An Equity Fund is a Mutual Fund Scheme that invests predominantly in shares/stocks of companies. They are also known as Growth Funds. Read more
The minimum tenure for investment in Mutual Funds is a day and the maximum tenure is ‘perpetual’. Read more
A debt fund is a Mutual Fund scheme that invests in fixed income instruments, such as Corporate and Government Bonds, corporate debt securities, and money market instruments etc. that offer capital appreciation. Debt funds are also referred to as Fixed Income Funds or Bond Funds. Read more
Variety is the spice of life. At the same time, you do not seek variety just for the sake of it. Some variety is required simply because the situation demands it. So when you eat food, you’ve got to maintain balance. Read more
Our choice of meals when we dine depend largely on the time at hand, the occasion and of course, our mood. If we’re in a hurry, say during an office lunch or eating before boarding a bus/train, we may opt for a combo meal. Or if we know a combo meal is famous, we may not bother to go through the menu. A leisurely meal would mean ordering individual items from the menu, as many as we’d like. Read more
There’s no free lunch in this world. We pay for every product or service we consume, either directly or indirectly. For instance, you pay a parking fee for the time you use the parking space. When you send a courier, you pay for the weight of the courier and the distance it needs to travel to reach the recipient. Read more
Every open ended scheme offers liquidity with almost complete freedom, i.e. no restriction on time or amount of redemption. However, a few schemes may specify an Exit Load. Read more
Gold ETFs invest in 99.5% purity gold bullion that is as good as investing in the physical metal. If you are looking to accumulate gold for the long-term, investing in Gold ETFs is a wiser option than holding it in physical form or investing in a gold fund. Read more
Mutual Funds and Index Funds provide diversification by investing across many stocks. While mutual funds have the flexibility to choose stocks in order to generate returns in line with their stated investment objective, Index Funds track a specific index. Hence Index Funds invest in the same stocks that are included in the index. Read more
Most people don’t think about their retirement until they are close to retirement. The entire working life is spent attending to one requirement after another right from owning a vehicle, a home, raising a family, on kids' education to their weddings. Once these responsibilities have been taken care of, we start looking at how much is left for the retired life that’s around the corner. Read more
Mutual Funds may sound easy to some while others may find it complicated to understand. New investors may not understand completely how a Mutual Funds works and what kind of risks does it face. Read more
If you have been wondering what are multi cap and flexi cap funds, you can refer to SEBI’s product categorization circular issued in Oct 2017 that came into effect in June 2018. Read more
There are a few type of mutual funds that impose a ‘lock-in period’ on your investment. These include equity-linked savings schemes (ELSS), Fixed Maturity Plans (FMP) in debt funds and closed ended mutual funds. A lock-in period refers to the minimum duration for which investors must hold their investment. Read more
One should never invest in Mutual Funds, but should invest through them. To elaborate, we invest in various investment avenues based on our requirements, e.g. for capital growth - we invest in equity shares, for safety of capital and regular income - we buy fixed income products. Read more
Dividends are paid from the profit made by Mutual Fund schemes purely out of investment activities pertaining to the scheme’s portfolio and are at the discretion of the trustee. If the scheme makes a loss in a falling market, the trustees may decide to forgo dividend payout announcement. Read more
When you want to buy a car, how do you shortlist the models? Do you first pick up the latest models or decide the type of car? If you are still unsure, you visit a dealer and the first question you are asked is what type of car are you looking for e.g SUV, hatchback, sedan? Read more
Just like a school report card shows the score of a child in various exams held during the academic year across different subjects that are taught by different teachers, a Consolidated Account Statement(CAS) is a physical statement that captures all financial transactions done by an investor across different Mutual Funds d Read more
You may have many goals and dreams in life. You invest your hard-earned money to fulfil those dreams and aspirations. You may also invest to help your loved ones achieve their dreams—both during your life and in your absence. Read more
Many people are interested in investing in Mutual Funds for their potential to generate better return than most other asset classes over the long-term, but they just don’t know where to begin. Since Mutual Funds are risky, most prospects are skeptical of putting in their hard-earned savings into it. Read more
When you invest in a mutual fund over a long period of time, the returns you earn have a compounding effect. However, if you delay your investments by a few years, you’ll lose out on the same. Read more
There have been many instances wherein gullible investors have been lured into investment schemes that promise higher returns than what is available in the market without much downside risk. Such unregulated investment schemes are called Ponzi schemes and have very high risks. Read more
Sectoral funds are Equity Mutual Funds that focus on businesses operating within a specific industry, like technology, healthcare, energy, or financial services or any other sectors. They invest at least 80% of the funds in stocks from that sector, offering potential returns when the sector performs well. However, this investment approach comes with higher risk due to sector concentration. Read more
Suppose you have a malfunctioning air conditioner (AC) during the winter season. You assume that you won't require it at the moment and put off repairing it. But when summer arrives and the heat becomes unbearable, you must repair the AC. Unfortunately, it is the peak demand time, and finding a repair technician becomes challenging. Read more
You can invest in Mutual Funds through regular periodic investments and/or lump sum investments. In the 1st case, you can choose the frequency at which you want to invest. Read more
While both Mutual funds and Portfolio Management Services (PMS) allow investors to invest in stocks and bonds by investing their money in a pooled investment vehicle that is managed by professional fund managers, they both are two different investment options serving different objectives and are meant for two different kinds of investors. Read more
Whatever may be your current age and financial position, you never know what’s in store for tomorrow. If you aren’t sure about tomorrow, can you be sure that what you’ve saved for retirement will see you through till your last day? Read more
Just the way we have different categories of mutual fund schemes depending on their riskiness, we also group investors into similar categories based on their risk profile. Investors can be classified into aggressive, moderate and conservative risk profiles based on two factors. Read more
Market risk is the primary risk affecting equity funds. Market risk is the risk of loss in value of securities due to a variety of reasons that affect the entire stock market. Hence market risk is also referred to as systematic risk i.e the risk that cannot be diversified away. Read more
Enough has been written and spoken about financial independence especially with reference to women in the last two decades. But what does financial independence for women mean? It is subjective and can mean different things to different women. For a working woman, it may mean being able to make her own financial decisions or being able to sustain herself financially. Read more
Small-Cap Funds are Mutual Fund schemes that invest at least 65% of their total assets in equity and equity-related securities of small-cap companies. Small cap companies are generally with a market capitalization of under Rs 100 crore, falling outside the top 250 companies by market capitalization, although their definition may vary among market intermediaries. Read more
Dynamic Bond Funds belong to the category of debt funds known for their flexibility in managing investment durations. Their primary objective is to leverage shifts in interest rates within the economy as opportunities to enhance returns. Fund Managers achieve this by deftly adjusting the duration of bonds in the fund's portfolio, responding to prevailing interest rate trends. Read more
Prior to April 2020, mutual fund dividends were tax-free in the hands of investors i.e they didn’t have to pay income tax on the dividend income from their mutual fund investments. Read more
Index Funds are passive mutual funds that mimic popular market indices. The Fund Manager doesn’t play an active role in selecting industries and stocks to build the fund’s portfolio but simply invests in all the stocks that make up the index to be followed. The weightage of the stocks in the fund closely matches the weightage of each of the stock in the index. Read more
The best time to start planning and investing for your retirement is to start today whatever may be your current age and financial position in life. The sooner you start investing for a goal, the more time your money gets to compound itself. Suppose, you are 30-year-old today and start a monthly SIP of INR 2000 for next 30 years. Your money gets a long time to compound and grow. Read more
During a long drive, do you worry about your speed or the destination and how to get there? Obviously, you don’t count the bumps but focus on reaching your destination safely in time. The same goes with Mutual Funds. Read more
Mutual Funds help you achieve your financial goals over a period of time. Does that mean you should consider investing in Mutual Funds only when you have a specific goal in mind and not otherwise? No! Read more
There have been many changes in the financial services sector, thanks to advancements in technology. Today, you can transact online to pay, to buy, and even to invest. Read more
Flexi Cap Mutual Funds offer access to large-cap, mid-cap, and small-cap funds through a single investment. these equity mutual fund schemes are open-ended and offer flexibility to the fund manager in selecting companies with varying market capitalizations across sectors. Read more
In the world of investment, flexibility is key, and there come moments when an investor needs to transform their mutual fund holdings into cash. The investor may choose to sell their Mutual Fund holdings, due to personal financial urgencies or the investor achieving the goal they had been investing for, tax credit, retirement etc... Read more
Money market funds are one kind of mutual fund that primarily invests in money market instruments that mature within one year. Money market means the financial market that deals with very short-term fixed-income instruments. Read more
Imagine you’ve booked an 8 am flight from Bengaluru to Chennai on FlyIndia Airlines. You realise that the wrong flight was booked and needs rescheduling. What kind of charges do you think FlyIndia will charge you? You will have to pay a penalty for changing your mind even though it is the same airline, same date of travel, same destination and the same passenger! Read more
Index Mutual Funds and ETFs are passive investment vehicles that invest in an underlying benchmark index. Read more
Mutual Funds invest in securities, be it equity or debt, whose values fluctuate along with market movement. This makes them risky because NAV of the fund depends on the individual security values held in the fund’s portfolio. But since mutual funds invest in securities across different sectors, they diversify this market risk. Read more
Fixed Maturity Plans (FMPs) are close-ended debt funds with a fixed maturity somewhat like fixed deposits. Read more
How often have you come across people you know who have lost money in the stock market because they couldn’t guess where the market would go next moment or who made money because they knew where the market was headed next? Read more
Large-Cap Fund invest in India's top 100 companies based on their market capitalisation. When you invest in these funds, your money is allocated by fund managers to well-known companies with fairly large market capitalisation. Read more
Systematic Transfer Plan (STPs) or Systematic Investment Plans (SIPs) are similar in the sense that they help to make regular investments at a fixed frequency. However, they are different in the way they function. We can understand both individually and the difference between SIP and STP. Read more
One of the main reasons for KYC to be introduced in financial markets was to limit/prevent cases of fraud, tax evasion and money laundering. In order to do that, the source and destination in case of any financial transaction must be found out. Read more
Debt Funds invest our money in interest-bearing securities like bonds and money market instruments that promise to pay regular interest. These interest payments are received by the fund which in turn contributes to the total return we, as investors of the fund, earn. Read more
There are many fintech companies that offer Direct Mutual Fund investment platforms either for free or for a fee. Read more
Overnight funds are considered the safest of all mutual funds. If you are new to Mutual Funds and want to try them out before going the whole hog, then overnight funds are for you. Read more
When you invest in Mutual Funds through an intermediary, you you’re investing through a Regular Plan. Investing through an intermediary has certain benefits, for example, your distributor can help you with the selection of schemes appropriate for your short and long-term goals. Read more
Just like opening a bank account requires some paperwork in the beginning and then you can use all its services in a hassle-free manner, investing in Mutual Funds also offers a similar experience. The basic requirement for starting your Mutual Fund journey is to complete your KYC by submitting the necessary documents for verification. Read more
Breakdown: Mutual Fund and SIPs A Mutual Fund is a financial product, while a SIP is a way to invest in Mutual Funds. When you choose the SIP method, you're still investing in a Mutual Fund scheme. Let's explore how investing in Mutual Funds and SIPs can help you secure your financial future What is a Mutual Fund? Read more
The Total Return Index, (TRI), plays a crucial role in evaluating equity indexes. Total Return variant of an Index (TRI) takes into account all dividends/ interest payments that are generated from the basket of constituents that make up the index in addition to the capital gains. Hence, TRI is more appropriate as a benchmark to compare the performance of mutual fund schemes. Read more
One of the most important considerations before choosing an investment avenue is the expected “time horizon,” i.e., time in days, months, or years that an investor intends to stay invested. And why is this so important? Read more
You’ve lent 5 lakhs to your friend who owns a start-up @8% interest (higher than current bank rate of 7%). Even though you’ve known him for years, you still run the risk that he may not return your money on time or may fail to pay back. Also, the bank rate may rise to 8.5% while you are stuck with 8%. Read more
Minors can invest in Mutual Funds through their parents/guardians. The minor is the first and sole account holder in this case and is represented either by a natural guardian (father/mother) or legal guardian (court appointed). Read more
If you are looking for a Mutual Fund that has no risk of loss, there aren’t any! All mutual funds are subject to some risk factor or the other. While Equity Mutual Funds are subject to market risk, debt funds are subject to interest rate risk and default risk. Read more
Index Funds are passively managed Mutual Funds that simply copy a popular market index like the Sensex or Nifty. Read more
Are you worried about losing access to your money once invested in a Mutual Fund? In fact, you’ll have complete freedom to withdraw your money whenever you need. Many investors think their money is blocked since they may have to undergo a cumbersome redemption process. Read more
ESG stands for Environmental, Social, and Governance. The bulk of this fund's portfolio consists of shares and bonds from companies assessed for their environmental, social, and governance practices. By opting for such investments, you actively promote sustainable growth and responsible business conduct. Breaking down ESG Read more
An SIP (systematic investment plan) allows investors to invest a fixed amount at regular intervals into a mutual fund. Primarily, SIPs or Systematic Investment plans are simply investing small amounts regularly. The major benefits of an SIP are: Read more
A Fixed-Income Mutual Fund, (a form of mutual fund) channels investments into fixed-income assets such as corporate bonds, government bonds, money market instruments and other debt securities as per the asset allocation of the Fund and SEBI permissible guidelines and limits. They aim to earn returns through interest and capital growth. Read more
“Aren’t all Mutual Funds the same? After all, it’s a Mutual Fund, isn’t it?” Asked Gokul. His friend Harish, a Mutual Fund distributor, smiled. Read more
Remember the first time you boarded a flight? Did you have butterflies in your stomach or a queasy feeling? Finally, when the flight was air-borne, didn’t you feel reassured? Flying at 30,000 ft, seat belt fastened and a warm cabin crew along with an able pilot to take care of you. Read more
Open-ended Mutual Funds allow investors to redeem their units after certain period at no cost. If an investor wishes to redeem his/her units before this stipulated period, an exit load is levied. Mutual Funds charge exit load if investors sell their investments before having completed a specified time in the fund. Read more
Overnight funds rank a notch below liquid funds amongst debt funds in terms of time horizon and risk profile. Overnight Funds invest in debt securities maturing the next day. Liquid Funds invest in securities maturing within 91 days. Read more
Some investors get into Mutual Funds because they want to create wealth over the long term. They start investing from the early part of their careers. Then there are investors approaching retirement or have a retirement corpus to invest that can supplement their other sources of income during the retired phase of life. Read more
Ultra-Short Duration Funds invest in short-term debt securities with a Macaulay's duration between 3 to 6 months. They may offer slightly higher returns than liquid funds with a low-risk approach, subject to market risks. Their main goal is to generate returns over a short time frame and minimize the risk of capital losses due to interest rate changes. Read more
In the world of mutual funds, you might often come across the term NFO, which stands for New Fund Offer. Think of it as something similar to a company launching a new product in the market. In this case, the "product" is a mutual fund scheme, and an NFO represents the Offer of units of a new scheme. Read more
Whether one invests ₹ 500 or ₹ 5 crores, the returns are the same. Confused? Read more
Usually, when people select a scheme themselves, they do so based on its performance. They don’t consider that past performances may not be sustained. Evaluation of schemes is a function of various attributes of the schemes, e.g. scheme objective, investment universe, the risks that the fund is taking, etc. This requires the investor to put in time and effort. Read more
ETFs are a low cost means to gain exposure to the stock market. They offer liquidity and real time settlement as they are listed on an exchange and trade like stocks. ETFs are a low risk option as they replicate a stock index, offering diversification as opposed to investing in few stocks of your choice. Read more
Mutual Funds invest in securities that trade in different markets be it stocks, bonds, gold, or other asset classes. Any tradable security is inherently exposed to market risk i.e the value of a security is subject to fluctuations caused by market movement. Read more
When the markets turn volatile many investors start doubting their investment decisions and think of stopping their SIPs or withdrawing their investments. It’s natural to get worried when you see your investments in red during a volatile market. Read more
When you lend money, the critical thing to check is how credible the borrower is. And in terms of credibility, nothing surpasses the government. When you invest in gilt funds, you're essentially investing in central or state government bonds. Read more
Mutual Fund performance is assessed based on its returns or performance, and the two most important performance metrics used in evaluating Mutual Funds are: (a) Trailing Returns (b) Rolling Returns Read more
When you order a ‘Large’ pizza over a ‘Regular’ one, do you find any difference in the taste of the two? Obviously not! Both are prepared using the same recipe and process. They just differ in their size and price. You get the same taste of a Farmhouse Pizza irrespective of the size you order from the menu. Read more
Every one wants good returns without taking any risk. Read more
If you are looking to invest in stocks but don’t have the time and research capabilities to choose the appropriate stocks for your portfolio, ETFs are a great saviour! ETFs help you participate in the stock market with much more ease than investing in individual stocks without compromising liquidity. Read more
When we think of investments, it’s natural to ask how much return we will earn. While the answer is straightforward for fixed deposits, and other traditional saving schemes, it is not so for mutual funds. Conventional savings products offer a guaranteed rate of return that we are familiar with. Hence choosing any of these products to put our savings is an easier decision. Read more
When you drive around the city, sometimes you find an empty stretch and speed up to 80kmph while at other times you have to slow down to 20kmph due to traffic or a speed breaker. Finally, you end up clocking an average speed of say 45kmph or 55kmph depending on how often you had to slow down or speed up. Read more
A retirement mutual fund helps you plan for your lifestyle after you stop earning a regular income. Read more
Index funds are a type of mutual funds designed to track the performance of a specific stock market indices (such as BSE Sensex, Nifty 50, Nifty Midcap Index etc.) These funds aim to replicate the investment returns of particular benchmark indices by holding a securities portfolio that closely mirrors the index's composition. But who should invest in index funds? Read more
Exchange Traded Funds(ETFs) offer several advantages over regular mutual funds. They’re a great investment vehicle for first time equity investors who are worried about losing money in mutual funds. Here’s why? Read more
From thousands of Mutual Fund schemes available in the market, how does one choose 4-5 most appropriate funds for his/her portfolio? If you are new to Mutual Funds, investing with the help of a financial expert/mutual fund distributor through a Regular Plan is advisable instead of a Direct Plan, since you ne Read more
ETFs are low cost means to gain exposure to the stock market. They offer liquidity and real time settlement as they are listed on an exchange and trade, much like stocks. ETFs replicate a stock index, offering diversification as opposed to investing in few stocks of your choice. Read more
Mutual Funds are prone to a variety of risk factors depending on categorization and thereby their underlying portfolios. Equity Mutual Funds are prone to many risks but the most significant one is market risk. Read more
We all have different goals in life. Sometimes they present themselves immediately, sometimes over a period of time. For example, when one starts working, they may not have too much on their mind except regular monthly expenses and some impulsive buys. But eventually, goals arise—a bike or car, weekend get-aways, international trips, marriage, so on and so forth. Read more
People think that Mutual Funds are elite investments made only for the wealthy. The fact is: one does not need large sum to invest in Mutual Funds, you can start with a sum as low as ₹ 500, or 5000 depending on the kind of fund you choose. Why keep the minimum amounts as low as these? Read more
Just like other investments, choosing an ETF depends on your required asset allocation, financial goal, risk preference and time horizon. Read more
A factsheet is the most reliable guide an investor can access to get detailed information on a scheme at one go. Have you seen what a monthly report card of a student looks like? Read more
The choice to invest in ELSS through SIP or in lumpsum depends on when and why are you investing. If you are looking to save tax at the end of the financial year, investing in lumpsum is your only choice. Read more
Choosing an equity fund for your investment portfolio is like choosing an attire, though the decision-making process is more complex in this case. Read more
Arbitrage Funds are Hybrid Mutual Funds that seek to exploit arbitrage opportunities for the same underlying asset in different capital markets. Arbitrage refers to taking advantage of price differentials of the same asset, such as in the spot and futures markets. Read more
Several questions rest in a potential investor’s mind regarding the ideal amount to invest. People consider Mutual Funds as just another investment avenue. Is it really the case? Is a Mutual Fund just another investment avenue like a fixed deposit, debenture or shares of companies? Read more
Equity Funds invest in stocks of companies while Debt funds invest in bonds of companies and money market instruments. Since these funds invest our money in different assets, they are impacted by risk factors that affect the underlying asset classes. Read more
Have you heard people talking about their real estate investments, “I bought that house for 30 lakhs in 2004. It’s worth 1.2 cr today! It has grown 4 times in 15 years.” This is an example of an absolute return. When you compare the final value of an investment with the price at which you invested in it, the growth experienced over time is a measure of absolute return. Read more
Tax Saving Mutual Funds or Equity Linked Savings Schemes are diversified equity funds that provide tax deduction benefits under Section 80C of the Income Tax Act. Hence, ELSS funds are suitable for any taxpayer who is willing to take the risk of an equity-oriented tax savings instrument. Read more
Choosing an equity fund for your portfolio requires a methodical selection process that has two phases. Read more
Say you care deeply about the environment, and investing in a company that disregards eco-conscious practices simply doesn't align with your values. So, now you're seeking a solution that not only aligns with your moral values but also offers an opportunity to earn potential returns. Read more
You can invest directly in a Mutual Fund either offline or online, if your KYC is complete. If you are uncomfortable transacting online, you can invest in a fund by visiting its nearest branch. Read more
Compounded Annual Growth Rate(CAGR) is a widely used return metric because it truly captures the year-on-year return earned by an investment, unlike absolute return that captures the point-to-point return from an investment without considering the time taken to earn it. Read more
Equity Linked Savings Schemes are equity-oriented tax saving mutual funds that help you save tax under Section 80C of the IT Act while offering the growth potential of equities. Read more
You must have often come across fund names like RST Bluechip Fund or XYZ Large-cap Fund while looking for information on Mutual Funds , their performance, NAVs, and rankings. Read more
"Never put all your eggs in one basket". Achieving a balance between risk and return is crucial when making investment decisions. Diversification is a key strategy for achieving this balance, as it allows you to spread your investments across different asset classes and sectors, reducing your exposure to any one particular risk. Read more
Long-term investment involves holding assets for an extended period, typically for years or decades. This approach is advantageous as it effectively utilises compounding for substantial returns, allows investors to ride out market volatility, and provides stability against short-term fluctuations. Read more
Yes, it is “through” Mutual Funds and not “in” Mutual Funds. What is the difference? You may indulge in buying and selling stocks and bonds once in a while, but taking help from Mutual Funds to manage your investments may be a much better idea. Read more
After its launch in 1964, Mutual Funds have grown to manage assets over 17.37 lakh crores (as on Jan 31, 2017). Read more
Returns from Mutual Funds depend on the kind of investment it makes, and the risks associated with these investments. The taste of a cake differs from that of a samosa because both are made up of different ingredients and are prepared differently. Read more
ETFs are passive investment tools that track an underlying index and trade on exchanges just like shares. But ETFs need to be bought and sold from the exchange through a broker. You need to have a demat account to trade in ETFs and need to pay commission to the broker for every transaction. Read more
Gone are the days when people took important steps in their life without much prior information be it buying a car or marrying someone. But today, information is available at our fingertips. Even small things like what to order for the next meal is decided after some amount of research or comparison and Mutual Funds are no Read more
The new tax regime effective from 1st Apr 2020 gives individuals and HUF taxpayers an option to choose between lower tax rates by forgoing certain exemptions and higher tax rates while availing exemptions (old tax regime). The newer tax regime may not suit everyone. Taxpayers need to evaluate the tax savings made under both the old and new regime to take a call. Read more
If you have been wondering whether mid-cap and small-cap funds are one and the same thing, you should definitely refer to SEBI’s product categorization circular issued in Oct 2017 that came into effect in June 2018. Read more
Mutual Funds can be categorized into Open-Ended Mutual Funds and Close-Ended Mutual Funds. But what is the difference between the two? Let’s find out. 1) What Are They? Read more
Mutual funds are a flexible investment choice, because of the widespread they offer in terms of asset class, risks, investment amounts, and liquidity. But, for a beginner, it can be challenging to take the first step into building a mutual fund portfolio. Read more
If you are wondering is it too early or late to invest in Mutual Funds, rest assured that the right age to start investing is in fact now, the moment you decide to invest. Read more
Imagine you are planning a holiday to the Maldives and you don’t have much idea about the place. How would you plan your trip? You may either call up a travel agent and book your trip or spend hours researching places to stay, places to visit, modes of transport etc and finally draw up your itinerary, make your bookings. Read more
Index funds suffer from three key disadvantages owing to their passive style. They don’t offer flexibility to the fund manager in managing market downsides. Read more
ETFs offer diversification benefit at a low cost. In spite of these benefits, one should make note of the risks that are involved with such investments. Firstly, there are many kinds of ETFs available in the market including international and exotic ones. Read more
Most people don’t realize that their retired lives can be as long as their working life and they’ll need an enormous corpus to last at least 25-30 years. Without proper financial planning, your savings may not be sufficient to cover all expenses and emergency needs. But how do you build a corpus to sustain 25-30 years of retired life? Read more
Have you ever come across fund names like XYZ Multi Cap Fund while looking for information on mutual funds and wondered how these are different from the more popular large-cap funds? As the name suggests, a Multicap fund invests across large, mid, and small cap companies thus offering diversification across market caps in its portfolios. Read more
Planning for retirement early is like building a house. For retirement planning to be successful, a solid financial foundation is just as important as a solid foundation for a house. Read more
Mutual funds are the modern day's go-to investment option. Therefore, it is important to know who regulates the mutual fund industry in India. The Securities and Exchange Board of India or SEBI regulates all aspects of mutual funds in India. Read more
Once you invest in a Mutual Fund scheme, any change you wish to make in terms of changing plans (Regular/Direct), options (Growth/Dividend) or changing schemes within the same fund house will be considered as a sale (redemption). Read more
With the awareness of mutual funds rising and falling interest rates on guaranteed savings products, many risk-averse investors who were used to conventional products like bank fixed deposits, PPFs, and NSCs, have moved toward Read more
Over the years, investors have been moving from traditional savings products like fixed deposits, PPFs, and post office savings schemes towards debt funds in search of better tax-adjusted returns. Read more
When you park your money in a bank Fixed Deposit (FD), the bank promises to pay fixed interest in return. Here you’ve lent money to the bank, and the bank is a borrower of your money, owes you a fixed periodic interest. Debt Mutual Funds invest in debt securities like Government bonds, Company bonds, Money market securities. Read more
Target Maturity Funds (TMFs) are a kind of open-ended debt funds that offer you fixed maturity dates. The portfolios of these funds carry bonds whose expiry date is aligned with the fund’s target maturity date and all the bonds are held to maturity. Read more
Equity Mutual Funds buy stocks while Debt funds buy debt fund securities like bonds for their portfolio. Securities like bonds aare issued by corporates such as power utilities, banks, housing finance and the Government. They issue bonds with fixed interest rate to raise money from the public (investors) instead of taking a loan for new projects. Read more
Debt mutual fund investors are faced with two primary risks, interest rate risk and credit risk. While long-duration G-Secs address credit risk well, they are prone to high-interest rate risk. Read more
We must eat a balanced diet for the overall growth and well-being of our body. Read more
Debt Funds invest their investors’ money in interest-bearing securities like bonds, corporate deposits, G-secs, money market instruments, etc. These bonds are like certificates that carry an obligation on the part of the bond issuer to pay regular interests (coupons) to the bond investors. Read more
Debt Funds invest the money pooled from investors in bonds issued by banks, PSUs, PFIs (Public Financial Institutions), corporates and the Government. These bonds are usually medium to long-term in nature. When a Mutual Fund invests in such bonds, it earns periodic interest from these bonds which contribute to the fund’s total return over time. Read more
Fixed income mutual funds are those mutual fund schemes whose underlying assets are fixed-income securities, such as - government securities, debentures, corporate bonds, and other money market instruments. Read more
Debt Funds are categorized into different types based on the kind of securities they invest in and the maturity (time horizon) of these securities. Read more
The riskometer is a standardised risk measurement scale introduced by the Securities and Exchange Board of India (SEBI) for Mutual Funds. Read more
If someone asked you, who should eat more of proteins or carbohydrates or vitamins, what would be your answer? Everyone! Read more
Debt Funds provide lower but relatively stable returns as compared to equity funds. They provide stability to a portfolio as they trade in the fixed income market which is more stable in comparison to the stock market that impacts equity funds. Read more
Debt Funds invest in fixed income securities like corporate or Government bonds and money market instruments. Read more