While planning to invest in a mutual fund, there are many things you have to keep in mind while investing in it. Let us first look at the various kind of mutual funds and then we will further go on the several ways of analysing which investment would be better and how.
There are seven most common types of mutual funds which are fixed income funds, money market funds, fund of funds, index funds, balanced funds, speciality funds and equity funds. Of these, equity funds dominate the market. Equity funds are also categorised into broad spectrums, however, the most dominant forms are short term equity fund and long term equity fund. Short term equity funds as the term suggests is investments over a short period of time and long term equity fund are investments over a long period of time. Both are effective in their own ways but often long term equity fund is a preferred choice by most investors since long term equity fund brings in easier and profitable returns in the long run. Now let us analyse a few aspects of these funds to understand which one is the better investment scheme. You must be wondering how will you understand which is a better fund. For this, first, you need to compare the fund history since only through the history you will be able to understand how the market has been evaluating during the difficult phases and how were its performances over the past few years. The second thing which you must compare between funds is its expense ratio. Expense ratio is a term used to imply the annual fee that is charged by the fund manager for managing your records. A key point to be noted here is that expense ratios are calculated over the fund return; therefore, you must look for funds with lower expense ratio since higher ratio means fewer returns. Next pointer for comparison would be the tenure for maturity or the duration of the funds. This condition is specifically used in term of debt funds. If you are planning to invest in debt funds then compare the duration and check which one which has a shorter duration and accordingly make that fund your priority. Besides these, there are a whole bunch of comparisons to be made in order to get hold of a better investment choice. These comparisons are done between a fund with their aspects like the returns which the fund brings, alpha and beta traits of a fund, portfolio turnover ratio, and things like that. Therefore, many proportions and ratios of the various facets of funds need to be calculated in order to get the most beneficial kind of mutual fund for investing capital with expectations to get valuable returns with time.
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In today's world, the speed of life becoming so fast and for that, the chances of accidents and danger is increasing. To tackle the financial crisis which will come after your death in your family, you must have a life insurance policy with you. You will be able to protect your family with the help of a life insurance policy.
Life Insurance is a form of investment which you will have to make and in return, the company will provide an amount of money to your beneficiary or nominee. A Life Insurance Company in India will bear all the expenses of the household of the policyholder like regular bills, EMI of loans, Children's education, nursing care for parents etc. Here are some points which can help you to know about how your family will be profitable by a life insurance plan Various Investment Options By investing in a life insurance policy it's not that you or your family will only get benefits after your death but you can get a return of the premium which you paid during the tenure of the policy. There are several plans of the policies from which you will get considerable returns at the time of maturity, which you can buy from many Life Insurance Company in India. Low premiums, Huge Coverages The biggest reason for which you can buy a life insurance policy is the cost of the premium. There are some premiums which will offer you more than ten times the amount of your premium paid, only by investing a small amount. A Life Insurance Company in India can also give you this facility. Insurance policy as a retirement plan Nowadays people are working for private companies and in which you may not get any pension after your retirement. But with the help of a life insurance policy, you will get steady pay-outs in the form of annuities and the policy will become like a source of pension when you retire. Plan Your Tax You can use a life insurance policy to save your tax because under the Income Tax Act of 1961 a policyholder is eligible to avail tax benefits. Under Section 10, 80C and 80 CC of the Income Tax Act, you can avail tax benefits through life insurance policies. That means if you pay income tax then you can choose a premium by which some amount of money will be deducted from your income tax and your income tax amount will be that much less. This feature depends on the premium. With a wide range of benefits which comes in a single life insurance plan, you can easily secure your family's lives and your own. So, if you want a life of peace and a secured future then you must choose a life insurance plan from any life insurance company in India. Find your own plans and make a selection of policies and purchase and if you want to buy life insurance policies at a very low amount of price then go online because there will be no agent or middleman. |
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April 2022
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