A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities.
Debt funds invest in a mix of debt and fixed income securities, such as treasury bonds, government securities, corporate bonds, money market securities
Varies between 7% - 11% per annum
Short Term investments ie. Held for less than 3 years are taxed at one's bracket rate.
Long Term investments, ie held for more than 3 years are taxed at 20% with the benefit of inflation indexation.
These are debt fund options for investors who want to park their money for a short period upto 180 days.
However investors may continue to stay invested for longer terms. In common paralance the longer the duration of the fund, the higher would be the return on investment.
Varies between 7% - 11% per annum
Short Term investments ie. Held for less than 3 years are taxed at one's bracket rate.
Long Term investments, ie held for more than 3 years are taxed at 20% with the benefit of inflation indexation, hence effective rate is around 13%.
Simple debt funds which invest in short term market instruments like treasury bills, government securities and call money that hold least amount of risk. These funds can invest in instruments up to a maturity of 91 days.
Varies between 6% - 8% per annum
Short Term investments ie. Held for less than 3 years are taxed at one's bracket rate.
Long Term investments, ie held for more than 3 years are taxed at 20% with the benefit of inflation indexation, hence effective rate is around 13%.
These funds are ideal for short term investments, where the investor is looking for a decent rate of return and wants the invested corpus to be secure. These funds usually invest in a mix commerical paper, corporate bonds, gilt funds etc.
The usual period for investment in these products ranges from 180 to 365 days. However investors may continue to stay invested for longer terms.
Varies between 7% - 11% per annum
Short Term investments ie. Held for less than 3 years are taxed at one's bracket rate.
Long Term investments, ie held for more than 3 years are taxed at 20% with the benefit of inflation indexation, hence effective rate is around 13%.
These funds are ideal for medium term investments, where the investor is looking for a decent rate of return and wants the invested corpus to be secure.
These funds usually invest in a mix commerical paper, corporate bonds, gilt funds etc.
The usual period for investment in these products ranges from 365 days to 720 days. However investors may continue to stay invested for longer terms.
Varies between 8% - 11% per annum
Short Term investments ie. Held for less than 3 years are taxed at one's bracket rate.
Long Term investments, ie held for more than 3 years are taxed at 20% with the benefit of inflation indexation, hence effective rate is around 13%.
These funds are ideal for short term investments, where the investor is looking for a decent rate of return and wants the invested corpus to be secure.
These funds usually invest in a mix commerical paper, corporate bonds, gilt funds etc.
The usual period for investment in these products ranges more than 720 days. However investors may continue to stay invested for longer terms.
Varies between 8% - 11% per annum
Short Term investments ie. Held for less than 3 years are taxed at one's bracket rate.
Long Term investments, ie held for more than 3 years are taxed at 20% with the benefit of inflation indexation, hence effective rate is around 13%.
These funds usually invest in secure government and soveriegn securities. However the interest rates can be quite varied depending on the interest rates and liquidity in the economy.
Varies between 4% - 15% per annum
Short Term investments ie. Held for less than 3 years are taxed at one's bracket rate.
Long Term investments, ie held for more than 3 years are taxed at 20% with the benefit of inflation indexation, hence effective rate is around 13%.
An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. Equity funds are also known as stock funds.
These are equity funds, which generally invest in Bluechip companies (with large market capitalisation usually more than Rs.10,000 crores). In essence these are companies known to you, like Tata, Birla, Reliance etc.
No fixed rate of return, however the CAGR for long term from 12-15% p.a. This would mean that in some years there would be a negative 20%, while in others the growth would be positive 35% and hence effective rate of return in the longer term would range from 12%-15%.
Withdrawals within 1 year usually are subject to 1% exit load. Investments held for more than 1 year are Tax free until gain is more than Rs.100,000/-. If the gain on the investment is more than Rs. 1 lakh, capital gains tax at 10% of the gain is chargeable.
These are equity funds, which generally invest in mid cap companies (with market capitalisation usually of Rs.500 crores to Rs.10,000 crores).
No fixed rate of return, however the CAGR for long term from 12-18% p.a. This would mean that in some years there would be a negative 40%, while in others the growth would be positive 65% and hence effective rate of return in the longer term would range from 12%-18%.
Withdrawals within 1 year usually are subject to 1% exit load. Investments held for more than 1 year are Tax free until gain is more than Rs.100,000/-. If the gain on the investment is more than Rs. 1 lakh, capital gains tax at 10% of the gain is chargeable.
These are equity funds, which generally invest in small cap companies (with market capitalisation usually of Rs.50 crores to Rs.500 crores).
No fixed rate of return, however the CAGR for long term from 12-25%p.a. This would mean that in some years there would be a negative 40%, while in others the growth would be positive 65% and hence effective rate of return in the longer term would range from 12%-25%.
Withdrawals within 1 year usually are subject to 1% exit load. Investments held for more than 1 year are Tax free until gain is more than Rs.100,000/-. If the gain on the investment is more than Rs. 1 lakh, capital gains tax at 10% of the gain is chargeable.
These are equity funds, which generally invest in a pool of large cap, small cap and mid cap companies.
No fixed rate of return, however the CAGR for long term from 12-18%p.a. This would mean that in some years there would be a negative 40%, while in others the growth would be positive 65% and hence effective rate of return in the longer term would range from 12%-18%.
Withdrawals within 1 year usually are subject to 1% exit load. Investments held for more than 1 year are Tax free until gain is more than Rs.100,000/-. If the gain on the investment is more than Rs. 1 lakh, capital gains tax at 10% of the gain is chargeable.
These are equity funds, which generally invest in a pool of large cap, small cap and mid cap companies.
No fixed rate of return, however the CAGR for long term from 12-15%p.a. This would mean that in some years there would be a negative 20%, while in others the growth would be positive 35% and hence effective rate of return in the longer term would range from 12%-15%.
Investment in ELSS schemes provide a dedcution under section 80C of upto Rs. 150,000. Investments are to be locked in for a period of 3 years. Withdrawals within 1 year usually are subject to 1% exit load. Investments held for more than 1 year are Tax free until gain is more than Rs.100,000/-. If the gain on the investment is more than Rs. 1 lakh, capital gains tax at 10% of the gain is chargeable.
These funds are useful when one wants to park money in safe heavens and enjoy the benefits of equity fund taxation. Fund managers use arbitrage benefits between the future price and current market price to earn a return. Part of the investments are parked in margin deposits and fixed deposits. Ideally one must stay invested for 3-5 years to gain from the funds.
One can expect a return of 5.5-6.5% p.a.
The returns , if redeemed before 1 year are taxed at Short term capital gains and those redeemed after 1 years are taxed at 10% above the free threshold of Rs. 1 lakh.