Category Archive : Mutual Fund

Benefits Of Mutual Funds: Comprehensive Guide

Mutual funds have a bad rap for being overly complicated. In truth, though, their investment tenets are quite straightforward, and they provide numerous advantages to their clients. Mutual funds, in their simplest form, are a collection of investments made up of various securities stocks, bonds, money market instruments, etc. A mutual fund is the sum of its assets, and each separate collection is called a portfolio. 

Diversification –

Among the main benefits of investing in mirae asset large cap fund mutual is the ability to spread your money around. It’s the practice of dividing a certain sum of money among several different kinds of investments. With the help of diversification, they can construct a portfolio with a wide range of holdings, thereby protecting themselves from the negative effects of market forces on certain industries. 

  • For instance, stocks would make up 60-70% of an equity-oriented mutual fund, with bonds making up the remaining 30-40%. –

As was previously noted, diversification allows us to lower the overall risk of their holdings. This is useful when a certain mutual fund’s underlying holding is vulnerable to market downturns. By spreading your investments among a variety of asset types, you can reduce your exposure to any one category’s volatility. In this manner, if one component of your portfolio experiences turbulence, you won’t lose all of your investment.

Expert Administration –

The majority of potential investors just don’t have the time or means to devote themselves to learning about and buying particular stocks. Here is where the assistance of trained managers is invaluable. Several people put their money into mutual funds so that their portfolios can benefit from the professionals’ knowledge.

Gains from taxes –

Perhaps the biggest allure of many types of mutual funds is the tax advantages they offer. The government of India provides favourable tax treatment for mutual fund investments.

Investments in Equity-Linked Savings Schemes (ELSS) are eligible for tax deductions under Section 80C of the Income Tax Act. If you invest up to Rs1.5 lakh in this instrument, you can reduce your taxable income by about Rs46,800 (using the highest tax bracket of 30% + 4% health and education cess excluding surcharge as applicable). The only catch is that the instrument has a 3-year lock-in term, during which time you won’t have access to the deposited money.

Very Flowable –

The liquidity of mutual funds makes it possible to liquidate holdings quickly in response to a financial emergency. You should expect to see the mirae asset mutual funds in your bank account within a few days of the liquidation. There are mutual funds that offer instantaneous pay-outs, too. Instant redemption funds are those that allow you to withdraw your money from an investment account on the same day you invest.

Improved Profitability (RoI) –

To outpace inflation and grow their wealth over time, all investors seek a higher return on investment (RoI) from their financial investments, mutual funds. Mutual funds’ diversification across industries and fields increases the likelihood of long-term profit.

Conclusion –

The Securities and Exchange Board of India is the governing body for the Indian mutual fund industry (SEBI). To put it another way, all mutual fund institutions must comply with the numerous regulations set forth by SEBI. Investors can feel easy knowing their money is safe under this arrangement. Moreover, SEBI requires all mutual funds to report their holdings each month.

Benefits Of Investing In Mutual Funds

Mutual fund investment can be quite fruitful, — particularly if you’re seeking a straightforward yet diversified method of investing. A mutual fund is a type of financial vehicle that collects money from many participants and then invests it on their behalf in a variety of assets and investment alternatives. You get a particular number of securities in a mutual fund when you invest in it. Let’s look at some of the major advantages of hdfc mutual funds that make them the best option for investors: –

  1. LIQUIDITY– How readily an asset can be converted into cash is called its liquidity. Imagine having an emergency and needing money, but not having enough in your bank. Real estate cannot be sold or loans cannot be obtained immediately. However, you have the option to immediately withdraw your money from mutual funds. When you require quick access to cash, mutual fund investments are well known for being highly liquid assets.
  2. SPREAD YOUR INVESTMENT RISK– Purchasing shares in hdfc balanced advantage fund is a simple way to spread your investment risk across a variety of assets and securities, including gold, debt, and equity. By diversifying, one asset class’s risk is offset by the risk of the other asset classes. Other investments in the portfolio might not be affected and might even improve in value if the value of one investment falls. One of the most notable benefits of investing in mutual funds is risk diversification.
  3. EXPERT MANAGEMENT– The investors lack the time, expertise, and resources needed to conduct their research and buy specific stocks or bonds. Professional full-time money managers who have the knowledge, experience, and resources to actively buy, sell, and monitor investments are in charge of running a mutual fund. To achieve the goals of the plan, a fund manager regularly examines holdings and revamps the portfolio as necessary. One of the most significant benefits of a mutual fund is the portfolio management provided by qualified fund managers.
  4. ACCESSIBILITY AND SIMPLICITY– Mutual fund investing is considerably easier than stock market investing, which can be a complex process. You only need to walk into a bank or other financial institution to promptly have a mutual fund account set up for you. A mutual fund account can be opened from the convenience of your home. Using online accounts or even mobile applications, you can begin investing when your KYC documents have been validated.
  5. REDUCED COSTS– Many investors contribute money to a mutual fund, which is subsequently utilised to buy securities. The savings are transferred to the investors in the form of lower Mutual Fund investment expenses. Additionally, the price for Asset Management Services is reduced and split equally among all of the fund’s investors.

Over the past two to three decades, mutual funds have advanced significantly in India. Mutual funds are currently one of the most widely used financial products for regular investors. Mutual funds provide a broad range of investment options to suit most investment objectives and risk tolerances. 

Despite the advantages, mutual funds are exposed to market dangers, thus before making any investments, you should always thoroughly read the offer materials.

A Quick Guide to PPF Calculator

When you invest money somewhere, you want to see how much gain you get overtime right? Well, what if you can calculate it in advance so as to make r right decision?  Well, ppf (public provident fund) is a long-term type of investment option that offers you a fixed rate of interest and even returns on the sum you invest.  The coolest thing is you can use a ppf calculator and ensure that you have a good idea about how much you would get.

You know this is one investment type that offers you a safe investment option to save taxes and even earn guaranteed returns. A ppf type of calculator lets you calculate the maturity amount on the basis of the sum invested.

What really is ppf?

The goal of the ppf, which was first implemented in the country in the year 1968, was to mobilize tiny contributions for investment and return. It can even be referred to as an investment vehicle that simply enables you to accumulate retirement funds at the same time reducing yearly taxes. A ppf account should be opened by anybody who is looking for a secure investment alternative to diminish taxes and earn assured profits.

It would not be wrong to say that ppf is one of the finest and popular investing options for the ones with a limited tolerance for risk. Ppf is a government-sponsored type of scheme and the investment is somewhat unrelated to the market. As a result, it offers you guaranteed returns to meet your needs for safe investments. Ppf accounts diversify an investor’s portfolio because their returns are somewhat fixed. They even offer advantages for tax savings. Of course, you can be sure that you get the returns you aspired for with ppf.

Using a calculator for ppf 

Well, a ppf type of calculator helps users like you plan your financial goals by giving you an estimate of returns based on the sum you invest and the duration. The calculator makes use of a 15-year tenure and the overall prevailing interest rate to compute the general returns as a standard procedure.

Withdraw of ppf amount 

Well, you can entirely withdraw from a ppf account only upon maturity or even after 15 years of running the account. After 15 years, an account holder may withdraw the complete balance in the ppf account, including the interest earned, and even the account can be terminated. However, in case ppf holders need money for any emergency, the scheme allows the partial type of withdrawals beginning in the seventh year or after the account has finished six years.

The Calculator Makes Things Easier 

If you are a layperson and you know nothing about how to do calculations of your ppf and all then relax. The ppf oriented calculator is there to help you make the right move. It ensures that you have a proper understanding of all the interests and everything that you may get over the period of time. Hence, you can make proper moves. 


To sum up, why stay doubtful about your interests and other things when you can use a calculator to ensure you know what exactly you are doing? Of course, a calculator for ppf is going to be really helpful for you in decision-making

What Are The Major Benefits Of Using The Option Of A Ppf Calculator?

Focusing on financial planning in the life of individuals is definitely important even more than earning money. Introduction of tools like the PPF calculator in this particular case is definitely advisable for people so that everyone will be able to make the right decision that ultimately will be able to enjoy the guarantee of returns. Having a good understanding of the online tools in this particular area is a great approach because it will be helpful in resolving the queries related to the calculation of returns and also help in making sure that people become clear about the interest earnings from the public provident fund investments. Whenever people will be using the option ppf calculator then definitely they will be having access to accurate insights into the industry so that things are sorted out very easily and there is no chance of any kind of problem.

Some of the basic benefits of using the PPF calculator have been very well explained as follows:

  1. A clear picture of the growth: Whenever the concerned people will be using the option of the PPF calculator, the interest income will be significantly increased and the best part is that everybody will be getting a clear picture of the growth without any kind of problem. This particular option very well helps in making sure that everybody will be at the forefront in terms of making accurate decisions without any doubt.
  2. Figuring out things very easily: If people will be using the option of a PPF calculator then definitely they will be able to figure out the amount of investment in the whole process, annually monthly and weekly without any kind of doubt so that they will be able to reach the target corpus with proper planning.
  3. Very easy to use: The option of PPF calculator is very easy to be used without any kind of doubt and the best part is that everybody will be able to get the additional systems in the whole process without any kind of problem. Whenever people will be using the option of a PPF calculator then the element of manual calculation will be significantly eliminated which will be helpful in providing people with a good number of benefits in the long run. Since this particular option is automatic the risk of error will be the bare minimum throughout the process.
  4. Graphical results: Using the option of a PPF calculator is a great idea for people because it will be helpful in providing the representation of the results graphically which will be making sure that things are easy to be understood without any kind of doubt.
  5. Investment planning: Planning the financial goals will become very much easy in this particular case so that people will be able to enjoy the best possible rate of return without any kind of problem. Another very important advantage of getting things done is that everybody will be getting a clear-cut idea of the expected returns without any kind of issues.

Hence, using the option of a PPF calculator from 5paisa is definitely a great idea so that people will be able to enjoy the power of compounding through PPF along with accurate insights at every step.