Entries Categorized as 'MutualFunds'

Monthly Income Plans Versus Fixed Deposit

Date February 11, 2010

Mutual funds have monthly income plans – MIPs – that provide a monthly dividend; how do these compare against FDs? First, note that MIPs are not risk free – they invest a little in equities as a “kicker”. So if you’re looking for ultra ris…

Dividend in ELSS Funds Have An Advantage

Date February 7, 2010

Is it worth putting money into ELSS funds as they announce a dividend? HDFC Long Term Advantage Fund just announced a “37.5% dividend”. The real yield is about 10%. (Rs. 3.75 on something that currently costs Rs. 36.545). Ignore the “37.5…

Should you invest in Tax Saving Mutual Funds?

Date January 15, 2010

If you buy a tax saving mutual fund – an ELSS scheme or something with “taxsaver” in it – you expect a tax deduction. But does it always apply for you? ELSS mutual funds are specially deductible under Section 80C, which applies to everybody. I…

Mutual Fund Commissions on Tax Saving Schemes

Date January 15, 2010

Since some of you will be investing in tax saving schemes for the rest of the year, note that there are pretty good commissions being offered to advisors for selling the scheme. The most recent mail I have: Upfront is what advisors get paid when yo…

UTI First on Mutual Fund Platform

Date November 28, 2009

From the Hindu:

Around 30 of the 100 schemes of UTI Mutual Fund will be listed on the new NSE Mutual Fund platform, which is set for a Monday launch. The liquid schemes will not be included among them, said a top UTI official.

For the fund industry, …

No Entry loads: Charges for online investing

Date September 19, 2009

With the introduction of no entry loads on mutual funds, the distributors have started to charge customers something; what happens to the online sites?

I’d mentioned that distributors would get a lot more difficult to handle, and that you should look …

How to buy Mutual Funds in a No Load Regime

Date August 1, 2009

SEBI has banned entry loads in mutual funds. From August 1, any mutual fund purchase will be invested in full in the fund. Distributors, if they like, must be paid separately.

This is a welcome move, as entry loads don’t make sense for everyone. There…

A Mutual Fund Trading Platform

Date July 21, 2009

ET: Mutual Fund trading platform takes shape

The Association of Mutual Funds in India (Amfi) has shortlisted four entities to develop a common electronic platform that will allow asset managers, investors and distributors to trade, switch over and com…