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INDEXATION-INFLATION DISCOUNTING - MUTUAL FUND DEBT FUNDS HOLDERS CAN benefit from it..

 As the name suggests Indexation - relaxation of cost of inflation , price of a unit of debt mutual funds or real estate assets .Indian Government discounts price hike of a property due to inflation . A Debt mutual fund is a kind of loaning to borrowers from investors who invest the excess money in the debt mutual fund schemes , basically investors gets rental income in terms of interest payment on a periodic basis and get back principal amount once bond tenure ends , So the profit over principal is called gains , a long term gain is called once an investor invests money in a debt mutual fund for more than 3 years of period , after 3 years Capital as a principal and interest as gains realized by the investor , the taxation is called long term capital gain tax or LTCG in short form. Let us assume , I invested 100000/- INR on 15.07.2018 in a debt mutual fund schemes and today on 16th of July 2021 withdrawing the money from scheme , let say return realized @ 7% per annum compounded an...
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Attitude towards INFLATION protection - 99% investors fails

''Inflation'' an invisible enemy to your wealth creation process that keep on eating away almost 50%-100% capital value with the passing of each day , Hardly 1% investors knows this nuance of the inflation factor while investing. India since 1957 facing 7%-8% of Consumer Price Inflation year on year basis , a 1 re coin has literally no value today , a value of 100 INR currency note is degrown to Re 1 only in last 65 years , means things become 100 times more expensive than what it was 65 years ago . An investment done having generating 7%-8% of return will keep your money value intact in future ,there is no scope for wealth creation , almost majority of financial savings are struggling to beat rate of inflation because of the reason that inherent return is not more than 3%-8% . Government's small saving schemes , Banks Deposit programs , Real Estate Rental Income are not generating enough return that could beat inflation. investors think that they have their investm...
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Retirement planning - Decumulation process

Good morning, Retirement phase is a tricky time to handle with , the most important thing that matters is Regular increasing positive cash inflow to your bank account each month or on annual basis , as life expectancy is increasing through the time ,it's about to average at 79 years by 2028 in India,each future retiree must consider some important points while dealing with advisor while planning it few years away from retirement age . 1. Expenses heads 2. Consumer price inflation 3. Lifestyle cost and maintenance 4. Return from the investment 5. Regular income or withdrawal 6. Liquidity of assets 7. Taxation - tax adjusted return 8. Consistency of regular return 9. Risk management 10. Miscellaneous safety measures 11. Safety oriented asset allocation 12. Divestment of physical assets which are non manageable 13. Regular monitoring- quarterly to check portfolio 14. Proper medical insurance 15. No monetary liabilities 16. Reverse mortgage as income generation tool 17. Considering pos...
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Market Risks in Mutual Fund investment

Investment in Mutual Funds are Subject to Market risk .....This is the disclaimer written with each mutual fund communication to the public by SEBI (Securities and Exchange Board of India ) to make people cautious while investing through mutual funds schemes , But this is only the beginning or the basic to the Risk , The degree of Risk taken in produces returns on investments , Risk free rate is the rate of return delivered without any deviation , the risk is nothing but the deviation from the expected return from the investment , Risk / Reward ratio defines the relationship between the risk and the return , A person walking on his foot on the road on the footpath is less prone to risk of accident until some external events occurs to damage him in some way , But a Biker , riding the bike at 60+ Km/Hr speed is more prone to collapsing or getting hit by some vehicle , Here Safety Plays a important role , means if the biker has checked his bike's fitment before riding it like brakes ,...
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Location: India
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SIP-systematic Investment Plan- MF investing

Good Evening Investors!!! SIP - Success investment Plan , Saral Investment plan , Sabse important plan , these are some full forms which are very popular amongst investors , SIP is must today for everyone, it should be the first investment for all, the power of SIP , Long term investment and compounding function are the three ingredients for long term wealth creation , Diversified Equity Mutual funds has a long past performance track records available to date , a regular SIP in ELSS tax saving schemes generated immense wealth in 20 years of time, If an investor started an SIP of  5000/- rs per month which run for 240 months having generated  CAGR of 12% per annum then today after 20 years, total investment value of rs 12,00,000 is  more than 45,00,000/- almost 4 times of investment value.
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STP-systematic transfer plan in MF investing

Good Morning Readers ,  I have already talked about SIP - Systematic investment plan, where Funds from investor's bank account gets deducted each month or week or bi weekly or quarterly as per the instructions given for investment into a mutual fund scheme on a pre specified date and amount , Here STP is Systematic Transfer plan , where Firstly investors park their lumpsum investment amount let say 100000/- INR in a Liquid or Liquid plus mutual fund scheme where the Safety of the capital , liquidity and returns are well managed and then an amount from liquid / plus funds gets transferred to the mutual fund schemes mostly an equity scheme and that transfer could be daily , weekly , monthly on a pre specified date and amount , STP are very good investment strategy to gain advantage of volatility and rupee cost averaging , When markets are highly volatile due to some national and international economical factors , STP is a very disciplined and one of the good approach to enter in the ...
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OTM-One time mandate - a payment tool in MF investing

Hello Readers , I hope you all are doing good , OTM- One Time Mandate , OTM is a kind of payment instrument where An investor fills up the the OTM or NACH - National Account clearing house or SI - Standing Instruction or ECS - Electronic clearing system , This helps Investors to decide how much money he wants to invest or transact in mutual funds scheme and here multiple transactions can be placed in a working day , OTM can be setup in two ways - Electronic and physical , Electronic mandate can be set up by Mail approval that has a limit of Rs. 1,00,00,00/- and Physical scan upload mandate has a transaction limit of Rs. 1,00,00,000/- , OTM is the best way to invest in mutual funds , In today's time In India BSE STARMF is a very good MF transaction platform where OTM got registered on the name of ''ICCL'' Indian Clearing Corporation Limited , which is Subsidiary collection organization of BSE limited , Once Investor's mandate is registered on ICCL , The investor ...
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