Other Schemes – SEBI Classification

Other schemes- SEBI Classification

Other schemes- SEBI Classification

Other schemes as per SEBI Classification include:

  • Index Funds/ ETFs

These funds invest 95% of the investment corpus in securities belonging to a particular index which defines a market segment, like in bond or equity oriented instruments like stocks. The famous stock indices in India are BSE Sensex and NSE Nifty. If you are looking for low or moderate risk instruments with predictable returns then, Index Fund/ ETFs is your ideal option. The top performing Index Funds include: (more…)

Solution-Oriented Mutual Fund Schemes based on SEBI Classification

Solution Oriented Schemes

Solution Oriented Schemes

The various investors in the market invest for different reasons. Some invest to make high returns and some invest to perform speculation in the market. However, there are some investors who invest for particular goals such as: setting aside funds for retirement, education or marriage for their children. At times, such investors are unaware of investment management or the selection of funds. In situations like these, it’s recommended to opt for Solution-Oriented schemes that provide attractive returns by investing in them for a lock-in period of 5 years. As per SEBI, there are two categories of Solution-Oriented Schemes, namely:

  1. Retirement Fund: These schemes have a lock-in period of 5 years or till the retirement age (whichever is earlier).
  2. Children’s Fund: These schemes have a lock-in period of 5 years or Till the child turns 18 years(whichever is earlier).

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MyWay Wealth Weekly Update (Issue #12): Life Hacks to a healthy & wealthy 2019 & more!

One of those lessons is that you aren’t in charge of everything. Do what you can, and then relax.

— Carl Richards, The Behavior Gap

As 2018 has come to a close, most of us will yet again commit to the most clichéd yet dreamy resolution – to get our health and wealth in the right shape. Years have changed, resolutions have been made, resolutions have been shattered and once again we believe that we will get it right this time.

However, this time is different. We are going to share a definitive guide to setting your health & wealth in order for sure. While at the end of the day it is only your personal effort that can make you stay the course, this is an attempt to minimising your efforts and yet achieving the desired results.

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New Hybrid Fund Classification by SEBI

There are certain inquisitive investors who would want to invest in both stocks and bonds. There is a fund called “Hybrid Funds” that provides this mixture. By investing in hybrid funds an investor gains a diversified portfolio meaning, with the help of one fund, the investor gets access to multiple asset classes. Let’s look at the various hybrid funds classified by SEBI.

Hybrid mutual funds

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New Debt Mutual Fund Classification by SEBI

Debt Mutual Funds invest mainly in debt or fixed income securities such as treasury bills, corporate bonds, government securities, and money market instruments that have various time horizons. Investors choose these funds as they are unaffected by market volatility, provide stability to the asset portfolio, receive tax deductions and have high liquidity. Listed below are the different Debt Mutual Funds classified by SEBI.

(Note: The Macaulay Duration is the weighted average term to maturity of the cash flows from a bond)

Debt Mutual Funds

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New Equity Mutual Fund Classification by SEBI

The primary reason why people opt for equity mutual funds is the flexibility one benefits from the wide range of options available. It’s important that you choose a scheme that suits your investment horizon and risk appetite, so that you are fully aware and prepared for what you are getting into. Investors who are ready to remain invested for more than 5 years can invest 60% or more in equities and the remaining in debt or money market securities. Let’s look at the various kinds of equity mutual funds classified by SEBI.

New Equity Mutual Fund

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New Fund Classification by SEBI

SEBI

The term “Mutual Funds” has so many variants. At times it becomes a hard task to understand and categorize these funds. So SEBI (Securities and Exchange Board), being the regulator for the Indian securities market, has created the Categorization and Rationalization of Mutual Funds through New Fund Classification. With the help of this initiative, now Mutual Funds are clearly distinct and maintain uniformity in their strategy, asset allocation etc.

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All you need to know about National Savings Certificate (NSC)

The avoidance of taxes is the only intellectual pursuit that carries any reward.

— JMKeynes

Payment of taxes is an important duty for every Indian citizen. It helps the governments to provide us with the best infrastructure and services. Having said that, paying taxes deprives a chunk of our gains. To prevent this, we normally choose saving schemes that allow tax deductions. Our topic of discussion is one such instrument that is known for its tax benefits: National Savings Certificate (NSC).

This is an instrument provided by the Government with the objective to encourage savings, allow tax exemptions, and ensure definite returns during retirement.

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MyWay Wealth Weekly Update (Issue #11): Golden Rules by Robert Kiyosaki

Most people fail to realize that in life, it’s not how much money you make, it’s how much money you keep.

— Robert Kiyosaki (Author of Rich Dad, Poor Dad book)

Most of us spend a large part of our life trying to make it to the top cut and trying to be the ‘rich guy’. While some of us succeed, most don’t. Here are the top 5 learnings from an international bestseller – “Rich Dad, Poor Dad” written by the renowned Robert Kiyosaki:

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All you need to know about Atal Pension Yojana

Worrying does not empty tomorrow of its troubles, it empties today of its strength

— Corrie Ten Boom

As humans the biggest worry we have is regarding our future and what is going to happen with us. But it doesn’t do much good to live in anxiety. Rather than speculating on what might be, it would be wise to take action to shield yourself from any rocky roads ahead. A pension is an account that allows you to save up for your retirement. Pension schemes are like an ice pack; stored in your refrigerator to use in case of a headache or so. Similarly, the pension you save can be withdrawn in case of an emergency, or it can be taken after retirement to serve your needs.

A few years back I remember watching the news on the Annual Budget speech given by the Finance Minister Arun Jaitley. The highlight of that year’s speech was the new pension scheme called “Swavalamban Yojana”, known today as Atal Pension Yojana. What’s special about this scheme launched by Prime Minister Modi on May 2015, is to have a pension scheme for the unorganised sector in India. The grey economy seems to grow bigger and bigger each year in India. This scheme makes sure that this sector realizes the importance of pension and increases the percentage of Indians opting the same.

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