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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Should you choose Pension or Annuity for building your retirement corpus?

Pensions and annuities are two great kinds of retirement income. But don’t confuse one with the other. They are two different instruments with their own advantages and disadvantages. Let us see what they are and which one would be more appropriate.

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How to plan your retirement with National Pension System (NPS)?

The best way to predict your future is to invest in it.

At a point when individuals retire they will either have no or very little monthly income. This means that, you have to alter your lifestyle. Coming to think of it, it’s actually difficult to compromise on your comforts and expenditure.

As a solution, opting a pension scheme would help you to save a good corpus for your old age, thus providing financial security and freedom. One such scheme that we will discuss today is the National Pension System (NPS).

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MyWay Wealth Weekly Update (Issue #10): BJP loses, Urjit loses but Mr. Market wins

We accept the people’s mandate with humility.

I thank the people of Chhattisgarh, Madhya Pradesh and Rajasthan for giving us the opportunity to serve these states. The BJP Governments in these states worked tirelessly for the welfare of the people.

 

— @NarendraModi on twitter (After BJP lost to Congress in Chhattisgarh, MP & Rajasthan state elections)

While the Prime Minister has expressed humility and has mentioned the BJP’s intentions to strive harder for India’s development, is this really all that there is to the Great Indian Election story?

Maybe, this is just the beginning.

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MyWay Wealth Weekly Update (Issue #9): The life cycle in businesses, profitability secrets & more

When Charlie Munger and I buy stocks – which we think of as small portion of business – our analysis is very similar to that which we use in buying entire businesses.

–Warren Buffett

With elections right around the corner, many investors are worried about the volatility that this season brings along. Here’s how the exit polls are looking:

State Exit Poll Expectation
Madhya Pradesh

BJP & Congress neck-to-neck
RajasthanStrong expectations for Congress crossing majority mark
ChhattisgarhBJP & Congress expected to engage in a very close battle
TelanganaTRS expected to retain power
MizoramThe Mizo National Front is projected to defeat the Congress Party

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MyWay Wealth Weekly Update (Issue #8): Tax saving under Section 80C and other updates

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

— John Maynard Keynes

Quite often, we rush to make the least thought-through tax saving investment (the easiest like insurance plan & PPF being the most popular) with a short-term view to save on taxes.

Have you ever wondered if the same investment could also help you build wealth and take you closer to your financial goals? Probably not.

Here’s a cheat-sheet to help you choose the best tax-saving option to utilize your section 80C’s INR 1.5 Lakh tax-deductible limit.

Hint: Look for the lowest lock-in & highest potential return.

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