Best way to measure mutual fund investment risk

 

Mutual funds work on two major premises. The first premise is diversification and the second is professional management. Both of them help fund houses reduce risk induced by investing in individual assets. While mutual funds have been able to diversify the risk of individual assets, they also expose investors to risk. In this article, we will see the parameters which are often used to evaluate the performance of mutual funds and hence help fund managers and investors assess the mutual fund risks associated with their investment.

Read more: Best way to measure mutual fund investment risk

Taxation rules for bonus share and stock split

Companies pay dividends to share the earnings. They do it in two ways, either as bonus share (also known as stock dividend) or cash dividend. In case of cash dividend, cash is paid to the shareholders after the companies’ pays dividend distribution tax. However, the tax implication of bonus share is not so clear for many investors. This article will try to explain the tax implication and how it works in bonus share. We will also discuss the tax implication in case of share split.

Read more: Taxation rules for bonus share and stock split

Investment in Gold

 

Gold has given spectacular returns in since 2000. The price has gone up from $279 an ounce in 2000 to $1531 an ounce in 2011. The prices of gold have seen much fluctuation in last couple of years. There have been discussions on dollar weakening and countries preferring Gold reserve. There were some action on this front and China bought a big reserve of Gold. The allure of yellow metal never seems to wane. People buy Gold for various reasons and one of them is for investment purpose.

Read more: Investment in Gold

Dealing with corporate governance issues

 

Corporate Governance issues have marred Indian corporate sector and stock market in recent times. There have been cases where promoters did not reveal the pledging of shares, involved in insider trading, and sometimes, siphoned off money. Pledging of shares and insider trading are relatively common events. Siphoning off money is very rare event.The only good part of such misdeeds is that SEBI comes up with stronger regulations but the bad part is that there will always be cases of bad governance which will hurt the stakeholders of the company; employees, shareholders, and customers.

Read more: Dealing with corporate governance issues

How to invest in global stock market from India

 

Technology is aiding investors like never before. There are markets abroad where you can invest and reap the benefits of other countries’ growth and policies. Today, you can get the information about any company, fund, or any other investment assets on your computer immediately. SEBI has allowed Indian investors to trade in 24 global indices’ derivatives across the world. To get more details of the indices which you can trade in please visit the NSE web site (www.nseindia.com).

Read more: How to invest in global stock market from India

Increase in EMI vs Increase in Tenure of Home Loan

 

 

The consistent hike in interest rates by Reserve Bank of India (RBI) has hit the home borrowers hard. Banks prefer to increase the tenure by a few months or years in order to accommodate the rate hikes than to increase the EMI. Borrowers also like increase in tenure than in EMI as their budget is fixed and any fluctuation in expenses will have wider consequence on their lifestyle. Banks also understand that raising EMI will only hurt them because of possibility of NPA.The recent hike was another blow to the borrowers. The RBI hinted that this could be the last hike.

Read more: Increase in EMI vs Increase in Tenure of Home Loan

You may also like

disclaimerDisclaimer

Trading and investing involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. No information available on Equityfriend should be construed as investment/trading tip or recommendation or a warranty of profitable results. All risks, losses and costs associated with investing/trading, including total loss of principal, are completely your responsibility.

No one from Equityfriend Team is a registered Research Analyst as per SEBI (Research Analyst) Regulations, 2014 and the material on this website are provided for information and analysis purpose only. Equityfriend.com is in no way accountable for your use of the website data.