Investment Planning Tips

Most nationalized banks offer interest rates of around 6-7% per annum for fixed deposits, most fixed- income investors are turning towards the government of India savings bonds also known as government bonds . Fixed income investors are increasingly finding investing in government bonds as a lucrative option. Moreover, the  govt. bonds investment is a safe option as well, which ensures capital protection. Many investors also contemplate investing in capital bonds . The government of India savings bonds were launched in 2003. These have a maturity of 6 years and can be bought anytime through specified distributors such as SBI & its associates, all nationalized banks, some private sector banks such as ICICI and HDFC, and through Stock Holding Corporation of India Ltd. These bonds can be bought by resident individuals, HUF, registered charitable trusts, the university established or incorporated by the Central State Provincial Act under sec 3 of the University Grants Comm...

It’s important to understand that a New Fund Offer is not like an IP in case of stocks. In case of an IPO, a company going to the market for the first time before it gets listed on the stock market for everyday trade. In case of an IPO, it’s like you buy a fish when it very small, wait until it becomes huge, and sell it at that point. The entire buying decision is based on the growth prospects of the stock. However, in case of a new NFO , you are initially giving money to the mutual fund to create a portfolio. The mutual fund manager, based upon the investment objective of the fund creates an initial portfolio. This portfolio, which is a collection of stocks, is never constant. It keeps changing based on market conditions and what the MF manager senses about the market. The performance of the fund is based entirely on the MF manager’s ability to run the fund, the process that is laid out to execute the functioning on the entire fund, and the investment objective of the fund, no...