All of sudden the dollar has become Mogambo for the investment market as both Equity and Debt markets have become very volatile. News channels have shifted their bases in coffins, and have started using terms like “bloodbath”, “butchered” and “bankruptcy”. Are you also disturbed? If your answer is Yes or May-be-little types, this article is for you. Yes, your fear of investments turning into negative returns and panic is understandable but not justified if you have set your goals and believe in your financial plan. And the challenge to control your emotions, to stay away from panicking and taking impulse decision regarding your portfolio has come now. And it is not so hard if you believe in basics.
Fund returns are net of all costs
When comparing mutual funds with other investments like ULIPs, note that the NAV-based returns of mutual funds are net of all expenses. In fact, the expense ratio is the only item of cost allowed to be (apart from the optional exit load) charged by the fund. What you see in the MF NAV is thus what you will get, both at the time of purchase and redemption.
Household savings in financial assets like deposits, stocks, cash and currencies, and mutual fund and pension fund products have touched a five-year high. Preliminary estimates by Reserve Bank of India, in its annual report for 2015-16, shows household net financial savings rate increased to 7.7% of gross national disposable income (GNDI).
What are the rules of Income Tax on Gift in India and how we can use exemptions and save tax on it? We often believe that if we gift money to a spouse, kids, family or friends then we can save tax. But the reality is something different.
“Stay invested” is the mantra adopted by AMCs, mutual fund distributors and financial planners. Amused to find that NSE India also says the same in an advertisement titled, “Worried about market volatility? Here’s how to deal with it.”