Articles

Many of us choose to invest in debt funds for a lower tax rate than FD, but from 1 Apr 2023 onwards, the benefit of lower tax is no more applicable to new investments. As per recent change, Non-equity oriented funds (Funds where equity investment does not exceed 35% of the total portfolio value) gain will be added to an investor's income and taxed as per the income slab. Let's understand this change and its impact on related instruments.

Mutual funds offer different opportunities to investors. Debt funds can be a great alternative to fixed deposits (FDs) because they provide higher interest rates and more diversification.

In India, there are 43 mutual fund houses that manage public money via about 1,400 mutual fund schemes. Each scheme has its own investment style, philosophy and strategy, however, all of them have been broadly categorised into certain categories.

When investing in mutual funds, there are usually three kinds of charges that mutual fund companies levy upon investors – Total Expense Ratio (TER), Entry Load and Exit Load.

Mutual funds have become a popular means of investing for the masses, thanks largely to the ease of investing, low ticket size, and relatively lower costs. The investment tool has become ‘go to’ avenue for those that want to get decent returns on equities but do not have time or expertise to manage their own portfolio.

The asset under management (AUM) of a mutual fund scheme is the total market value of all the assets – stocks, bonds, cash, and other securities that are part of the portfolio – that a mutual fund manages on behalf of its investors.