Mutual Funds

The Shock and the Start # In January 2025, a woman suddenly lost her husband. Grief aside, she was soon faced with the daunting challenge of claiming her late husband’s mutual fund investments—worth approximately ₹50 lakhs. What followed was a journey filled with administrative hurdles, emotional fatigue, and systemic inefficiencies.

Let me tell you a story of how things have changed in the world of mutual funds—and why this is the perfect time for you to start your investment journey. The Rise of SIPs: A Transformative Decade

Owning a car in India is often seen as a milestone of financial independence and convenience. But have you ever paused to consider how much of the money you spend on your car actually goes to the government in the form of taxes? Let’s break it down in simple terms and see how taxes significantly inflate the cost of owning a car.

Despite a market correction and continued foreign outflows, Indian retail investors showed remarkable resilience in October 2024 by committing substantial funds to equity schemes. The total equity inflow reached a historic level of Rs 74,727 crores, marking a period of steadfast retail engagement even as market volatility persisted. With the BSE Sensex index experiencing a dip from its peak of 85,879 to around 78,000, investors have doubled down, seizing the opportunity to buy into the market at lower levels, confident in the market’s long-term potential.

AMFI has released the data related to inflow/outflow of funds in various schemes. This article intends to share some insights on this data and you will find it useful to take decisions based on these inputs.

A manufacturing theme mutual fund invests primarily in companies within the manufacturing sector, such as those involved in industrial production, machinery, and raw materials processing. These funds aim to capitalize on the growth and profitability of the manufacturing industry, offering investors exposure to the sector’s potential for long-term returns. If you go by the presentation of HDFC or Mahindra, you would note that they are betting on many sectors including Power, Ports, Railways, Defence, Roads etc… The Government vision in terms of Amrit Kaal 2047, Production Linked Incentive, and Make in India getting a fillip are just some of the factors that suggests that manufacturing theme based fund may perhaps do really well.

One of my clients initiated their PPF account with a public sector bank approximately 14 years ago. Recently, when they approached the bank for guidance on the next steps, they were informed that the only option was to withdraw the amount and initiate a new PPF account with the same bank.

Mutual fund industry has crossed 50 lakh crore mark in January 2024. While it’s common for investors to primarily focus on short-term returns when selecting mutual funds, it’s essential to consider various other factors that play crucial roles in investment decisions.

Increasing your investment periodically can expedite goal achievement. Various methods exist to accelerate investment progress, such as opting for riskier ventures. However, this approach may not be suitable for everyone due to discomfort with higher risks. This article proposes an alternative method: incrementally increasing your Systematic Investment Plan (SIP), reducing the time needed to reach your goal by two years or more.

In the dynamic landscape of equity investments, the allure of high returns can often tempt investors towards greed-driven decisions, potentially jeopardizing their financial stability in the long run.

Money has different meaning for different people. Investopedia says money is a medium of exchange. While money is universally recognized as a medium of exchange, its significance and interpretation vary greatly among individuals. For some, money represents security and stability, providing a means to meet basic needs such as food, shelter, and healthcare. Others view money as a symbol of success and status, equating financial wealth with personal achievement and societal recognition. Additionally, money holds emotional value for many, influencing feelings of self-worth, confidence, and fulfillment.

Will the market continue to go up ? # In March 2023, I wrote the article when will the market go up. I presume now the question is, will the market continue to go up ?

Investing in a quality education is a dream for every parent, but the rising cost of higher education can be daunting. Whether it’s a graduation course in India or pursuing post-graduation abroad, parents often find it challenging to plan for their child’s educational expenses. To address this concern, a new calculator tool has been designed to provide parents with a clear understanding of the funds required and how to plan for their child’s education.

Investing in a quality education is a dream for every parent, but the rising cost of higher education can be daunting. Whether it’s a graduation course in India or pursuing post-graduation abroad, parents often find it challenging to plan for their child’s educational expenses.

Planning to take out a loan? Understanding how much you’ll need to repay each month is crucial for sound financial management. An EMI Calculator is a powerful tool that simplifies this process and empowers borrowers to make informed decisions about their loans. In this blog, we’ll explore the significance of an EMI Calculator and how it can help you manage your finances effectively.

In the vast realm of investment opportunities, there is one that stands out but often goes noticed but sometimes overlooked by investors: mutual funds. It is high time to explore the compelling reasons why you, as an investor, should seriously consider embracing mutual funds. By thoroughly examining data related to passports, mutual fund holders, car sales, GDP, and more, we can present a vivid picture of the immense potential waiting to be seized. Recently, I had the privilege of attending a meeting hosted by HDFC Mutual Fund where they shared impressive data emphasizing the untapped opportunity for investors to engage with mutual funds. With this message, I aim to reach potential investors like you and encourage you to seriously consider investing in mutual funds.

HDFC Mutual Fund, a prominent player in the Indian asset management industry, has undergone a remarkable transformation in recent months. In this article, we explore the key factors behind HDFC Mutual Fund’s resurgence, as well as the insights shared by Navneet Munot, the Chief Investment Officer, regarding the company’s future direction. We also delve into the impressive performance of select HDFC funds and analyze the strategies employed to achieve such outstanding results.

Engineering education has always been highly regarded for its promising prospects and abundant career opportunities. However, one significant aspect that has changed over the years is the escalating cost associated with pursuing an engineering degree. As we explore the soaring fees of engineering seats, it becomes increasingly evident that early financial planning is crucial to ensure a smooth educational journey for your son or daughter. Planning ahead enables families to explore various financial avenues, scholarships, and investment options, empowering them to provide their child with the best possible education without compromising their long-term financial stability.

Planning investments as newly married individuals in India requires a thoughtful approach that considers the unique characteristics of the Indian financial landscape. Our traditions play a significant role in shaping our investment journey. Additionally, the influence of social media and the weight of traditional investment practices can guide our path towards making informed investment decisions. It is important to blend our cultural values with modern investment strategies to create a balanced portfolio that aligns with our financial goals. By embracing the strengths of our cultural heritage and leveraging the opportunities presented by evolving investment trends, newly married couples in India can navigate their investment journey with confidence and achieve long-term financial success.

Just like how a client chooses or wishes to choose an ideal financial advisor, we also have a list of characteristics we seek in an ideal client especially for financial planning ! As a financial advisor, we need to provide you with a tailored expertise and value for your investments . Trust and collaboration are essential for achieving both personal and professional success. As an investment advisor, we need to provide relevant suggestions to you in a timely manner. Together, we shall form a partnership aimed at achieving success

When will market go up ? # I believe the only question many of you have is when will the market go up ? More importantly when will your returns go up ? This is a persistent question and the IPO euphoria has slowly petered out, the interest in market is waning and we are all waiting and hoping for the turnaround. Do we see light at the end of the tunnel ? # On 30th March 2022, Sensex was at 58,683.99. As of today, Sensex is at 57960.99. Sensex has given negative returns. Nifty Bank on the other hand is currently at 39,910.15 and on 30th March 2022, it was at 36,373.60. BSE Midcap and Smallcap index has barely managed to give any returns. We are in a situation where there are too many macroeconomic factors are at play :

International funds have been performing exceptionally well 2 years back and I have seen amazing performances from the mutual funds which are invested in international stocks. However, all this changed in February 2022, after SEBI brought the guideline on international investing. This has vexed a lot of intermediaries and investors. Should we continue with international funds or should we look somewhere else ?

It has been 2 years of personal finance, since I first began in October 2020. I completed my MBA finance which I talked about in my last year post. Studying for more than a year was quite exhausting and I quite happy and pleased about my result.

Planyourmoney.in is an invaluable resource that aims to empower individuals with the knowledge and understanding necessary to achieve financial freedom. As a dedicated platform for informative articles on financial planning and investment, it serves as a guiding light for the community, navigating the complexities of personal finance with clarity and expertise. The website’s primary mission is to educate users about various investment opportunities, mutual funds, Public Provident Fund (PPF) , Sukanya Samriddhi Yojana (SSY), loans, retirement planning, investment planning and goal planning. By providing reliable and unbiased information, Planyourmoney.in equips readers with the tools they need to make informed decisions and take control of their financial future.

It has been a roller-coaster ride for sure. I had kept several goals for myself and have been able to achieve handful of them. I am glad that many of you have found my blogs useful and educational . The aim was to help individuals understand the complex maze of financial planning and therefore pick the right kind of mutual funds . I have been able to help investors choose the right mutual funds and they have a broad grin when they look at the returns.

Credit Risk funds - the name itself - conjures a mental image that one should not “risk” their money in such funds. When the name itself has “risk” , then the fund itself must be “very risky” . Such kind of imagination and biases will drive us away from the fund, despite the fact that they may give very good returns. However, one needs to check whether , such funds are a “true fit” for an individual .

Your future is created by what you do today # In 2014, I was keen to plan for my retirement. I was not sure how to go about. As you are aware, our current jobs do not provide any pension and thanks to the medical advances , people ending up living much longer than our predecessors. Therefore a significant portion of our life, we would be living and not earning. I am sure you have heard the story of The Ant and the Grasshopper. Similarly, for many of us, we need to save to reach that retirement. The earlier we start, the quicker we reach our goal!

One of the common questions that investors ask me - where should I invest my money ? Fixed Deposit is giving a paltry return of 5 % . Is there any other investment avenue where I could get better return than this ? If you are facing a similar dilemma in this time and age, you are not alone. The answer is simple and it requires a process to be followed.

IPO # An initial public offering (IPO) refers to the process of issuing shares of a private corporation to the public in a new stock issuance. This allows the organizations to raise capital from public investors. The purpose of IPO could be various, but the primary being to raise capital for business.

I have been recently reading this book called Power of Habit which gives great insights on human psyche. Habits have a profound say in our day-to-day lives :

SSY Benefits # 1. Account opening # The account may be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of ten years .

Monitoring helps you determine exactly when a goal is on track. It provides you a feedback which incorporated allows you to make rectifications and therefore achieve your goals which you have laid out earlier. Feedback is important as it could tell you whether the path that you have chosen to achieve your goals is correct. It is a vindication of some sort. A reality check. It gives you an opportunity to correct your deviations and take you towards your goal.

Let us look at what have transpired in December 2020 In December 2020, markets have risen by 6.66% overall.

A cognitive bias is a systematic error in thinking that occurs when people are processing and interpreting information in the world around them and affects their decisions and judgements.

This is one of those rare months where all sectors have done well . If you had remained invested through the month, your mutual fund value would have risen . How about that ! Foreign Institutional Investors (FII) have invested 60358 crores. This is almost the same amount they withdrew in March 2020. Overall investment in India is close to 100 thousand crores.

What are goals ? # As an individual / family, you have a vision or a personal objective/s that you would like to meet in your lifetime .

Growing Annuity @ Retirement # Mahesh is 45 years old and his current expenses are Rs 75,000/- per month . He plans to retire by 60 and would like to have an annuity which would pay him enough for his current expenses. He would like this annuity to increase by 5% every year considering inflation in mind. How much should he start investing now so that it takes of my retirement till 85?

Best Performing Mutual Funds 2020 # The year 2020 will be long remembered for pandemic , job loss , economic loss , lockdown, disasters etc. It will also be remembered for tenacity, willpower, strength, patience of the common man, companies, institutions, government etc… This year has been a year of extreme volatility . We have seen extreme fear and moderate greed in the same year. Swinging from doomsday to irrational exuberance are all happening at the same time. In this article, the performance of mutual funds are compared from YTD.

HDFC Tax Saver Fund is an Equity Linked Savings Scheme . It has kept its benchmark as the Nifty 500. It’s performance has not been upto the mark in the recent years. Expense ratio is on the higher side. It has been ranked a 1 star fund in Valueresearch and Moneycontrol It seems that HDFC AMC has had a closer look at this and has made major changes to this fund and is keen to turn this ship around.

Emergency fund as the name suggests is the money that you would touch when you have an emergency.

As you are aware, since last month, I compile a list of funds and sectors which have done well.

November 2002 - I boarded the train from Mumbai to Pune to take up my first job. Net income was Rs 15,000/- We were working in one of the top IT service companies and quite excited. I used to meticulously write my expenses on daily basis. Very soon, I had made some good friends. I was eating out regularly. There was one late night movie every week, parties during the week. I stopped writing my expenses. Every Friday there was a Sumo ready to take us back to Mumbai and every dreadful Monday, there was one to take us back to office. By the time I left my first job and moved to the second one, I had Rs 4000/- in my bank account (2 years of saving).

One of the risks that recently have been talk of the town are geographical risks . Despite the world which is so interconnected now and any event has repercussions across the world, there are still inherent geographical risks which are local .

Mutual funds can be categorized into two types of funds : Active Funds In active funds , we have an experienced fund manager and a management team to make decisions on the amount collected from investors. For example, Mirae Asset Large Cap Fund - Fund Manager - Gaurav Misra & Harshad Borawake Parag Parikh Long Term Equity Fund - Fund Manager - Rajeev Thakkar & Raj Mehta Passive Funds In passive funds, they follow a market index and do not have a fund manager who actively manages the portfolio. For example, SBI ETF Nifty 50 - Largest ETF in India with an overall AUM of 75,000 crores and this fund tracks the Nifty 50 . Expense ratio is 0.07%

When we buy a house loan from bank, Bank provides us money We need to return the money after fixed number of years Bank charges a fixed interest rate for the money that it has lent However, we also lend money to banks. In case of a fixed deposit, we lend money to the bank.

Every month I plan to do a roundup of funds which did well and things which didn’t well which gives a fair idea what kind of stocks are moving. This article talks about the mutual funds which have done well and a glimpse into their underlying scrips.

I was living in a rented house since 2005 when I moved from my parent’s house. Buying a house was quite expensive and I was unsure that I would work so long. Tenure for loans were 15-25 years. EMI’s were more expensive than the rent. I was not sure of many things while buying a house :

I was so excited! My first job. This actually would mean independence. This would also mean that I would have a bank account and there would be a number bigger than 0 in my account. However, with the uncontrolled expenses, my bank account quickly got depleted as soon as my salary came in. Thankfully maturity came and as years passed by, I started gaining different types of assets including a house, a car, few more savings account, a fixed deposit, mutual fund , stocks etc…

From childhood, we have been raised in a certain way, which shapes our opinion and attitude towards money. Some are conservative with money , some are willing to take risks . It is important to know where you stand and therefore invest your money in instruments which reflect your risk profile.

Goal setting, some of you are already familiar with this term, is an important exercise during the beginning of the appraisal year.

There are two important factors in determining corpus for any goal. These are time horizon of investment and asset allocation .

Parag Parikh Long Term Equity Fund is unique in many ways and is quite interesting as well. PPFAS was established in 2012. PPFAS has only three funds , unlike , many AMC’s. Shri Parag Parikh who pioneered Value Investing is the founder of PPFAS. There are multiple reasons why I find PPFAS quite intriguing and you get a feeling of comfort when investing in their funds.

Taxation of mutual funds is important for filing of income taxes . There are few things one needs to understand before filing taxes for mutual funds:

Mutual Funds began in 1963 in India. Private mutual funds came into being in 1993. AMFI was established in 1995. Since then, there have been so many varieties of mutual funds. Based on your individual goals and risk profile, you would purchase a mutual fund. The question therefore begs to be asked is - is equity savings fund right for you ?

I have spent 18 years in IT industry and there have been days where I want to do my own thing. The challenge in an organization is that you feel boxed in so many ways. Many have different reasons. I could list a few below :