In the current market situation this question has been rising above the ground – Which fund should investors bet first on Indian or foreign markets? Many of the point of view that market all over the world are so much turmoil, should not be it a good opportunity to go for international funds?
These days every mutual fund investor is an aggressive investor, especially the young and new ones. When asking them about their risk profile, we got these kinds of replies from them.
A Fund of Funds (FoF) usually invests its assets in mutual fund schemes. A regular mutual fund or scheme generally takes money from investors and invest it in equities, debt based on its mandate. On the other hand Fund of Fund or FoF takes money from the investors and invests it in other mutual fund schemes. These mutual fund schemes can belong to other fund houses or withing the fund house.
Offshore funds are mutual funds schemes that invest in foreign markets. Offshore funds are also known as international funds. These schemes invest in fixed income securities or equities of a foreign country or region.
Equity mutual funds are those funds that invest in equity or stocks. In India, it is mandatory to invest 65 per cent money of a mutual fund scheme in equity or equity-related investments for taxation purpose. This is the reason for international funds investing in stocks and yet not countable for equity mutual fund, hence not eligible for tax. As they don’t put money in Indian stocks, they are treated as debt and taxed like debt schemes.
SEBI approved the country’s seventh-largest mutual fund house – UTI Asset Management Company for an initial public offering (IPO). The company has decided to sell 3.90 crore shares in the issue to raise about Rs 3,500 crore. The IPO will likely be listed at Rs 850-900 per share, bankers said.
Gilt Funds are those funds of debts that invest 80% of their investments in securities of government. For issuance of golden-edged certificates, these government securities or bonds can be used. The Gilt originated from the nickname of gilded edge certificates. As per SEBI norms, gilts funds must invest at least 80 per cent of their funds or assets in government securities.
There was a time when stocks were used to manually exchanged under a banyan tree in Mumbai. We have come way far since then. Today, there are plenty of financial product options available to invest your hard-earned money.
Its been asked by the number of investors whether it is a good time for investment in Bluechip mutual funds in the present market scenario and for what duration along with what return can they expect from their investment?
SEBI allowed mutual funds to list units of closed schemes on the exchange last week. This will provide an exit option to investors by selling their investment and get their money back from closed mutual fund schemes.