Importance of Portfolio Diversification

The old adage “don’t put all your eggs in one basket” certainly applies to all investors big and small.

The markets are usually very dynamic and it is impossible to predict the exact movement of the indexes. In such conditions, diversified portfolio plays an important role in minimizing the risks and  maximizing the profits.

Uncovered- Costs in Mutual funds.

Mutual funds expenses are the charges levied by the Fund Houses and incurred by the investors who hold mutual fund schemes.

Before investing in mutual funds, it is very vital on the part of the investors to know about these expenses as they can substantially reduce an investor’s earnings and ultimately impact the returns.

Mutual fund Basics

A mutual fund is not an investment by itself. Rather it is an investment vehicle wherein one can invest money in a professionally managed fund that has a portfolio of different underlying assets like stocks, bonds, cash, indexes.

MCLR vs Base Rate.

What is Base Rate?

Our Central Bank (RBI) sets a minimum rate for loan borrowers below which banks are not allowed to lend money that is termed as Base rate. This was done to ensure that the customers would receive lower cost of funds with transparency in the credit market.

Direct vs Regular Plans in Mutual funds

Direct plans of mutual fund schemes were launched in January 2013. The basic idea behind the concept was to allow well-informed investors to buy direct plans of a scheme directly from the mutual fund – via online or through authorised branches – and save on commissions.