Many investors are worried about their regular cash flows after the introduction of DDT . DSIJ explains various tools available in MF, which can be used smartly to optimise your returns and maintain their regular cash flows.
The wisdom of investing is all about taking smart investment decisions that maximise returns on your investments. The only thing that helps you in achieving this is your entry and exit at the right time. Investors are usually advised to invest for the long term in mutual funds. There are situations, however, which prompt investors to exit from the fund early. This may adversely impact the overall returns. The Union Budget 2018 was one such occasion which created a dilemma in the minds of investors regarding continuing with their investments in mutual funds.
The Union Budget 2018 has affected mutual fund industry considerably with its decision to reintroduce long term capital gain (LTCG) tax on equities and equity-related instruments and the introduction of dividend distribution tax (DDT). With the introduction of DDT, category that has really got impacted is the balanced funds and dividend option of equity funds. They are losing their popularity among the investors. The reason being, earlier all the dividend distributed by the fund houses were tax free; however, now the fund houses need to pay DDT at the rate of 10 percent, which will ultimately impact returns of the investors as the tax will be deducted from the scheme’s net asset value (NAV). The impact of introduction of DDT is clearly visible on the inflows into these category funds in the last couple of months. The balanced funds are on a losing streak and witnessed a huge decline in their inflows. The inflows have more than halved in the last three months ending April 2018.
この記事は Dalal Street Investment Journal の May 28, 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Dalal Street Investment Journal の May 28, 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
