We will discuss two categories of funds in this chapter Overnight Funds Liquid Funds Overnight funds invest in schemes that mature in 1 business day whereas Liquid funds invest in instruments that have maturity up to 91 days. Do you remember, that we discussed savings & investments in Chapter 2? If you prefer to have…
In the earlier chapters, we learned about Equity funds. There is another category called Debt Funds. AMCs could choose to lend money to corporations instead of buying their shares. The returns the AMC expects when they lend money to corporates is a period interest. Just like you take a loan from a Bank, you repay…
My personal favorite among the equity funds are the thematic funds. Themes are stories that play out over a period, say 10 years. If you are not that knowledgeable in stocks, jargon, or the technicals — you can still make a killing if you guess the sector right. It may take patience for something to be uncovered,…
When a Fund manager hand-picks a few stocks and groups them by a common thread, it is called focused funds. The regulations say that a fund manager can have a maximum selection of 30 stocks, but it does not specify if he should select from a specific category like Large, Mid, or Small Cap. The…
People who invest in assets look for two possible types of returns Capital Appreciation Dividends Capital Appreciation is when the valuation of the Asset grows and fetches you a higher resale value. Only Assets will have value appreciation, Liabilities do not. Time is a friend of assets and an enemy of liabilities. Dividends are incomes…
A Mutual Fund that allocates a mandatory 65% of its assets to Small cap companies (251th onwards) is called a small cap mutual fund. Usually, the Mcap of these firms may be lower than 5000 crores, but the valuation is not clearly defined in the regulation as changes in stock prices could change its Mcap….
A Mutual Fund that invests a mandatory 65% of its assets in Mid-cap companies (101st to 250th companies of India) is called the mid-cap fund. The risk profile is higher compared to a Large cap fund, but the prospect of higher returns makes this category pretty popular. People usually say, let us find the next…
The Mutual Fund that invests 80% of its assets in the Top 100 companies of India (Large Caps) is called the LargeCap Fund. It is also called Bluechip Fund by a few AMCs. Examples of a few Large Cap Funds If you liked this content, consider sharing it with your friends & relatives.. Book a…
Over the next few chapters, we will discuss the various classifications of Equity funds. Mutual funds have three main categories Equity Funds Debt Funds Hybrid Funds Equity funds are the most popular as the returns offered by them outbid the debt and hybrid categories. Since the opportunities to get higher returns are available, it normally…
Market Capitalization ie. Mcap means the share price multiplied by the number of shares. if XYZ company issues 10000 shares and each has a price of 15, then the mcap = 10000*15 = 1,50,000. In the above eg: TCS MCap is 1377858.27 crores and Infosys is 581349.77 crores. Mcap shows how big a company is,…
