Financial Information

How to save ,generate money from saved money for future needs?

                 It is needed to save your money and that money to grow. Because  financial security is must for any individual. keep in mind that inflation average rate is 6- 10 % .

Individual financial goals 

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1)Buying Agricultural land/Flat/independent house/villa  

2)Retirement plans pensions

3)Children Education ….

4)world tour

1)Ways to save Money ?
         Generally people will save the money after their Expenditure( Earnings-Expenditure =Savings )
        But financial experts say save the money after that you can do your expenditure
        Earnings -savings =Expenditure
    
      Note : your savings should meet your financial  Individual goals as explained above 

2)how to grow the saved money ?

             it  will be tough to reach you financial goals .so we can use instruments to reach your goals .
as shown below. 

Instruments to reach your financial goals

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1)Chits

2)Fixed deposits (FD)/Recurring Deposits

3)Gold

4)Stock Market (IPO/Equity/Dervitives[Forwards/futures/ Options/Swaps])

5)Mutual funds (Equity/Debt Funds/Balanced Funds/NFO)

6)Bonds

7)Non-convertible debentures(NCDs)

             Keep in mind, risk inversely proportion to gain .Most of the People we will see doing Fixed Deposits and Recurring deposits they will give 7-8 % .But in long run like in 10-20 yrs the interest rate will be very less than this .if you take slit risk you can take Debt funds it will yield 8-10% percentage. if you will take little risk you can  take Balanced Funds it will yield 10-12%.if you take medium risk you will yield 12-23% in Equity funds .In Equities long term you will yield good returns. You can take tax saving and medium risk Mutual fund  that is ELSS Equity linked savings scheme as well .

For stock market you need more Knowledge ,Time for Fundamentals analysis, technical analysis and market trends and marker news .Even though it is volatile.

In Equity Mutual funds ,your funds are placed in the equity stocks with higher percentage .For Equity you don't required to analysis all Fundamental, technical, market, news , fund manager will take care of all the analysis and he will grow your money .
All you need to know is 
1)which goal you are investing   (child education/pension/marriage/car/..)
2)which Mutual fund you want for your goal(which AMC and which fund)
3)how many times you will invest .(monthly/lump sum)
4)you have to know how much risk you can take (low/moderately low/moderate/moderately high/high)

          fund manger will take care of Mutual fund Management and analysis in investing your money according to the market . So, Mutual fund will charge some 0-3% on you investment .

Mutual fund Providers
MutualFunds
Mutual Funds category wise



Types of Mutual funds
1. Equity funds – Invest mainly in stocks or equity shares
2. Debt funds – Invest mainly in debt instruments or fixed income
3. Hybrid funds – Invest in a mix of equity and debt. Sometimes may include derivatives also
4. Gold funds – Invest in gold and gold derivatives.

Types of Equity Mutual funds
1)Multi-Cap Fund
2)Large Cap Fund
3)Large & Mid Cap Fund
4)Mid Cap Fund
5)Small Cap Fund
6)Dividend Yield Fund
7)Value Fund
8)Focused Fund

9)Sectoral/Thematic 

10) ELSS Funds.

Types of Debit funds

1. Gilt Funds
2. Liquid Funds:
3. Fixed Maturity Plans:
4. Short-term funds and Ultra-Short term funds
5. Income funds
6. Monthly Income Plans
7. Credit Opportunities Funds

Mutual funds Terminology
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Inception date :Starting for fund date
Expense Ratio : this ratio is high for actively managed funds
Category returns : average of all same category  in the market(small cap/large cap)
 ETF  :Exchange Traded Funds (Index Funds)
SEBI        : Securities and Exchange Board of India
CAGR      : Compound Annual Growth Rate
Asset Management Company (AMC) :The company which will manage collected the money for different Mutual fund .
Net Asset Value or NAV :price per share or unit of a mutual fund. Share price fluctuates throughout the day at exchanges, the NAV does not change. NAV is calculated at the end of the trading day. purchase or sale  made by individual  is carried out before 3 pm the current NAV they will calculate .after 3 pm the Next day NAV they will calculate .
NAV=(Assets of the fund-Liabilities of the fund)/Number of outstanding units of the fund
Option :growth /Divided(Dividend Pay-out / Dividend Re-investment)
     In growth Option whatever interests, bonus, gains and dividends the fund earns they re-invest .where as in
     Divided Option all will be payed out to investor as and when they get. Where divided is non taxable. Divided distribution tax is paid by fund.
Asset allocation (equity funds, balanced funds, debt funds)
    SIP, STP, SWP
    Systematic Investment Plan option   Monthly (investor can select a date that monthly deducted automatically (ECS)) /lump sum
    Systematic Transfer Plan            every month /week certain amount transfer from debt fund to Equity fund or vice-versa ,flexible
    Systematic Withdrawal Plan          investor can with draw money monthly on specific date and specific amount like pension .

FMP Fixed Maturity plans :closed ended funds,1 yrs you can't take out of the money,this is useful for higher tax bracket
Asset Under Management AUM :  total sum of investors which the AMC is controlling. It is the total size of assets which these AMCs manage for their client.
Benchmark Index :if you want to compare any Mutual fund (equity/bond),we are comparing with BSE-Sensex or NSE-Nifty.
Load (Entry Load /Exit Load )
To meet the administrative and operating expense of a fund when any charge is collected at time of investment it is called Entry load and if the charge is collected at time of redemption it is called Exit load. All funds do not charge loads.

       Mutual funds are subjected to market Risk. But No risk is the high risk . According to Warren Edward Buffett is an American business magnate, Protect your capital. so ,it is better to invest in
Equity -Nifty-50-Index-fund ,Equity -Nifty-next-50-Index-fund  .Because Companies which are best performing can be moved to top automatically  .They are the Nifty-50 -index , also indicates Indian GDP.


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Equity Funds Classified
  Based on Market Capitalization(open-ended equity scheme)
       1)Large Cap Equity Fund  :invests at least 80% of its assets in the shares of large cap companies
      2)Mid Cap Equity Fund    :invests at least 65% of its total assets in mid cap stocks
      3)Large and Mid Cap Equity Fund : invests at least 35% of its assets in large cap and at least another 35% of its assets in mid cap stocks
      4)Small Cap Equity Fund   :invests at least 65% of its total assets in small cap stocks
      5)Multi-Cap Equity Fund   :invests at least 65% of its assets across the large cap, mid cap, and small cap stocks and other equity related instruments.
  Based on Profit Distribution and Growth Prospects
      6)Dividend Yield Equity Fund(open-ended equity scheme) :invests at least 65% of its total assets in equities, predominantly in dividend-yielding stocks
      7)Value Equity Fund: invest in stocks which are presently underperforming due to being out of favor and therefore, available at a discount. underperforming or stocks with low P/E (Price to Earnings) ratio or stocks of companies belonging to emerging sectors which have the potential of rap
     8)Growth Equity Fund:  The primary goal of a growth equity fund is of capital appreciation by investing the corpus in a diversified portfolio of growth-oriented stocks. Based on Investment        Strategy( open-ended equity)
9)Contra Equity Fund: This fund assumes that these current underperformers will recover in the long term as and when the short-term concerns plaguing them are mitigated.
10)Focused Equity Fund: invests a minimum of 65% of its total assets in maximum 30 stocks, mentioning the market capitalization .Other equity funds typically hold 50-100 stocks.

Sectoral/Thematic Equity Fund: at least 80% of its total assets in a particular sector or theme such as Banking, IT or Pharma. ======================================================
Following you should determine before going to Mutual fund

Growth   :The interest/divided come from the mutual fund we are reinvesting 
Divided  : we are taking the dividend when we got

Regular  : agent will guide you for appropriate Mutual fund for that  they will charge
Direct    :we are directly investing into the fund ,so charges won't applicable

SIP         : Systematic investment plan  monthly
Lump Sum :Huge amount

its better to invest for long time
learn More about standed devation,

• The investment is for short-term, then go for debt funds.
• The investment is midterm, then go for hybrid funds.
• The investment is for long-term, then go for equity funds.

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for More Information
https://www.youtube.com/channel/UCfuUqvwgCOhDKRRnxHVhBow

https://www.valueresearchonline.com

https://cleartax.in/s/mutual-fund-investment/

https://finvizer.com/top-5-best-debt-funds/


https://scripbox.com/mutual-fund/

https://www.goodreturns.in/personal-finance/investment/2018/04/best-debt-mutual-funds-in-india-694927.html

https://www.fundsindia.com/equity-funds.html

Grow app  we can see all the funds and compare and invest
https://groww.in/

download App below for calculator
 NJ FINANCIAL CALCULATOR.

For More Information see below link.

https://www.paisabazaar.com/mutual-funds/equity-funds/

ELSS vs Other Tax Saving Investment Option

Instrument	Lock -in Period	gain	Risk
ELSS	3 years	15%-18%	High
Fixed Deposit	5 years	6.50%-8.25%	Low
Public Provident Fund	15 years	8%	Low
National Savings Certificate	5 years	8%	Low
National Pension System	Till retirement (60 years of age)	10.81%*	Moderate