Long Term Financial Vehicles

Investing in long-term financial vehicles give you the most gains but it also puts your funds at greater risk. There is much truth to the saying, "there is no gain if there is no risk". Still you can reduce your chances of losing your hard earned money, by researching and taking time to understand what you are buying. Would you purchase a house you've only just seen on the outside? Both of these are serious investments and you need to arm yourself with the basic knowledge about the subjects.

So what are the differences you need to consider when investing in bonds, stocks or mutual funds?

What are bonds? When you are investing funds in bonds, you are technically lending your money to a borrower. Who can this be? Some of these are the U.S. government, a state, a local municipality or a big company like General Motors. All these institutions need money to expand, to fund a federal deficit or to finance new ventures. So they borrow funds by issuing bonds. The price you pay for a bond is know as its' face value. The issuer promises to pay you back in a particular day, at a fixed rate of interest stated on the coupon itself. You are safely investing in bonds; these bonds give you a yearly income until the maturity date. When the bond matures, the borrower pays you back the principal plus interest. In most cases, investing in bonds is a minimal-risk free decision.

What about stocks? A share of stock is a certificate of ownership purchased by individuals who are investing or buying a proportional share of the business. The more stocks you buy, the bigger the share of profits you will get and the bigger your financial stake becomes. A stock's value is affected by the financial situation of the company. Historical trends in stocks have shown that their value rises over time, although there are no sure guarantees. Also with stocks the only assured return is if it appreciates on the open market. And while it is true that there are companies that give their stockholders dividends, they are not obligated to do so.

What are mutual funds? In this financial scenario, you join a group of investors in investing your funds to buy stocks, bonds, or anything else your fund manager decides is worthwhile. If you do sustain losses, these losses are subtracted from the fund's capital gains before the money is distributed to you the shareholder. The fund won't pass out capital gains to shareholders until it has at least earned more in profits than it had lost.

Remember it pays to do research before investing.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and financial planning advice that you can research in your pajamas on his website.

In The News:

Why you should invest in multi cap mutual funds  Economic TimesMany advisors are recommending multi cap funds in the current environment to investors.
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What India's biggest mutual funds bought and sold in July  LivemintInvestors in Indian equity mutual funds bought more last month, unfazed by the selloff that saw the nation's $1.9 trillion market log its worst July in 17 years.
Mutual fund investors keep faith in stocks despite market rout  LivemintMumbai: Investors in Indian equity mutual funds bought more last month, unfazed by the selloff that saw the nation's $1.9 trillion market log its worst July in 17 ...
Diversify your portfolio by investing a portion in US-focused mutual funds  MoneycontrolDeveloped markets such as US have delivered significant returns over market cycles.
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Hot and Cold Stocks of Mutual Funds in July 2019  MoneylifeIn July 2019, IndusInd Bank and ICICI Bank were the most preferred stocks of Indian mutual funds.
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Is it time to switch to index mutual funds?  Economic TimesBy Rishabh Parakh It is one of the hottest topics debated these days: is it time for mutual fund investors to switch to passively-managed index funds from their ...
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Sebi wants MFs to invest only in listed securities  Economic TimesSebi said it has also decided to give flexibility to MFs to invest in unlisted NCDs up to a maximum of 10% of the debt portfolio of the scheme.
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Step up your SIPs in these mutual funds to benefit from the market correction  LivemintAn SIP will automatically accumulate more units in corrections such as the present one.If you wish to cautiously take advantage of the market correction, stick to ...
Saurabh Mukherjea of Marcellus Investment is positive on these blue-chip stocks  Moneycontrol.comSaurabh Mukherjea, founder and chief investment officer at Marcellus Investment, spoke to CNBC-TV18 about the economic slowdown and how investors ...
MFs play safe, exposure to top 10 Nifty stocks highest in ten years  Economic TimesET Intelligence Group: It's rather lonely at the top. As vast segments of India's equity markets continue to reel under unremitting pain, mutual funds are gravitating ...
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An evening walk down D-St: Massive sell-off drags Sensex, Nifty lower by almost 2%  MoneycontrolThe market began the day lower and plunged sharply in the later half, continuing to prevailing corrective phase.
Is Dodge & Cox Stock Fund (DODGX) a Strong Mutual Fund Pick Right Now?  NasdaqLooking for a Large Cap Value fund? You may want to consider Dodge & Cox Stock Fund (DODGX) as a possible option. DODGX carries a Zacks Mutual.
3 Great Active Mutual Funds for the Current Environment  NasdaqInvestorPlace - Stock Market News, Stock Advice & Trading TipsThere's a lot of debate over using active mutual funds versus their passive.
Investors pull $2.9bn from funds investing in China  Financial TimesInvestors pulled $2.9bn from funds that invest in China's stock market in the month ending last Wednesday, as concerns over economic growth and tariffs ...
Mutual Fund Trend: Infosys, REC and UPL among most sold stocks by MFs in July  Zee BusinessMutual Fund Report: Domestic equity mutual fund inflows continue to show resilience despite market volatility, with July inflows touching Rs 73 billion – a 9M ...
Slowing Share Buybacks Remove a Pillar of Stock Market  The Wall Street JournalU.S. corporations are repurchasing their own shares at the slowest pace in 18 months, a potential sign of more volatility as the buyback bonanza from the ...
Nearly 100 fund managers sell entire stake in Yes Bank in last 1 yr; what should you do?  MoneycontrolIn the last one year, about 100 mutual fund managers have completely sold their stake in Yes Bank. In June 2018, 227 mutual fund schemes had Yes Bank in ...
ITI Mutual Fund mulls slew of scheme launches in next few months  MoneycontrolThe fund house which began its operations with the launch of ITI Liquid Fund and ITI Multicap Fund in April 2019 and ITI Long Term Equity Fund in July 2019 is ...
Largecaps top AMC's shopping list in 2019; midcap, smallcap stocks see selling  Moneycontrol.comLargecap stocks have been the preferred pick of the top 10 asset management companies in 2019 as assets under management in largecaps increased 2.9 ...
Explained: What is mutual fund NFO?  LivemintIn an NFO, you can subscribe to the units of the new fund, which is being launched, at an offer price which is usually set as ₹10.After the NFO, an open-ended ...
Growth Stocks Drive This American Century Mutual Fund To Outperform  Investor's Business DailyWant a fund that beats the broad market, and owns leading growth stocks like Alphabet, Amazon and Facebook? Check out American Century Ultra Fund.
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We Rank the Online Brokers  Kiplinger's Personal FinanceNo broker can hit the bull's-eye for every type of client. Use our results to find the best one for you.
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Lockheed Martin Stock Joins Breakout Index As Northrop, Heico, L3 Show Strength  Investor's Business DailyTop funds invested $107 million in Lockheed Martin stock, sparking a 22% as it joined the IBD Breakout Stocks Index. Northrop and Heico also got big buy-ins.
Stocks: Companies Slow Down Buybacks — WSJ  Morningstar.comS&P 500 firms cut share repurchases by a projected $40 billion in second quarter. By Jessica Menton. This article is being republished as part of our daily ...
The Services Offering Free Stock Trading  KTVATrading stocks in a brokerage account can be a great way to grow wealth alongside the money you may be investing in a 401(k) or individual retirement account.
Solar Stocks: Ways To Play And Not Get Burned  Investor's Business DailySolar stocks are on fire. But don't get burned by jumping into the hot sector without knowing the risks and having a strategy.
Why picking the right mutual fund is key in a tough market  LivemintWhy have mutual fund (MF) returns fallen? Mutual funds primarily invest in equity (stocks) or debt (bonds). On the equity side, mid and small cap MFs have given ...
Top 10 stocks that mutual fund managers bought and sold in March 2019  Moneycontrol.comData for equity flows into mutual funds for March came as a breather after a weak February. An increase in net inflows in equity and income category led to the ...
MF shopping list: Top 30 stocks that fund managers bought & sold in June  MoneycontrolMutual funds increased allocation to private banks, consumer, utilities, technology, NBFCs, retail, metals and PSU bank stocks in June, an ICICIdirect report said.
What India's three largest mutual funds bought and sold in June  LivemintInflows into Indian equity mutual funds jumped the most in three months in June.India's top money manager HDFC Mutual Fund held $22 billion in equities.
Consider investing in direct stocks only if you can monitor portfolio proactively  LivemintDirect stocks can be considered if you have the ability to do research to identify the stocks to be bought as well as to be sold.You should be revisiting your ...
Sensex's rise from 20K to 40K: 5 lessons for equity mutual fund investors  Economic TimesWe look at some critical lessons that equity fund investors learnt during the journey of Sensex reaching 40K.
Should you invest in international mutual funds?  LivemintIf you were to sort all equity mutual funds available for retail investment by their one-year performance, international funds would come on top. The best ...
Stay away from stock tips  LivemintIf taming the stock market was easy, everyone would do it.Losing money in market is real and facing volatility is part of the deal.
Mutual funds’ exposure to this space at all-time high; should you buy?  Economic TimesMoney managers on Dalal Street continued to shower affection on private banks for the ninth successive month as their exposure hit 19.90 per cent in June, ...
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
A young investor’s guide to mutual funds  Economic TimesMany young investors, who are barely a year or two old in their career, are eager to start investing in mutual funds. ETMutualFunds.com receive many queries on ...
Our Ultimate Stock-Pickers' Top 10 High-Conviction and New-Money Purchases  Morningstar.comFor the past decade, our primary goal with the Ultimate Stock-Pickers concept has been to uncover investment ideas that not only reflect the most recent ...
All you need to know about liquid mutual funds  Economic TimesThe NBFC crisis has brought liquid funds back in favour as they carry lower risk than corporate FDs.
Here are a few mutual funds that stocked up on YES Bank in Q4FY19  Business StandardShares of YES Bank tanked 30 per cent in trade on Tuesday, after the bank reported a massive Rs 1,507 crore loss in the fourth quarter of financial year 2018-19 ...
Govt increases limit to disclose investment in stocks, mutual funds for employees  Moneycontrol.com*Service* rules say no government servant shall speculate in any stock, share or other investment.
Mutual fund SIPs don't make equity investing risk-free. Here's why  Economic TimesSIPs do reduce the risk of market timing & allow investors to buy more units when their price falls.
Index mutual funds see 60% jump in assets in a year as actively managed funds struggle  Economic TimesIndex mutual funds — a category that aims to mimic returns of benchmarks, like Nifty or Sensex — have seen their assets surge 60% over the past one year as ...
Mutual funds shooting themselves in the foot?  Economic TimesWhat if banks take a leaf out of Kotak and HDFC Mutual Funds' decision to direct investors to come another day to get their money instead of paying them on the ...
What top mutual funds bought and sold last month  LivemintMumbai: Inflows into Indian equity mutual funds in January were the smallest in two years as heightened market volatility and political uncertainty cooled ...
Actively-managed large cap mutual funds poised for a comeback  Economic TimesDefying predictions of their imminent irrelevance, some actively-managed large cap mutual fund schemes have bounced back to the top of the return chart.
Flows into mutual funds revive in May as Modi win seems to spur risk demand  LivemintFlows into Indian equity mutual funds in May rebounded from the smallest in 31 months as Prime Minister Narendra Modi's comfortable electoral win spurred ...
What India's top three mutual funds bought and sold in May  LivemintInflows into Indian equity mutual funds in May rebounded from the smallest in 31 months as Prime Minister Narendra Modi's comfortable electoral win spurred ...
Can mutual funds give multibagger returns like stocks?  Economic TimesStocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev ...
Stick to MFs if you lack knowledge on stocks  LivemintWhile equity is surely the way going forward considering your age and the financial goals, how you buy in equity is important.Direct stocks work very well if done ...
Mutual funds or direct equity investment – which is better?  Economic TimesOne big question that often dogs investors is which investing option should they opt for: mutual fund or direct equity? Katalyst Wealth's Ekansh Mittal ends your ...
Why do wealth managers recommend multi cap mutual funds?  Economic TimesMany wealth managers believe multi-cap funds are a good starting point for long-term investors, specially those using SIPs for wealth creation.
Should you invest in algorithm-based quant mutual funds?  Economic TimesQuant funds work on a data-driven model that relies on a mix of parameters and algorithms to identify the right stocks at the right time. But can they beat actively ...
MF portfolio doctor: Babji needs to exit direct investments in stocks, take mutual funds route  Economic TimesThe Portfolio Doctor assesses the health of the fund portfolio, examines the schemes and their suitability with regard to the goals.
How income from stocks and mutual funds are taxed for an individual  Moneycontrol.comCapital gains from transfer of unlisted share are considered as STCG where period of holding is less than or equal to 24 months, and LTCG when holding period ...
Investment limits Sebi prescribes for mutual funds  LivemintIn case of unrated debt instruments, a mutual fund cannot invest more than 10% of the portfolio in a single issuer and 25% in all such securities.In case of listed ...
Top 25 equity mutual funds failed to deliver positive returns in June  Economic TimesNEW DELHI: Top 25 mutual fund schemes, managing retail money in excess of $1 billion (Rs 7,000 crore) each, failed to deliver positive returns in June.
Mutual funds sell several blue chips stocks, buy mid-caps in March  Business StandardDomestic money managers were seen pruning their holdings in several blue-chip stocks, including Reliance Industries (RIL) and Housing Development Finance ...
Top 8 most common mutual fund investing mistakes and how to avoid them  Business StandardMutual funds garnered Rs 8,022 crore of its assets by way of SIPs in December 2018, 29 per cent higher than the previous year | Illustration: Binay Sinha ...
What to do if your mutual fund scheme earns more return than your investment  Economic TimesAre the returns shown in your mutual fund account statement same as the returns delivered by your fund? It is quite likely that you might have earned less than ...
Best mutual funds to invest for five years  Economic TimesIf you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
First-time investors can look at these mutual funds for long term  Economic TimesInvestors, who were waiting on the sidelines for the uncertainty to recede, are now looking to deploy their cash. But, valuations remain steep.
Top 30 stocks that fund managers bought & sold in March; do you own any?  Moneycontrol.comData for equity flows into a mutual funds for March came as a breather after a weak February. Increase in net inflows in equity and income category led to the ...
Equity funds record highest ever exposure in banking stocks in March 2019  Business TodayAs per the latest data available from the SEBI, overall deployment of equity funds in bank stocks grew around 52 per cent year-on-year (y-o-y) in the month ...
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
The dangers of high mutual fund inflows  LivemintMutual funds have put ₹2.4 trillion into markets in the last two years.Equity mutual funds receive ₹8000 crore monthly through SIPs.
Active mutual funds fail to reflect index gains  Economic TimesThe Nifty, which has hit all-time highs for the second time in April, has advanced 12% in the last one year. But these gains are yet to reflect in many mutual funds' ...
Best mutual funds to invest in 2019  Economic TimesWhich are the best mutual funds to invest? Most investors have this query before they start investing in mutual funds. Curiously, it is the first question most ...
What top 5 money managers bought and sold in February  Economic TimesFebruary was the fourth consecutive month of decline in net investment into equity mutual funds.
I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?  Economic TimesYou may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds.
A look at mistakes committed by investors of equity mutual fund schemes  Moneycontrol.comBalwant Jain. The interest of investors has been shifting from direct equity investing to equity mutual funds over a few years. Though this is a welcome trend, ...
Defaults, downgrades hit debt mutual funds: What investors should know and do now  Economic TimesAs debt mutual funds land in trouble following multiple defaults and downgrades by bond issuers, ET Wealth addresses some key questions from worried ...
Here’s a better tool to judge mutual fund performance than simple 1-year, 3-year returns  Economic TimesOne invests in mutual funds to earn potentially higher returns than those in traditional investment products, and I'm sure everyone looks at the one-year, ...
Stop! Too many stocks, mutual funds are not good for you; Buying too many may not get you more  The Financial ExpressHandling the overall risk of investments is crucial, but not at the cost of not meeting your financial goals. Over-diversification can do this.
Sebi allows mutual funds in exchange traded commodity derivatives  Economic TimesNEW DELHI: The Securities and Exchange Board of India (Sebi) on Tuesday allowed mutual funds to participate in exchange-traded commodity derivatives ...
Budget 2019: what can mutual fund investors expect today?  Economic TimesSome fund managers say the government can offer exclusive tax deductions for the product if it wants to increase investor participation in mutual funds.
Spending time in stock market is must for wealth creation: Chandresh K Nigam, Axis Mutual Fund  Economic TimesInvestors make the mistake of projecting recent market performance onto the future and follow the market.
ITR filing: Income tax department makes disclosing LTCG from stocks, equity mutual funds simpler  LivemintThe Finance Bill 2018 reintroduced tax on LTCG made from listed shares and equity-oriented mutual fund.You only need to disclose the total LTCG from ...
MF holdings of auto stocks at record low: Motilal Oswal study  BusinessLineMutual funds' holdings of auto sector stocks stood at a record low in April, finds a study by broking house Motilal Oswal Securities. The weightage of the auto ...
Flipkart co-founder Sachin Bansal may foray into mutual fund business  Economic TimesSachin Bansal, former co-Founder of Flipkart, is mulling a foray into the mutual fund space, according to a report by ETNow. The business news channel said ...
Mutual fund Industry adds 529,633 folios in June: Herere the details  Business StandardThe mutual fund (MF) industry saw 529,633 of new folios getting added in June, which took the total industry tally to 83.8 million folios. Folio numbers are linked ...
Allocating to passive mutual funds in one's portfolio is increasingly making sense  Economic TimesPassive investments makes sense today as increasingly active ones are unable to beat it most times.
Investment in equity MFs drops 35% to ₹1.11 lakh crore in FY19  LivemintNEW DELHI: Investors pumped in more than ₹1.11 lakh crore in equity-oriented mutual fund (MF) schemes in 2018-19, a decline of 35 per cent compared to ...
Here are top 10 large, mid & small-cap stocks that MFs bought and sold in May  MoneycontrolAmong largecaps, Vodafone Idea, DLF, Bharti Airtel, HDFC Life Insurance and Piramal Enterprises witnessed highest buying during May 2019.
Best mutual funds to build Rs 1 crore for my son’s education  Economic TimesI want to build a corpus of Rs 1 crore for my son's education. He is now 3 years old. My investment horizon is 15-20 years. I have been investing in the following ...
How concentrated is your mutual fund portfolio?  LivemintA concentrated portfolio can backfire badly if the fund manager's strategy goes wrong.A portfolio with few stocks can fall sharply if share prices of most stocks in ...
Heres why investors should make index funds a part of their core portfolio  Business StandardWe often hear statements such as “Localisation is the key to success in India” or “What works in the rest of the world does not work in India”. These statements ...
Should you invest in mid- and small-cap funds now?  LivemintWith the new government taking office with a massive majority, it has the elbow room to push through the reforms. No wonder markets are expecting the ...
Mutual Funds increase holding in ‘attractively valued’ oil & gas stocks  Economic TimesMUMBAI: Mutual funds have been adding shares of oil and gas companies such as GAIL, HPCL, BPCL and ONGC over the last few months, encouraged by ...

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