Types of Investors – Based on your risk profile – All you need to know
The risk profiling process will give an output report about risk tolerance. In addition, this report will tell you what type of investor you are. Types of Investors Based on Your Risk Profile… A doctor prescribes medicine only after a proper diagnosis, right? As the medicine consumed has some risk associated with it. Similarly, most of the investments have some risk associated with them, apart from government bonds. So, it is a must for all of us to measure our risk profile first and then decide the asset allocation based on that risk tolerance report. Generally, there are 5 types …
Risk Profile for your investment journey – all you need to know
Investors investing in capital markets must access their risk profile first. And then we must decide the asset allocation and follow that asset allocation. In addition, this risk profiling must be reviewed at least once a year. Risk Profile Definition… A risk profile is an analysis of types of risks faced by individuals and companies. In addition, for individuals, a risk profile is the amount of risk that he/she is inclined to take on the investment portfolio. Risk profile for individuals… An individual risk profile represents the amount of risk he/she is willing to take in the investment portfolio. In …
Wheel of Life – why you can not do every thing?
The concept of the Wheel of Life serves as a powerful tool for personal development and self-assessment. Originating from various coaching methodologies, this framework provides individuals with a visual representation of the different areas in their lives that require attention to achieve a balanced and fulfilling existence. In addition, let’s dive deeper into this concept, its components, and how you can utilise it for personal growth. Understanding the Wheel of Life… The Wheel of Life is divided into various sections, each representing a different facet of life that contributes to overall happiness and fulfilment. Typically, these sections include: **Health and …
Fixed Asset allocation – Nifty 50 and Gold back testing – All you need to know…
If you are investing in the stock market or in equity mutual funds, asset allocation is a must to reduce the risk in the portfolio. Here, in this article, I will explain to you about fixed asset allocation with Nifty 50 and Gold as asset classes in the portfolio with a backtest with the help of nifty and gold historical values. What is fixed asset allocation… Fixed asset allocation is a strategy to allocate a specific ratio of equity and debt (gold, debt funds, etc.). In addition, this strategy is also called the buy and hold strategy. And rebalancing of …
Benchmark in mutual funds – is it important for your investment decissions?
If you are about to buy a rice bag, there is no need to test the entire bag, right? If you can test a small sample of rice with your hand, that is more than enough to know the quality of the rice that you are buying. Similarly, while investing in mutual funds, if you compare any group of schemes with its relevant benchmark, that is enough for you to take your investment decision. What is a benchmark in a mutual fund? In the realm of investment, the selection of the right instruments can significantly influence the outcome of an …
OverNight funds in India – All you need to know…
In the dynamic world of finance, investors are constantly on the lookout for low-risk opportunities to park their funds while achieving decent returns. One such financial instrument that has gained traction in recent years is overnight funds. In addition, these funds are particularly attractive for those with short-term financial goals who want a safe harbour for their investments. And in this article, we will delve into the essentials of overnight funds in India, exploring what they are, how they operate, their advantages and disadvantages, and tips for selecting the right fund. ## Understanding Overnight Funds Overnight funds are …
budget 2025 highlights – All you need to know…
Finance Minister Sitaraman announced some significant changes to the tax slab in the new tax regime. In addition, read this article to know the highlights of budget 2025. Key Highlights of Budget 2025 for You… 1) The TDS limit for senior citizens got doubled… The TDs limit on interest income for senior citizens was Rs. 50,000 earlier. Now it is increased to Rs. 1,00,000 in budget 2025. However, that does not mean that the interest income of up to Rs. 1,000,000 is tax-free. 2) Simplified KYC Process… Earlier, individuals faced a lot of problems completing the KYC. Now, FM promised …
nps vatsalya scheme tax benefits – Budget 2025
NPS Vatsalaya Scheme tax benefits in budget 2025. In addition, the NPS vatsalya scheme is designed for minors whose age is below 18 years of age. In addition, this account is managed by the parents/guardians of the minors. Moreover, this scheme is regulated by PFRDA (Pension Regulatory Board of India). Read this article to know complete details about this scheme. NPS VATSALYA SCHEME tax benefits (from 1st April 2025)… The NPS valsalya scheme will also get the same tax benefits as the NPS account. Tax deduction under Section 80ccd(1B). # The parent/guardian can claim up to Rs. 50,000 in tax …
overlapping of mutual funds – All you need to know…
Are you looking to invest in mutual funds for an inflation-adjusted return on investment? While investing in these funds, you may consider multiple schemes. But you should select funds that have low overlapping or no overlapping. What is overlapping in mutual funds?… You can see in the above image that there are two hear images, which are overlapped with one another. When you are investing in mutual funds, some overlapping, like in the above image, can occur in mutual funds also. Sometimes, investors will have overlapping positions in mutual funds or exchange-traded funds (ETF’s). For example, you have invested in …
corelation meaning in finance and its uses – All you need to know
Corelation is an important parameter in finance to look at when you are doing asset allocation across stocks or across asset classes. If you see the above image, wife and husband both are having angry faces. When both are getting angry, it is very unlikely that the fight will end soon. So, it is always wise for both husband and wife; if one of them is angry, the other one should be calm. And if both of them have the same behaviour when getting angry, it is called a high co-relation. Finally, in horoscopes, it is also very famous that …
