Yesterday is Diwali. I went to home and had celebrated it with my family. It was nice with lots of sweets and new dresses. I have booked return tickes the very day to come to office on Thursday. I skimmed through some RD books which i have subscribed. The Subscription is valid only upto october month, i have to renew it for next year. In one of the edition i came across the article 'Invest Now' which is very informative for youngsters like me who are on the verge of starting the investments. So far i haven't entered into investment arena, for tax saving purposes i have invested a small sum of Rs 5000 in PPF and NSCs. My adventure in the capital markets is yet to commence. I am also looking for a good start. May be i will enter into that next month. Some of the products i am having a close look are:
a) Mutual Funds: MFs according to me are the products designed for low risk takers. There are many types of MFs. I am especillay concentrating on Tax Saving Purpose. SIP is important feature provided by Mutual Fund Mgmt Company, which will allow you to invest small amounts periodically. For e.g If i am taking a SIP with premium amount of Rs 500/-, i can invest Rs 500/- monthly for a certain months based on the fund i prefer.
a) Mutual Funds: MFs according to me are the products designed for low risk takers. There are many types of MFs. I am especillay concentrating on Tax Saving Purpose. SIP is important feature provided by Mutual Fund Mgmt Company, which will allow you to invest small amounts periodically. For e.g If i am taking a SIP with premium amount of Rs 500/-, i can invest Rs 500/- monthly for a certain months based on the fund i prefer.
b) Index Funds: These funds are also designed for Low risk takers (Acc to me, because i prefer low risk). Index funds are nothing but funds which will invest in companies which decides the Market Index.
For e.g. In india we have 2 indices - NSE Nifty and BSE Sensex.
NSE Index: NSE index is a composite of top 50 companies stcoks listed on NSE (NSE is the 4th Largest Stock Exchange in the world in terms of Trades in Capital Market.)
BSE Index: It is based on the 30 Selected companies traded on Bombay Stock Exchange.
Some of the Index funds are treated like stocks in the exchange, Those funds are called Exchange Traded Funds (ETFs).
"Most Investors, Both Institutional and Individual, will find that the best way to own Common Stocks is through as index fund that charges minimal fees" - Warren Buffet
For e.g. In india we have 2 indices - NSE Nifty and BSE Sensex.
NSE Index: NSE index is a composite of top 50 companies stcoks listed on NSE (NSE is the 4th Largest Stock Exchange in the world in terms of Trades in Capital Market.)
BSE Index: It is based on the 30 Selected companies traded on Bombay Stock Exchange.
Some of the Index funds are treated like stocks in the exchange, Those funds are called Exchange Traded Funds (ETFs).
"Most Investors, Both Institutional and Individual, will find that the best way to own Common Stocks is through as index fund that charges minimal fees" - Warren Buffet
Some of the index funds which i will prefer are
1) Nifty Junior BeEs
2) Banking BeEs
3) Other than these individual fund houses are providing Index Funds. For e.e Franklin India Index BSE Sensex, Franklin India Index NSE Nifty etc.
In the next blog we will meet with more description about ETFs, which will be helpful for Young investors like me.
Thanks,
Soma
No comments:
Post a Comment