I have two questions: 1. The funds have given a a good return in 1 year, compare to two or 3 years. So, should we wait till the fund finally matures, take it out and reinvest the money as a lumpsum again by the end of 3/6/12 months? 2. If the maturity period is only 3/6/12 months, How often should we change our liquid funds, given these three are the best performing till date?
The portfolio of liquid fund is constructed in a way that it holds 90 days maturity papers. This does not mean the fund or your investment mature after 3 months. The investment stays, and you can hold or disinvestment any time -- within a few days, week, months, etc. But the ideal hold period in a liquid fund is 3 to 6 months, or up to a year. When you redeem, the money will be credited in to you bank account within 1 to 2 days. Hope this clears your doubt.
Just to confirm, you invest in liquid funds similar to how you invest in mutual funds, bulk or SIP. And whenever you need money, you would withdraw/redeem it in same way as mutual funds. Is my understanding correct?
I concur that Liquid Mutual Funds are now on an equal footing with Fixed Deposits. However, the absence of early redemption penalties in Liquid Funds, unlike Fixed Deposits, still gives them a slight edge in my opinion. I'd love to hear your perspective on this.
Indeed. The insta-redemption facility offered by liquid funds have made them more liquid - in a few minutes you get the credit into your bank account- so that’s where they have an edge over bank FDs.
Whether the realised capital gains on a liquid fund are short term or long term, as per the current tax rules, are chargeable as per one’s income-tax slab. As a student, if your total income is below the basic exemption limit, there will be no tax liability.
Non-residents cannot invest in mutual funds in foreign currency - mutual funds disallow that. Furthermore, the regular resident savings account in India cannot be used by NRIs to invest in mutual funds in India. Given this, NRIs can use the NRE or NRO account to invest in some of the best and most suitable mutual fund schemes. The transaction can be routed through the usual banking channel complying with the KYC norms, and one must indicate whether the investment will be repatriable or non-repatriable.
The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market. It's tricky during election years. I recently inherited a lump sum and want to invest it wisely. Any tips or strategies to take advantage of this potential upswing?
imho, the average person finds it difficult outperforming the market on a day-to-day basis. In actuality, most people who have the necessary abilities are advisors with experience since the '08 crash and beyond
@SandraChirs5m - It’s true that the equity markets can change direction anytime. Particularly now that there are geopolitical tensions, repercussions of it on the global economy, inflation and the Indian market is commanding a premium to global peers on valuations. In such times it’s important to devise a core & strategy strategy when approaching equity mutual funds. Your core portfolio should ideally comprise of one of the best Large Cap Fund, Value/Contra and a Flexi Cap Fund. These funds due to their investment mandates shall add stability to your equity portfolio. The strategic portion of your equity portfolio could consist of one of the best Mid Cap Funds and an Aggressive Hybrid Fund. These funds in the satellite portfolio by their very characteristics shall enable in generating alpha. By and large, following a 65:35 composition between core & satellite holdings would help manage the risk better by keeping an investment horizon of 7 to 8 years when equity mutual funds. It would be better to deploy the inherited sum you’ve received in a staggered, i.e. piecemeal manner or even better is taking the SIP route.
Liquid funds is low-risk option to park money for 6 months or so. The returns will be market-linked and not fixed. The historical 6 months returns of Liquid Funds are around 3%-4% (as of 29 April 2024).
Please review my portfolio sir Parag Parikh flexicap,Sbi mid cap & Axis small cap fund each with 5000 rs total 15000 rs per month sip for 25 year's and 10 percent step up every year, is this portfolio Good..?🔥
Actually my doubt is This liquid funds will mature for every 91 days in an year? when do we know that the funds has matured and make a live video on how to invest in liquid funds!
The portfolio of liquid fund is constructed in a way that it holds 90 days maturity papers. Given this, a Liquid Fund is for a horizon ranging from few months to up to a year or so. As an investor you don’t need to redeem investment every few months as per the maturity of the underlying papers. This will avoid the hassle of reinvesting again. As long as Liquid Fund you have investments has worthy portfolio characteristics and returns are competitive, you don’t need to often go in and out of the fund, saving you hassle and tax implications.
@@PFNonline so u ra saying, we invest in a liquid fund.. and it will mature in 3 months.. Thats okay.. but if we invest for more that one year..does it falls or money will be directly reflected in our bank account!
@@PFNonline Lets say liquid fund is started today! You have invested in it(Lets say)Already 3 months passed if i tried to invested in that same fund.. will there be any return? As portifolio is already matured.
The portfolio of liquid fund is constructed in a way that it holds 90 days maturity papers. This does not mean the fund or your investment mature after 3 months. The investment stays, and you can hold or disinvestment any time -- within a few days, week, months, etc. But the ideal hold period in a liquid fund is 3 to 6 months, or up to a year. When you redeem, the money will be credited in to you bank account within 1 to 2 days. Hope this clears your doubt.
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I have two questions:
1. The funds have given a a good return in 1 year, compare to two or 3 years. So, should we wait till the fund finally matures, take it out and reinvest the money as a lumpsum again by the end of 3/6/12 months?
2. If the maturity period is only 3/6/12 months, How often should we change our liquid funds, given these three are the best performing till date?
The portfolio of liquid fund is constructed in a way that it holds 90 days maturity papers. This does not mean the fund or your investment mature after 3 months. The investment stays, and you can hold or disinvestment any time -- within a few days, week, months, etc. But the ideal hold period in a liquid fund is 3 to 6 months, or up to a year. When you redeem, the money will be credited in to you bank account within 1 to 2 days. Hope this clears your doubt.
Just to confirm, you invest in liquid funds similar to how you invest in mutual funds, bulk or SIP. And whenever you need money, you would withdraw/redeem it in same way as mutual funds. Is my understanding correct?
Yes, this is correct. But invest in liquid funds with a horizon of 3 to 6 months, or maximum a year.
I concur that Liquid Mutual Funds are now on an equal footing with Fixed Deposits. However, the absence of early redemption penalties in Liquid Funds, unlike Fixed Deposits, still gives them a slight edge in my opinion. I'd love to hear your perspective on this.
Indeed. The insta-redemption facility offered by liquid funds have made them more liquid - in a few minutes you get the credit into your bank account- so that’s where they have an edge over bank FDs.
I'm not into filing tax as I'm student... Will I will be charged tax for liquid funds sale within one year?
Whether the realised capital gains on a liquid fund are short term or long term, as per the current tax rules, are chargeable as per one’s income-tax slab. As a student, if your total income is below the basic exemption limit, there will be no tax liability.
Is it possible to invest in Liquid funds from NRE/NRO A/C?
Pls reply 🙏
Non-residents cannot invest in mutual funds in foreign currency - mutual funds disallow that. Furthermore, the regular resident savings account in India cannot be used by NRIs to invest in mutual funds in India. Given this, NRIs can use the NRE or NRO account to invest in some of the best and most suitable mutual fund schemes. The transaction can be routed through the usual banking channel complying with the KYC norms, and one must indicate whether the investment will be repatriable or non-repatriable.
A video with no change of focus from the main topic
Point to point information and every minute was knowledgeable.
Keep going sirr 😃
Thank you
The market's direction can swiftly change, with indexes frequently transitioning from a bear market to a bull market. It's tricky during election years. I recently inherited a lump sum and want to invest it wisely. Any tips or strategies to take advantage of this potential upswing?
imho, the average person finds it difficult outperforming the market on a day-to-day basis. In actuality, most people who have the necessary abilities are advisors with experience since the '08 crash and beyond
@SandraChirs5m - It’s true that the equity markets can change direction anytime. Particularly now that there are geopolitical tensions, repercussions of it on the global economy, inflation and the Indian market is commanding a premium to global peers on valuations. In such times it’s important to devise a core & strategy strategy when approaching equity mutual funds. Your core portfolio should ideally comprise of one of the best Large Cap Fund, Value/Contra and a Flexi Cap Fund. These funds due to their investment mandates shall add stability to your equity portfolio. The strategic portion of your equity portfolio could consist of one of the best Mid Cap Funds and an Aggressive Hybrid Fund. These funds in the satellite portfolio by their very characteristics shall enable in generating alpha. By and large, following a 65:35 composition between core & satellite holdings would help manage the risk better by keeping an investment horizon of 7 to 8 years when equity mutual funds. It would be better to deploy the inherited sum you’ve received in a staggered, i.e. piecemeal manner or even better is taking the SIP route.
Can i invest for 6 months and what will be the returns?
Liquid funds is low-risk option to park money for 6 months or so. The returns will be market-linked and not fixed. The historical 6 months returns of Liquid Funds are around 3%-4% (as of 29 April 2024).
Please review my portfolio sir Parag Parikh flexicap,Sbi mid cap & Axis small cap fund each with 5000 rs total 15000 rs per month sip for 25 year's and 10 percent step up every year, is this portfolio Good..?🔥
Keep it up. No need to change the portfolio. All are good
Actually my doubt is This liquid funds will mature for every 91 days in an year? when do we know that the funds has matured and make a live video on how to invest in liquid funds!
The fund itself does not mature. The instruments in which they invest mature.
The portfolio of liquid fund is constructed in a way that it holds 90 days maturity papers. Given this, a Liquid Fund is for a horizon ranging from few months to up to a year or so. As an investor you don’t need to redeem investment every few months as per the maturity of the underlying papers. This will avoid the hassle of reinvesting again. As long as Liquid Fund you have investments has worthy portfolio characteristics and returns are competitive, you don’t need to often go in and out of the fund, saving you hassle and tax implications.
@@PFNonline so u ra saying, we invest in a liquid fund.. and it will mature in 3 months.. Thats okay.. but if we invest for more that one year..does it falls or money will be directly reflected in our bank account!
@@PFNonline Lets say liquid fund is started today! You have invested in it(Lets say)Already 3 months passed if i tried to invested in that same fund.. will there be any return? As portifolio is already matured.
The portfolio of liquid fund is constructed in a way that it holds 90 days maturity papers. This does not mean the fund or your investment mature after 3 months. The investment stays, and you can hold or disinvestment any time -- within a few days, week, months, etc. But the ideal hold period in a liquid fund is 3 to 6 months, or up to a year. When you redeem, the money will be credited in to you bank account within 1 to 2 days. Hope this clears your doubt.
Thanks for the high quality informative content. Keep it up
Thanks!
Angrez chle gaye iskonchhor gaye 😅