1) Creating A Budget And Understanding Your Goals

Jumpstart your mutual fund investment process by creating a budget and understanding your goals. Your goals could be like (1) fund for retirement (2) fund for children higher education, and (3) fund for children marriage.

mutual fund investment companies offer different types of products tailored for different needs – like Debt Funds, Equity Funds, Fixed Maturity Funds (FMPs), Growth Funds, Hybrid Funds, Income Funds, Liquid Funds, Pension Funds, Tax-Saving Funds (ELSS); so it is important to research each of these types of funds carefully, and you come to know that which would be great fit for you.

2) How Much You Want To Save

The next step is to consider how much money you want to save over a period of time and the frequency with which you would like to make deposits. Starting a systemic investment plan (SIP) for each of the above mentioned goals would be a great idea. One can start with as little as INR 1000 per month and then increase SIP amount every passing year.

Doing so will help you determine how often a mutual fund should be rebalanced, and ultimately helps maximize returns over time.

3) Evaluating Mutual Funds

Define what factors are most important to you when evaluating mutual funds. CertainFunds may emphasize certain areas like stocks or bonds, so it’s important to understand what those priorities are before investing.

4) Be Mindful Of Fees And Expenses

Be mindful of fees and expenses when making your investment decision.

Some tracking website tools will show all fees associated with a particular mutual fund, while others only show typical fees such as purchase/redemption fees and loads (a fee charged when you buy a mutual fund). Being aware of all possible costs can help keep costs down in the long run.

5) Do Your Homework

Take the time needed to do your homework on each fund before investing, as there are many variables involved in selecting the right one for you. By doing your own research, you can make an informed choice about which funds would be adding value to your portfolio over time.

6) Ideal Investment Plan

Finally, remember that no one “ideal” investment plan exists – everyone’s situation is unique, so assessing whether taking on mutual fund risk is appropriate for you may take some time and effort up front.

But by following these simple mutual fund investment tips, setting realistic deadlines, and conducting periodic reviews of your portfolio, you’ll be on your way to building a successful mutual fund portfolio!

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

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With a bunch of schemes offered by the mutual fund houses left serious long term investors thoughtful which fund to include in their portfolio. Listed below are five such funds which helps investors to make ideal mutual fund portfolio; this is just like the basic structure of any investor’s core portfolio.

Good Read: Indian Stock Market Journey from 100 to 40000 Points

Diversified Equity Mutual Fund

If mutual funds are the best investment option for small and retail investors to invest in shares, diversified equity funds are by far the most cost-efficient. A large-cap fund with a sound track record should be part of every small investor’s core portfolio. This can be further classified into following.

Diversified equity funds invest in the stocks of the index they track and hence their returns are not very different from those of the index. But in the last 5 years, the average diversified equity fund has outperformed the broader market by 4% to 5% points. (This is the average return and some funds have also underperformed the market)

5 best-performed Diversified Equity Funds

Equity Linked Saving Scheme (ELSS) Fund

An Equity Linked Saving Scheme (ELSS) Funds serves many purposes of the investor’s portfolio. It

(1) Save tax up to 1.5 lakh under section 80C

(2) Offers exposures to equities and

(3) Provide regular income by way of dividend

The ELSS category is the tax-saving option with the shortest lock-in period of 3 years. It is the lock-in period which differentiates ELSS funds from other diversified equity funds. It likewise allows the fund manager to line the portfolio with stocks that may not reap immediate results but could be rewarded if held for a long period of time.

Must Read: Mutual Funds Investing: 4 Tips Can Make You Millionaire

Before you take the plunge, remember that you will not be able to withdraw your investment before 3 years. Also, systematic and long-term investment in well-managed ELSS fund or diversified mutual fund can create huge wealth for you. This can also be a blessing in disguise for investors who tend to withdraw too soon or get jumpy when the market turns volatile.

5 best-performed ELSS Funds

Gold Fund

Physical gold offers a great advantage to the buyer because he/she can use it even as an when its value appreciates. If the investors’ purpose is purely an investment, gold ETFs is a better option.

Gold Fund Advantages

• No making charges

• Very high liquidity

• Investors don’t have to bother about storage

• Allow investors to accumulate gold in small quantities

• Eligible for long-term capital gains if holds for 1 year and more

Short-Term Equity Fund

As the name suggests, short-term income funds are a good way to save for short and medium term goals. They are liquid (easily sold and money can be reached in bank account within a day)

Advantages of Investing in Income Funds

Higher returns compare to FDs: Income funds generally generate returns higher than fixed deposits in the long term. Do keep in mind that income funds do carry credit risk and interest rate risk whereas FDs carry negligible or zero risk.

High Liquidity: Unlike some fixed deposits, income funds do not have any lock-in period and allow investors to anytime withdraw their investment (exit loads may be imposed for redemptions in these funds from 1 to 3 years)

Tax Efficient: Income funds are tax efficient than fixed deposits, especially for those investors who fall in the income tax brackets of 30 percents.

Read: 7 Mistakes Every Small Equity Investor Often Commits

Fixed Maturity Plan (FMP)

A fixed maturity plan (FMP) is a closed-ended debt scheme that invests in corporate bonds, commercial papers (CPs), certificate of deposits (CDs), money market instruments, and bank deposits (they do not invest in equities) matching the tenure of the scheme. Same as short-term income funds, an FMP is a tax-efficient replacement for fixed deposits.

Who should invest in FMPs?

Fixed maturity plans are ideal for those investors, who need returns higher than a regular FDs but can accept the frequent NAV (price) fluctuations. Compared to equity funds, FMPs are low risk-low return investments.

Like debt fund, the profit is treated as long-term gain after one year and taxed at a lower rate of 10 percent or 20 percent after indexation. Investors can claim indexation benefit if the holding period is 2 or more financial year.

Also Read

Value Pick Stock May 2019: Sharda Cropchem Limited

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “FinBlab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post Mutual Fund Portfolio: 5 Essential Funds You Should Add appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

Mutual funds are a great tool of investing your surplus money particularly in the schemes which suit your investing needs. Read my article to know more about mutual funds.

We all save some money throughout our life to cope with unusual events or to fulfill our future needs. But, small savings instruments (money that is invested at a fixed rate) are not sufficient to accommodate the requirements. The only reason being, these savings do not provide returns on the amount deposited recurring account, postal account or in the bank FDs.

On the other hand investments in the mutual funds, by and large, brings the required money which has been invested in them. Since the inception of mutual funds, it has been very easy to invest money and build wealth. Here are some useful mutual funds investing tips that can help you to multiply your money.

1) Invest via SIP (Systematic Investment Plan)

The popularity of SIPs (Systematic Investment Plans) has gone up in the last few years. SIP is the most preferred investing method which would let you invest your money (starting as low as INR 500) at the regular time (any day of the month) for a stipulated period of time.

Why should you start SIP?

One, it imparts financial discipline to your life.

Two, SIP helps you to invest regularly without tussling with market mood, index level, etc.

Three, systematic investment will give you the cost of an averaging benefit.

Four, let you enjoy the power of compounding. When you invest over a longer period and earn profits on the profits earned by your investment, your money would start compounding. This helps you to build a strong corpus with regular small investments.

You may like this: 5 Lessons To Learn From Long Term Investors

On the flip side, if you invest a lump sum amount, then it might not be possible for you get the benefits of the bullish and bearish market scenario, and you might not be able to get the maximum yields for your investments. Hence, to maintain the sweetness of your investments, invest through monthly SIP in your selected schemes mutual fund scheme.

2) Make Long-Term Financial Goals

Various types of mutual funds exist to cater to different needs of different people. Largely, they are of three types; (1) Equity or Growth Funds, (2) Income or Bond or Fixed Income Funds, and (3) Hybrid Funds. All these schemes are specially designed to attract peoples from each and every segment to actively participate and invest in mutual funds.

The investment in mutual funds also facilitates the clients to invest in short-term schemes, but the return on investment from such a plan is not at par as compared to that of long-term investment. Financial Planners are of the view that “if a person is investing to achieve a short-term goal that needs to be achieved in a couple of years, he/she should invest in debt schemes (because when you have a short-term goal (2 to 3 years), you should not expose your investments to unnecessary risk.

On the other hand, if you have a financial goal that needs to be met after five or 10 years, you can surely bet on equity mutual fund schemes to achieve them. Equity, as an asset class, is considered ideal to meet long term goals because it has the potential to offer far better returns as compared to other asset classes over a long period.

Simply put, it is advisable that individuals must aim for investing over a longer time (10 years and more). The long-term investment will help you to bring out the maximum gains from your investments.

Read this: 7 Mistakes Every Small Investor Often Commits

3) Monitoring The Existing Investments

Though it is said that investment in mutual fund provides returns in the long run, still one should not just invest and forget. Unlike stocks which need regular monitoring, a mutual fund portfolio can be reviewed once in 6 months. Keep in mind that a timely review of the portfolio is required in order to maintain the balance of returns. Know more about how to track the performance of your mutual fund.

There are fund managers who allocate the funds wisely and ensure the returns to the clients. However, it is the responsibility of the clients to carefully spot the difference between the promised and the actual returns because it is your hard-earned money that has been deployed and not anyone else’s.

4) Eliminate The Under-Performers From Portfolio

As mentioned earlier, the clients should review their portfolio at regular intervals and discard the mutual funds which are not productive. It is essential to clean the mutual portfolio at regular intervals as the non-productive schemes will result in wastage.

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Mutual funds can help you to become a millionaire provided that you follow the rules set by your financial planner or any experts. So value the importance of your money and make the maximum use of it.

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Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I (Vishal Dalwadi) or “Finblab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

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Many a time, tax saving becomes an end in itself and individuals end up investing in anything that comes to their mind. This is the time when insurance based products and popular tax-saving options like tax-saving fixed deposits, Employees Provident Fund (EPF), National Savings Certificate (NSC), Public Provident Fund (PPF), Unit Linked Insurance Plans (ULIPs), and others are pitched as tax saving options.

The point is, if people do make sense, they should not be considered just because they want to save tax. Tax savings should just be incidental to the overall investment objective rather than it becoming a goal in itself.

If tax savings at the time of investment is combined with a good investment whose return are also tax-free, then an investor will truly be leveraging the full benefits of making such investments. Equity Linked Saving Schemes is one such option, where you can save tax in the year of investment, the investment itself is a good one and the returns are not taxable after the investment period ends. Let’s take a deep look into it.

What is ELSS Fund?

ELSS stands fro Equity Linked Saving Schemes, it is a tax saving mutual fund that is open to investing all through the year.

ELSS Advantages

Offer Shortest Maturity Period:

Maturity period (lock-in period) is the time for which you are not allowed to withdraw your investment. As compared to other alternatives available under Section 80C, ELSS has the shortest maturity period (3 years) and that’s why it has gained popularity. Even though it has the shortest lock-in period, it is always advisable to stick around for longer duration to create wealth.

Other alternatives and Maturity Period

Tax-Saving Fix Deposit = 5 Years

National Savings Certificate (NSC) = 5 Years

Public Provident Fund (PPF) = 15 Years

Post Office Time Deposit = 5 Years

Senior Citizen Saving Schemes = 5 Years

Invest in Stocks:

As compared to other alternatives, ELSS is the only product which invests around 80% to 100% of your funds into equities. Thus, in addition to the tax advantage, you can create wealth towards achievement of long-term financial goals like retirement, your kids higher education or even their marriage.

Comparison of PPF v/s ELSS over 15 years time

Offer High Return on Investment:

Going by the thumb rule, long term investment generates higher returns to beat the inflation rate. But if we do a ground research, it’s a different story altogether. Fixed-interest generating securities like PPF or NSC offer returns in the range of 7% to 8%.

Since ELSS typically invests in the equities, you can expect them to earn higher returns especially from the point of view of a long-term investor (see above chart)

ELSS Tax Advantages

Investment Deduction:

Equity Linked Saving Schemes are one of the eligible options that qualify for a deduction under section 80C of the income tax. This means that the investments made into the ELSS funds will qualify for a deduction from the taxable income of the individual. This is part of the overall limit of INR 1.5 lakhs that are available for individuals and they can make the full use of this limit in the investment.

Dividend:

The Equity Linked Saving Scheme is an equity oriented option as the entire portfolio of the fund is invested in equity shares. So, in terms of the receipt of the earning on the fund the dividend that is actually received is TAX-FREE in the hands of the investor. There is also no dividend distribution tax that will be levied on the fund at the time of the payment of the dividend.

Capital Gains:

The other route in which the investor will actually gain from the investment is through capital gains on the amount invested. This happens when the investor get an appreciation in the value due to the rise in the NAV (net asset value) of the fund. Since there is a 3-year lock-in on the fund there cannot be a short-term capital gain earned on the investments.

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

The post Equity Linked Saving Schemes: Tax Benefits With Mutual Funds appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

Reacting To Short-Term Returns –

Towards the end of the financial year or at the beginning of the New Year, investors tend to churn their mutual fund What they generally do is – sell the fund with the negative one year returns and buy the one with the latest best returns. Though it makes them feel better, what they won’t see is that they are selling low and buying high. It is better to buy or hold funds with lagging short-term returns / performance than those with top-quartile returns.

Accumulating Too Many Niche Funds –

Specialist funds, thematic funds or niche funds are exciting to buy, but they will damage your portfolio if you let them go. Thematic funds add extra volatility and make it difficult for you to manage your mutual funds portfolio. Be sure to diversify between market caps, equity and debt, and maybe even some amount of foreign exposure.

Making Things Complex –

The financial industry works day and night to sell the message that investing is complicated, messy stuff that you couldn’t possibly undertake on your own. Actually, buying and holding a portfolio composed of plain-vanilla funds (diversified fund) is more than adequate to reach your financial goals. That’s also the kind of portfolio that you can easily manage yourself.

Failing To Rebalance Portfolio –

When the markets really move, your portfolio can go off-kilter and mess up your nicely laid plan. Rebalance yearly so that you’ll be buying low and selling high.

Failing To Factor Taxes Into Portfolio Decisions –

Taxes play a vital role in your long-term success. But don’t buy ELSS (equity linked savings scheme) funds in a last minute to save taxes. Tax planning must be an integral part of your portfolio planning, so ensure that you sell your units in a way to minimize or avoid tax.

Worrying About Daily Ups And Downs –

Don’t get stressed tracking the market on the web or watching business TV channels. Those activities are informative and exciting but not always helpful if you are long-term investors. All those ups and downs in the markets have no bearing on your long-term financial goals. Warren Buffett, top investor on the earth, advocates buying stocks only you wouldn’t care if the stock market took a two-year holiday. The same applies to mutual funds as well. Buy them and tune out the noise.

The post 6 Mistakes to Avoid When Building Mutual Fund Portfolio appeared first on Upcoming ipos: Latest news on stocks, economy & finance.

Whether it is active investors or passive investors – the security of money, they have invested, is very important to both of them. Snazzy equity market hardly appeals to all, because of its inherent high risk. On the other hand, investing in mutual funds can be a safe option to invest your hard earned money, that too with a satisfactory return. THERE ARE MUTUAL FUNDS THAT HAVE GIVEN OVER 20% ANNUALIZED RETURN IN THE LAST 10 YEARS – SIMPLY DOUBLE YOUR MONEY IN 5 YEARS! IMPRESSIVE – RIGHT!

After reading this you probably start thinking how to find mutual fund schemes that can double your money much faster than other available alternatives. Let me tell you that (1) Past performance, (2) volatility measure, (3) expense ratio, (4) track record of the portfolio manager, and (5) risk-adjusted return, etc. are but some of the primary things to consider before selecting a mutual fund. Let’s check then one by one in order to help you select a top performing mutual fund scheme.

• The Pedigree Of The Fund House – Subscribe to a mutual fund scheme launched by the fund houses that have a sustainable business model and a strong presence in the market. The reason behind doing is that their investment decision, risk measure, building portfolio, and operational efficiency significantly influence the long run growth prospect of a mutual fund scheme.

• Risk-Return Trade-Off – Every investment has some degree of inherent risk. A scheme is not an exception either; ideally, the return should justify the risk taken. A good investment option is the one that has a higher yield than other investment options with the same risk profile. Risk-adjusted return is the best measure of judging the performance. One may use Sharpe ratio to find out an extra return that a scheme generates for each unit of risk taken. The return of a fund is generally compared against the risk-free return e.g. returns from bank term deposit, government bonds, etc.

• Diversification – Well-diversified mutual fund portfolio schemes have a lower risk and thus they manage to produce a steady return over the long haul. Diversification is generally done on the basis of (1) asset class, (2) the risk profile of asset, (3) types of stocks, (4) geographies, etc. Before investing in any particular scheme, one must cross check the portfolio history of a scheme.

• Expense Ratio – Expense ratio refers to the annual expenses incurred by the mutual fund scheme as a percentage of its total asset holding. In the long haul, the schemes having a lower expense ratio are more likely to grow and outperform others with a higher expense ratio. Schemes with low expense ratio have more funds to invest in assets. By and large, the expense ratio of various schemes ranges from 2% to 2.25%.

Before picking top-performing mutual funds, one should gather all sorts of data and information about these four vital parameters to analyze the performance, and then choose the best fund to invest.

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Everyone is aware that only money has the power of creating monies. Hence, the savings that we owe are the sources of reaching the financial goals and SIP – Systematic Investment Plan is the route for the same.

What is SIP – Systematic Investment Plan?

SIP stands for the Systematic Investment Plan, is a smart way of investing in the Mutual Fund. With systematic investment plans, the investor gets a chance to purchase units as per the decided date that is given every month so as to go ahead with a certain investment plan.

SIP – Advantages to the Investors

• Investor Can Start With A Small Amount: One can start putting his/her money into Mutual Funds with just INR 1000, via SIP, which does not cause huge burden.
• Periodic Remittance: As per the nature of SIP and its functioning, it requires the amount to be payable on a periodic basis say monthly and thus, helps the investor to plan his/her monthly expenditure.
• Auto Debit Facility: Once the investor is enrolled with the AMC (Asset Management Company) to invest in the SIP, he/she associates his/her bank account with the same and the amount of investment is debited from there accordingly, in a hassle-free manner.
• The Power of Compounding: When we make an investment, we receive the interest on the invested amount on some specific rate. It may be either (1) a simple interest rate or (2) a compound interest rate. In Systematic Investment Plan, investors fetch the return on the compound basis. For example, you invest INR 10000 @ 10% simple interest for 5 years. At the maturity date, you will receive an amount equal to INR 15000 (10000 Invested amount + 5000 Interest). While, in the case of compounded interest rate, the maturity amount will be INR 16105 (10000 Invested amount + 6105 Interest). Accordingly, Systematic Investment Plan is more beneficial to the investor.
• Rupee-Cost Averaging: Every scheme under the Systematic Investment Plan has a NAV (Net Asset Value), which is basically the unit price of that scheme, on the basis of which the units are allotted to the investor. Lower NAV means more units and vice versa. As the NAV of the scheme changing on a daily basis, every time the money of the investor is put into the plan, he/she gets a different number of units every time. Thus, the average cost of investment reduces. Hence, the investment in SIP is low-cost in comparison with others.

SIP – Also Provides the Following Benefits

• Convenience
• Diversification
• Flexibility
• Tax Savings
• Wide Selection

How SIP Benefit As Compared To One Time Lump-Sum Investment

• Let’s take an example of 6 months SIP investment only. Investor one invests INR 6,000 in a single/lump-sum investment at NAV value of 10 (600 Units), while investor two invests in SIP of INR 1,000 every month, where he gets a different value of NAV (such as 10, 11, 9, 8, 8, 11) every month. So the investor two will get average NAV (10 + 11 + 9 + 8 + 8 + 11)/6 = 9.5 (631.579 Units).
• Now at the end of the six months, both investors redeem their money at NAV of 11. In this case, Investor one will get INR 6600, while investor two will get 6947 (347 more than investor one).

Above example is only for 6 months SIP investment, while for a longer period of investment says 15 or 20 years, the return will be huge as compared to the lump sum investment. This is the power of SIP.

If you are really interested into investments via Mutual Funds you can think about systematic investment plans. With such an investment you can manage your investment amount rather than be caught up with the ups and downs in the markets.

Disclaimer: The contents and data presented here are just for your information & personal use only. While much effort is made to provide the information, I ( Vishal Dalwadi ) or “Fin Blab” do not guarantee the accuracy, correctness, completeness or reliability of any information or data displayed herein and shall not be held responsible.

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It is fact that investing is something that requires time and knowledge to get involved in. This is the reason why investing in mutual funds has become such a popular way of investing these days. Let us get deep into this.

What is Mutual Fund?

A mutual fund is a trust that collects the money from a number of individuals and invests this money either in equity shares, bonds, money-market securities, government securities or in a combination of all these.

A mutual fund is the most suitable investment option for the general public as it offers an opportunity to invest in a diversified and professionally managed basket of securities at a relatively lower cost.

Investing in mutual funds is very much easy as compared to investing in stock and bonds on your own and investor can easily sell their units (shares) whenever they want.

Regulatory Authorities

To protect the interest of the investors, SEBI (Securities and Exchange Board of India) formulates policies and regulates the mutual funds in India.

Structure of Mutual fund

• Sponsor – Sponsor is the person who single-handedly or in a relationship with another person (corporate body), set up a mutual fund. The sponsor is not liable or responsible for any loss coming out because of the operation of the schemes.
• Trust – The mutual fund is formed as a trust in accordance with the provisions of the Indian Trusts Act, 1882. The trust title deed is registered under the Indian Registration Act, 1908.
• Trustee – Trustee is generally a company (corporate body) or a Board of Trustees ( a group of people). The fundamental job of the trustee is to protect the interest of the unit holders and also to ensure that the AMC (Asset Management Company) works in light of a legitimate concern of investors and as per the SEBI (Mutual Funds) Regulations, 1996.
• Asset Management Company (AMC) – The trustee assigns the AMC. The Asset Management Company is needed to be affirmed by the SEBI to work as an asset management company of the Mutual fund. The AMC must have total assets of at least Rs. 1000 lakhs at all circumstances.
• Custodian – A trust company, financial institution or a bank listed with SEBI is liable for holding and protecting the securities owned by the mutual fund.
• Registrar and Transfer Agent – The AMC, if so approved by the trust deed, chooses the registrar and transfer agent of the mutual fund. The registrar processes the application form, dispatches account statements and processes redemption requests of the investor.

Different Types of Mutual Funds

1) By Structure:

• Open-Ended Schemes – Open-ended schemes are mutual funds that can issue and redeem their units at any time. Open-ended funds don’t have a limitation on the amount of units the fund will issue. They offer units for sale without stating any duration for redemption.
• Close-Ended Schemes – Close-ended schemes are mutual funds with a fixed number of units. Close-ended funds raise a certain amount through a New Fund Offer (NFO).

2) By Investment Objectives:

Benefits of Investing In a Mutual Fund

• Professional Management – Qualified people manage your money. Apart from that, they also have a research team that continuously analyses the prospects and performance of the companies. These people (also known as fund managers) are in a better position to manage your money and deliver higher returns.
• Diversification – Mutual funds habitually spread investments across various asset classes. Thus, by investing in mutual funds, investors can avail the benefits of diversification without investing a large amount of money.
• Well Regulated – Mutual funds in India are monitored and regulated by the SEBI, which endeavors to protect the interests of investors. Mutual funds ought to present their investors with useful data about their investments as well as disclosures like various investments made by the fund and the proportion of investment in each asset classes.
• Flexibility – Mutual funds offer a variety of plans, like (1) regular investment, (2) regular withdrawal and (3) dividend reinvestment plans.
• Transparency – The performance of a mutual fund is regularly tracked by rating agencies and various publications, making it easy for investors to compare the fund with other. As a unit holder, you are provided with regular updates, for example, daily NAVs, as well as information on the fund’s holdings and the fund manager’s strategy.
• Rupee-Cost Averaging – You can invest a specific amount at a regular interval regardless of the fund’s unit price. Rupee-cost averaging allows you to discipline yourself by investing every month or quarter rather than making random investments.
• Tax benefits – Investments held by investors for a period of 1 year or more qualify for capital gains and will be taxed accordingly. These investments also get the benefit of indexation.

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