QUOTE OF THE WEEK:
"Central banker can never be comfortable; we tried to balance between inflation and growth. The moment we find a right mix, currency will take care of itself" - Raghuram Rajan, Governor, Reserve Bank of India
YOUR FINANCE DEMYSTIFIED:
What is mutual fund benchmark & its importance
While investing in mutual funds or any other financial products, we seek opinion from our relatives or friends and then invest. Hardly do we understand the importance of making informed decisions. Most of us do not understand the significance of using a benchmark for the purpose of effective comparison. Capital market regulator SEBI (Securities and Exchange Board of India) has made it mandatory for fund houses to declare a benchmark index.
Benchmark returns will give you a standard by which to make the comparison. It basically indicates what the fund has earned against what it should have earned. One can say that the benchmark’s returns are the MF schemes target and the scheme is expected to have done well if it manages to beat its benchmark... Read more
What does your MF account statement include?
When we receive our mutual fund account statement, most of us hardly understand anything about the statement. We just briefly go through it and keep it aside on our table or store it in one of our folders. Some of us check if our names are mentioned clearly on the account statement. This is the maximum which we do while reading the statement. The MF statement includes terms like NAV (net asset value), load, folio number, etc. We hardly bother to verify these details.
Basically a MF account statement offers all transaction details carried out within a defined time period. The statement is also available online and indicates account changes whenever there is a redemption, additional investment or dividend declaration. Let’s understand some of the important details in the MF statement, which we need to check regularly... Read more
DID YOU KNOW?
Trigger facility in mutual funds
The trigger option provided by various asset management companies (AMCs) ensures that investors are able to complete the sale or redemption of their mutual fund units smoothly and without any disruption.
The trigger facility helps investors not to miss an opportunity and make the most of market movements without the hassle of constant tracking... Read more
TERM OF THE WEEK
Asset allocation refers to a strategy of diversifying the risk associated with a fund and refers to the distribution of total funds available with the fund into various asset classes such as stocks, bonds etc. based on the funds investment objective.
IN THE NEWS THIS WEEK
RBI examining legal, security aspects of virtual currencies: FM
DIPP allows 26% cap for FDI, FII, NRI investment in insurance
IRDA forms panel to review recommendations of FSLRC
FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.
In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.
Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.
This portal is but one of the various IIFL initiatives that would be part of FLAME.