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Showing posts with the label Tax Benefits

What Is Open-Ended Mutual Fund?

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An open-end mutual fund issues a total number of shares that investors want to buy. It also buys shares back from investors. On the other hand, closed-end funds limit the number of shares that it issues. It also doesn’t allow you to buy back shares. As per Savepro , a financial advisor, the total value of an open-end share is equal to the net asset value (NAV). The NAV is calculated by decreasing the liabilities from the fund’s total asset value and then dividing the amount from total shares outstanding. Also, Savepro suggests investors choose open-ended funds over close-ended funds. This is because of varied reasons. Firstly, open-end funds offer investors to meet their investment objectives, such as investing in small and large-cap companies or investing for growth, etc. Secondly, it helps investors build a diversified portfolio. Third, the fund is closed to new investors if the asset value of the funds becomes too large for its objectives. Lastly, open-end funds are not old...

WHICH OPTION IS BETTER MUTUAL FUND OR PPF?

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Public Provident Fund  When it comes to investing money, we are drenched in a pool of options. Many of these are successful in ticking off almost all the conditions such as high returns, low risk, feasibility in the liquidity of portfolio, and tax saving. A mutual fund is said to be the ideal investment option in the current scenario. To make the picture more transparent, we at Savepro  are going to compare mutual fund investment with other investment avenue– PPF. Mutual Fund  I.MUTUAL FUNDS VS. PUBLIC PROVIDENT FUND (PPF) PPF is a savings scheme which accumulates savings and provides a reasonable interest rate along with tax benefits. Mutual funds, on the contrary, are offered by asset management companies and designed to cater to the needs of the investor based upon his risk taking capacity. They try to invest the corpus of the fund in stocks, bonds, government securities, and money market instruments to accomplish investor’s fin...