A record 1.2 million new investors entered mutual funds in July, the highest level since December 2021.
In July, 1.2 million new investors entered mutual funds, the highest number since December 2021. They need to invest in such a way that they are not disadvantaged from the very beginning of their journey to wealth creation. Which funds should they start with and how should they allocate their investments across asset classes? Read the Main article by Sanjay Kumar Singh and Karthik Jerome to understand how new investors should start their investment journey.
Namrata Kohli’s second article explores the diverse cuisines of South India, beyond idli-dosa. deepen Learn about the five distinct culinary styles of Tamil Nadu, Kerala, Telangana, Karnataka and Andhra Pradesh. Discover the unique characteristics that define each of these South Indian culinary traditions.
Mid-cap funds are a good option for those with an investment horizon of 10 years or more. These funds invest at least 65 percent of their total assets in mid-cap stocks. A fund that can consider is SBI Magnum Midcap Fund, which was analyzed by Morningstar this week.
If you are looking for a personal loan, check Paisabazaar.com table to compare interest rates, processing fees and other details.
NUMBER OF THE WEEK
47% of fixed-term deposits are held by senior citizens
According to an SBI report, 47 per cent of fixed deposits are held by senior citizens, implying that youngsters are increasingly moving away from traditional instruments like bank deposits.
Older people prefer the safety and stable returns of bank deposits. Younger people are opting for direct investment in stocks and equity mutual funds, which are riskier but have the potential to offer higher returns in the long run.
Financial planners suggest that after retirement, a senior citizen’s portfolio should be divided into two parts. One part should generate the cash required to meet household expenses and this part of the portfolio should be invested in instruments such as fixed deposits, annuities and senior citizen savings schemes – instruments that have the capacity to generate stable cash flows at predetermined intervals.
The remaining portion of the capital should remain in equities. As life expectancy increases, retirees will need a larger capital to meet their post-retirement expenses. This will only be possible if a portion of their retirement portfolio is in equities and continues to generate high returns.
First published: August 23, 2024 | 7:33 a.m. IS
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