A nice education initiative by Zerodha to create awareness amongst common masses. Firstly, their innovative discount broking model loaded with a bulk pf products and unique features. And, then their easy ways to educate people about investing and trading. Quite impressive!!
Posts made by Ishu
RE: What is Zerodha Varsity: Review, App for Simplified Investing
RE: What is the most reliable and safest way to build wealth?
@invest19 Very rightly said! But, investing in stocks may not be the best option for all. A lot of risk is involved in direct stock market investing. So, one needs to be cautious and act wisely. What about people who don't wish to take any risk and don't want to put their hands in the dynamic stock market?
RE: What is an IPO or Initial Public Offering?
@DhruvShukla Hi, I also read that huge number of people who had applied for IRCTC IPO waited for their refund to be processed. I think you should contact Alankit, the official registrar of IRCTC. There are various modes to contact them, you can send an email, log into their site or contact them via phone.
For UPI payment gateway option, you can directly call at their helpline number to share your queries.
RE: Fincash Review: How to login and invest in SIP in Mutual funds?
@Anmol Hi, Fincash is a yet another online investing platform that was started in 2016 or you can call it a fintech startup. Having raised funding, it has grown fast to give tough competition to other market players.
I know, there are so many investment platforms these days, one is likely to get confused which one to select.
Briefing you, Fincash is a Mutual fund investment platform that offers simple solutions to your investing needs (as their site says).
Fincash: Key Products
The following are its main attractions:
- Tax Savers
- New Fund Offers
What I like is, they allow you to practice
- Smart Investment: Funds are selected by industry specialists.
- DIY approach: You can explore and choose funds yourself.
Although, its SIP plan sounds attractive, but no one can guarantee high returns in mutual funds. The returns are influenced by market fluctuations.
However, the investing platform looks easy to use and suggests you solutions based on your long term goals.
PPF Calculator: Calculate Maturity & Interest for your PPF Account
You might have read about online PPF calculators available. Do you know what it is and how does it work? PPF calculator refers to the simple calculator that determines interest earned on your investment in PPF account. The basic idea behind PPF calculator is compounding the interest on your investment.
Although, you can exercise this method manually when you have to calculate interest for one year. But, when it comes down to fifteen or ten years, the calculations can be messier. So, to save you from hassle, dozens of online calculators are available for PPF calculation.
What Is Public Provident Fund Account?
In simple words, Public Provident Fund is the saving scheme that helps income class to build the retirement corpus. With this scheme, you can invest your savings for fixed period and will earn the significant amount of interest. For quarter Jul-Sep'19 the PPF interest rate is 7.9% only. That is reasonable!
As mentioned in starting, the Government of India introduced this scheme for encouraging investments amongst different income groups. So, this account can be opened with a low and affordable amount of deposit.
The second attraction to this scheme is the tax benefits. The interest earned is completely tax-free. And, this scheme is backed by the government, so comes with security. No doubt, why PPF is so popular in India!
How to open PPF Account?
PPF is easily accessible. You will face no problem while registering for the account. To open a new account, you have to visit the authorized bank or post office. Simply, get the form, fill it and submit with required documents.
Why Should You Choose PPF Scheme?
Some people don't opt for PPF scheme because they don't know its features and benefits. For your convenience, I have outlined some of them as follows:
PPF Account: Key Features
1. Interest Rate
The Indian Government set the interest rate for PPF periodically, usually annually. You earn interest on investment per annum, and it will compound automatically. The interest rate for quarter Jul-Sep'19 was 7.9% that is pretty good!
To avail the benefits of PPF, you need to keep the account active for fifteen years. It means you need to invest in this account per year for fifteen years. After maturity, you can invest for further five years.
3. Initial Deposit
You can open the account with Rs. 100.
4. Minimum/Maximum Annual Deposit
To keep the account active, you have to make a deposit every year. The minimum amount is Rs. 500 and the maximum are Rs. 1.5 lacs per years. You can make deposits with a cheque, cash, PO, online funds transfer and DD, etc.
Withdrawal is allowed after maturity. Well, premature withdrawal can be made, but on certain conditions and after seven years from opening date. Otherwise, premature withdrawal is not possible!
6. Tax Advantages
The tax rebate is the main attraction of PPF. The interest earned is completely tax-free.
How To Calculate The Interest Using PPF Calculator?
Calculation of PPF interest is not difficult. So, what is the exact algorithm of PPF calculator?
As mentioned earlier, the interest will be compounded annually.
For instance, you have made the initial investment of Rs. 1.5 lac. So, you will calculate the interest on Rs. 1.5 lacs at the rate of 7.9% only. Pretty easy right! Now, we have to compound it. Next year, you will make an investment of Rs. 1.5 lacs again. Now, the rate will be applied to the sum of previous year's balance including interest earned and current year's balance. And this process will be continued for fifteen years.
Don't indulge in this hassle. Dozens of online calculators are available. Just Google it and calculate the interest for any amount of deposit.
Wish to learn more about it, here's a complete guide to PPF.
Which PPF Calculator have you tried? Do share your feedback.
RE: Best Intraday Tips App for Indian Stock Market
@ishaantsingh013 Hi Ishaant, You seemed to have done a lot of research on Intraday trading and related apps. There's another good one "StockEdge" App also. One of the popular Stock market analytics app in India. I like this personally.
You can get regular updates, technical & fundamental analytics through this stock trading app.
RE: What is full form of ELSS? Meaning
@DhruvShukla Well said! But, don't you think the introduction of Capital gain tax on Equity funds has somehow affected the popularity and charm of ELSS? It used to be a great tax saver option earlier. For claiming Tax deduction under section 80C we have other investing options.
ELSS used to outshine the rest of investing options due to its tax free nature previously. This is not so now. What do you think?
RE: Groww Review: Invest in Mutual Funds through Groww App
@Smart2Investor @Tarun @Sandra @ashish001 @GURUMOORTHI-G Have you read Groww wealth investment platform has raised another round of funding: Series B funding. https://yourstory.com/2019/09/funding-fintech-groww-ribbit-capital-sequoia-india-y-combinator
Wow!! I mean this can really make the company lead ahead of other similar players and competitors. The Groww paltform already has around 2.5 million users. I wonder at what robust pace it will groww now
What do you think? Waiting to hear your opinions.
RE: List of Stock Exchanges in India: How many are there?
@Tarun Thanks buddy! May be I added an old one in my list. But, yes now it's updated with the list of stock exchanges that are currently active in India.
Which are the Best Index Funds in India? Top Performing List
You might have read about index funds. I like researching on different type of mutual funds. So, here I thought to compile a list of Best Index funds in India. Some of the Top Performing Index funds, the investor's choice.
What is an Index?
Ever determined how Index gains or loose points. It all depends on the composition of Index.
An index is a composition of stocks with large market capitalisation. Change in the price and weightage of the stocks included in the index moves the points. With the change in market capitalisation of stocks, weightage of stock in the index is determined.
So, we will hear different investors sharing views on the Best Index Funds in India.
What are Index Funds?
In the same way, Index Funds are designed, in which portfolio of the fund is replicated of the tracking index with the same number and weight age of stocks. In India, Index funds are not so popular among investors due to its awareness and less returns in short term than other equity funds.
An investment into Index Funds is ideally done for long term investing. These funds are less volatile and a good alternative for risk-averse investors in equity mutual funds.
Index Funds: Things to know before investing
- Index funds are passively managed funds meaning, the fund manager has no role in the selection of stocks and its performance.
- These mutual funds have low expense ratio than other equity funds. This is because of the limited role of manager and less transaction cost.
- Index funds are diversified in nature. As the index represent companies of different sectors, index funds also replicate the same composition.
- The main factor in index funds is Tracking error. Simply stating, tracking error is the variation in return against the index they track. It happens due to inflow/outflow of funds, corporate actions, change in index constituents. Lower tracking error implies better management of the fund.
Best Index Funds in India: Top Performing List 2019
- UTI Nifty Index Fund
- Reliance Index Fund - Sensex Plan
- LIC MF Index Fund - Sensex Plan
- ICICI Pru Nifty Index Fund
- Franklin India Index Fund -NSE Nifty Plan
- SBI Nifty Index Fund
- IDBI Nifty Index Fund
- Reliance Index Fund - Nifty Plan
- LIC MF Index Fund - Nifty
- HDFC Index Fund- Nifty Plan
- HDFC Index Fund - Sensex plan
Note: This is just a random list (not in any sequential order) based on my personal observations.
Details of the some of the Index funds are:
UTI Nifty Index Fund
UTI Nifty funds invest in securities of companies comprising of the Nifty 50 in the same weight age as they have in Nifty 50. The fund strives to minimise performance difference with Nifty 50 by keeping the tracking error to the minimum. The fund has been launched in March 2000, has well captured the rise of Nifty from 1400 level to now of 9200. The fund has given a annualised return 10.92% since inception.
Franklin India Index Fund - NSE Nifty Plan
The fund's objective is to invest in companies whose securities are included in the Nifty and subject to tracking errors, endeavouring to attain results commensurate with Nifty 50 Index under NSE Nifty Plan, and to provide returns that, before expenses, closely correspond to the total return of common stocks as represented by the S&P BSE Sensex under S&P BSE Sensex Plan. The investment in the fund is a moderately high risk.
SBI Nifty Index Fund
The fund invests in all the stocks comprising Nifty 50 Index in the same proportion as their weight age in the index. The fund launched in Feb 2002 has given a good return since inception. The fund has been able to keep the fund's tracking error low. It is moderately high-risk fund.
ICICI Prudential Nifty Index Fund
The scheme aims to closely track the performance of Nifty 50 Index by investing in almost all the stocks and in approximately the same weight age that they represent in the index. The fund is suitable for long-term wealth creation by replicating the S&P CNX Nifty index. The fund has been launched in Feb 2002 and has given good return since then.
IDBI Nifty Index Fund
The fund's objective is to invest in the stocks comprising the Nifty 50 Index in the same weights as these stocks represented in the index with the intent to replicate the performance of the Total Returns Index of S&P CNX Nifty. The fund is relatively new, launched in June 2015. The fund's tracking error is marginally high and has underperformed the index.
HDFC Index Fund - Nifty Plan
The scheme aims to generate returns that are commensurate with the performance of Nifty 50, subject to tracking errors. The fund offers only Growth option for investment in the fund. The annualized return of the fund since inception (July 2002) is quite impressive.
Reliance Index Fund - Nifty Plan
The objective of the scheme is to replicate the composition of the NIFTY, with a view to generate returns that are commensurate with the performance of the NIFTY, subject to tracking errors. The fund is consistent with a return since inception.
HDFC Index Fund - Sensex Plan
The objective of the scheme is to generate returns that are commensurate with the performance of S&P BSE Sensex, subject to tracking errors. The fund has AUM of Rs. 105 crore and was launched in July 2002, has given a annualized high return since inception.
This list of funds is arrived after comparing different funds from the same category. Only those funds are selected which have less tracking error and has performed consistently.
Best Index Funds: Conclusion
Investing in index funds is ideally best for the long term period of more than 5 years. As historical data shows, the returns of funds since inception which are more than 10 years have successfully given double digit return to investors and is par to returns of many actively managed equity funds.
The low cost, easy to track fund design are some of the unique features of and index fund. Due to less awareness among the public regarding Index Funds, the asset size remains small in most of the fund.
This post is for information purpose only. It should not be constituted as a professional advice in any regard. Investors are requested to do their own due diligence before investing into any of the above mentioned funds.
Do you wish to add any other popular and best performing Index funds? Feel free to add your opinions thereon.