NFO in Mutual Funds and their importance
NFO is an acronym for New Fund Offer. An Asset Management Company (AMC) may launch a new Mutual Fund scheme offering subscriptions to the public. Such a new mutual fund offer is known as NFO. The AMC issues NFO shares to raise capital for purchasing securities. As per SEBI regulations, a new fund offering can…
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Your Guide to Mutual Funds: 15 Schemes Explained
Every major Mutual Fund Organization (MFO) in India has introduced at least a dozen schemes. These schemes are initiated and offered to the public, targeting different investor groups. You have a choice of selecting a suitable scheme. Mutual Fund products can be classified based on their underlying portfolio composition such as the asset class the…
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Tax setback for debt mutual funds: What investors can do now?
On Friday, the government amended the mutual fund rules in Finance Bill 2023, wherein debt mutual fund investors will no longer receive a tax benefit on long-term capital gains after April 1. The change in the tax treatment on debt mutual funds comes into effect after the Lok Sabha passed the Finance Bill 2023 on…
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Why arbitrage funds rank high when it comes to safety?
Who can assure you of the guaranteed return on your investment in the equity market? Undisputable, no expert investor in the equity market can guarantee that you will make a profit from every transaction you enter into. Therefore, those investors who do not want to take the risk go for investing in arbitrage funds which…
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Franklin fallout: RBI Announces ₹ 50,000 crore Special Liquidity Facility for Mutual Funds (SLF-MF)
Today (April 27, 2020) Reserve Bank of India announced ₹50,000 crores of special liquidity facility for mutual funds. This was in view of liquidity constraints faced by the Mutual Funds intensified in the wake of large redemptions and high exposure to low-rated illiquid debt securities. The move follows in a bid to support mutual funds…
What is Equity-Linked Savings Scheme (ELSS)?
Equity-Linked Savings Scheme (ELSS) funds are the most preferred tax saving instruments in the current year. The investment in the scheme offers you income tax rebate u/s 80 (C ) of IT act to the maximum limit of Rs. 150000.00 in a financial year with the shortest lock-in period of 3 years. TAX rule (EEE): Investment…
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