All equity mutual fund categories have offered negative average returns in the last one month. These categories lost between 0.82% to 12.42% in the mentioned period. There were 22 equity mutual fund categories including sectoral and thematic funds in the said period.
It's true that Debt Funds are less risky compared to Equity Funds but that doesn't mean Debt Funds guarantee that your money will never face any loss. Debt funds invest in debt and money market securities that are prone to different kind of risk factors as compared to equity funds that invest in stock market.
Equity mutual funds have delivered impressive returns over the past year, with every category averaging more than 20%. PSU theme-based funds led the pack, offering up to 93.73% returns. Infrastructure, pharma, mid-cap, and small-cap funds also performed well.
The liquid funds can go down in value. However, the likelihood of them going down in value is not that often, owing to the stringent regulations. But, if at all that happens, the magnitude of that fall could be very nominal and can recover in seven-eight days.
Can debt funds give negative returns? Debt funds can experience negative returns due to interest rate fluctuations. Funds with longer maturities are particularly susceptible to interest rate risks.
If your liabilities are greater than your assets, you have a "negative" net worth. If you have a negative net worth, it's probably not the right time to start investing. You should re-evaluate your finances and determine how you can decrease liabilities—for example, by reducing your credit card debt.
Test Rules
To maintain its RIC status, the RIC must pass this diversification test: No issuer can be more than 25% of the fund's total assets. Positions exceeding 5% cannot in aggregate exceed 50% of the fund's total assets.
Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore). According to the compounding principle, if we implement these very same returns and contributions for another 15 years, the amount we accumulate grows enormously.
For instance, saving Rs 5,000 monthly in an equity mutual fund, assuming a growth rate of 12 percent, can result in approximately Rs 50 lakh after 20 years. Of this total, Rs 12 lakh will be your initial investment, while the remainder will be the profit generated.
Looking at the current economic landscape, you can see why now is a good time to invest in debt funds. Potentially, interest rates are stabilising, the risk-return balance is improving, and bond prices seem favourable.
Is Debt Financing or Equity Financing Riskier? It depends. Debt financing can be riskier if you are not profitable, as there will be loan pressure from your lenders. However, equity financing can be risky if your investors expect you to turn a healthy profit, which they often do.
Overnight Funds
These overnight instruments are backed by collateral which comprises of Government Securities, and so these funds also have no credit risk. These are the safest debt funds but their yield is usually also the lowest. Overnight funds are suitable for parking your funds for a few days.
So, such things can happen but your investments can't fall to zero. Turning to zero generally happens when you gave your money to somebody and he/she took out all the money from the bank and put it in a gunny bag and walked away. Now, this cannot happen in a mutual fund.
The rate of return is negative when an investor puts money into an asset that drops in value to a point below the amount paid by that investor.
Each scheme and individual plan(s) under the schemes should have a minimum of 20 investors and no single investor should account for more than 25% of the corpus of the scheme/plan(s).
15x15x30 rule in mutual funds is strategy to invest Rs 15,000 per month for 30 years in a fund that offers a 15% annual return. According to some experts, this strategy can help an investor accumulate Rs 10 crore over 30 years, compared to Rs 1 crore if they invested for 15 years.
Around seven equity mutual funds have delivered more than 20% returns in the last five years based on daily rolling returns, as shown by performance analysis. Around 187 equity mutual funds have completed five years in the market.
What is 15-15-15 Rule? The rule says to achieve the goal of earning Rs 1 crore, an investor should invest Rs 15,000 monthly through SIP for 15 years, considering a 15% annual return from an equity fund. Consistent adherence to this strategy can lead to significant wealth accumulation.
The 2023 names rule as amended, like the original 2001 names rule, requires a fund whose name suggests a focus in a particular type of investment, or in investments in a particular industry or geographic focus, to adopt a policy to invest at least 80% of the value of its assets in the type of investment, or in ...
By the time you're 25, you probably have accrued at least a few years in the workforce, so you may be starting to think seriously about saving money. But saving might still be a challenge if you're earning an entry-level salary or you have significant student loan debt. By age 25, you should have saved about $20,000.
The 50% rule or 50 rule in real estate says that half of the gross income generated by a rental property should be allocated to operating expenses when determining profitability. The rule is designed to help investors avoid the mistake of underestimating expenses and overestimating profits.
Elon Musk is the wealthiest person in the world, with an estimated net worth of US$426 billion as of January 2025, according to the Bloomberg Billionaires Index, and $416 billion according to Forbes, primarily from his ownership stakes in Tesla, Inc. and SpaceX.
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In 2024, Americans stated that the average net worth they consider “wealthy” is $2.5 million.
Typically, you do not include real estate or retirement savings when calculating liquid net worth as these can't be cashed in on the spot if that was your goal.