The 114 rule, like its counterpart the 100-age rule, revolves around the concept of balancing risk and reward based on an individual\’s age. However, it takes a slightly different approach by factoring in increasing life expectancies and the desire for continued growth in retirement. The rule suggests subtracting your age from 114 to determine the […]
Systematic Investment Plan Systematic investment Plan (SIP) is an investment route wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals – say such as once a month, once a quarter, weekly, fortnightly, or daily basis instead of making a lump-sum investment. Ways in which SIP can be requested. SIP
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Switching of funds means moving the investment from one scheme to another scheme. Investor can switch between two different schemes, plans, and option i.e., money is taken out of scheme / plan / option A (redemption) and invested in scheme / plan / option B (purchase). This way a switch, results in two transactions a
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Redemption is a process wherein an investor sells the units back to the mutual fund. Types of redemption: Full redemption Partial redemption Redemption can be submitted along with change of bank; however, the payout will be processed with cooling period of 10 days. In case investors confirms the redemption has been submitted with change of
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Types of purchase: Lumpsum: Investing lumpsum in mutual fund, it means investing a single, bulk amount into a one-time mutual fund investment. This is as opposed to spreading it out over time, like in SIP (Systematic Investment Plans) Additional purchase: It is simply a way to which you can add funds in your current mutual
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Physical KYC Documents required: Indian Address proof: Aadhaar- first 8 digits must be masked on copy and form. Aadhaar submitted as proof are subject to validation if the validation is done, then it will show as \”KYC validated\”. Only after that, transaction can be processed. If it is not validated, then transaction will be rejected.
NPO (Non-Profit Organisation) Reference to PML (Provision of Money-Laundering) Amendment dated Mar 07,2023, if the Trust, Society or companies as defined in amendment is an NPO, then it must get itself registered in the DARPAN Portal of NITI Aayog https://ngodarpan.gov.in . This has been made mandatory as per PML amendment dated March 07, 2023, requiring
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Validation of KYC SEBI has mandated that KYC records of all existing client (who have used Aadhaar or other OVD (Officially Valid Document)) shall be validated. KYC records where Aadhaar has been used as OVD at the time of initial KYC- KRAs have sent email with a link to validate the Aadhaar. For investors without
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PAN Aadhaar linking It is mandatory to link Aadhaar with PAN for the PAN’s with KYC status as resident individual. In case Aadhaar is not linked with PAN, the PAN will become inoperative. Accordingly, folios linked with such PAN are restricted for transactions. For NRIs, tax status should be first updated in the income tax
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Direct Equity Direct equity involves investing directly in individual stocks of companies listed on the stock market. Direct equity has higher risk as the performance of the investment depends entirely on the performance of the stocks that you have chosen. Direct equity requires significant research and knowledge about the stock market and individual companies to
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