The Ameriprise India Financial Intelligence Index Survey

wealthymattersIn this survey,an early start, goal-based planning and willingness to seek professional advice have made Mumbai investors the most financially intelligent in the country. Mumbai investors scored 5.8 on a scale of 10, the highest among the six cities, in this study conducted by TNS India on behalf of financial planning firm Ameriprise India. Delhi ranked second on the Financial Intelligence Index with a score of 4.5, followed by Hyderabad, Pune, Bengaluru and Chennai . The study gave equal weightage to five parameters: the age at which you start investing, portfolio diversification, long-term horizon, goal-based investment and seeking professional help. Nearly 700 upwardly-mobile investors with an annual household income of 12.5 lakh and in the age group of 28-45 years responded to the survey. Read more of this post

Balanced Mutual Funds

Balanced funds are mutual funds that invest in both equities and debt instruments.They normally keep their equity component in the range of 60%-75% and the  rest in debt products or cash.Some balanced mutual funds are considered to be more aggressive in that they have a larger equity component.For example, HDFC Prudence keeps its equity allocation around 75% in most of the cases and rest 25% in debt or cash. However,others like Reliance Regular Savings Balanced are considered less aggressive and have a lower equity component around 60-65% .

From the taxman’s point of view, any mutual fund which has equity component more than 65% is considered as an “Equity Fund” and so long term capital gains from sale of balanced mutual fund units too are exempted from tax after one year just like in the case of pure equity mutual funds . Read more of this post

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