Mutual fund
A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds.When you invest in mutual funds, you can earn in two different ways – through dividends and capital gains. The funds that were invested in stocks provide dividends based on their market earnings. If you choose to receive these dividends, then you earn this amount.Mutual funds are largely a safe investment, seen as being a good way for investors to diversify with minimal risk. But there are circumstances in which a mutual fund is not a good choice for a market participant, especially when it comes to fees.
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Axis Bluechip Fund Direct Plan-Growth is an Equity Mutual Fund Scheme launched by Axis Mutual Fund and is the Highest Return Mutual Fund in Last 5 Years
Yes, you can get monthly income from mutual funds. The best way for that is to opt for SWP or Systematic Withdrawal Plan in a mutual fund scheme. Through SWP, you can withdraw a fixed amount on a monthly or quarterly basis from the investment you have made in any mutual fund scheme.
Dividends paid by equity mutual funds are tax free in the hands of the investor but the AMC pays dividend distribution tax (DDT) at the rate of 11.648%. Tax on debt mutual funds – The minimum holding period for short term capital gains in debt funds is 3 years.
Many sources recommend saving 20% of your after-tax income every month. According to the popular 50/30/20 rule, you should reserve 50% of your budget for essentials like rent and food, 30% for discretionary spending, and at least 20% for savings.