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Want to cut risk and tax without compromising on returns?

While equity mutual funds are expected to beat other class of funds in the long term, short-term volatility is unbearable for some investors. For them, balanced funds are a better option because their equity exposure is usually restricted to 65-75%, and the debt portion of 25- 35% lends stability to the fund. “Though the returns from balanced funds will be lower than that of equity funds in the long term, their volatility will also be lower. So, on a risk-adjusted basis, it should give better return on a 5-7 year holding period,” says Vikram Dalal, Managing Director, Synergee Capital Services.

Both equity and debt are expected to do well in the coming years, because the expected decline in interest rate will be good for both asset classes. “Balanced funds make immense sense in periods like this, when both equity and debt are expected to do well,” says Nikhil Kothari, Director and Chief Financial Planner, Etica Wealth Management.

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Common Mistakes You Should Avoid While Investing to Save Tax

tax-return-mistakes-to-avoid

A young married couple walks into the local branch of a private bank on a cloudy, cold weekday of January. Both of them are getting late for office, but have enough time to start a tax-saving fixed deposit (FD).

The bank executive, instead, sells them a ‘better’ product, whose gains are non-taxable, unlike FDs.

The product that he offers is a tax-saving plan that also gives them life cover, guaranteed returns and bonus. And guess what, they can withdraw the money after five years, when they will receive the premium along with added bonus. They think it’s a good deal and write the cheque.
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5 ways to leverage your house to fund your goals

Many dream, most have ambitions but everyone has a goal.  Did you know that you could leverage your property to finance your goal? When a bank sanctions a loan in your name, it needs an assurance that you will pay it back. However the bank uses your property or any of your assets as collateral for the loan disbursed. Unfortunately, in future if you aren’t able to repay the loan, the bank will take the legal possession of your asset and will ultimately auction it out.

There are 5 ways you can leverage your property to meet your goals.

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7 Top Home-Buying Mistakes People Often Make

7 Top Home-Buying Mistakes People Often Make

Insanely low mortgage interest rates—and the knowledge that they’ll probably go up again—make a lot of people feel like it’s time to buy a house right now. And maybe it is … if you go about it the right way.

Buying a home is a major purchase (to put it mildly), and there are plenty of ways to trip up. But don’t worry—we’ve got your primer right here.

1. Don’t … buy a house if you’re planning to move again soon.

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Why Mutual Funds are better option for beginners?

mutual funds better option for beginner

When considering investment opportunities, the first challenge that almost every investor faces is a plethora of options. From stocks, bonds, shares, money market securities, to the right combination of two or more of these, however, every option presents its own set of challenges and benefits.

So why should investors consider mutual funds over others to achieve their investment goals?

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