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Investing in mutual funds vs. direct equities

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Investing in mutual funds vs. direct equities One of the top most questions that comes in each and every investor’s mind is among investing in mutual fund scheme or direct equity, what should he or she opt for? Let’s try to answer this question in this article. An equity mutual fund comprises a basket of stocks actively managed by a professional fund manager. However, it is very important for you to understand the fact that investment in a single stock is not equivalent to that of investing in a mutual fund. In fact, you can say investing in a basket of stocks can be comparable to investing in mutual funds. Before we start comparing investing in direct equity stocks and mutual funds, one important thing to remember is that both investment avenues have a risk element. However, mutual funds are considered less risky compared with investment in stocks. Mutual funds provide you with diversification across stocks and sectors. This ensures that you risk is well-spread. When it
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Systematic Transfer Plan is a useful mechanism to manage asset allocation

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Systematic Transfer Plan (STP) is a mechanism by which an investor is able to transfer a fixed or variable amount from one mutual fund scheme to another mutual fund scheme. STP is primarily used by investors to transfer from debt funds to equity funds and vice versa. If you are bullish about the market, at the same time concerned about short term volatility, you can use STP to withdraw fixed amounts from your debt fund and transfer to equity funds on a regular basis over several months. On the other hand, if you think that the market is near its peak and a deep correction is imminent, you can withdraw fixed amounts from your equity fund and transfer to your income fund using an STP. Types of Systematic Transfer Plan There are two types of Systematic Transfer Plan (STPs):- Fixed STP  in which investors can transfer a fixed amount at regular intervals from one scheme to another Capital Appreciation STP  in which investors can take out the profit of a scheme and transfer
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Basics of various Financial Investments including Stock Market and Mutual Funds in India.

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" Bulls make money, Bears make money, Pigs get slaughtered " People enter the world of stock market in the expectation of big money in short time. But making money in stock market is not easy at all, rather an uphill task. Sound knowledge & understanding of market, huge research work, monumental patience & discipline - are the qualities of a successful investor.                                         Bull market is represented by a bull which attacks with its horn in upward direction. Metaphorically speaking, the investors have high confidence & stock price goes on increasing. Investors make profit after buying stocks at lower prices & selling at higher prices.                        Bear market is represented by a bear which attacks with its paw in downward direction. Metaphorically speaking, the investors have low confidence & stock price goes on decreasing. Investors make profit after selling stocks (which do not exist in his portfolio)
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