
This effectively means that the people in the highest tax bracket will get low returns from fixed deposits. This is primarily because the complete interest earned from FDs get added to the taxable income of the individual and is taxed as per his/her tax slab. It is not advisable to move from debt funds to fixed deposits (FDs) for assured returns.Hence, you should invest a lump sum amount in equity mutual funds only after the markets correct from their peaks. In fact, you may have to book losses instead. It should be noted that the bull run may reverse any time and you may not get the chance to exit the fund with significant gains. Do not put lump sum amounts in peak performing equity mutual funds for short-term gains by capitalising on the bull run.Opt for growth option of mutual funds for increased returns through compounding.Do not stop your existing SIPs when the returns are low.Continue on the SIP for a minimum period of 5 years to see substantial returns. Do not start new SIPs targeting short-term gain.In order to get healthy returns from mutual fund investments, it is advisable to keep the following points in mind: This could confuse a novice investor and bring about doubts on whether his/her investments were made in the most suitable funds. More often than not, schemes from a specific category will perform the best each season. We have elaborated on the best-performing schemes based on categories in the sections below. You can purchase or even redeem a Mutual Fund at the prevailing Net Asset Value (NAV). When you purchase units of a Mutual Fund, these units denote the holdings of your share in a certain fund scheme. Mutual Funds are controlled by an Asset Management Company (AMC) that collects funds from a group of investors and invest these funds in bonds, stocks, and securities. The fund managers keep a record of the performance and growth of these funds and make required alterations so that the funds perform well and the investors receive the best possible returns. They represent a pool of funds that are professionally managed by expert Mutual Fund managers. Mutual Funds are professionally managed investment schemes. Mahindra Dhan Sanchay Eqt Savings Yjn Dir Listed below are some of the top performing large cap equity funds, as on 14 February 2020: This decision was announced after Franklin Templeton Mutual Funds, one of the leading mutual fund houses in India, decided to shut down 6 of their debt funds owing to the liquidity problems arising out of the current economic condition. The stress of the fund will, however, be concentrated on the high-risk debt mutual funds at this point in time. As a part of this plan, the central bank has decided to ease the liquidity pressures on mutual funds and thus a fund of Rs.50,000 crore is being sanctioned for the same purpose. It will take steps to mitigate the economic impact of the COVID-19 virus breakout and take also necessary steps to ensure that the financial stability is preserved. In an official statement, the central bank said that the RBI is being vigilant and will take necessary steps to fight against the current economic situation. As a result of the virus outbreak and the lockdown, the capital markets have taken a hit and become volatile. The Reserve Bank of India (RBI) has announced on 27 April 2020 that a special liquidity facility (SLF-MF) of worth Rs.50,000 crore will be sanctioned for easing the liquidity pressure on mutual funds (MFs) which has cropped up as a result of the ongoing nationwide lockdown in India. RBI announces special liquidity facility of Rs.50,000 crore for mutual funds
