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  Key Highlights of AMFI Best Practices Guidelines (Circular No. 116 / 2024-25) Background SEBI regulations permit mutual fund units to be freely transferable unless otherwise restricted. While units in demat mode are freely transferable, units in SoA (non-demat) mode require dematerialization for transfer. Challenges with SoA transfers include the risk of duplicate transfers and lack of visibility into pledges or redemptions until the transfer is registered. To address investor and distributor concerns, AMFI proposes a phased introduction of the facility for transferring units held in SoA mode. Key Provisions for SoA Transfers Applicability : Transfer facility available across all mutual fund schemes except ETFs. Partial transfers are allowed, but if residual units fall below the scheme's minimum threshold, they will be redeemed automatically. Restrictions & Safeguards : Redemption of transferred units is restricted for 10 days post-transfer to mitigate fraud risk. Transfer...

  * Is Your Retirement Plan Truly as Attractive as It Seems ? * Dear Client, Let me share a story that might help you make smarter financial decisions for your retirement. * Yesterday, a client, Mr. Raj, called me about a retirement plan that his friend had recommended. At first glance, the plan seemed incredibly attractive: * Pay ₹10,000 per month for 10 years (a total of ₹12 lakhs). Receive a guaranteed payout of ₹74 lakhs at the age of 60. Who wouldn’t be drawn to this? It sounds like an amazing deal. But here’s the catch. When I analyzed the plan, I found that it was offering an Internal Rate of Return (IRR) of only 6.2% per annum. That’s much lower than what many other investments can offer. To add to this, Mr. Raj didn’t realize that the maturity amount was calculated assuming an investment age starting at 25 years, not his current age of 40 years. This small detail made a big difference. * What can we learn from this? * Some plans may sound too good to resist at first, but a...

 

 Is it better to start an SIP at the market’s peak or when it's at rock bottom? 🤔  𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 1 (𝐒𝐭𝐚𝐫𝐭𝐞𝐝 𝐒𝐈𝐏 𝐢𝐧 𝐉𝐚𝐧𝐮𝐚𝐫𝐲 2008) - 𝐌𝐚𝐫𝐤𝐞𝐭 𝐏𝐞𝐚𝐤 : * Monthly SIP: ₹10,000 in BSE Sensex TRI. * Total investment by July 31, 2024: ₹19.9 lakh. * Current value of investment: ₹74.7 lakh. * 𝐗𝐈𝐑𝐑 : 14.4%. 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 2 (𝐒𝐭𝐚𝐫𝐭𝐞𝐝 𝐒𝐈𝐏 𝐢𝐧 𝐌𝐚𝐫𝐜𝐡 2009) - 𝐌𝐚𝐫𝐤𝐞𝐭 𝐁𝐨𝐭𝐭𝐨𝐦 * Monthly SIP: ₹10,000 in BSE Sensex TRI. * Total investment by July 31, 2024: ₹18.5 lakh (₹1.4 lakh less than Investor 1). * Current value of investment: ₹63.8 lakh (₹10.9 lakh less than Investor 1). * 𝐗𝐈𝐑𝐑: 14.7%. 𝐓𝐡𝐞 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞 𝐢𝐧 𝐢𝐧𝐯𝐞𝐬𝐭𝐞𝐝 𝐚𝐦𝐨𝐮𝐧𝐭 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐬𝐭𝐚𝐫𝐭𝐢𝐧𝐠 𝐢𝐧 𝐉𝐚𝐧𝐮𝐚𝐫𝐲 2008 𝐚𝐧𝐝 𝐌𝐚𝐫𝐜𝐡 2009 𝐰𝐚𝐬 ₹1.4 𝐥𝐚𝐤𝐡. 𝐓𝐡𝐞 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞 𝐢𝐧 𝐟𝐢𝐧𝐚𝐥 𝐯𝐚𝐥𝐮𝐞 (𝐚𝐬 𝐨𝐟 𝐉𝐮𝐥𝐲 31, 2024) 𝐰𝐚𝐬 ₹10.9 𝐥𝐚𝐤𝐡. Key Takeaways: *  𝐂𝐨𝐬𝐭 𝐨𝐟 𝐃𝐞𝐥𝐚𝐲: Even though Investor 2 st...

 Why Correction is an Opportunity 1. Buying at lower prices: Corrections offer lower NAVs (Net Asset Values), allowing investors to buy more units. 2. Rupee cost averaging: Regular investments through SIPs (Systematic Investment Plans) benefit from lower prices. 3. Long-term growth: Corrections are temporary; markets historically recover and grow. 4. Increased potential returns: Investing during corrections can lead to higher returns in the long run. 5. Disciplined investing: Corrections encourage investors to stay invested, ignoring short-term volatility. Benefits for Investors 1. Wealth creation: Investing during corrections can lead to substantial wealth creation. 2. Reduced timing risk: Regular investments mitigate timing risks. 3. Compounding benefits: Lower prices amplify compounding benefits. . Strategies During Correction 1. Stay invested: Avoid redeeming units during corrections. 2. Increase SIP amount: Take advantage of lower prices. 3. Rebalance portfolio: Adjust asset a...

 

 “A sensitive but important topic that few address. Many people face challenges with their income and savings, often seeking a way out through the stock market.  This is a *massive mistake* if approached with unrealistic expectations. The belief that markets, especially through options trading, penny stocks, or random tips, will make you rich overnight is misleading.  Financial desires can cloud judgment, making the reality of the markets secondary. ☑️*The markets will not make you rich quick*—accept this truth. ☑️If you wish to trade, invest time in *learning* the skills necessary. ☑️Prioritize long-term wealth creation through *mutual fund or systematic investing* and save diligently every month. ☑️If you can dedicate 40 years to a job, give *at least 10 years to the markets*. ☑️Focus on *wealth creation*, not just getting rich quick—there’s a big difference. ☑️If something seems too easy, it’s likely a trap. *Easy paths in the markets often lead to disaster*. ☑️Never t...

Feeling uneasy about market declines? Well, volatility is the middle name of the market. History shows that even after the biggest slumps, recovery is inevitable.