Skip to main content

5 Best Equity Mutual Funds for 2021

How we have selected the best equity Mutual Funds? 1) Past performance We have selected the mutual funds based on their past performance. For this, we have kept in mind their 3 to 5-year returns. 2) Ratings Some institutions like Crisil, ICRA, CARE Rating and Value Research Online provide very reliable ratings, which we have kept in mind, before allocating these 5 equity mutual funds. 3) Quality of the portfolio We have also kept the quality of the portfolio in mind. In fact, much of the weightage has been given to the same. Based on the above, we have arrived at these 5 best mutual fund schemes to invest in 2021. 1. Axis Bluechip Fund Growth Axis Bluechip Fund growth has a 5-star rating from Crisil. The fund has a solid track record and has generated returns of close to 19.74% annualized returns in the last three years. The returns every year over the last 5 years average of 13.8%. The fund has solid holdings including in HDFC Bank, Reliance Industries, Kotak Ma

What Is Inflation?

 Inflation Definition


Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. It is the constant rise in the general level of prices where a unit of currency buys less than it did in prior periods. Often expressed as a percentage, inflation indicates a decrease in the purchasing power of a nation’s currency.




Causes of Inflation


Demand-Pull Effect:
Demand-pull inflation occurs when the overall demand for goods and services in an economy increases more rapidly than the economy's production capacity. It creates a demand-supply gap with higher demand and lower supply, which results in higher prices. For instance, when the oil-producing nations decide to cut down on oil production, the supply diminishes. It leads to higher demand, which results in price rises and contributes to inflation.

Cost-Push Effect:

Cost-push inflation is a result of the increase in the prices of production process inputs. Examples include an increase in labor costs to manufacture a good or offer a service or increase in the cost of raw material. These developments lead to higher cost for the finished product or service and contribute to inflation.

Built-In Inflation:

Built-in inflation is the third cause that links to adaptive expectations. As the price of goods and services rises, labor expects and demands more costs/wages to maintain their cost of living. Their increased wages result in higher cost of goods and services, and this wage-price spiral continues as one factor induces the other and vice-versa.

Control of inflation

The different measures used for controlling inflation are explained below.

Monetary measures: The best remedy to fighting to inflation is to reduce aggregate spending. Monetary policy can help in reducing the pressure of demand by increasing the cost of borrowing from bank thus reducing the demands for funds.


Fiscal measures: It includes spending both private and government level. Government reducing expenditures and private expenditure reduced increasing tex.

Physical and non-monetary measures: Measures like increasing output/imports, decrease exports so as to increase the available supply of goods in short supply, so at bring the demand and supply at parity and thus the prices tend to be controlled.



 



Comments

Popular posts from this blog

5 companies that have destroyed wealth of investors in past

India’s stock benchmarks — Sensex and Nifty — have returned 12 percent in the last years and Nifty 50  returned 52% percent in the last 5 years thanks to the resilience of a few blue chips. But a study of stock performances beneath the surface shows the extent of investor wealth destruction in the past years. Many companies such as Cox & Kings, McLeod Russel India, Reliance ADAG companies, Dewan Housing Finance, Indiabulls Housing Finance, Jet Airways (India), Reliance power, among others have lost 78-99 percent in value, making them the biggest wealth destroyers in this period. Just Dial has been one of the biggest wealth destroyers in the last 5 years. The stock, which was trading at around Rs 1,600 in July 2014, has fallen over 50 percent to around Rs 470 per share currently. To put it into perspective, an investment of Rs 1 lakh in 2014 would have reduced to Rs 25,000 in 2020. The stock declines have been mostly on account of investor aversion to companies with high de

Top 5 best programming language in the world

If you are a newbie in the field of software development, the very common  question comes to your "where to begin? " that is undoubtedly true  if you want to be a software developer you must need to know programming language.  Thousands of programming language are present but "which programming language is best?" That is definitely tough.  Today I will talk about five popular programming languages: 1. Javascript: It seems impossible to be a software developer these days without using JavaScript. The first one in the list is JavaScript, it seems impossible to imagine software development without JavaScript. Primarily, JavaScript is light weighed, interpreted and plays a major role in front-end development. Even some of the major social media platforms believe that JavaScript provides an easy way to create interactive web pages smoothly and is career-driven. 2.Python: This may surprise you; I have kept python on numb

Top 5 biggest city in India

1.Mumbai: Mumbai is the capital of the State of Maharashtra. Its official name was Bombay until 1995. Mumbai comprises two regions, the city district which covers an area of 233 square miles and the more extensive Mumbai metropolitan area with a total area of 1681.5 square miles. The city has a population of about 18.4 million inhabitants, and it is the most populated city in India. Its wealth also surpasses that of any other Indian city as it is home to the highest number of Indian millionaires and billionaires. 2.New Delhi: New Delhi is a union territory or administrative division in India, meaning that is governed by the country’s Central Government. The official name of the city is the National Capital Territory of Delhi. It has the second-highest population after Mumbai, with about 16.3 million inhabitants. New Delhi’s wealth as a city ranks second in the country after Mumbai. In 2016, it was among the two most productive metro areas in India. Delhi has an area of 573.0