Tag: Facts

by Incredible Planet Staff

Myths and Facts About Mutual Funds Investing


Business

Mutual Funds are an ideal tool for investments, preferred by millions, not only in India but across the globe. They come in different types, and an investor can select from these types based on their risk profile, expected rate of return and the intended period of the investment. In India, mutual funds investments are picking up the pace very quickly.

However, a majority of the population in India still prefers traditional investments, which offer security of the principal amount and assured, but lower returns. Investors avoid investing in mutual funds primarily due to lack of awareness and of course, some myths that continue to surround them. These myths are widely prevalent among the masses of India which are yet to take a closer look at the financial markets. Here are some of the myths surrounding mutual funds that we’re going to demolish.

  1. Myth: Mutual Funds are very risky

Some investors share a perception that Mutual Funds are very risky, and their capital may get eroded entirely. This isn’t true. At the same time, mutual funds also aren’t entirely risk-free.

Fact: Mutual Funds do involve risks

Mutual Funds invest the money collected from the investors into equity and debt markets. Equity shares are traded regularly in stock exchanges and undergo price fluctuates frequently. Even the value of debt instruments changes on a regular basis due to interest rate fluctuations. These price changes directly affect the NAV of the Mutual Funds and have some potential downside risk as well. But the risk is generally not worrisome, as over the long-term equity and debt markets have historically remained stable.

  1. Myth: Mutual Funds involve heavy investment

The myth that investing in mutual funds require large sums of money discourages masses from investing in the most preferred form of investment.

Fact: Investment in Mutual Funds can be started with a minimal amount

Most mutual funds require only Rs 5000 as the initial capital to begin with, with minimum additional investment being Rs 1000. If investors go the SIP (Systematic Investment Plan) route, they can begin with as low as Rs 500 every month. For example, the large cap fund from investing online reliance mutual fund offers monthly SIP investment options for as low as Rs 100.

  1. Myth: Higher rated Mutual Funds are better

Investors often select funds based on their performance and ratings. They prefer investing only in top rated funds and would stay away from the underrated funds. This is understandable, but

Fact: Top rated funds can’t guarantee the same performance

Often, historically high performing funds haven’t been able to achieve the same returns. This is due to multiple reasons – like churning of the portfolio, change of the fund manager and management, and just general market conditions. Selecting funds based on their past performance alone can be a deceptive way of choosing funds for investment. Always keep an eye out for other factors.

  1. Myth: You must have expert knowledge of the markets before investing in mutual funds

There are many who don’t invest in mutual funds because of the myth that it requires an in-depth knowledge of the markets, and experience/expertise as an investor.

Fact: Mutual Fund investment requires layman knowledge

Mutual Funds are professionally managed by highly qualified and experienced fund managers. Investors just need to have some basic, essential awareness about how they work, the risks involved, and if their mutual fund pick aligns with their personal wealth goals before investing.

  1. Myth: Mutual Funds must be invested for a long term

A widely prevailing myth is that mutual funds cannot be redeemed in the short term, and that investors must hold the investment for the long term.

Fact: Investment in Mutual Funds can be done from short term basis to long term basis

Mutual funds, just like equity shares, can be redeemed at any time except for some funds (like ELSS) which have a mandatory lock-in period of 3 years. Debt fund categories like overnight funds, ultra-short duration funds, liquid funds, short duration funds have tenures like 1 day, 90 days, 365 days as well.

  1. Myth: Dividend option is better than Growth option

 People naturally prefer to receive regular income in the form of dividends, and typically go for the dividend option in the mutual funds they pick over the growth option. Ultimately, this has led to a widespread belief among the investors that it is better to opt for dividends than growth.

Fact: Growth option can be a lot more beneficial than the dividend option in the long term

A fund declaring dividend must pay Dividend Distribution Tax (DDT) of 10% post April 1, 2018, while investors must pay tax on the gain on sale of equity-oriented funds only on the threshold amount of Rs 1 Lakh or more. Retail mutual fund investors can benefit by choosing the growth option over dividend. Additionally, in the growth option, the fund reinvests the dividend which it would have paid out to investors. Thus, the power of compounding comes into play, ensuring the growth option will achieve higher returns over the dividend option.

Busting these myths and better understanding mutual funds could bring in more transparency, and therefore more potential investors into the markets. Higher cash inflows due to additional investments could also help in strengthening not only the liquidity and mutual fund industry, but also the nationwide stock exchanges and the market. This is already happening as more people begin to look at mutual funds more seriously. It’d be prudent to not get left behind.


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by Incredible Planet Staff

Curious Facts About Sweden and the Swedish People


Places

A country with 10 million inhabitants, covering 450000 square kilometers

Today we’re looking at some curious facts about another Nordic country, Sweden.

  1. If you register as a blood donor in Sweden, you can opt to get a text message whenever the blood you donated is used  in a life-saving situation. [Source]
  2. An old law in Sweden called allemansrätten (all mans rights) gives everyone access to enjoy the nature to it’s fullest extent, meaning you can set up your tent anywhere in the outdoors, as long as it doesn’t bother anyone who lives around the area. This includes making fire for catching that fish you just caught on your hike through the beautiful nature of the countryside. [Source]
  3. The capital of Sweden, Stockholm ran a pilot scheme of a so called Lottery of Speed Cameras that picked winners from a pool of contestants that did not break their speed limits in a given period. The bonus was that the prizes were paid by the speeding fines themselves. [Source]
  4. The all mighty and glorious country of North Korea owes a debt to Sweden for £240 million that has been more than 40 years delayed. The North Korean regime back in 1970’s stole a thousand Volvo’s by reneging on a deal, causing the Swedish government to send an invoice 2 times a year. [Source]
poland 2380290 1920
by Incredible Planet Staff

10 Facts About Poland


Places

So you might love pierogi, the complex Polish history or the challenging Slavic language, but what do you actually know about Poland and Poles? If you’re about to visit the country or planning to move here, you need more info than what the best vodka brands are or how to pronounce complicated consonant clusters.

Here are 10 facts about Poland that will help you to understand the country and its inhabitants better, and make your trip to Poland truly unforgettable.

1. Vodka was invented in Poland

That’s right! Even though people associate vodka with Eastern European countries, it’s not clear where vodka was exactly invented. Still, many people automatically assume that is a Russian thing. While in fact vodka as we know was invented in Poland. Today, you can choose from a wide variety of vodkas and they’re all delicious – try a shot accompanied by a small bite in one of Krakow’s vodka bars and you’ll know what I mean.

2. Poland has its own Anne Frank

Anne Frank is famous all over the world for her moving diary that documents the German occupation of the Netherlands. Not many people know, but Poland has a similar history.

Rutka Laskier was a Jewish girl who died in Auschwitz concentration camp when she was only 14. But she also wrote a diary that describes the experience of her family in Poland under the Nazi occupation. Her diary was only published in 2005 and ever since she’s known as the Polish Anne Frank.

3. Chopin asked for his heart to be buried in Poland

While it may not come as a surprise that the French-named Frederic Chopin was actually Polish, that story might put a new light on the famous pianist and composer.

When Chopin was on his deathbed, he asked that when he died, his body be cut open and his heart removed in order to be buried in his homeland, Poland. And that’s exactly what happened.

Upon his death, his sister smuggled the heart out of France and delivered it to be buried in the Church of the Holy Cross in Warsaw. You can still see the commemorative plate in the church.

4. “Home Alone” is a Polish Christmas tradition

Unexpectedly for a country with such a huge Catholic population, the most common thing Poles do during Christmas is watching the Hollywood classic Home Alone. It’s practically a national tradition. And the history is quite interesting. This 1990 American film was one of the first Hollywood movies that reached a mass audience in Poland after the fall of the Poland People’s Republic in 1989.

Today, Polish TV airs it every Christmas and one third of Poles aged 16 to 49 watch it every year. When one network that owns the rights decided not to show Home Alone in 2010, there were national protests.

5. Poland’s border was once moved west – together with the people!

Believe it or not, but that’s what happened. Toward the end of the Second World War, the policy enforced by the Soviet Union resulted in massive population transfers as the country’s border was moved further west. And we’re talking about territories that today belong to three different countries: Lithuania, Belarus, and Ukraine!

6. Bisons still roam Polish forests

The spectacular Bialowieza Forest that stretches across Poland and Belarus is one of the largest remaining parts of the primeval forest that used to cover Europe. This amazing ecosystem is home to over 800 European bison, once extinct in the wild. Thanks to successful breeding and reintroduction programs, bisons are making a comeback and incidentally, providing inspiration to one of Poland’s most appreciated vodkas – Zubrowka.

7. Celebrating name days

In some parts of Poland, it is still uncommon to celebrate birthdays. Instead, people celebrate name days – days the dedicated to the patron saint the person has been named after. In fact, coworkers and family often choose to celebrate name days instead of birthdays. This tradition was even more widespread in the times of the Poland People’s Republic.

8. Poland commemorates its history like no other country

If you happen to be in Warsaw on August 1, at 5 o’clock in the afternoon you will see everyone stopping in their tracks and standing straight in silence for a minute. This is how Polish people pay tribute to the Warsaw Uprising, the largest rebellion during the Second World War that cost more than 200,000 lives, as well as the destruction of Poland’s capital.

9. The first day of spring is celebrated with drowning

Don’t worry, nobody dies during that day. The first day of spring is celebrated in Poland by either burning or, more popularly, drowning an effigy of Marzanna that symbolizes winter. The custom is widespread in Slavic countries and it’s easily the best way to get the spring started.

10. Poland has a crooked forest

Photo of Crooked Forest in Nowe Czarnowo in Poland

The mysterious forest full of trees crooked in the exact same way makes an appearance on the Internet from time to time, but not many people know that this patch of trees grows in Poland. The 90° bend at the base of trees is a real mystery and until today nobody knows why the trees grow like this.

If you think you know Poland, better think twice.

The country is full of paradoxes, interesting facts, and mysteries that make up its unique character. That’s why it’s a great idea to visit various parts of Poland and learn more about the country’s complex history, unusual customs, and funny traditions.