What Are Equity Mutual Funds and how does it Benefit Investors?

An equity mutual is a mutual fund that invests in equity and equity related instruments with the aim of long-term capital appreciation.

Thus, an equity mutual fund is a mutual fund that invest in equity shares of companies that have potential to provide long term returns to investors.

An example of a growth oriented equity mutual fund would be a mutual fund that has in its portfolio companies with a proven track record of great revenue growth or younger companies with potential. Equity mutual funds follow different styles such as growth, blend and value funds and comprise the primary categories of equity mutual funds.

An equity mutual fund scheme generally aims to provide capital appreciation over the medium to long- term.

Growth Plan vs. IDCW(Income Distribution cum Capital Withdrawal’)

The term “Dividend Option” in mutual funds was changed to “IDCW” in April 2021 by SEBI.

Should the investor invest in Growth Plan VS IDCW?

In a growth plan, the profits remain invested in the scheme. Over a long period, the investor can earn compounded returns. Growth plan NAV will always be higher than the IDCW option because on distribution of the available surplus the NAV of the scheme is reduced to that extent. .
In IDCW, the available surplus may be dispensed partially or fully at the discretion of the fund manager / AMC / Trustees.
If investors prefer capital appreciation or long-term wealth creation, they should invest in growth option of the mutual fund scheme.
If the investors aim for cash-flows from their investments, then they may opt for IDCW option.
Benefits of Equity mutual Funds

Potential for high returns over long term
This fund appeals to a lot of investors because of its potential for high return with high risk.

Risk
Equity mutual funds are high-risk investment instruments. Therefore, you must consider investing in equity mutual fund schemes only if you are risk-tolerant and are willing to invest for at least 5 to 10 years. The only returns would be your profit on selling the investment and this would be the excess of selling price over the purchase price.

Volatility
Equity mutual funds are extremely volatile as stocks fall and rise depending on market behaviour. Therefore, it is best suited for investors who are able to tolerate the volatility.

Tax Efficiency
Equity mutual funds attract long term capital gains tax LTCG tax at 10% if the earning is above Rs 1 lakh and held more than a year.

Money management
Fund managers who manage the equity fund are qualified professionals, who identify high potential stocks for the investors.

Diversified Portfolio
A mix of stocks in a mutual fund creates diversification and helps to reduce the overall risk of investing in volatile stocks to some extent.

To conclude, one should invest in equity mutual funds if one wishes to be a long-term investor in the stock market looking for capital appreciation.

Past and Present of Jewelry Pins and Brooches

From the earliest ages of man, fashion has been present. In fact, accessories have long been a standard way of expressing ones fashion sense, and jewelry pins and brooches have long been popular. Fashion brooches are very popular because of their incredible versatility.

Jewelry pins and brooches were originally created as a way to secure a large piece of cloth around ones body. These early jewelry pins and brooches were not as fancy as those that we see today. When they first emerged as a way to secure a cloth as a garment, it was usually a simple thorn. However, as the years passed jewelry pins and brooches began to evolve.

As man’s capabilities grew and changed so did the fashion brooches that they were able to produce. During the Byzantine era, fashion brooches embraced the eras fascination with color as well as incorporating a traditional safety pin fixture. From there, fashion brooches continued to change having gemstones added onto them and intricate design work adorning the metal that the brooch is fashioned from.

Today jewelry pins and brooches are very prevalent when it comes to the world of fashion accessories, and there is great variety in the styles that you can choose from. In fact, there are so many styles on the market that it can be difficult to narrow down your options. Thankfully, it does not need to be difficult. With a few small decisions, you will be able to find the perfect fashion brooches for you.

The first thing that you want to decide is how formal you need your jewelry pins and brooches to be. Generally, fashion brooches with precious and semi precious stones on them are much more formal than simple metal or colored pins. Additionally, you are going to want to give some thought to what type of metal you want to have. There are silver pins on the market, gold pins, and even beautiful rose gold brooches. If you want to expand your accessory collection, you may want to get a few pins of each metal.

You also want to give some thought to the shape of the jewelry pins and brooches that you are looking at. Think about what you need the fashion brooches to do. Are you looking for something to put on your jacket lapel? If so then you might want to look for a medium sized pin that is somewhat seasonal. Or if you need a pin to secure a scarf you may want to choose a large sized pin, but try to keep its design simple so that you do not detract from the design of your scarf.

Finally, you want to make sure that you really like the style of the jewelry pins and brooches. Do not feel like you need to buy something because it might be a good addition to your accessory collection. If you do that you may get stuck with pieces that you will never wear. Instead, choose fashion brooches that you really love that way you will know that you will get your moneys worth out of them.

“Body Language – ‘Hands’ – How To Immediately Win More Negotiations” – Negotiation Tip of the Week

Do you observe the body language of someone’s hands when you’re negotiating? To win more negotiations, you should listen to their hands! Hands convey a lot of hidden information in a negotiation.

There’s so much information conveyed by the way someone uses their hands. People use them to show appreciation by clapping. They display their hands to exhibit displeasure in other ways (i.e. sitting on their hands). They also use their hands when speaking? Hands give insight into the thought process that someone has. As someone is speaking, their hands add or detract from the message they’re delivering; you do the same when you’re conveying information, too.

When there’s a difference between someone’s words and their body language, pay more attention to their body language. It will disclose someone’s intent more than their words. Consider the following lightly when conversing with someone. Consider it more strongly when you’re negotiating.

Hands close to the body
The closer someone has their hands to their body, the more guarded are their thoughts. You’ll see this display when someone senses perceived threats to their well-being. Their hands are in that position to protect themselves from perceived indifference.

If you see this in a negotiation, it may behoove you to put the other negotiator at ease. Based on what caused him to display his guarded gesture, you may have to address that point before you can induce the comfort you seek to invoke in him.

Hands with interlocking fingers -
When you observe a negotiator in this position, he could be displaying a demeanor that states that he’s not open to your offer, suggestion, or counteroffer. To confirm your observance, consider questioning him about the meaning of his display (e.g. I noticed you have your hands closed and your fingers locked. That usually means that someone (use ‘someone’ to avoid ‘you’ – the latter may make him defensive) is not open to something that has occurred. Is anything wrong?). Then, note his response. If he unlaces his fingers and opens his hands, while saying everything is okay, ask him to proceed. Two things will have happened. One, you will have altered his body language, which will entice him to become more mentally receptive to you and your offers. Two, you will have given him the lead in the negotiation. Based on what he does with it, he’ll give insight about what caused the initial display that you brought into question. And, he’ll give vision to what he’d like to discuss. That will highlight what’s important to him.
Hands pushed away palms out
Take special note of this gesture because it indicates that the originator wants no part of what caused him to display the gesture. You can note future discernment by the degree that he forces this gesture outward. Also, be aware of this gesture when the other negotiator voices his assertion that he’s in agreement with you. In this case, his body language belies his true feelings. Believe that more than his words.

There are other hand gestures that give insight into a negotiator’s thought process. We’ll leave those to discuss at another time. For now, note the signals mentioned above. In so doing, you’ll be more perceptive. That will assist you in winning more negotiations… and everything will be right with the world.

Remember, you’re always negotiating!