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Showing posts from March, 2022

What us IDCW in mutual funds? How Does the IDCW Mutual Fund Work?

IDCW in Mutual Funds: Income Distribution cum Capital Withdrawal or IDCW refers to distribution of income of a mutual fund scheme, which may include both dividends paid by stocks and capital gains made by selling underlying stocks from the scheme portfolio. Noteworthy points for IDCW funds: SEBI mandates that dividends can be paid out only from profits earned by the respective mutual fund. Dividend payout rates may vary with each payout cycle. Dividends paid on both equity and debt mutual funds are taxed as per the investor’s income tax slab. In case the investor doesn’t have any source of income other than mutual funds, a mandatory TDS is deducted at 10% from the total dividend income. However, no deduction takes place if the dividend distributed is Rs. 5000 or lower. The dividends are gains that an investor receives over and above his investment. However, this wasn't the case in mutual funds. While the investor receives profits, known as dividends, at the same time, the NAV of hi

What is fundamental analysis in stock market?

Fundamental analysis uses revenues, earnings, future growth, return on equity, profit margins, and other data to determine a company's underlying value and potential for future growth. In this article we will discuss all about the various financial terms used in the fundamental analysis of the company. We are going to simplify all these terms here. Financial ratios can be classified into different categories, here we will simplify it in the following categories Profitability Ratios Leverage Ratios Valuation Ratios Operating Ratios The Profitability ratios help the analyst measure the profitability of the company. The ratios convey how well the company can perform in terms of generating profits. As the profits are needed for business expansion and to pay dividends to its shareholders, a company’s profitability is an important consideration. EBITDA Margin (Operating Profit Margin)-The Earnings before Interest Tax Depreciation & Amortization (EBITDA) margin indicates the efficien