Basic Mutual Funds part 7 explanation

Описание: Basic Mutual Funds part 7 explanation with the written
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Explain:-
•Simple Interest Finance Basics
Phew! Well done on completing the First Unit!
This module covers basics of interest rates.
• What is interest?
It is the amount you pay or receive for borrowing or depositing/lending a sum of money
• What does Interest depend on?
Interest (1) depends upon the Principal (P), Interest rate (R) and Time (T)
I = P×R× T/100
•What is principal?
It is the amount of money you borrow or deposit/ lend
• What is interest rate?
It is the rate of yearly interest charged (in percentage)
•What is time expressed as?
Time is generally expressed in terms of number of years
•What is the total amount earned or owed?
The interest is added on to the Principal borrowed or deposited/lent.
Total = P +1
•Calculate simple interest.Principal: Rs.10,000Interest rate: 5% Time: 2yrs
• Principal: Rs. 10,000, Interest rate: 5%, Time: 2 yrs
I = P×R×T/100
=10,000×5×2/100
= Rs. 1,000
•Calculate total amount.
Principal: Rs.10,000 Interest rate: 5% Time: 2 years
Principal: Rs. 10,000, Interest rate: 5%, Time: 2yrs
I = P×R×T/100
= 10,000 × 5 × 2/100
=Rs. 1,000
Total = P+1
= 10,000 + 1,000
= Rs. 11,000
•If time is 6 months. Do we multiply the amount by 6?
No, we multiply by 6/12 or 0.5
1 year is 12 months, so we divide the number of months by 12
•Calculate simple interest and total amount.
Principal: Rs.10,000Interest rate: 4% Time: 3months
Principal: Rs. 10,000, Interest rate: 4%, Time: 3 months or 3/12 = 0.25 years
I = P×R×T/100
=10,000 × 4 × 0.25/100
= Rs. 100
Total = P+1
= 10,000+ 100
= Rs. 10,100
• Disclaimer
1. One-time KYC (Know Your Customer): One-time KYC registration is mandatory to invest in mutual funds. You can complete the same by submitting the requisite documents at any of our branches or collection centres. You may also avail our Online KYC Registration facility while opening an online account with us, for more details please visit our website www.franklintempletonindia.com.
Disclaimer
2. Investors must deal / invest only with SEBI registered Mutual Funds. Details available on the SEBI website www.sebi.gov.in.
3. Investors can reach us on our toll-free helpline 1800 425 4255 OR write to us at [email protected] for redressal of investor complaints. For escalation, write to us at headofcustomerservice@franklintempleto [email protected] or lodge your grievance with SEBI through their SCORES (SEBI Complaint Redress System) Portal at https://scores.gov.in
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Explanation with the PDF link given below:-
https://www.mediafire.com/file/tnq6do...
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