{"id":1894,"date":"2013-04-29T16:24:29","date_gmt":"2013-04-29T10:54:29","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=1894"},"modified":"2016-05-28T21:40:26","modified_gmt":"2016-05-28T16:10:26","slug":"capital-protection-fund-do-it-yourself","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/capital-protection-fund-do-it-yourself\/","title":{"rendered":"Capital Protection Fund \u2013 Do it yourself!"},"content":{"rendered":"

In recent few days there have been a deluge of Capital Protection Funds from Mutual Fund houses. I have often been asked should I invest in these\u00a0Capital Protection Funds?<\/strong><\/p>\n

What is\u00a0Capital Protection Fund?<\/h3>\n

We hate to loose our hard earned money. Taking advantage of this emotion, Mutual Funds launch Capital Protection Fund when the stock market is volatile. These funds promises investors to give a minimum guaranteed return which is the capital invested or may be a nominal appreciation of 10% on the same at the end of investment tenure.<\/strong><\/p>\n

But do you know you its easy to create your own Capital Protection Fund!<\/strong><\/p>\n

This can be done in two ways.<\/strong><\/p>\n

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  1. Invest the entire amount in Debt Instruments like Fixed Deposits etc and invest the interest so earned in equities.<\/li>\n
  2. Invest partly in fixed deposit and partly in equities.<\/li>\n<\/ol>\n

    Both the concepts are explained below with examples.<\/p>\n

    First the Assumptions:<\/h3>\n