What is PurseStrings?

PurseStrings is a personal finance website that helps individuals understand money, investing, mutual funds, insurance, and long-term financial planning through clear explanations, practical tools, and easy-to-use financial calculators.

Is PurseStrings free to use?

Yes. PurseStrings is free to use and provides open access to educational content, tools, and financial calculators designed to support informed financial decision-making.

Who is PurseStrings designed for?

PurseStrings is designed for beginners, working professionals, self-employed individuals, and anyone looking to improve their understanding of personal finance, investing, mutual funds, and insurance at any stage of life.

Does PurseStrings provide financial advice or just information?

PurseStrings primarily provides financial education, insights, and planning tools. Personalized recommendations, where applicable, are offered only after understanding individual goals, risk profile, and suitability, in line with regulatory requirements.

How reliable is the information on PurseStrings?

The information on PurseStrings is created with a focus on accuracy, clarity, and practical relevance. Content is based on established financial principles and is intended to help users build financial awareness and make informed decisions. Having said that, we would still advise you to use your discretion and your own research.

What is personal finance and why does it matter?

Personal finance involves managing income, expenses, savings, investments, and financial risks in a structured way. It matters because sound personal finance decisions help build financial stability, protect against uncertainties, and support long-term goals such as wealth creation and financial independence.

How do I plan my financial goals effectively?

Effective financial planning starts with clearly defining goals across short-term, medium-term, and long-term horizons. Estimating the amount needed, setting realistic timelines, and aligning savings and investments with each goal helps create a practical and achievable financial plan.

How much should I be saving and investing each month?

The amount to save and invest varies from person to person and depends on income, expenses, financial goals, and risk tolerance. A disciplined approach that balances regular saving, long-term investing, and adequate emergency funds is generally more effective than focusing on fixed percentages.

What is a mutual fund and how does it work?

A mutual fund pools money from multiple investors and invests it in assets such as stocks, bonds, or other securities. The fund is professionally managed and aims to generate returns based on its investment objective while offering diversification to investors.

What is SIP (Systematic Investment Plan)?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in a mutual fund. SIPs encourage disciplined investing and help investors benefit from long-term investing and market volatility through consistency.

Are mutual funds suitable for beginners?

Yes. Mutual funds are often suitable for beginners because they offer professional management, diversification, and the ability to start investing with relatively small amounts through SIPs.

What is the difference between mutual funds and other investments?

Mutual funds differ from other investments by offering diversification and professional management in a single product. While direct investments like stocks or real estate require active monitoring, mutual funds provide a structured way to participate in markets with varying risk levels.

What role does insurance play in financial planning?

Insurance plays a critical role in financial planning by protecting individuals and families from unexpected financial risks such as health emergencies, accidents, or loss of income. Adequate insurance coverage helps ensure that long-term savings and investments are not disrupted by unforeseen events.

How much life insurance should I consider?

The right amount of life insurance depends on factors such as income, financial responsibilities, outstanding liabilities, and long-term goals. A proper assessment of needs and risk profile helps determine suitable life insurance coverage.

Why is health insurance important?

Health insurance helps manage the financial impact of medical expenses arising from illness, accidents, or hospitalisation. It provides financial protection against rising healthcare costs and reduces the risk of savings being depleted due to medical emergencies.

Is employer-provided health insurance sufficient?

Employer-provided health insurance can be useful, but it may have limitations such as lower coverage amounts or restricted benefits. Having an individual health insurance policy can offer additional protection and continuity of coverage independent of employment.

How does health insurance fit into overall financial planning?

Health insurance is a foundational part of financial planning because it safeguards both income and long-term investments from unexpected medical costs. Proper health insurance coverage allows financial goals to stay on track even during health-related uncertainties.

How do the financial calculators on PurseStrings work?

The financial calculators on PurseStrings use standard financial formulas and commonly accepted assumptions to estimate outcomes for goals such as investing, mutual funds, retirement planning, and other financial objectives. Users provide inputs like amount, time period, and expected returns to get indicative results that help with planning and understanding possibilities.

Can I trust the results of these calculators?

The calculator results are designed to provide reasonable estimates and planning guidance, not exact predictions. While they are useful for understanding trends and scenarios, users should apply discretion and consider that actual outcomes may vary due to market conditions, personal circumstances, and changes over time.

Are these calculators free to use?

Yes. All financial and goal calculators on PurseStrings are free to use and intended to help users explore financial planning concepts and make more informed decisions.

What is a Specialised Investment Fund (SIF)?

A Specialised Investment Fund (SIF) is a new SEBI-regulated investment framework introduced under the mutual fund regulations that allows asset management companies to offer strategy-focused funds with greater flexibility than traditional mutual funds. SIFs sit between mutual funds and portfolio management services and are designed for investors who seek advanced investment strategies with defined risk-return profiles.

How does a Specialised Investment Fund differ from a mutual fund?

Unlike regular mutual funds, SIFs allow fund managers to use more flexible and sophisticated investment strategies such as long-short positions, dynamic asset allocation, or sector rotations. While mutual funds follow broader investment categories and rules, SIFs are focused on strategy-specific approaches that can offer differentiated return opportunities, albeit with higher complexity and risk.

Who can invest in a Specialised Investment Fund?

SIFs are typically suitable for experienced and informed investors who understand advanced investment strategies and are comfortable with higher risk and potentially lower liquidity. SEBI guidelines generally expect these funds to be accessed by investors willing to commit substantial capital, subject to applicable eligibility norms and regulatory compliance.

What is the minimum investment required for an SIF?

Under SEBI’s SIF framework, there is a minimum investment requirement — commonly ₹10 lakh per investor per PAN across all SIF schemes offered by an AMC.  This threshold helps ensure that investors in SIFs have sufficient experience and financial capacity to engage with complex strategies.

What kind of investment strategies can SIFs use?

SIFs may adopt strategy-specific approaches such as long-short equity strategies, dynamic asset allocation, sector rotations, or combinations of equity, debt, and hybrid tactics depending on the fund’s objective. These are designed to provide portfolio flexibility while remaining within SEBI’s regulatory framework.

Are SIP’s allowed in SIFs?

Yes, SIFs do have SIP facility.

How are SIFs regulated and taxed?

SIFs operate under SEBI’s regulatory framework for mutual funds, with disclosure and compliance norms similar to other pooled investment products. Tax treatment generally aligns with the underlying asset class, such as equity or debt, based on holding period and applicable tax rules. Investors should consult tax professionals for personal tax implications.

Are Specialised Investment Funds suitable for all investors?

No. SIFs are intended for investors who are comfortable with more complex and higher-risk investment strategies compared with standard mutual funds. They may not be suitable for all investors, especially those with lower risk tolerance, short-term goals, or limited investing experience. Professional guidance is recommended before investing in any SIF.

Can SIFs be accessed through regular mutual fund platforms?

Availability of SIFs can vary by fund house and distribution channel. Some platforms may allow access to SIFs for eligible investors based on regulatory requirements, account type, and minimum investment compliance. Always confirm access options with your financial intermediary or platform provider.