Posted at 4:52 PM , on November 20, 2015
Today the MM industry is a highly competitive industry where a few large players are vying for a growing share of the retail investor mindshare. This typically leads many mutual fund companies to be aggressive and therefore it behoves upon mutual fund investors to read between the lines. Let us understand a few such classic cases…
Posted at 5:51 PM , on October 28, 2015
Investors often ask this question; why should they not invest directly in equities and debt and why do they not need to go through the mutual fund route? What is the value that a mutual fund can add to the investment performance? To answer these questions, one needs to understand the core objectives underlying investing in mutual funds. The objectives of investing through the mutual fund route are not just about returns. It is about convenience, diversification, choice and the ability to pigeon-hole their investments to a long term financial plan. Let us understand each of these things in detail. Continue reading
Posted at 12:31 PM , on October 19, 2015
It has now been amply proven that mutual funds provide a unique vehicle to build wealth over a longer period of time without the hassles of direct management and with the benefits of diversification. With very low entry barriers, almost anybody can start off a systematic investment plan (SIP) on mutual funds and get the benefits of wealth creation over a longer period of time. But the key question is how to select a mutual fund and how to narrow down on the style of fund.
Posted at 5:40 PM , on September 18, 2015
Back in December 2012 an aggressive futures & options trader was boasting about the fantastic annualised returns that he had earned during the calendar year. What he was delighted about was that his trading and leveraging had resulted in a net return of 42% during the full year, net of all costs. What he, probably, did not realize was that had he invested the money in a diversified mutual fund on the first day of the year, he would have ended up with returns of 45%, net of all costs. So he would have actually done better without the pressures, without the ulcers and also without the taxes. Welcome to the world of mutual funds.
Posted at 12:21 PM , on September 17, 2015
Retirement can be postponed but can never really be done away with. The whole problem with your retirement is that your income either stops or halves but then your expenses don’t. That leaves a huge deficit to be bridged in your sunset years. With better medical facilities, most Indians are living longer than ever before. That means you have more number of years to depend on your accumulated savings; and that is a real worry.