Posted at 3:35 PM , on December 4, 2015
It is already a well-understood fact that mutual funds offer the best way for retail investors to participate in the markets. With the benefit of professional management and the benefit of diversification, mutual funds are in a position to outperform markets over a longer period. Thus they offer the best means of creating wealth over the long term. Mutual funds have another important role to play. They are extremely critical to help meet our long term goals. Typically, goals include our requirements like capital appreciation, liquidity, tax efficiencies, synchronizing withdrawals, timing redemptions etc. The beauty of mutual funds is that they have a wide variety of schemes like equity funds, debt funds, variable rate funds and money-market funds etc which are suited to each of these unique needs. Continue reading
Posted at 4:52 PM , on November 30, 2015
How mutual funds have fared in 2015…
The year 2015 has not been too charitable to the equity markets. The Nifty did rally in the early part of the year and crossed the 9000 mark. Post-March, the markets have lost close to 15% and have suffered repeated bouts of volatility. In this entire melee, Indian mutual funds have come out trumps.
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.