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3 steps to evaluate your fund manager
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personalfn.com
Mutual funds are increasingly finding greater acceptance among investors, when it comes to planning their finances. However, given the numerous schemes in each category, and many more being launched every month, how does an investor determine where to invest? To start with, we recommend that you take a close look at the fund management team, in other words, the brains behind the mutual fund.
When SIPs aren't quite right...
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personalfn.com
For regular visitors on Personalfn, the title of this article may come as a bit of a surprise. After all we have assiduously (at times at the risk of sounding monotonous) propagated the cause of investing using the SIP (systematic investment plan) route. So, why the rethink? Some clarifications are in order. We aren't giving up on SIPs. We continue to believe that investors in the mutual funds segment should most of the times invest via the SIP route. However, certain instances of misinformation in the media have prompted us to reveal the "dark" side of SIPs.
How to select a diversified equity fund
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personalfn.com
When it comes to making investments in mutual funds, it all boils down to which fund to invest in. There is no dearth of choices, but then not all the options available merit consideration. There are 30 asset management companies (AMC) currently in the mutual fund industry, and many more lining up for launches. The variety of schemes offered by these AMCs is enormous. So it can be a challenge for the investor when it comes down to identifying a handful of mutual fund schemes from this rather large universe. The good news for the investor is that based on performance, most of these schemes fall short of making the grade. Thus the real challenge lies in finding those few schemes that do make the grade.
Index funds: Short-term wonders!
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personalfn.com
In terms of fund management, mutual funds can be broadly classified into two categories: actively managed funds and passively managed - better known as index funds. In an actively managed fund, the fund manager uses his expertise and skills to select stocks across sectors and market segments. The sole intention of actively managed funds is to identify the best investment opportunities and exploit it in order to generate superior returns, and in the process outperform the benchmark index.
Case Study: Too many funds spoil it
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personalfn.com
In our interaction with clients, we have noticed two things - an inexplicable draw towards NFOs (new fund offers) and the need to populate the portfolio with as many mutual fund schemes as possible. In our view, both these are fallacies that could prove fatal to the investor's long-term financial health. Everything that glitters is not gold and there isn't always safety in numbers.
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