First let me clear this wide missconception around “the best fund.” There is no such thing as a best fund. There are only good funds. When someone tells you “this is the best fund” you need to look beyond its recent performance. Why is the fund a good fund? How will it suit my goals? […]
Read More What it takes to build a good (not best) Mutual Fund Portfolio?
I am not surprised at all to see the recent love for Gilt Funds. Why should someone not fall for them when they have generated one of the best returns in recent years. And all this without any risk. Really? Let’s check it out! Gilt funds invest in government securities hence, cannot default. Yes, this […]
Read More Should you invest in Gilt Funds?
Bond Markets have faced severe liquidity crunch since the pandemic crisis has hit the country, particularly in the AA and A rated segment. Franklin MF’s decision to windup their debt funds (actually credit risk funds) added fuel to the fire that triggered outflows from debt funds, mainly Credit Risk Funds which predominantly invests in AA and […]
Read More Some Mutual Funds transferring Credit risk to Hybrid Funds
International funds have caught the attention of many investors in recent months, needless to say why. International funds, specifically those investing in the US equity markets have delivered better relative returns over the last 10 years, supported by strong growth in US economy and relatively poor show by Indian equities. Depreciating Indian rupee has also […]
Read More Should I invest in international funds?
“Mutual funds are subject to tax changes, read budget documents carefully before investing.” This is the new disclaimer which SEBI should make MFs display in their ads. Going by last 10 year’s budget, Mutual Funds have bore the brunt of smart lobbying by Banks to change taxes and remove the arbitrage between fixed deposits and […]
Read More The new MF disclaimer is here…
The Reserve Bank of India in its recent policy announced that it will provide 1 to 3 year money at policy rate i. e. 5.15% to banks under long term repo window. This means banks can get upto 1 lakh crore at 5.15% from RBI. This has impacted bond yields sharply, particularly short term yields, […]
Read More RBI may have just eaten away your debt fund returns
Consumption gives immediate gratification while savings provides delayed gratification. Given a choice people prefer consumption over savings early in their careers owing to peer pressure. This is where schemes like 80C plays an important role. 80C is not only important for nudging savings habit, but also for capital markets. Small savings schemes which mostly enjoyed […]
Read More Why 80C is important for a country like India?
Investors, amateur or seasoned, time and again make same mistakes as others. Even being aware of these mistakes and their own biases does not counter their effects. Why? As Taleb mentions in his book – Fooled by randomness, it is not natural for us to learn by just reading history. We have enough clues to believe that […]
Read More Why is it hard to learn from other’s mistake?
Setting wrong expectations and drawing wrong comparison are two pit holes that are difficult to cross in investing journey. Mark Manson narrated a wonderful story in his book – The subtle art of not giving a fuck. He compared two stories to show how choosing wrong metrics for defining success, setting wrong expectations and making […]
Read More The secret sauce of successful investing…
Looking at AMC ranks based on AUM is of no use to investors and advisers. Analysing and ranking AMCs based on performance i.e. % of their total AUM beating its respective benchmark could be a better approach. The analysis shows that higher AUM does not necessarily mean better performance, which is the general belief among many advisers […]
Read More AMC Ranks Based on Performance – June 2019