Surely you have a mutual fund and perhaps a life insurance policy too. Correct? Why did you buy it? Was it some good planning that you did or just a friendly neighborhood agent who asked you to buy? Most life insurance and mutual funds have been bought because an agent approached a client. Frankly I […]
You may have been told by the electronic media how SIP (rupee cost averaging or dollar cost averaging) has failed its investors in the past 3 years. If you have seen such programs / read such articles, you may have panicked, right? Well do not panic. Here is a list of reasons why a SIP […]
Once we have reviewed the fund classes, we are ready to discuss more specific fund types. Funds are generally distinguished from each other by their investment objectives and types of securities they invest in. Broad Fund Types by Nature of Investments Mutual funds may invest in equities, bonds or other fixed income securities, or short-term […]
Open-end Funds An open-end fund is one that has units available for sale and repurchase at all time – from the fund itself. An investor can buy or redeem units from the fund itself at a price based on the Net Asset Value (NAV) per unit. This is like making a fixed deposit with the […]
Continuing the mutual fund tutorial, for whom is a mutual fund suitable? Well it is suitable for people who do not have ALL THE THREE : Time Lots of money Skills of stock picking, portfolio construction and fund management skills. Then you go for mutual funds. Mutual funds give you the following advantages: Portfolio diversification […]
If you read magazines, newspapers, etc. or watch the business channels you would have been convinced that people chase performance. However when I recently ran a screen on the best mutual funds over the past 3 years, I found something interesting. The fund returns (on an annualised basis) was 33.07%, 31.30%, 30.79%, 30.42%, and 29.66%. […]
It is customary for life insurance salesmen (by whatever name called) to sell life insurance by showing what is called an “illustration”. What is wrong with this “illustration” that is shown to potential customers? Simple, it does not mean a thing! IRDA has stipulated that the illustration should be made with 2 projected returns: 6% […]