The best thing that life insurance business has done in India is it has eliminated mis-selling in mutual funds! How is this possible? Simple the rewards for mis-selling in life insurance plans is far, far greater than mis-selling in mutual funds, so many of the players have shifted games. That brings us to the question […]
What is a Systematic Investment Plan (SIP)? An SIP is simply; a method of investing a fixed sum, regularly, in a mutual fund. It is very similar to regular saving schemes like a recurring deposit. An SIP allows you to buy units on a given date each month, so you can implement an investment / […]
It is easy for the common investor to get carried away by the agent telling him about the “best performing fund”. The question to ask is “How will the fund manager maintain the same rate or a similar track”. The answer is we cannot. Check out the article on risk and performance. See the amount […]
Most retail investors assess performance of their mutual funds by looking at one number – returns. What most investors ignore is the risk that your fund manager took to get you that return. That is to say “how many sleepless nights did your fund manager give you for getting those returns”. Thus bigger fund performance […]
Past performance is not an indicator of future performance. Every mutual fund you own says something that in its literature. And yet, ignoring the past–in investing or in any other field–is rarely a wise move. What we should understand is that the past is only a proxy for the future. Peter Lynch says this very […]