Instead of worrying about the rating of funds, look at the fees that they charge. A well performing fund with a lot of aum is likely to be charging LESS than a smaller, but poorly performing fund. Of course this is because there is a ceiling on charges…but do remember…FEES ARE IMPORTANT, and of course […]
Long ago when I asked the mutual fund regulator’s office why there were no Mergers and Acquisitions happening in the mutual fund industry he said ‘because it is easy to get a new license’. Chuckle Chuckle. Now 3 companies Indiainfoline, Union Bank of India with KBC Asset Management and India Bulls have all got the […]
Today we will se how the other (vociferous!) distributors will react: These are the smaller distributors who were getting 2% (atleast) to about 4% as marketing fee. However this money was coming from the client – and many clients did not know about it. However many distributors were giving all their ‘income’ back to the […]
Shariah Investments in my portfolio, no thanks! Benchmark Mutual fund announced a Shariah compliant fund recently. Of course many mutual funds (Reliance, UTI, to name 2) are all in the process of launching and managing a Shariah compliant fund. What is a Shariah compliant fund? And what does it do? Shariah, the religious law of […]
Invest in an index fund – they will outperfrom the active fund managers by a mile. This is quite a normal advise by many financial advisors – especially those who charge a fee for advising rather than a commission. Of course indexing has its advantages – one of the most important being you are not […]
A few days ago India’s largest bank dropped its interest rates on home loans to 8%. This is nothing short of sensational – considering that at the same time one of the top Indian groups (let us say Bluest of Blue) are willing to borrow in the same market at 12% per annum! However, I […]
One of my popular posts is “life insurance simplified” so I thought I will continue to use the same tag line for all my 101 lessons! The number of journalists I know is going up, and the questions I get from them is stunning. The latest – “If Hdfc bank pays 3% interest on a […]