How to pick the best mutual funds to invest in? Introducing Finpeg’s CRAFT framework

Every mutual fund advisor has a list of recommended funds. The greedy ones will simply sell you the funds that offer highest commissions. Honest (but not so sophisticated) ones will use a rating website to recommend funds. Sophisticated ones might put in some research to back their recommendations. But one thing is common across the spectrum - no one will tell you about the “methodology” used to arrive at the recommendations. At best, you will get to hear statements like – “this is a 5-star rated fund and has delivered 19% return in…Continue reading →
Best Investment Plans for Senior Citizens in 2019

Best Investment Plans for Senior Citizens in 2019

Senior citizens have unique investment requirements. This is because of the unique life stage that is called retirement. You are free from work. You have worked hard for your family for decades and now it’s time you relax. But before you do, there’s one final thing that you must take care of. Finances and investments. You have to set up your finances and investments probably one last time. Here’s what you are supposed to do. Take stock of any large pending expense Do you have a child who is going to pursue higher…Continue reading →
How SEBI’s recategorization changed Equity Mutual Fund categories

How SEBI’s recategorization changed Equity Mutual Fund categories

The recategorization of mutual funds was the second biggest mutual fund news of 2018. The biggest news is still negative returns on mutual fund SIP’s. While your SIP’s gave you negative returns in 2018, Finpeg AlphaSIP remained rock solid → The recategorization was a long time coming. SEBI has made it clear through its actions that it wants to make mutual funds investor friendly. By recategorizing mutual funds, SEBI has cleared a lot of confusion new investors typically face. Before the recategorization, AMC’s were allowed to offer multiple funds under the same category.…Continue reading →
Rolling Returns: The Key to the Best Mutual Funds

Rolling Returns: The Key to the Best Mutual Funds

Finding the best mutual funds is a not straightforward. It is not as simple as going to a mutual fund ranking portal and noting down the names of 5-star rated funds. That’s not enough! Let’s firstly see what is the problem with ranking portals and then move on to a solution. Trailing Returns You can have a trailing return for any period. Let’s understand the meaning of trailing return using an example. Let’s say today is 25th January 2019. We are going to check the trailing return of SBI Bluechip Fund-Growth for the…Continue reading →
PE Ratio: How does it impact your mutual fund investment returns?

PE Ratio: How does it impact your mutual fund investment returns?

The stock market is a jungle! However, mutual funds have simplified things to a great extent. This has enabled many new investors to taste equity as an asset class. But we believe mutual funds have been oversimplified. Simple SIP and lump-sum investments are not the best mutual fund investment methods. For example – PE Ratio is one of the most important factors direct equity investors look at before buying a share. Did you know PE Ratio deeply affects your equity mutual fund investment returns too? PE Ratio: What is it? PE Ratio stands…Continue reading →
Best Robo-advisor in India in 2019

Best Robo-advisor in India in 2019

Everything is online. Shirts, shoes, fruits and even mutual funds! Websites that sell shirts, shoes and fruits are referred to as e-commerce websites. Websites that sell mutual funds online are (wrongly!) referred to as robo-advisors. However, it would be unfair to refer every online mutual fund seller (or SIP facilitator) as a robo-advisor. Robo-advisor is not a simple replacement of human financial advisors. A robo-advisor's duties go way beyond those of a human advisor. Let’s list down the features of the ideal robo-advisory in India – Should offer custom solutions Should use technology…Continue reading →
Lump-sum Investment in Mutual Funds – What’s the best way?

Lump-sum Investment in Mutual Funds – What’s the best way?

Lump-sum investments in mutual funds can be tricky. There are several questions that need to be answered before (and even after!) making a lump-sum investment in mutual funds - Is the market at right levels for a lump-sum investment in mutual funds? How to enter the markets? At one-time or via STP? What is the probability that after 5 years the investment will yield expected return? How to exit the investments after the investment horizon is over? What should be the allocation to debt and equity mutual funds? How to rebalance between debt…Continue reading →
Investing Money in Mutual Funds or Stock Market – What’s the better investment?

Investing Money in Mutual Funds or Stock Market – What’s the better investment?

Every new investor starts with a great confusion! The confusion is not a chaotic one where you are trying to choose from a lot of investment instruments. The confusion usually is straightforward – should money be invested in mutual funds or in the stock market? Alpha SIP – The most intelligent alternative to monthly mutual fund investments There is a simple reason why new investors these days seldom think about any other instrument apart from these two. Everyone now knows about the power of equities. Equities have an unmatched track record over the…Continue reading →
Lump-sum or SIP: What works better for ELSS mutual funds? A Finpeg Analysis

Lump-sum or SIP: What works better for ELSS mutual funds? A Finpeg Analysis

Probably there were no income tax saving instruments like PPF and ELSS mutual funds during Mr. Fraklin’s time. If there were, he would have probably twisted that quote to something more suitable. Speaking of tax saving instruments, it has now been rather firmly established that ELSS is probably the best one in terms of return and lock-in as far as an average investor is concerned. Not looking for ELSS investments? Take a look at Finpeg’s Alpha SIP. Let’s have a quick look at all the eligible tax saving instruments as per Income Tax…Continue reading →
Invest in Mutual Fund in India – Key Benefits and Advantages

Invest in Mutual Fund in India – Key Benefits and Advantages

India is a country that loves to save. Most of all, we love to save money - by taking the train instead of the cab, by bargaining with the vegetable vendors and anywhere possible. However, the saving habit has no meaningful end. We put away the money in piggy banks, under the mattresses and forget about it for a good number of years. When we find it, it would have become a fraction of its value! Doesn’t sound believable? The above table tells the following simple fact - A Rs. 10,000 saving made…Continue reading →