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 →