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 →
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 →
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 →
Things to Consider While Making Lump Sum Investment in Mutual Funds in India

Things to Consider While Making Lump Sum Investment in Mutual Funds in India

First things first – What exactly is lump sum investment in mutual funds? As the name suggests, you invest a “lump sum” amount in one go. Contrast this with SIP. For most salaried people, a specific portion of their salary is earmarked as savings and invested into mutual funds every month. However, suppose you sell an old house or inherit some amount of cash and you need to invest that amount. This is the case where you would do a lump sum investment in mutual funds. Why make the distinction? This is an…Continue reading →
Best Monthly Income Plans for Senior Citizens

Best Monthly Income Plans for Senior Citizens

Old age is a man’s second childhood – except for one fact. When you are a child, your mistakes are forgiven and there is more than enough time to rectify them. When you are older, you better be cautious. However, once you start belonging to the ‘senior citizen’ category, you better be extra cautious. Like a child is allowed to go out and play only after he completes his homework, a senior citizen is, implicitly, allowed to make financial mistakes only after he has a sustainable monthly income plan in place. Any senior…Continue reading →
How to set financial goals and achieve them

How to set financial goals and achieve them

It cannot be put into words how relevant this quote is to achieving your financial goals especially using mutual funds. This is exactly what we are going to talk about here. The process of achieving a financial goal is pretty straightforward which is probably the best thing about it. However, let’s quickly visit the important steps and their finer details. Identify Your Financial Goals This is the starting point which makes it probably the most important step of this entire exercise. It is extremely important to be able to identify and define financial…Continue reading →