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 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 →
5 reasons why you should start investing in mutual funds in India

5 reasons why you should start investing in mutual funds in India

Mutual funds are the rage in India these days! But what makes them so effective and credible and most importantly, useful? There are easily more than 5 reasons why one would want to invest in mutual funds. However, basis our interactions with our numerous clients we have come across a few top reasons why anyone would want to invest in mutual funds. It should not come as a surprise if you start you mutual fund investments for one of the following reasons. Tax Saving Did you know mutual fund investments can help you…Continue reading →
Mutual Fund investments: Time the market or time in the market for Mutual Fund investments?

Mutual Fund investments: Time the market or time in the market for Mutual Fund investments?

Don’t try to time the markets. Invest in Mutual Funds and sit tight for long term and you are guaranteed to make high double-digit returns. Pretty sure you would have heard (or read) this advice multiple times. But have you ever gone back and tested it out? Does this theory hold true? We will try to answer the exact same question. But, unlike folk wisdom, we will use data to make conclusions. We will show that getting the timing right does have a significant impact on your returns – even for periods as…Continue reading →