Lump sum Investment – how to invest lump sum amounts in Equity Mutual Funds

It’s not about timing the market but time in the market Haven’t we heard this market wisdom time and again! And while we completely agree with the underlying philosophy, what if we had the best of both the worlds – timing the market and time in the market? And we will shortly see how. Making lumpsum investments into equity mutual funds can be tricky. There are simply too many open-ended questions: Should you invest everything in one go? Or should you invest some amount (or nothing) and wait for markets to correct? What…Continue reading →
Looking for the Best Mutual Funds to Invest? It’s a bit trickier than you think!

Looking for the Best Mutual Funds to Invest? It’s a bit trickier than you think!

It is a capital mistake to theorise before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts. Arthur Conan Doyle, Sherlock Holmes A lot of us have a very simple strategy for selecting the best mutual funds for our portfolio Step 1: Open your web browser Step 2: Go to a “famous” mutual fund rating website Step 3: Pick the top rated funds Step 4: Set up SIPs in them and done! Well, it is not that simple and honestly, a bit dangerous! After…Continue reading →
Can Mutual Fund risk be quantified and can it be eliminated?

Can Mutual Fund risk be quantified and can it be eliminated?

  Of late, we have been bombarded with endless ads of “Mutual Fund Sahi hai”. And all of them end with a standard disclaimer – “Mutual fund investments are subject to market risks. Please read the offer document carefully before investing”. What does that even mean? Is it just a mandatory disclaimer or something that needs to be taken seriously? Short answer – do NOT ignore the risks. Investing in Mutual Funds (especially Equity Mutual Funds) is fairly risky. Does that mean you simply stop investing in Equity MF and go back to…Continue reading →
Are SIPs really the best way to invest in mutual funds?

Are SIPs really the best way to invest in mutual funds?

  There are 248 trading days in a year. With SIPs, you just invest on 12 out of those 248. If the purpose is cost averaging, then why invest just 12 times in a year? Why not every week, or for that matter why not every day? Also SIP is after all just an entry strategy. It governs when to invest. But what about exit? If your investment plan is premised only on SIPs and doesn’t have an exit strategy, it’s akin to a “Chakravyuh” – you know how to get in, but…Continue reading →

Why should you invest in equity mutual funds only through robo-investing platforms?

This is the second of a two part series. In the first part, we had examined how high performing Equity Oriented Mutual Funds have given eye-popping returns (at times in excess of 20% annually) over timeframes as extended as 20 years, making them arguably the best suited instrument for long term wealth creation for retail investors. In this second part, we’ll examine how today’s best performing funds aren’t necessarily going to be so forever, and hence why the only way to sustain the superlative returns that equity mutual funds are known to generate…Continue reading →

Why should you invest in equity oriented mutual funds?

This is the first of a two part series. In this first part, we’ll examine how high performing Equity Oriented Mutual Funds have given eye-popping returns (at times in excess of 20% annually) over very extended timeframes, making them arguably the best suited instrument for long term wealth creation for retail investors. In the second part, we’ll examine how today’s best performing funds aren’t necessarily going to be so forever, and hence why the only way to sustain the superlative returns that equity mutual funds are known to generate is by investing in…Continue reading →