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 →
How to invest in mutual funds in India: A Beginner’s Guide

How to invest in mutual funds in India: A Beginner’s Guide

‘Mutual Funds Sahi Hai’ – probably the most popular tagline these days, isn’t it? This ad campaign from AMFI (Association of Mutual Funds of India) has really delivered in terms of attracting the Fixed Deposit and Real Estate Junta toward mutual funds as investment instruments in a pretty convincing manner. However, what hasn’t been made amply clear is if someone wants to explore this investment instrument, how exactly does he or she get started? All you need is a PAN card, a bank account and this blog. Here’s a pictorial depiction of the…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 →

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 →

The smartest way to invest in Mutual Funds – Let the Robos take over

Be Fearful When Others Are Greedy and Greedy When Others Are Fearful This is one of the most famous quotes by the legend of investing community Mr. Warren Buffet. But he is Warren Buffet! He has probably mastered the art of overcoming his emotions of greed and fear. But for ordinary folks like you and me, it is easier said than done. And suppose that we do somehow achieve that Zen state, how many of us here have the knowhow and the bandwidth to actively manage our portfolio so that we can consistently…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 →
The great Indian Fixed Income party most retail investors will miss

The great Indian Fixed Income party most retail investors will miss

  Unfortunately most Indian retail investors will miss this great Indian Fixed Income party either because most of them have yet to come out of their long standing love affair with bank fixed deposits, or are dazzled by the SENSEX topping 32k this week. And yet what seems to have largely gone unnoticed is that FIIs have quietly pumped in a whopping Rs. 1.05 lakh crores in Indian bonds since January 2017, twice the Rs. 53,000 crores they have invested in Indian equities over the same period. By Indranil Guha, Co-founder - Finpeg.com…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 →