Category Archives: Mutual Fund

13 Nov

Mutual Fund on Google has reached the highest levels in five years

Search for the term ‘mutual fund’ is hovering at its highest level in the last five years in Google Trends in India as well as rest of the world.

If you look for any word in Google Trends, it would give result on the scale of 0 to 100. On this scale, the word ‘Mutual Fund’ scored 99 last week, whereas multibagger and SIP scored 96 and 91 for the week ended November 11.

A value of 50 means that the term is half as popular. In other terms, we can say that lower the scale lesser the popularity.

With rising awareness, search for the word ‘mutual fund’ on Google has reached the highest levels in five years when markets are hovering at the levels never seen before.

Image Source: Google Trends

If you are also looking for a mutual fund, which suits your investment need, then you should first decide on your financial plan and goals, and avoid taking any tips from your friends and relatives.

Vidya Bala, Head, Mutual Fund Research, FundsIndia said, “First things you look for selecting a mutual fund is time frame. Not knowing your time frame means you may end up with choosing a wrong fund. Secondly, one should not chase chart topers. High performing fund at present does not necessarily give you robust return in future also. One should look for funds with track record of three to five years. Investor should also understand where the fund will invest and what are the risks associated wiyh it.”

“If you don’t track markets on regular basis then you should avoid sectoral funds. Don’t simply buy a fund what your friend or relative advised. You time, risk profile, goal and saving capability determine which mutual suits you,” said Bala.

Even before you set out to decide where to invest your money, you need to know what you want it to do for you. If you cannot do this on your own, identify a financial planner who can do this for you. If this is not done properly, failure is assured.

Once you have decided on your plan, you need to decide whom to entrust the money with. An asset management company should have strong experience in the financial arena. Next you should check fund manager’s experience in managing mutual fund etc. Also, frequent changes of fund managers can be very detrimental to consistency of returns.

The fund house should have robust investment processes, laid down in clear unambiguous terms. This would eliminate the possibility of individual whims and fancies affecting the investments of the fund.

Avoid funds, which are highly concentrated, as they carry a higher level of risk. The failure of single security can lead to a huge erosion of investment value.

On the other hand, if the portfolio is heavily diversified, then even if a single security or many securities outperform significantly, the impact on the overall returns will be very marginal.

Look for funds, which have neither too little not too much of AUM.

Avoid funds, which are highly volatile in their returns. Funds which fall greatly when markets fall can lead to huge value erosion and the fund manager may have to take risky bets to earn to cover the loss.

Comparison of scheme return with the benchmark return is the best way to know the performance of the fund.

Then one should compare the returns of the fund with similar kind of fund existing in the market of different fund houses.

Source: economictimes.indiatimes.com

17 Oct

Amazing mutual fund investments that can make you very rich this Diwali 2017

Diwali is a good time to invest in mutual funds, and here is a list of MFs that can generate out-sized gains for you in the next 5 years.

Image Credit: forbes

Mutual funds have demonstrated a strong capability of generating wealth. Retail investors these days do not need to rely on hot stocks and tips to see their hard-earned money work harder for them. With mutual funds, investors can double their money in 5 years since it easy to get 15% returns annually by investing in good funds. Diwali is a good time to invest in mutual funds, and here is a list of MFs that can generate out-sized gains for you in the next 5 years.

Balance and beauty
Balanced funds are geared toward investors who are looking for a stable combination of safety, income and modest capital appreciation. Since they have shown a category average of 15% annual returns in the last 5 years, balanced funds can very well double your wealth in the next 5 years as well. “You should take the systematic investment plan route for balanced funds. We prefer Aditya Birla Sun Life 95 Balanced Fund, and DSP BlackRock Balanced Fund for a few reasons. Both these funds have a long track-record of over 15 years. They have beaten various benchmarks and even peers across time-periods, and have managed to double money in a safe way. Don’t forget to add a bit of balanced fund magic when you invest this Diwali,” says Anil Rego, Founder and CEO of Right Horizons.

Name Of The Fund	3-Year Return (%)	5-Year return (%)	10-Year return (%)
Aditya Birla Sun Life 95 Balanced Fund	14.92	17.73	12.42
DSP BlackRock Balanced Fund	14.96	15.82	11.26