JP Morgan AMC limits redemption from two of its schemes!

Many mutual fund investors (and advisors too perhaps) were shocked to learn that JP Morgan AMC decided to limits redemptions to 1% of outstanding units at the end of each business day. Questions and statements like, “how can they do this?!”, “what is SEBI doing?”, “it is my money and I have the right to take it out when I want”, did the rounds.  A look at the fine print, the implications of mass redemptions and if JP Morgan AMC was justified in its actions.

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Mutual Fund SIP Rolling Returns Calculator

Use this Mutual Fund SIP Rolling Returns Calculator to determine how consistently an equity mutual fund  has performed wrt to its benchmark.

Returns can be broadly categorised into two types: for a lump sum investment (CAGR) and for periodic investment (XIRR)

Please consult this post to understand What is XIRR?You can consider using this Mutual Fund SIP XIRR Tracker to track a SIP investment month by month.

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Understanding Credit Rating Risk in Debt Mutual Funds

JP Morgan AMC is in the news for the wrong reasons.  The NAV of two of its debt mutual funds, JP Morgan Short Term Income Fund and JP Morgan India Treasury Fund fell by -3.38% and – 1.73% on Aug. 27.  The reason: both funds held debentures (bond) of Amtek Auto which was downgraded from AA- to C. A look at how credit rating changes affect debt mutual funds.

Categories of debt mutual funds can appear difficult to understand than that of equity mutual funds. There is a simple way for investors to understand the risks associated with different debt mutual fund categories – the modified duration.

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Chennai DIY Investor Workshop – Sep. 27th 2015

Ashal Jauhari and I will conduct a workshop on do it yourself (DIY) money management at Chennai on September. 27th 2015.The workshop will cover the basics necessary for investors to plan their financial goals efficiently.

No prior knowledge of personal finance is necessary

Register with your spouse if possible

Ashal Jauhari is the owner of Facebook group Asan Ideas of Wealth. If you wish to know more about him, you can check out his interview at freefincal.com

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Black Monday 2015: All in a day’s work!

If you had direct or indirect equity exposure and did not know what happened on Monday, you deserve an award! Couple of charts, plus thoughts on the 6-8% drop in Indian indices.

Why did markets “crash” ?

Firstly, it is not a crash. A single day upward spike is not called a bull run. Similarly, a single day downward spike is not a crash! All we can say is that it is a sharp movement triggered by a domino effect -China, Europe, US. I don’t really care. The cause will not help me much.

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