In this article, we look at the trailing returns and rolling returns of actively managed large cap mutual funds vs Nifty 100 TRI using the Equity Mutual Fund Screener Feb 2023. Trailing returns refers to the last 1,2,3,4, and 5-year return as of Feb 3rd 2023 and rolling returns refer to every possible 1,2,3,4 and 5-year…

There are 28 actively managed midcap mutual funds available for investment today. Out of these, 23 are older than five years. This article evaluates how these midcap mutual funds have fared against the Nifty Midcap 150 Total Returns Index. We found only three midcap mutual funds have outperformed the index consistently. Therefore it is a…

A reader asks, “How to decide whether to persist with or exit an underperforming equity fund? By switching too frequently, one may catch the bad periods of the funds and end up doing worse than all the funds tried. Persisting too long will, of course, hurt if the fund keeps underperforming”. “It is understood that…

Over the past few weeks, several readers have asked us if this is a good time to buy gilt funds, corporate bond funds, or long-duration debt funds as the interest rate cycle appears to have peaked and is all set to move down — a discussion. When RBI starts decreasing the overnight rate, gradually, the…

In this article, we address the concerns of many readers who want to know if they should exit Nifty Next 50 index funds or ETFs because of the looming Adani crisis. As of Jan 31st 2023, the Nifty Next 50 holds three Adani stocks. Adani Green Energy Ltd. 1.73% Adani Transmission Ltd. 2% Adani Total…

From April 1st 2018, long term capital gains on stocks and equity mutual funds over Rs. one lakh have been taxed at the rate of 10% (plus 4% education cess) without indexation benefits. P V Subramanyam of subramoney recently pointed out to me that we will be paying more tax on equity mutual fund gains…

A reader asks, “I have been investing in MF through SIP for 15+ years. I have the habit of reviewing my mutual fund portfolio in January every year (15 years so far) and comparing my MFs to their peers. I check for 1 year returns. If my MF is in the top 3 for the…

The AUM (asset under management) of mutual funds reported in most online portals is the  AUM of the regular plan (commissions removed before NAV declaration) plus the AUM of the direct plan (no commissions). This article lists the most popular direct plan mutual funds. That is the ones with the largest AUM. Each quarter, the…

In May 2022, SEBI allowed mutual funds to launch either an actively managed open-ended ELSS fund or a passively managed open-ended ELSS fund. In an amendment issued on Jan 10th 2023, SEBI has now allowed those fund houses with an existing active ELSS fund to launch passive ELSS funds. However, the existing active ELSS funds…

A reader says, “Sir, I am 26 years old. After reviewing various materials and videos about funds, I have arrived at a four-fund portfolio with all hybrid funds. Kindly suggest changes or give your thoughts on this. The funds are (1) Hdfc balanced advantage fund – (20%), (2) Icici prudential equity and debt fund –…

This is a list of the worst-performing equity mutual funds over every possible five, four, and three periods between 1st Jan 2013 (introduction date of direct plans) to Jan 5th 2023. Some caveats before we begin:  (1) The definition of a “worst mutual fund” is as arbitrary as the definition of a “best mutual fund”….

A reader asks, “I recently used your equity mutual fund screener, and it is probably the best tool available for selecting consistent performers. You are comparing Small cap mutual funds with Nifty Midcap 150 TRI. Can you please explain why you do this?” Suppose the Indian Cricket team has played 15 matches in about half…

1st Jan 2023 will mark the 10th anniversary of the introduction of direct plan mutual funds. This article discusses whether their introduction has caused more harm than good for investors. About 46% of total assets are in direct plans (a good chunk of it is as institutional and HNI assets). The honest answer to this…

A reader writes, “Which is more suitable for a long-term goal? Aggressive hybrid funds or multi-asset funds?” So in this article, we compare a hybrid portfolio with a multi-asset portfolio to arrive at an answer. We cannot compare these funds because multi-asset funds are quite new. Earlier, we compared CRISIL Aggressive hybrid index (with 65%…