Original analysis, reports, reviews and insights on developments in the mutual fund space and in-depth reviews
A reader asks, “I have a query regarding mutual fund expense ratios. Let’s say, we have Fund A with 5-year returns of 15% and expenses of 0.5%. Fund B, with returns of 18% with an expense ratio of 1.2%”. “I consider Fund B as a better fund as it has a better return even after…
Continue reading →1st Jan 2022 marked the 9th anniversary of direct plan mutual funds. In this article, we list the most popular direct plan mutual funds – that is the ones with the largest AUM. The AUM (asset under management) of mutual funds reported in most online portals is the total value. AUM of the regular plan…
Continue reading →This article compares the 2021 performance of 367 actively managed equity-oriented mutual funds with category benchmarks. The 2021 performance refers to the 357-day absolute return from 1st Jan 2021 to 24th Dec 2021. All index returns refer to total returns (including dividends) unless otherwise stated. Note: The goal of this study is just what is…
Continue reading →A reader asks, “I am looking for equity funds that hold foreign stocks (overseas equity) but also hold 65% of Indian equity similar to Parag Parikh Flexi Cap Fund so that it will be taxed as an “equity fund”. Can you help?” The advantage of holding such funds compared to a Nasdaq 100 or S&P…
Continue reading →A reader who prefers anonymity asks, “I am planning to buy a house in the next few months. I have narrowed down on the property and locked in a price with the seller. I am using the proceeds of the sale of a property which was owned by my mother”. “I have to arrange around…
Continue reading →The association of mutual funds in India (AMFI) publishes aggregate AUM held by different mutual fund investors across fund categories each quarter. Here are some insights into which type of funds are preferred by high net worth individuals/investors (HNIs) and retail investors. The definition of an HNIs is far from accurate and, in this context,…
Continue reading →In response to our FAQ on index investing, a viewer on our YouTube channel asks, “I am doing sip for the past one year in nifty50 and nifty next 50. Is frequent(once in a year) rebalancing necessary even for passively managed funds?” While index funds remove the need for frequent fund performance review, they cannot…
Continue reading →A 24-year-old reader who wishes anonymity asks, “I am saving around 50k every month for long term (more than 10-15yrs). I equally invest 40k in (10k each) Parag Parikh flexi cap fund; Canara Robeco emerging equities; Union small cap fund; Axis midcap”. “I invest in (5k each) IDFC 10 year gilt fund and HDFC developed…
Continue reading →In this article, we analyze the performance of multi-asset mutual funds and discuss when and how to choose them. This is a new MF category introduced when the SEBI mutual fund categorization rules came into force. Thus the existing funds in this category are about three years old or less, barring exceptions like Axis Triple…
Continue reading →Only nine out of 87 thematic or sectoral mutual funds have consistently beaten the Nifty 100 Total Returns Index. Nifty 100 was used because, if these funds cannot consistently beat a simple large cap index (equivalent to Nifty 50 or Sensex), it makes the entire category unsuitable for retail investors who might make the mistake…
Continue reading →In this article, let us determine what percentage of mutual fund AUM is in passive funds (index funds and ETFs). We shall consider four dates to consider the AUM growth. 1: Sep 2021 (latest at the time of writing); 2: March 2020, when the mark fell due to the pandemic/lockdown. 3: Jan 2018 – Before…
Continue reading →A viewer on our YouTube channel asks, “Sir, Kindly do video…how to redeem only profit from mutual funds without reducing unit’s (if we book profits our capital amount also reducing because units get reduced)”. Experienced investors and regular readers of freefincal would immediately know that the answer to this is: No, it is not possible to…
Continue reading →Sudip asks, “Dear Pattu Sir, Thanks to your advice we now have an office-study-group with 12 people discussing money management. One member claimed that over 15 years, a lump sum investment will always beat a SIP. Is this line of thinking correct? Can you please shed some light on this?” I am delighted to hear…
Continue reading →So many readers and viewers on YouTube want to know more about floating rate mutual funds as there has been enough propaganda that these funds would benefit if there is an increase in interest rate. Does it make sense to invest in floating rate funds? Are there any simpler alternatives? What are floating rate funds?…
Continue reading →Arjun asks, “Can you please write an article on how new mutual fund investors should track their portfolios?” Today “tracking” an investment portfolio has become extremely easy. Investors are spoilt for choice and, at the same time, swayed by fancy pie charts and textured graphs. But is this tracking? In this article, let us consider…
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