Original analysis, reports, reviews and insights on developments in the mutual fund space and in-depth reviews
This is a review of two Motilal Oswal Asset Allocation Passive Fund of Funds – Aggressive & Conservative currently in the NFO period (9th Feb to 5th Mar 2021). We explain why these offerings are not “passive asset allocation” funds. What are Motilal Oswal Asset Allocation Passive FoFs?They are two open-ended mutual funds investing in…
Continue reading →ELSS mutual funds are often sold with an incorrect pitch: Since they are eligible for tax-saving under Section 80C, each fund unit is locked for three years from the date of purchase. AMCs and sales guys state ELSS mutual funds can offer better returns or lower risk because of this lock-in. This article explains why…
Continue reading →A common question that troubles several investors, particularly newbies, is, can I get better returns from stocks instead of equity mutual funds? Many feel like they are missing out on better returns by staying away from stocks. They feel like they need to have at least “some exposure” to stocks—a discussion. A while ago, I addressed…
Continue reading →In the recently released IRDA annual report for FY 2019-2020, LIC’s claim settlement ratio (CSR, death claims) was 96.69%. Since FY 2016-2017, LIC’s CSR has been decreasing. Is this a cause for concern? We investigate. Before we proceed, the reader needs to appreciate that the Claim settlement ratio is not a probability of life insurance…
Continue reading →UTI Nifty200 Momentum 30 Index Fund is an open-ended fund that will track the Nifty200 Momentum 30 index. The new fund offer is from Feb 18th to March 4th 2021. In this review, we discuss what interested investors should be aware of; who should invest in this fund and who should avoid. What is momentum…
Continue reading →The market rally over the last few months has seen the Nifty 50 equal weight TR index (N50 EW)surge past the Nifty 50 (N50) TR index. The N50EW one-year return minus the N50 one-year return has reached a level last seen four years ago. Readers may recall our Dec 2019 that the return difference of…
Continue reading →The market rally in the last few months has had a dramatic impact on SIP returns especially when you track them on a monthly basis. The Nifty 10-year SIP return as on 4th Feb 2021 is a healthy 14% (including dividends but before expenses, tracking error and taxes). What does this mean for investors? An…
Continue reading →The AUM (asset under management) of mutual funds reported in most online portals is the total value. AUM of the regular plan (commissions removed before NAV declaration) plus AUM of the direct plan (no commissions). In this article, we list the most popular direct plan mutual funds – that is the ones with the largest…
Continue reading →In this article, we list the mutual funds investors preferred in 2020 by estimating fund inflows. Yesterday, we discussed the AUM change in Parag Parikh Flexicap Fund: and how it grew by 147% in 2020! Today we considered the AUM change of 746 mutual funds in 2020. As many as 133 funds registered a 100%…
Continue reading →The AUM (asset under management) of Parag Parikh Flexi Cap Fund (previously known as Parag Parikh Long Term Equity Fund) grew by 147% in 2020. This article evaluates the AUM growth of this fund and discusses if this is a cause for concern. This article stems from a question posed by a reader: “I have…
Continue reading →We evaluate the performance of 28 active large cap mutual funds by comparing their 1,2,3,4,5,6,7,8 year SIP returns with Nifty 50 TRI. Investors would be aware of the explicit underperformance of large cap funds from early 2018, while the actual underperformance began well before that: Active mutual funds struggle to beat Nifty 50 for last seven…
Continue reading →A few days ago, a discussion led to an interesting question in the freefincal goal-based investing Facebook group: Can we buy mutual funds in the name of my minor child; wait until she becomes a major to redeem? She will then have to pay tax on capital gains. We discuss the rules in this regard…
Continue reading →Direct mutual fund plans were introduced from Jan 1st 2013. In this article, we list the return difference between an 8-year SIP in a direct plan and a regular plan mutual fund. Scared that it would disrupt sales, SEBI has still not renamed “regular plans” for what they really are: “commission plans” – nothing “regular”…
Continue reading →Every time the market hits an all-time high, many investors get jittery. Questions like “should I book profits now?” “Should I stop investing now?” start doing the rounds in social media. This article discusses a simple way to handle our emotions when investing in mutual funds or any capital market-linked product. The adage, “show me…
Continue reading →In this article, we study historical Sensex data to determine if investors should stop or pause their mutual fund SIPs when the markets hit an all-time high. We also consider lump sum investments and systematic transfer of a lump sum (STP) during all-time market highs. Every time the market hits an all-time high, new investors…
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