In this article, we discuss a question posed by Suresh: “sir, the market has slowly started falling after budget 2021. Is it time to book some profits from mutual funds?” Even a casual observer would agree with Suresh. Let us first try to visualise this. The Sensex price movement in pink and the corresponding one-year…

Let us discuss the answer to a question we received recently: “dear sir, can you please compare MF SIP vs lump sum returns and tell us which is a better way to invest in mutual funds?”. This question has been asked and analyzed for decades! Unfortunately, very few point this simple fact. If you ask…

Anyone investing in mutual funds would have heard the saying, “time in the market is better than timing the market”. This was propagated by AMC folk to try and stop fluctuating AUM and, therefore, income/commissions. However, “time in the market” or “staying invested” at all times or “buy and hold” is not different from “timing…

This is a list of the worst-performing equity mutual funds over every possible five, four, three and two year period between 1st Jan 2013 (introduction date of direct plans) to March 8th 2021. Some caveats before we begin:  (1) The definition of a “worst mutual fund” is as arbitrary as the definition of a “best…

One year ago, on March 23rd 2020, the stock market stopped falling in fear of the global economy coming to a standstill due to the pandemic.  From Feb 18th 2020 to March 23rd 2020, the Nifty fell by 36.5%. On March 23rd 2020 we saw the biggest intraday fall 0f 13.5%. The 10-year Nifty SIP…

Every mutual fund sales guy says, “the best way to build wealth is via SIP in an equity mutual fund over the long term”. However, where is the proof that a long-term equity mutual fund SIP would work? In this article, we analyse 40+ years of the Sensex and 106 years of the S&P 500…

There are many popular “beliefs” surrounding mutual fund investments. One of them is that the best day for monthly investment is the last Thursday of the month when the Nifty futures and options contract expires. Several “experts” have also claimed that the best day for SIP is the last Thursday of the month. Since only…

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…

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…

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…