A ten-year SIP can teach us many things about risk and reward. I have one running in Sundaram Midcap Fund for a relative. This was just an Rs. 500 SIP in a quiet, reasonably consistent fund. I tried this all-or-nothing idea by putting everything for that goal in a mid cap fund because I figured…

Most investors, thanks to wonderful propaganda by the AMCs, believe mutual funds would give them fantastic returns and invest with wrong expectations. They also are made to think “staying investing” will get rid of risk, although it never will*. Here is an example of an ICICI mutual fund ad that helps drive in the wrong…

Here are four thematic mutual funds that have consistently outperformed the Nifty 100 Index and Nifty Large Midcap 250 index (dividends included) over every possible 1,2,3,4,5 year periods since inception.  The SEBI categorization rules have clubbed fund that invests in a particular sector or particular theme in the same category “sectoral/thematic”. For the purpose of…

It is well known that Mid cap and small cap funds are volatile. They can provide stellar returns or losses in quick time. Does it make sense for investors to book profits from mid cap and small cap mutual funds tactically? Let us find out. As an analyst, the main aim of tactical asset allocation…

The mutual fund industry has a simple sales mantra. Tell investors not to worry about market volatility because everything will turn out okay in the end! Even the NSE said market volatility is temporary! Thanks to a largely ignorant media, investors are fed on a constant diet of “don’t stop your SIPs if you want…

Each time investors recognise that the Indian stock market will not always keep moving up, they start asking, “should I include international mutual funds in my portfolio for diversification?” This is not a “yes/no” question and like practically all questions in personal finance, is best answered with a question: If you invest in international mutual…

Here are six small cap mutual funds that have consistently beaten mid cap and small cap benchmarks in terms of both risk and reward. A few days ago, we discussed why your small cap mutual fund must beat a mid cap benchmark as that given more returns than a small cap index. Also, since a…

Social media seems to be an excellent psychological indicator of market sentiment. When the doomsday and recession forwards increase, investors with financial needs decades away should probably buy more equity!  Among those who see this as an opportunity, some wish to know “is this a good time to buy mid cap and small cap mutual…

In October 2017, SEBI announced its Categorization and Rationalization of Mutual Fund Schemes. This was done to bring some uniformity in funds belonging to the same category by restricting their asset allocation. SEBI’s motive was to help investors differentiate among fund categories and make better decisions. A year after all fund houses complied with the…

Here are six ELSS mutual funds that have consistently beat Nifty Largemidcap 250 Index (incl dividends). These were shortlisted with the Equity Mutual Fund Performance Screener July 2019. You can use the screener to quickly create such lists from Value-oriented, Aggressive Hybrid, Dividend Yield, Large Cap, Focussed Funds, Large & Mid Cap Funds, Multi Cap Funds,…

Shri Anurag Thakur, Minister of State for Finance & Corporate Affairs has listed out several irregularities in mutual funds in response to a question in the Lok Sabha. SEBI has informed the ministry of the following types of irregularities or non-compliance’s: Failure to identify and appropriate all the expenses in the individual schemes as per…

The way UTI Mutual fund handled the DHFL crisis leaves a lot to be desired to say the least highlighting the need for tighter rules on what an AMC should do in the case of a bond default.  In early June 2019,  Dewan Housing Finance Corporation Ltd a housing finance company defaulted on almost 1000…