How we sense risk of investing a lump sum (five lakhs) in stocks: survey results

Investors sense the risk of investing a lump sum in stocks in different ways. Here are two dramatically different Facebook poll results on the subject conducted at Asan Ideas For Wealth (AIFW) and what we can learn from it. This should also be of use to investment advisors in understanding how clients perceive risk. After…

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NIFTY100 Alpha 30 Index Review: How good a “factor” is alpha?

NSE has launched a new strategy index (aka factor-based index, aka smart beta index),  the NIFTY100 Alpha 30 Index from June 28 2019. The NIFTY100 Alpha 30 index consists of 30 companies from Nifty 100 with the highest Jensen’s alpha using one-year trailing price. In this review, we study how good a “factor” (explained below)…

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Motilal Oswal Nifty Bank Index Fund Review: a large cap fund replacement?

Motilal Oswal Nifty Bank Index Fund will be India’s first bank index fund*. The scheme will track the Nifty Bank index. This has 12 of the most liquid and large Indian Banking stocks weighted as per free-float market capitalization. Should an investor consider this bank index fund? If so, when and how? Can this be…

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Bear the pain and invest in equity through loss or you will never change your lifestyle!

When you start an exercise regimen, the day after you would fee soreness and pain in new areas! I guess muscles that were never flexed before behave like that when flexed for the first time. Most investors who have started investing in equity mutual funds since 2014, 2016 would never have seen a prolonged period…

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List of Mutual fund categories that you can avoid! (Keep it simple!)

The Mutual Fund space in India is reasonably large and growing. There are almost 50 Asset Management Companies (AMCs) offering more than 1,000 – and counting – schemes. The choice can be overwhelming at times.  There are literally thousands of places that list the ‘best funds’ to invest in.  This short post approaches the issue…

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Eight Mutual Fund Products That I wish existed! Are you listening AMCs?

Here are eight mutual fund products that I wish existed as they would make a big difference to investor choices and well-being (in my opinion of course).  Please free to add your own product in the comments below. If  AMCs paid more attention to what their investors want, they would not only collect higher AUM…

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How investors get fooled into buying mutual funds with wrong expectations

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…

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Four Consistent thematic Mutual Fund Performers

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…

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