Many young mutual fund investors assume that their portfolios should have more of mid cap and small cap stocks or mutual funds because these will outperform large caps over the long run. As usual, such assumptions are based on “intuition” without rigorous data support. In this post, let us compare large cap, mid cap and…

This is a performance review of Mirae Asset Tax Saver Fund and a comparison with the most popular ELSS fund Axis Long Term Equity. If you are looking for an ELSS fund, rather if your portfolio needs an ELSS fund then Mirae Tax Saver might fit the bill. Sometimes, you need to choose mutual funds…

In this post, I discuss how balanced advantage funds are different from aggressive hybrid funds and when and how investors should choose from these categories. One of the wrong questions that investors ask is, “how much return can I expect from this fund or this category of funds?”. Well, they should first be asking, “how…

In this open-letter to mutual fund AMCs, I ask why they not pushing risk-free debt mutual funds when it is so easy to do so?! Yes, a mutual fund with essentially no interest rate or credit risk. In spite of disclaimers and clear wordings in the scheme documents, investors like to assume that the NAV…

One of the most common investor mistakes is to assume that the alpha of a fund or stock or portfolio represents the excess return over a market index or relevant benchmark. This is technically and factually wrong and especially important when someone compares funds or stocks based on alpha or any one of standard metrics…

Yes, that is right!  After 10 years of investing, my equity return is 9%, well 9.46% to be exact. But I am not worried, and I hope you are not too. Here are some takeaways from this journey and a comparison of my retirement equity portfolio with Nifty Next 50 and the Nifty Blend Index…

Here is a list of mutual funds that have outperformed Nifty 200 & Nifty Midcap 150 Total Return Indices as on October 2018. The data is sourced from the October 2018 Equity Mutual Fund Performance Screener. The Nifty 200 is a common benchmark in the ELSS, large and midcap, and multi-cap categories. Nifty 200 consists of…

This is a performance review  (with video) of ICICI Prudential Balanced Advantage Fund ( I Pru Bal Adv) against broad market benchmarks like Nifty, Nifty 100 and 200 and composite benchmarks. I Pru Bal Adv is one of the finest dynamic asset allocation funds and here is why. I thank Ravikiran Suryanarayana for this post idea….

One of the most common investor mistakes is to assume that higher the equity in the portfolio, higher the reward. Studying balanced mutual funds or aggressive hybrid mutual fund will tell you that this is wrong. In this article, I compare the risk vs return of Aggressive Hybrid Mutual Funds vs diversified mutual funds & show…

This is a simple, non-technical description of what are mutual fund star ratings and how they are calculated with the help of an analogy – employee performance appraisal. This is meant for beginners and newbies and I have avoided all jargon. It is only when we understand how star ratings are calculated, can we understand their…

The fall in the markets over the last few weeks gives us a small window of opportunity to learn about risk in mutual funds. In this post, I list the funds and fund categories that fell the most and those that fell the least between Aug 28th 2018 and October 14th 2018. Although this is…

So all it took was just a few days of southbound market movement for questions like, “Should I Stop My Mutual Fund SIPs? Market is falling every day!” to start! Yesterday, I saw five such questions in Quora and readers have sent me similar emails. So if you are asking this question, here is why…

One of the common newbie questions regarding mutual fund SIPs is: What is the best date to start a mutual fund SIP? Nothing wrong with the question, but as in most cases, the answers are often wrong. In this post, I discuss the data of 4147 10-year Sensex SIP retuns computed between Jan 1991 and Sep…

If you are looking for someone to advise you on money management, then you should sign up with a fee-only financial planner – an investment advisor registered with SEBI – who does not get commissions from any agency and works only for you. Hundreds of readers have engaged the advisors from the freefincal List of Fee-only Financial…