Closed-ended equity mutual fund NFO started cropping up frequently a little before the 2014 Lok Sabha elections. They represent the efforts of AMC and distributors to lock-in AUM and therefore, profits regardless of market volatility. I had earlier written about why one should not invest in closed-ended mutual funds from a financial goal planning point of…

Your online mutual fund investment platform is not free! Be it a bank or an online distributor, why on Earth would someone offer you a robust platform for transaction convenience and consolidation for free?! A little background before we dig in: It is raining Direct mutual fund portals! As people start discussing the fees these…

Have you ever wondered when and how a mutual fund declares a dividend? Or what is dividend stripping in mutual funds and shares? In this post, let us try to answer these questions with simple illustrations. Perhaps due to the complex accounting principles involved, the standard answer to this question is, “when it has a…

It is raining direct mutual fund investment portals! First MF Utility Online platforn went live. Then we heard of Invezta, Unovest (launching soon), BharosaClub(open) and ORO Wealth (went live last week). More are in the works!! Here are the details of ORO Wealth portal along a comparison of its features with MF Utility, Invezta and Bharosa…

If we invest in market-linked products like stocks, debt mutual funds, gold etc. it is a good idea to benchmark our returns with respect to the volatility associated with the instrument. This can be done with the an idea known as risk-adjusted returns. Unfortunately, this volatility is often referred to as ‘risk’. When we refer to…

SEBI will soon make it possible for investors (shoppers?!) to buy mutual funds via e-commerce websites. A discussion on the pros and cons of such a move with a poll which I request you to participate in. Why are they doing it?  One word – costs! If the cost of acquiring a customer is Rs…

Many years ago, I found, in an exchange of comments in a blog,  a curious statement: ELSS funds have a lock-in period (of 3 years). Hence, the fund manager can operate without redemption pressure, resulting in better returns.  No evidence was provided to prove or disprove this statement  and I thought no further about it. A…

MF Utility is a mutual fund transaction portal jointly run by 25 AMCs. From today, 1st Jan 2016, investors can use its online transaction portal to invest in direct mutual funds. Instructions for how to go about this can be found here: MF Utility Online Platform is operational! Here some screenshots of the transaction portal taken…

MF Utility, online transaction portal for investing in direct mutual fund plans from 25 AMCs (as of now), is operational!  Here are instructions to access the portal. Steps necessary to use the online facility of MF Utility Obtain a Common Account Number (CAN) following the instructions in the investor page of MFU The CAN form…

Here is a simple way to construct a diversified mutual fund portfolio, or to declutter and reconstruct an existing portfolio using the investment style box available at mutual fund star rating portals. The following are the attributes of a ‘good’ portfolio. Diversification across assets classes (equity and fixed income should do) Diversification within each asset class….

A mutual fund NFO or new fund offer is one which is available when a new mutual fund is launched. For about two weeks the new mutual fund is available at a NAV of Rs 10 per unit before its assets become marked to market. “Do not buy NFOs” is a refrain often found in…

The standard deviation is the simplest way of measuring volatility of an instrument. For investors, it is, the most important risk measure they should be aware of while choosing product categories.  It is in my opinion, the key to successful mutual fund investing  and can help you select mutual fund categories suitable for your financial goals When…

Here is a 7-minute video that discusses the differences and similarities between the two types of annualized returns: the Compound Annual Growth Rate (CAGR) and the extended internal rate of return (XIRR). An annualized return treats an investment in a volatile instrument (gold, stocks, debt funds) as one that compounds and calculates an average year-upon-year return….

This is a 15 minute user manual for using a retirement calculator. It describes the nature of inputs found in typical retirement calculators highlighting the importance of reasonable inputs and erring on the side of caution. Although freefincal retirement planner app now available at Google Play is used for the illustration, the video is applicable for…