Every time stocks in the small cap universe move up prominently, interest in small cap mutual funds and confidence in this sector zoom up even more. Notions like “A small cap mutual fund will beat all other categories (and indices) over the long term” start making the rounds among gullible young earners who naively believe…

There is no limit on the number of sectoral or thematic mutual funds an AMC can produce. So, they do just that! These have huge fees and are marketed as the next big theme to profit from. But how consistent are they in beating a large cap index like Nifty 100 TRI? Note: These are…

It is clear from how many readers, particularly young earners, respond to freefincal content these days that they are overconfident about their equity investments. Especially investments in small cap funds, mid cap funds, etc., that have soared in recent months. This could spell trouble for their dreams. I hate to break it to you, but…

A reader sent us a rather strongly worded email after reading the Handpicked List of Mutual Funds Oct-Dec 2023 (PlumbLine). He was unhappy that we are against investing in active mid cap and small cap fuds and wanted to know why. Our decision stems from our monthly equity mutual fund screeners. These use rolling returns…

This article aimed at new mutual fund investors discusses three common myths about mutual funds. Experienced investors may find this information quite basic, but please consider sharing this post with someone who may benefit from it. The three myths are: “I want my money back!” Nope! A mutual fund is not a bank FD to…

A reader asks, “I initially invested 1.5 lakh rupees in a Smallcap mutual fund category two years ago and haven’t added any more funds since. I’m contemplating whether to resume investing in my existing fund or consider a new smallcap fund”. “I’m interested in understanding the advantages and disadvantages of both options. It’s worth noting…

This is an update on my mutual fund investing journey, which began on 19th June 2008. In the last three decades, I have gone from being a spend-thrift to being in debt to financial independence. New community members can refer to these articles for an account. The Financial Arrow of Time and My Journey: Driven by the…

A viewer on our YouTube channel asks, “Sir, How can I identify my risk appetite? Please let me know the points to consider when deciding asset allocation. Thanks.” Many investors believe their risk appetite falls under three categories: low, medium and risk. They also assume risk appetite refers to “how much risk we can handle”….

A mutual fund is a financial instrument that pools money from the investor and invests on their behalf. As mutual funds become more popular, investors face difficulty making choices. Mutual funds are segregated into two main categories: active and passive mutual funds. If you invest through a broker, the most likely changes are that they…

On 12th Aug 2023, Sudheer Tammini announced that he had developed a “simple Free & Open source software that I have developed to export Mutual Funds CAMS statement data onto a nice CSV file”. We asked him to share more details with us. Cams2CSV could be helpful to users of the freefincal MF portfolio tracker…

The following is an account of an ordeal to redeem from mutual funds in demat form. As mentioned several times earlier, holding mutual funds (except ETFs) in demat form makes no sense. Mutual fund units are already in electronic form! Unless an investor wants to (or rather tries to) sell closed-ended mutual funds before maturity,…

A reader has asked us to explain why diversification is the only free lunch in investing with some India-centric data. As the name suggests, free lunch refers to some benefits without a catch, fee, or cost. There is no free lunch in nature. Can there be one in investing? What does “Diversification is the only…