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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ICICI Prudential Asset Allocator Fund: Here is why you should avoid this!

ICICI AMC is busy pushing its ICICI Prudential Asset Allocator Fund down the throats of any investor gullible enough to take their “advisor” seriously.  Why? Probably because the AMC sees this as an opportunity to secure AUM from investors scared of “current market scenario” by pushing a product that “invest in the right asset at…

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Forget Buffettisms/Mungerisms: try these 2000 year old personal finance tips!

The other day, I was in a get-together, and the topic of personal finance came up. One of them asked where to start. There was an inevitable chorus of “security analysis”, “intelligent investor” and the likes. There was also the litany of blogs that mindlessly parrot Buffettisms and Mungerisms with “investor” in their titles with…

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International mutual funds: Should I invest in them?

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…

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Is this a good time to buy mid cap and small cap mutual funds?

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…

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