What Are Multicap Funds? Multi-cap funds invest in stocks across Large, Mid & Small market cap. This flexibility to switch between sectors and stocks belonging to any market capitalisation allows the fund manager to...
Category - Mutual Funds Investing
Team-MoneyWorks4meAnalyze your Mutual Fund Portfolio to check if it will disappoint you
Look at your Mutual Fund Portfolio and think how you came about having this particular composition. Did you, like most people pick up a top performing fund every time you decided to invest or did you get a set of funds...
Mutual Funds: Growth Plan is always better than Dividend Plan
Dividends are nothing but your own money being returned to you. The fund’s NAV will fall immediately after announcing dividend, by an amount equal to dividend per unit. Dividend option in equity plan is a losing...
Passive Investing: Merits & Demerits
Passive investing is picking up pace in developing markets. Passive funds follow a strategy of tracking a particular index performance or a factor like quality, value, etc. In developed markets like US, passive funds...
How to choose the Best ELSS Fund
It’s that time of the year when every salaried class individual starts looking for tax saving alternatives. Mutual Fund ELSS scheme is one of these options and the best one available at that. What is an ELSS? ELSS or...
Aliya Sayyed-Team MoneyWorks4meWhy an estimate of future upside is more useful than past performance when investing in Mutual Funds?
If you ever asked “when is a good time to invest in a specific fund”, you are likely to get one of two following answers and some very dirty looks: “Yesterday”. Meaning you were stupid enough not to have invested in MF...
Why chasing top performing funds is a bad idea?
MoneyWorks4me ‘Implied Investor Returns’ show that investor returns are lower than mutual fund returns over long time periods. One would ask how can investor returns be any different than a fund’s returns? There are...
How to achieve the right diversification in Mutual Funds?
The efficient market hypothesis (EMH) was developed by Eugene Fama who argued that stocks always trade at their fair value, making it impossible for investors to either purchase undervalued stocks or sell stocks for...
Select Equity Mutual Funds which are ‘andar-se-strong’
There are roughly 350 Equity Mutual Funds in the market. Selecting the right ones can be pretty complicated. The current method for selecting a fund based on the highest past returns is popular because it is simple and...
Avoid Mutual Funds with Hidden Costs
Avoid Mutual Funds with Hidden Costs and increase the chances of earning index-beating returns. We all are quite familiar about mutual fund expense ratio and we rightly desire that it reduces as much as possible...
Mutual Fund Expense Ratio: How much is fair?
Worldwide, there is a lot of hue and cry over high expense ratio that investment management firms charge for generating better than market return. Globally, funds are moving out of active strategies to low cost passive...
Why is studying a Mutual Fund’s Portfolio necessary?
There are roughly 350 Equity Mutual Funds in the market. Selecting the right ones can be pretty complicated. Since we cannot handle complicated stuff, we resort to simpler measures even if they are incorrect and...