Mutual Funds

Holding a well diversified portfolio is what enables investors to sleep peacefully after putting their money in a business they have no control over. MFs and Index funds enable us to diversify with ease-we donít have to chose each stock to build a portfolio, we just buy one. But with 500 equity MFs (much more than investment worthy stocks!) to chose from the task is not simple, especially since every MF house is marketing their products. The simplistic answer is to chose based on past returns. But thatís like driving by looking at the rear-view mirror; itís grossly inadequate. For one you are not aware of the risk in the portfolio, and savvy investors always look for risk-adjusted returns!

We are shortly launching a better way of analyzing and selecting a Equity MF using the knowledge of the underlying stocks. It will assess the quality of the fund and the Potential Upside. This will be updated every month to reflect the changes based on the churn. We will thus be able to get a better understanding of how the fund is being managed. With this we will be able to recommend the right MF whose style complements the other assets held in your portfolio.

Every single communication about MF comes with two statutory warning messages; 1. MF investments are subject to market risks, read all scheme related documents carefully. The 2nd message is ĎInvestors should consult their financial advisers if in doubt whether the product is suitable for them.í With Omega you have a real fiduciary adviser not a MF distributor., because we donít take any brokerage, commissions, etc whatsoever.