How to Start a Systematic Investment Plan (SIP) in Mutual Funds

Systematic Investment Plan (SIP) is a regular and disciplined way of investing money in mutual funds. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc). An SIP is a planned approach to investments and more than anything it helps the investor inculcate the habit of saving and […]

Investment Advisory: Misselling, Cold Calling and Commissions

How many times have you got a call from someone claiming to be from a big mutual fund advisory company or the credit card department of a bank pushing their products? Stop right now! I hope you do know- THEY LIED TO YOU. As a matter of fact, regulated mutual fund advisory, insurance, banks etc. […]

Who Should Buy Bonds/ Debt Mutual Funds

Investors who have low risk appetite and prefer to invest in safe instruments like fixed deposits can look at debt mutual funds to get better after tax returns. Investment in debt funds is suitable for investors who want to earn satisfactory return on their capital by taking low to moderate levels of risk. Typically, the returns will vary […]

Should You Invest in Nifty or Sensex Index Fund?

A few days back I received this Question – “Is it a good idea to invest in Nifty or Sensex Index Fund? What are the pros and cons?” ______________________________________ What is an Index Fund Index funds exactly replicate an equity index (Sensex or Nifty) by investing in the same stocks which constitute the underlying index. […]

How to Buy Online Mutual Fund Plans

From early 2016, investors will be able to buy mutual funds online via e-commerce websites (such as Flipkart, Snapdeal, Amazon etc). Securities & Exchange Board in India (SEBI) is considering introducing a third category of mutual funds called online mutual fund plans, which can be sold through e-commerce websites. This is likely to help both, […]

Mutual Funds Vs. Investing directly in stocks

Do you suggest buying mutual funds or investing directly in stocks? From my immediate family to everyone in the extended circle of my distant family friends, everyone has asked me this question at least once. While I have no stats on how many took my advice, my answer had one thing common in 100% of […]

Equity, Hybrid and Dynamic Mutual Funds

What is an Equity Mutual Fund? While it may sound like the name given to a fund which invests only in equities (i.e. stocks) this may or may not be true. A fund must have a minimum of 65% in equity stocks in order to qualify for tax benefits as an equity-oriented fund. These funds […]

Diversified Equity Portfolio Returns

I get a lot of questions about (i) how much should you diversify; (ii) the kind of returns which diversification can make for you and (iii) pure equity oriented mutual funds. In this post I will try to club these 3 points together. To explain things I will use a set of bellwether stocks to […]

Best Equity Mutual Funds in India

The analysis presented below is based on the performance and current composition of 3 market leading funds as of 14th November 2014 in their respective category. There are thousands of funds to choose from and within these funds there are the ones with high concentration on equities or debt. There are the gold funds, infrastructure funds […]