PrimeInvestor - Articles and Reports

Could upping the frequency with which you run your SIPs net you better returns? The primary aspect you look at in SIPs is that it helps invest across different market levels and therefore averages your investment cost down. If that’s the case, it follows that making very frequent investments will help capture more market volatility than just once-in-a-month investing.

Some of you wish to invest in index funds and want to know the best index funds. Others want to hold a portfolio of index funds. Building a portfolio out of index funds or adding index funds calls for mixing strategies and market-cap segments. In this article, we’ll try to explain the key characteristics of some of the equity indices and how they can be paired with other index funds/ETFs or with active funds.

When it comes to mutual fund returns, two things are true for most mutual fund investors:

It is the most important thing for them
It is among the least understood set of concepts

An advisor may talk about all the nuances of mutual fund investments to an investor – risk mitigation, balancing, diversification, down-side protection etc – but at the end of the day, the person would only care about how much he/she would end up making.

And yet, when it comes to reading and understanding returns, they could make elementary mistakes. For example, once when I recommended an investor invest in a scheme for 5 years for optimal benefit, he said he would invest in it for a year, because “the fund has better 1-year return than 5-year return” – obviously going by the most recent numbers.