Choosing a mutual fund investment platform – is it an important decision to make when you are starting to invest?
Yes it is.
And the reason is simple – mutual fund investing is a long-term activity.
We don’t think that going by ratings to decide that a fund is a buy or a sell is the right approach – even while we have our own mutual fund ratings system Prime Ratings. In this article, we explain why.
The balanced advantage funds /dynamic asset allocation funds (BA/DAA) category was created after SEBI’s new categorisation rules. According to the rules these funds need to
HDFC Top 100 was the largest fund in its category for a long time (and is still among the top 5 in its category in AUM). It has shown great mettle in its comeback stories time and again.
Today, for us, it serves a different purpose. HDFC Top 100 is a great candidate for a serious case study on the changing performance of mutual funds in India and what it means to you.
This is the question we’ve received from many of you. The straight answer to this is: gilt yields rose sharply in the past 1 month causing a drop in prices.
Does fund performance go down as AUM size increases? Should the size of a fund be the deciding factor on whether to hold it or sell it? We answer a PrimeInvestor’s query.
SIPs have become a byword in mutual fund investing. The touted benefits are many, from avoiding market timing errors to averaging costs lower to investing small amounts. Does an SIP in debt funds also tick all these boxes?
Thematic funds need timing, in entry and exit. They’re there to kick portfolio returns up a few notches. They’re useful in capitalising on pockets of opportunities. Now, what if there was a thematic fund that turned this on its head?
Whenever the returns of any category tops equity fund returns, investor interest in such a category goes up. It’s the turn of the multi-asset allocation funds now. And going by the number of queries we have received, we know many of you want to know whether to invest in this category.
Among the many queries we get, one that features frequently is why we have one fund recommended when another is doing well, or whether you can move from one fund to another that’s doing better. And that’s a great way to look at fund returns because a fund that’s able to beat both market and peers is a good one to have.
There are several ways to look at MF returns data, and not all of them are correct. And investors – novice to seasoned – often make mistakes in this regard. Many a time, they look at wrong data or look at right data and draw wrong conclusions.
Arbitrage funds and liquid funds are very different products although their returns are quite comparable. The difference between the spot and futures market is largely a reflection of the short-term interest rate. The additional returns in arbitrage, if any, come from the mispriced opportunities. In the absence of volatility, a liquid fund may provide better returns.
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