PrimeInvestor - Articles and Reports

Fund ratings, at a glance, tell you a little about the history of a fund. For many of you it’s a quick reference on whether a fund is a good one or not. PrimeRatings is a mutual fund rating system. But it’s not simply yet another fund rating tagging on to the list of ratings that are already available. Here’s a look into our ratings process and how we’re different.

In recent times, you may have read about stories of equity indices or equity mutual funds struggling to deliver double digit returns even over 3 and 5-year periods. If many of you had expectations of say 12% return or a 15% returns these numbers are indeed disappointing.

But here’s a question: how did you form your return expectation? I posed this question to some friends. Their response can broadly be categorized into two: one, they either read or were told that equity markets can deliver 15-20% returns. Two, at some point in the past, some of the stocks they held had delivered this return and it naturally became the ‘best return to expect’.

So, what is the right way to form your returns expectation? How much should you expect from your portfolio? Why is that important?