The calendar year 2018 was particularly bad for equity markets. While various analysts are giving different figures of the gains or losses in the equity markets, the main point is that those who invested either directly in shares or through equity mutual funds lost money. Morningstar reports (https://www.morningstar.in/posts/50281/mutual-funds.aspx Date 2 Jan 2018) the following gains/losses… Continue reading The Cat is Out of the Bag
Standard & Poor (standardandpoors.com) publishes on the website https://us.spindices.com/spiva/#/reports the performance of mutual funds in comparison with the S & P Index. This is called Spiva (Standard and Poor Index vs. Active Funds). They do this for many countries around the world. For India, as on 30 June 2018, this what their analysis says: Large Cap… Continue reading Data From S & P: Under-performing Mutual Funds
Lets Accept it. We are not God Predicting future returns of a risky investment. All of us want to do it. Many of us believe we can do it. But the truth is that none of us can predict future returns on a risky investment. In all humility Lets accept it, we are not God. If… Continue reading God! Please teach us to know the future
Before we wish each other Happy New Year 2019, let us wish each other Happy Old Year 2018! Because it has been a very happy year for low risk investors, investing in banks, post office, etc. After a very long time the popular media is acknowledging that low risk investments give better returns as compared… Continue reading Happy 2018 Year for Low Risk Investors
Finance and Economics Education for the Life Insurance Sales and Marketing Persons Knowledge is Power Learn Concepts that Are Today’s Market Language This is the fourth article of the Explained Series of Articles from me. In this series I will be explaining a few concepts in financial theory and how they are linked to selling… Continue reading Mutual Funds Are Not For Long Term
Finance and Economics Education for the Life Insurance Sales and Marketing Persons Knowledge is Power Learn Concepts that Are Today’s Market Language This is the third article of the Explained Series of Articles from me. In this series I will be explaining a few concepts in financial theory and how they are linked to selling… Continue reading Hair Cut by Banks May Result in Baldness of the Mutual Fund Investor
This article is a case study of how the degree of risk in an investment can suddenly change. An investment that is considered safe can almost overnight become a dead investment and investors lose in the resulting volatility of price fluctuations. The financial sector knows how to hide truth Whatever else one may say of… Continue reading Explained: Side Pocketing – An Example of How Investment Risk Actually Works in Practice
We have already seen that Indians have a low risk appetite and that there are strong and valid economic reasons for the same. (Click here for the article). Mutual Fund is not a long term product There is another issue on which the financial planners are misleading the common public. They have been pushing mutual… Continue reading The Layman is a Prudent Financial Planner
The Fact – Indians prefer low risk investments Savings data compiled by Central Statistical Office (CSO), Government of India, and published by the Reserve Bank of India in its Handbook of Statistics, shows that without exception since the time they started publishing the data from 1970 till date (48 years, now), Indians have always put… Continue reading This is a FACT not an Opinion
The newspaper Mint reported on 4 December 2018 (MFs extend loans to listed entities against shares in promoter firms by Jayashree Uphadhyay and Gopika Gopakumar) that some of the mutual funds have extended loans directly to companies. Some of mutual funds that have been mentioned in the article are: Franklin India Ultra Short Bond, Reliance… Continue reading Are mutual funds banks?
