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Tag Archive: Exchange-traded fund


Choosing a Mutual Fund

How to choose a mutual fund is always been a big question in front of the investor. The generic answer that every body provides is it imagesdepends upon the intension and purpose of the investor. It holds true in the circumstances when you have the series of asset managing companies starting from AIG, AXIS, BARODA, BHARTIAXA, BIRLA, BNP, CANARA, DAIWA, DEUTSCHE, DSP, EDELWEISS, ESCORTS, FIDELITY,GOLDMAN, HDFC, HSBC, ICICI, IDBI, IDFC, IIFL, INDIABULLS, ING, JM, JPMORGAN, KOTAK, LIC, NOMURA, LNT, MIRAE, MORGAN, MOTILAL, PEERLESS, PRAMERICAPRINCIPAL, PNB, QUANTUM, RELIANCE, RELIGARE, SAHARA, SBI, SUNDARAM, TATA, TAURUS, TEMPLETON, UNIONKBC and UTI ,all the asset management companies run a various category and schemes of mutual funds under them from Large-cap, Liquid, Ultrabond, Midcap, Fixed maturity, global and sectoral funds to name a few. Continue reading

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This is a nice summary of the flaws in many mutual funds published on Market Watch. Too many mutual funds are simply index fundsimages disguised as something else. And most of the rest are simply attempts to market a product that isn’t designed to actually add value (but sounds fancy enough to accumulate assets). If you missed John Bogle’s discussion on the flaws in the mutual fund industry you should watch it here.

The 10 things via Market Watch:

1. “Cheap funds often outperform pricey ones.”

2. “We can’t beat the market.”

3. “When skill fails, we just double (or quintuple) our odds.”

4. “People aren’t buying our product…” Continue reading

CDS & SWAPS

After a long time I am putting few basic quiz questions,  Lets check out who hit the bull’s eye. You can provide your answers by putting imagesup the comments , there are only two questions but they will help to understand the basics OTC derivative market:

  • What is correct about a credit default swap (CDS)?
  1.  A CDS is the exchange of two cash flows: a fee payment and a conditional payment, which occurs only if certain circumstances are met.
  2. The CDS will have value for the protection seller only if defined credit conditions are met
  3. The protection seller will always receive the premiums.
  4. CDS is a type of insurance in which default of an asset triggers payment Continue reading

Off late most investors of below investment grade debt – be it leveraged loans or high yield bonds – are intently focused imageson three specific questions, two of which are fairly straight forward, while the third is more complex:

Q1. What is the state of the credit fundamentals and tangentially, what are current underwriting standards like?

A1. Solid and reasonable, respectively

Q2. What are valuations like in the market?

A2. The current and forecasted benign default environment is supportive of current valuations and spread levels; however, macro influences could lead to bouts of volatility Continue reading

YanLu, David K. Musto and Sugata ray published a paper under the heading “Alternative Marketing for Alternative imagesInvestments” . Hedge funds are currently banned from advertising. New legislation contemplates lifting this ban, thus raising the question of whether the ban is good policy. The Paper address this question by analyzing a form of indirect hedge fund advertising that already exists: advertising by institutions running both hedge funds and mutual funds, where the ads promote either the overall institution or specific mutual fund products. The Paper find that institutions increase such advertising after hedge fund flows sag, and that such advertising predicts subsequent increased inflows for hedge funds. Continue reading

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