Which Fund to Choose?

Mutual fund is still an untapped market in India, Although India has more than 50 AMC (Asset Management blogCompany) operating with more than 20,000 odd schemes.

When it comes to investing I always say that Equities have out-performed other investment asset classes over the long-term in India as well as globally. With growing maturity, retail Investors in India have begun to realize this and also take into stride the short-term volatility of this asset class. Better regulatory environment and improved corporate governance have also helped bring more investors to Equities.

Equity investing requires a lot more dedicated time, patience, skill and knowledge while people prefer to invest Continue reading “Which Fund to Choose?”

Why Investors lie ?

Taken from the Big chill of 1983:blog

Michael: I don’t know anyone who could get through the day without two or three juicy rationalizations. They’re more important than sex.

Sam: Ah, come on. Nothing’s more important than sex.

Michael: Oh yeah? Ever gone a week without a rationalization?

Self-deception is especially costly when it comes to investing. So let’s consider some of the lies that a lot of you may be telling yourselves and the impact they may have on your portfolios.

Do Professionals really beat the market? Or it’s a Paradox

How concerned should we be about the cyclical performance of fund managers or of our own portfolio? blog

Performance differences, relative to a market benchmark, don’t really matter over the long-term. Short-term (months or years) under-performance is a fact of life if you are trying to beat the market.

Investors are better off investing in an index fund if they can’t deal with this fact. Otherwise, with human behavior being what it is, investors who can’t accept this fact will buy high and sell low –destroying their wealth in the process.

Volatility and the cyclical performance of active management (i.e. investors trying to beat the market) are really blessings in disguise for long-term investors.  Continue reading “Do Professionals really beat the market? Or it’s a Paradox”