Mutual Funds : The Cost Matter Hypothesis

Active investment still has some active defenders, And digging into the reasons for active funds’ persistent problems, itA is easy to see why. Despite the claims of the Efficient Market Hypothesis (EMH) that it is impossible to beat the market other than by luck, it appears that an impressive number of managers do achieve the feat.

The problem is that they do not manage to beat the index by enough to be able to pay themselves and still pass on a decent performance to their clients. In other words, to quote Jack Bogle, the founder of Vanguard and the spiritual father of index investing, the case for passive investing rests on the CMH (Cost Matters Hypothesis), not the EMH. Continue reading “Mutual Funds : The Cost Matter Hypothesis”

Mutual Funds basics

Wealth creation over the years has changed its avenues and area of interest for the investors in India. The prototype investment wherelipper-fund-awards the post offices and typically the scheduled banks through savings and fixed deposits have changed and with the awareness of finance, Mutual fund has become an excellent route to create wealth for the public at large.
“Mutual fund is a pool of money is invested in accordance with the common objective stated before the investment to the investors.”
Here is the concept of Continue reading “Mutual Funds basics”

How to select a mutual fund

The market in India for Mutual funds loaded with approximately half of a century and there are thousands of different schemes running across.To chose a mutual fund is a difficult task because your investment horizon, need for investment is more important for the fund’s selection. I have tried to collect the list of mutual funds that could be best to invest in 2012. They are being diversified equityand few debt funds.

Equity funds :
Any fund with holding of more than 65% in equity can be considered Continue reading “How to select a mutual fund”

ULIPs vs Mutual Funds: Who’s better? (Back to school)

Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms of their structure and functioning. As is the case with mutual funds, investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.

Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name a few. Generally speaking, ULIPs can Continue reading “ULIPs vs Mutual Funds: Who’s better? (Back to school)”

Mutual Fund Selection after Investment Decision

 

The market in India for Mutual funds loaded with approximately half of a century and there are thousands of different schemes running across.To chose a mutual fund is a difficult task because your investment horizon, need for investment is more important for the fund’s selection. I have tried to collect the list of mutual funds that could be best to invest in 2012. They are being diversified equity Continue reading “Mutual Fund Selection after Investment Decision”