Rebalancing – a passive way of Timing the Market!

Most investors take decisions based on market levels. If the markets are very high, they will wonder what to do and wait for some corrections. If markets are down, they still wonder what to do and still wait for another correction. They are so confused with the whole exercise of timing the market and it’s easy and very common for investors to take incorrect decisions and make wrong investments. If their investments perform well, it’s difficult to know whether it is due to wise decisions or simply luck. Fortunately, for a savvy investor can help to ease the effects of both unpredictable luck and poor-decision making. One strategy for doing that is diversification via asset allocation:

MANAGING a Portfolio of Mutual Fund is the key

Assuming you had created a diversified slate of mutual fund holdings by putting the money in 5-star large-cap equity fund in the first place, with or without the assistance of a professional. You were not supposed to monitor your mutual fund investment regularly as you intended to invest for long term, like a normal investor. You keep adding good funds regularly, but have not exited any yet.  Now, your portfolio shed 16 percent value as you found it difficult to stomach that schemes that returned 20 percent or more a year for the past 10 years and was accordingly rated 5-star had failed for your portfolio.

Debunking Mutual Fund Investments Mistakes!

We all may have made mutual fund investments mistakes at some point in our managing portfolio and vow never to repeat them. But, people love to commit the same mistakes consistently because most people have no clarity on what exactly were those mistakes and how they can actually avoid them in future. In hindsight, many of such actions seem so wrong, yet we blindly follow them.

Not investing in equities for the long term?

We are the nation of a fixed income country. Most proportion of financial savings and investments of Indians are in fixed income avenues as dominating by bank deposits and various government small savings schemes like PPF and National Savings Certificates (NSC). Because, we love for fixed and predictable returns which has somewhat less-ended in recent decades.   But we should know that the scope of gains is sharply limited in fixed income instruments as compared to investing in equities and could not able to beat inflation rate. However, being a relatively high inflation economy, still we are not ready to switch to equity more enthusiastically than we have done so.

Should you invest in RD or SIP or Both?

If you were thinking of saving up money for the medium term, say 3 years or more and allow you to invest small a fixed sum on a monthly basis, recurring deposits (RD) of banks would be the one on top of your mind. Of course, in RD there is no risk and its return is granted. But, if you had a minimum of 7-10 years investment time frame and intend to invest small sums regularly, it may not be so lucrative option as last decade average inflation was at 6.5 per cent and it effectively meant that the returns fail to beat the inflation and moreover, its interest is very much taxable could be proved an unattractive option. But here’s a good substitute that not only generates better returns over the long term but is far more tax efficient.

Are you Tolerating your Poor Mutual Funds Performance?

There are several reasons mutual fund investors tolerate a lot of flak for bad performance from their selected best mutual fund scheme. This can be an expensive mistake, especially if you are relatively young and have many years to put your money into fund through SIP. Perhaps the biggest complaint levied against mutual funds is that not performing as they should. But the criticism often dismisses some of the positive aspects of the asset allocation and its rebalancing mechanism that most financial planners and advisors still use to take control of your mutual fund performance and beat the market index.

Flexi Systematic Transfer Plan that catches falling Markets

Self-disciplined investing is the key to financial success. However, to put this into practice is difficult because it is impossible to time the market. Everyone loves to buy equities when the market is at a low and sell when they reach at high. It sounds a perfect strategy easier said than done. But, most of the times, it becomes more difficult to predict the exact behaviour of market. While investing we are always in fear that what about if market goes down further.

How to optimize your Mutual Funds?

Investors must have some schemes in their mutual fund portfolio.  They may have bought it with or without analysis, but it is a part of many investors’ live and might be potential clutter. Of these, serious investors have interest in making money through mutual funds investments and they are very clear about the rules of mutual funds investing. The second category of investors actually forms 99% of stock investor population. Their mind-set is to make some quick gains from mutual fund in a matter of weeks or months and sell their holdings as and when they feel stock market is in bear phase.

Busting myths about choosing options in Mutual Fund!

There are lot of misconception and myths about four Mutual Funds options (Growth, Dividend Payout, Dividend Re-investment and Bonus) which add to confusion in the world of mutual funds and agents use it against investors and make them fool...

It is imperative that before you signify your choice of option, you are aware what they mean and how they function.

Lower or Higher NAV mislead you!

Many people tend to think that the fund with low NAV (Net Asset Value) is much cheaper than the NAV of fund with higher NAV. There are plenty of reasons to have misconception that a fund with higher value will give fewer units, it has already appreciated as compared to a fund with lower NAV and fund with lower NAV has more potential to appreciate further. Though this is true to some extent, it is not the correct criteria to select a fund. Unfortunately, the NAV of the fund is grossly misunderstood.  Here we attempt to clear the myth surrounding NAV.