‘The perfect strategy works every time; until you start using it.’ Isn’t that how it is with your investments often? What seems to be the best fund, stops being one the moment you invest in it. What seems to be the best market to enter turns into a bear just after you invest. The strategy that delivered super-high returns for your friend fell flat for you. Why is this so?
Because there is no perfect strategy. There are only simples dos and don’ts that never change. It’s just deciding what you’re investing for, getting the right mix of funds to suit that purpose against the backdrop of the timeframe and your risk levels, and being disciplined about it.There! We’ve distilled what could have been a lengthy tome into a single sentence!
Now that we’ve got that out of the way, we’ll move on to something better. Here are our top blog posts for 2017 that answer many of your pressing questions – “This fund has delivered such high returns, should I get into it?” (and the several variants of this question). Or the equally popular “My fund is not doing well” (or the other fund is doing far better). Other favourite questions are how many schemes to hold, why your debt fund is not matching your ideal, what returns you can expect from equity, whether markets will correct or not, and so forth.
If you missed them this calendar, here’s an add-them-to-your-favourites list to read and re-read.
This article is a way we’re sneaking in an investment lesson. We talk about how diversification mitigates risk and the need to have an asset-allocated portfolio. Plus, it explains how to you use the different types of funds there are to mitigate risk and diversify your portfolio.
While we’re on the subject of building portfolios, going for new schemes when you want to increase your investment might seem like a typical thing to do. It is not necessary to add new schemes every time you increase your investment amount. Read this article to know when to add schemes when you’re increasing your investment and when to simply increase holding in your existing schemes.
You’re young, you can take risks, you can go all into equity. Or you’re older and close to retirement and equity is forever barred for you. How far does your age decide your equity allocation? It is just one among many factors that goes into deciding equity allocations. This article explains the additional factors such as time frame and risk capacity as well as age that need to be considered. The third article in the portfolio building series!
These returns are what you always see on fund factsheets and websites. But they aren’t any good in telling you about a fund’s strategy, its volatility, or a base for return expectations. This article explains the pitfalls of looking at point-to-point returns and how exactly you should use returns to judge performance.
Whatever the fund you hold, you always will find one that seemingly delivers more. Or you want a fund that plays a specific sector because you read somewhere that it holds promise. It’s easy to get carried away and manage your funds in such a way that you hold the best performer all the time. We say steady wins the race and that shifting your portfolio based on every event and opportunity has the exact opposite effect on your wealth from your intention. The article explains why.
Because we say equity is for the long-term. Is three years long? It is if you’re talking about your phone’s life. But in stock markets, it takes a good many more years to qualify as long-term as digging into stock market history told us. Read the article to know the minimum number of years to hold equity and what returns have been like.
You would love that! But is it realistic? What are the sort of returns you can expect from here, in your equity funds? When you hold for the long term, returns are a play between inflation and growth. This article explains where we stand today and where we can go in terms of equity returns.
All those who were enamoured with the double-digit returns debt fund returns got a rude shock this year. And for those who thought otherwise – yes, debt funds can give you losses. When? How? What should you do? Read the article and rest assured. And if we can cheat a bit here and give you an eleventh best article, we suggest you also read our article explaining the nature of dynamic bond funds. In the current climate, it is a useful read.
…is not to just protect capital and never deliver losses. 2017 was a year debt funds made news for taking too much risk, making starkly divergent calls on interest rate direction and getting right or wrong by turn, or being the best thing for FD investors. What is the job of a debt fund? This article explores it all and gives an opinion on the opinions floating around on debt funds.
With stock markets close to breaking yet another peak, some of you may scoff at the possibility of a correction. More of you may be anxious that one is in the offing. Whether the optimist or the pessimist, how do you play a market correction? But rallies and corrections are innate characteristics of the market. Read on to know how to befriend this volatility and take advantage of such times.
With this list, we hope you have developed a firmer grip on the world of mutual fund investment that can see you sail through 2018 and beyond. Here’s to a great new year!