Tag Archives: Mutual Funds

Which is the Best type of fund: Index Funds Vs Diversified Funds Vs Sectoral/Thematic Funds

If you are planning to invest your money in equity funds, there are plenty of options in front of you. Broadly the equity funds can be categorized into index funds, diversified funds and sectoral or thematic funds. Your friend could have told you index funds are safe and cost effective. Your colleague could have told you, infrastructure is going to be the next big theme. So invest in infra funds. As an investor you are confused with the information overload and would like to choose the right type of fund for you. I will unveil this to you today. Index funds Vs Diversified Funds Index funds are just index trackers. They aim to replicate the movements of an index. Index funds will hold all of the securities in the index in the same proportion... 

Where will you be FINANCIALLY five years from today?

The financial secret of moving from where you are and where you want to be? Would you like to know the financial secret behind moving from where you are and where you want to be? Try to answer this question. “Where will you be financially five years from now? 10 years from now…? 20 years from now…?” You may get answers like “I will be financially stronger”, “I want to be financially better”. Are these answers specific? If you don’t know where you want to go exactly, there is no focus. When there is no focus; there will be lot of distraction. Distraction either leads to mediocrity or destruction. How to refrain yourself heading towards mediocrity or destruction? You need to set Specific, Measurable, Achievable, Realistic and... 

Stock market movements: A crucial factor to investment decisions or not?

Some days stock market goes up and some days stock market comes down. Some days it closes on green and some days it closes on red. Should all these stock market movements play a crucial role for an individual investor in making his investment decisions? I have some money to invest. If I see that market is coming down, then I have two choices to make. Either I can decide to invest today or not to invest. IF I HAVE INVESTED TODAY and the market go up tomorrow, then I will be happy because I have bought it at lower rate. Suppose if the market comes down further, then I will feel bad because if I could have delayed my investment by a day, then I could have bought it at much lower rate. IF I HAVE NOT INVESTED TODAY and the market goes up tomorrow,... 

How to select a mutual fund

One of the most common ways of selecting a mutual fund is to invest with the crowd in today’s hot funds. Unfortunately, jumping from one winning fund to another is a recipe for disaster. The mutual funds that the crowd follows typically have had a hot recent performance and tend to gather all the new mutual fund sales. Investors as a whole are primarily allocating their new investments to a small number of mutual funds and to a smaller number of mutual fund companies. Investors have invested over $400 billion in the 2843 different mutual funds, but one-third of those assets are invested in only 50 of those funds and one-half of those assets are invested in the largest 100 funds. There are benefits to following the market leaders. Larger...