Mutual Funds

5 mutual fund myths debunked! - (September 18^th, 2007)
Mutual funds have witnessed a marked growth in popularity over the past few years. Statistics reveal that retail investors have increasingly warmed up to the idea of investing in mutual funds...

Say ‘no’ to star fund managers! - (September 16^th, 2007)
The stock markets are rising, fund houses are having a field day with rising assets under management and new fund offer launches, and star fund managers are back in action...

Mutual Fund Roundup: August 2007 - (September 16^th, 2007)
August saw equity markets close in negative terrain. The BSE Sensex shed 1.49% during the month to close at 15,319 points; the S&P CNX Nifty posted a loss of 1.44% to close at 4,464 points...

Franklin Bluechip: Making a point - (September 16^th, 2007)
Franklin India Bluechip Fund (FIBF) is one the oldest, largest and most popular equity funds in the country.

Past performance is not everything - (September 3^rd, 2007)
If you are a type of investor who goes through the fact sheet or offer document, in order to study a particular scheme before investing in it, you would have come across a disclaimer (below the scheme’s historical returns) stating,...

Why growth and dividend NAVs differ? - (September 3^rd, 2007)
At Personalfn, we often get queries from investors on why the difference between the NAVs (net asset values) of the growth and dividend options does not have a logical relation. According to them,...

Fidelity Equity Fund: So far so good - (August 25^th, 2007)
Personalfn’s aversion to recommending new fund offers (NFOs) is a well-known fact. Over the years, we have consistently championed the cause of established and proven funds vis-à-vis NFOs....

A checklist for investing in global funds - (August 20^th, 2007)
Global fund NFOs (new fund offers) are the latest trend in the mutual fund industry and are fast catching the investor’s fancy....

Sundaram Rural India Fund: Yet to reap benefits - (August 20^th, 2007)
At Personalfn, we have never been advocators of sector/thematic funds. In fact, we have always considered them to be bugbears for investors and maintained that investors....

SIPs: An antidote to volatile markets - (August 20^th, 2007)
It’s been quite a rough time for investors over the past few weeks. Less than a month ago, equity markets were trading at record highs and irrational exuberance seemed to be the order of the day....

Pharma Funds: Bitter Returns - (August 13^th, 2007)
If you have been visiting Personalfn over the years, you know that we have been very consistent in our view on sector funds. We have always recommended that investors avoid such funds,...

What to make of this global crisis - Ajit Dayal - (August 13^th, 2007)
In May 2006 when the BSE-30 Index declined by 17% in eight sessions, we wrote about the bubble in the Middle East markets - Markets Do Fall (PDF) and said,...

Tech Funds: A mistake if you had invested - (August 13^th, 2007)
In this article, the third in our series on sector funds, we discuss the performance of the infamous technology funds...

Indian markets: From sublime to sub-prime - (August 13^th, 2007)
Over the last couple of weeks, domestic markets have woken up to the sub-prime problem, an issue that finds its roots in the US housing market...

Monetary Policy review: Inflation still worrying… - (August 4^th, 2007)
The underlying tone of the Reserve Bank of India’s quarterly monetary policy statement issued on July 31, 2007 was a cautionary one...

When funds alter their positioning… - (August 4^th, 2007)
Consistency is an important virtue while managing finances. This holds true not only for investors, but also fund houses that are responsible for managing investors’ monies....

Infrastructure Funds: Hot Property! - (August 4^th, 2007)
Well, here is one opportunity that everyone is sure about – the infrastructure sector. Investors are pouring money into infrastructure stocks and funds....

Mutual Fund Roundup: July 2007 - (August 4^th, 2007)
Notwithstanding, the 542-point dip on July 27, 2007, it was a good month for investors as markets closed in positive terrain. The BSE Sensex posted a gain....

How has SBI Blue Chip Fund fared? - (July 28^th, 2007)
The 2005-06 period saw an unprecedented number of new fund offers (NFOs) being launched. With equity markets soaring,....

The return of star fund managers - (July 28^th, 2007)
Equity markets have risen sharply in recent times and so has the euphoria among investors. Fund houses are doing their bit to capitalise on the upbeat mood by launching a host of new fund offers (NFOs).

Brace yourself for a ‘monsoon dhamaka’ - (July 23^rd, 2007)
Don’t confuse the ‘monsoon dhamaka’ with any special offer on consumer durables like television sets or refrigerators....

Personalfn shows the way - (July 14^th, 2007)
At Personalfn, we don’t thump our chests or proclaim our achievements to the world at large. We tend to curb our enthusiasm....

Franklin Prima Plus vs. Franklin Flexi Cap - (July 14^th, 2007)
An investor failing to see any perceptible difference between two offerings from the same fund house isn’t entirely uncommon....

How to ace falling FD and FMP returns - (July 14^th, 2007)
Investors would have noticed that returns on fixed maturity plans (FMPs) aren’t what they used to be....

Certification? Begin with distributors first - (July 9^th, 2007)
A typical problem associated with market-linked avenues like mutual funds is that investors often tend to ignore the 'risk' factor....

A tale of 2 mid cap funds - (July 9^th, 2007)
Mid cap funds are mandated to invest predominantly in the stocks/shares of mid cap companies...

Certification? Begin with distributors first - (June 25^th, 2007)
While the mutual fund industry is still grappling with having mutual fund distributors adequately certified, there is talk of getting fund managers certified...

Jaago Investor Jaago - (June 25^th, 2007)
Investor education and awareness just got a new address Jaago Investor. At Personalfn, we recognise, based on client interaction and feedback,...

Churning leads to losses - (June 20^th, 2007)
Many a times, due to various reasons, investors are tempted to shift their investments from one fund to another...

Do it yourself… - (June 20^th, 2007)
Broadly speaking, any investor who is planning his finances needs to commence by setting investment objectives...

NFO: Franklin India High Growth Companies Fund - (June 11^th, 2007)
FIHGCF has all the makings of a high risk – high return investment proposition and can be expected to perform in a likewise manner, going forward...

Lower expenses…higher returns! - (June 11^th, 2007)
Ask a mutual fund investor on what parameters he would evaluate a mutual fund scheme before investing in it and the most likely answer is going to be – ‘returns’.

When AMCs play “housie” with your money… - (June 11^th, 2007)
We have a confession to make. At Personalfn, we are admirers of con jobs. We are truly amused by the con jobs that are pulled off by a certain Mr. Daniel Ocean and his crew...

Don’t time your mutual fund investments - (June 11^th, 2007)
How often have you heard the phrase ‘timing the market’ in the context of investing in the stock markets?

Mutual Fund Roundup: May 2007 - (June 2^nd, 2007)
Making investments is no longer an easy task. It gets more and more complex with each passing day. Gone are the days when you only had a limited...

Exit loads are just a con job - (June 2^nd, 2007)
Asset Management Companies (AMCs) are suddenly turning more ‘long-term’ in their investment perspective. So you have more and more AMCs...

NFOs: New monkeys, old tricks - (May 28^th, 2007)
At Personalfn, we believe that most NFOs (new fund offers) are a case of new monkeys performing old tricks in an equally amusing manner.

What you shouldn’t miss…. - (May 28^th, 2007)
We always recommend that investors should look beyond returns while evaluating a mutual fund scheme.

A 10-step guide to evaluating mutual funds - (May 20^th, 2007)
Mutual funds are a convenient way to invest in the stock markets (as also debt and money markets).

Do you invest with conviction? - (May 20^th, 2007)
At Personalfn, we are routinely asked questions like, “why don’t you recommend NFOs (new fund offers),

It’s your money at stake  - (May 14^th, 2007)
At Personalfn, we routinely interact with investors who have made incorrect investment decisions;

NFO: HDFC Mid-Cap Opportunities Fund - (May 14^th, 2007)
As a fund house, HDFC Mutual Fund is known for its process-driven investment approach. The fund house has in its arsenal,

Our view on AIG India Equity Fund  - (May 14^th, 2007)
AIG Global Asset Management Company (India) Private Limited (AGAMC) is among the more recent entrants in the Indian mutual fund industry and AIG...

How to build a mutual fund portfolio  - (May 14^th, 2007)
With new fund offers (NFOs) becoming the order of the day (there are dozens launched every month) in the mutual fund industry,

Mutual Fund Roundup: April 2007  - (May 7^th, 2007)
The monetary policy announced by the Reserve Bank of India (RBI) was one of the major developments in April...

NFO: Fidelity International Opportunities Fund - (April 30^th, 2007)
Fidelity International Opportunities Fund (FIOF) is an open-ended diversified equity fund...

NFO: JPMorgan India Equity Fund - (April 30^th, 2007)
JPMorgan India Equity Fund (JPMIEF), the maiden offering from JPMorgan AMC (Asset Management Company), is an open-ended diversified equity fund...

NFO:DSP Merrill Lynch Strategic Bond Fund - (April 30^th, 2007)
DSP Merrill Lynch Strategic Bond Fund is an open ended income Scheme seeking to generate optimal returns with high liquidity through active management...

NFOs: The latest “serial” killers - (April 30^th, 2007)
Ever since SEBI (Securities and Exchange Board of India) made it difficult for AMCs (asset management companies) to launch open-ended mutual funds...

Does your fund walk the line? - (April 30^th, 2007) 
While evaluating mutual fund schemes, often parameters like net asset value (NAV) appreciation, performance vis-à-vis peers and the benchmark index are considered...

The pitfalls of comparing mutual funds - (April 20^th, 2007)
The mutual fund industry has come a long way (although that is not the same as saying that it has come of age). Why do we say that?...

NFO: Fidelity International Opportunities Fund - (April 17^th, 2007)
The investment objective of the Scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity...

Innovation is the buzzword - (April 17^th, 2007)
At Personalfn, we have on numerous occasions taken on the mutual fund industry and questioned practices...

Mutual Fund Roundup: March 2007 - (April 7^th, 2007)
After witnessing a sharp fall in the month of February, the stock markets staged a recovery of sorts and closed in the positive terrain in March...

HDFC TaxSaver Vs HDFC LT Advantage - (April 7^th, 2007)
We have always advocated the idea of starting the tax-planning exercise earlier in the year. Now with financial year 2006-07 behind us...

Exchange Traded Funds demystified! - (April 7^th, 2007)
Exchange Traded Funds (ETFs), as their name implies, are mutual funds that are listed and traded on the stock exchange...

Mutual Funds: Cost to investor - (April 7^th, 2007)
The utility that mutual funds can offer to investors has been discussed and often eulogised in great detail...

Index funds Vs Actively managed funds - (April 1^st, 2007)
This article was written by Personalfn for Business India and was a part of the feature “Fund House of the Year”...

Don’t lose track of your investments - (April 1^st, 2007)
The financial planning activity involves various steps. It starts with setting goals/objectives, selecting the right investment avenues, allocating assets...

Options galore for risk-averse investors - (Mar 26^th, 2007)
It’s been quite a turnaround for risk-averse investors. About a year ago, equity markets were soaring and touching record highs at alarming regularity,

How do tax-saving funds fare? - (Mar 18^th, 2007)
We are in the last leg of the tax-planning season and investing in tax-saving funds (ELSS) is high on most risk-taking investors’ ‘to-do’ lists.

Our View on JM Small & Mid-Cap Fund - (Mar 18^th, 2007)
Investing in JMSMF will be subject to the risks that have come to be closely associated with small and mid cap stocks i.e. above average volatility.

NFO: Lotus India Contra Fund - (Mar 14^th, 2007)
The investment objective of the Scheme is to generate capital appreciation through investment in equity and equity related instruments.

NFO: Prudential ICICI Fusion Fund Series – II - (Mar 14^th, 2007)
The Scheme is a close-ended diversified equity Scheme, with a maturity period of 3 years, that seeks to generate long-term capital appreciation

NFOs: Don’t be someone’s guinea pig - (Mar 14^th, 2007)
By now, avid visitors of Personalfn are well-aware of our views on new fund offers (NFOs)...

Kotak Emerging Equity Scheme - (Mar 5^th, 2007)
Mid/small cap funds have undoubtedly emerged as the season's flavour and Kotak Emerging Equity Scheme (KEES) is yet another addition...

More hurdles for mutual fund investors - (Mar 4^th, 2007)
As the range of mutual fund offerings get more complex (what with dozens of new fund offerings being launched every month),...

Mutual Fund Roundup: February 2007 - (Mar 4^th, 2007)
Every year, the month of February is earmarked for the Union Budget. Often all the excitement and hype surrounding it tends to dwarf other relevant issues...

Open letter to SEBI: Fact sheets - (Feb 26^th, 2007)
The fact sheet of a mutual fund scheme that is released by its Asset Management Company (AMC) is a vital source of information for investors...

FMPs: Opportunity for risk-averse investors - (Feb 26^th, 2007)
Asset Management Companies (AMCs) are adept at grabbing every opportunity to launch an NFO (New Fund Offer)...

Standard Chartered Mutual Fund: Good riddance - (Feb 19^th, 2007)
It’s been official for some time now that Standard Chartered Mutual Fund (Stanchart Mutual Fund) has been taken over by UBS (Union Bank of Switzerland)...

CRR hike & YOU - (Feb 19^th, 2007)
The Reserve Bank of India (RBI) has surprised the market by raising the Cash Reserve Ratio (CRR) by 0.50%, effective in two stages. Without getting into the details of what the CRR is and how it works,...

Invest in the mutual fund, not its NAV - (Feb 19^th, 2007)
NFOs (New Fund Offers) launched at an issue price of Rs 10 are perceived to be a good investment opportunity by a large section of mutual fund investors...

Markets engulfed by volatility - (Feb 19^th, 2007)
Just when investors were being lulled into believing that investing in equity markets is a comfortable northward journey, the markets pulled a fast one...

NFO: HSBC Unique Opportunities Fund - (Feb 12^th, 2007)
HSBC Unique Opportunities Fund (HUOF) is a 3-Yr close-ended diversified equity fund, with an automatic conversion to an open-ended fund...

NFO: Principal Pnb Long Term Equity Fund - (Feb 12^th, 2007)
Principal Pnb Long Term Equity Fund (PPLTEF) is a 3-Yr close-ended equity fund, with an automatic conversion into an open-ended fund...

Don't ignore the risk factor - (Feb 12^th, 2007)
Its tax-planning season and most investors are busy winding up their tax-saving investments for the financial year...

Tax-Saving Funds: Where to invest?
Being in the last quarter of the financial year, tax-planning is a top priority for most investors. Investments in designated avenues are eligible...

Demystifying mutual fund factsheets
Most Asset Management Companies (AMCs) usually publish monthly reports (also called fact sheets) that contain critical information...

Case Study: Relocating back to India
Increasingly at Personalfn we are meeting Indians living abroad who are relocating to India. Usually such individuals have a significant portion of their...

Mutual Fund Roundup: January 2007
With equity markets at their volatile best, January 2007 served as a reminder of the high risk associated with equity investments,...

Index funds: Short-term wonders!
In terms of fund management, mutual funds can be broadly classified into two categories: actively managed funds and passively managed – better...

Fixed Maturity Plans Vs Capital Protection Schemes
Recently, a new category named Capital Protection Oriented Schemes (CPOSs) made its debut in the mutual fund industry...

Beware… You’re being churned
Year 2005 will go down as a year which brought out the worst in the mutual fund industry. Of course, you earned a fantastic return; everyone did...

Do the stars really foretell?
Before you jump to any erroneous conclusions, a clarification is in order. Personalfn has not branched out into astrology,...

Are infrastructure funds for you?
Infrastructure funds have a mandate of investing predominantly in the infrastructure sector. In present times, as the India growth story unfolds,...