Mutual fund data analytics tools:
- Value Research
- CRISIL
- Morningstar
mfuonline.com - Can find advisors, wit their help we can buy direct plans. Regular plans are expensive, but the agent will offer portfolio recommendations p
Points to remember
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A good investment is not just about the highest return, but also about low costs, liquidity and having access to the money when needed
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Page number 45 - 37 mutual fund categories in India
Equity Funds
• Investing in Nifty 50 instead of large cap is a better choice
• Flexi cap - doesn’t seem very promising. Else it would have outperformed all other categories
• Focused fund - Sats within a restriction of a maximum of thirty stocks across any market cap or style (Very tightly focused portfolio). Riskier
• ELSS - Eligible for Section 80C tax benifit, three year lock-in period. Average 10 year returns on this is 15%
• Sectoral/thematic funds - For mature investors allready having a basic portfolio in place
Debt Funds
Best for 3-4 year timeframe investments
• Corporate funds (AA and below )- Funds that invest in non government bonds, high return and high risk
• Gilt funds - Invest only government securities. Fairly good returns over long time
• Banking and public sector undertaking (PSU) - Invest in bond papers of banks, public sector units and public financial institutions. Lower credit risk
Hybrid funds
• Conservative hybrid - Good for seeking regular income in future by using SWP
Risk measures (While comparing funds):
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Standard deviation : Lower standard deviation is less risky than a higher standard deviation
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Beta : Measures how far away from the benchmark is the fund return. Lower beta is less riskier than a higher beta
Benchmark : Standard deviation - low Alpha - high Beta - low Sharpe ratio - high Sortino ratio - high
Taxes:
The joy of tax-paid wealth is the ability to sleep peacefully at night, to look yourself and your children in the eye
- There are some funds that support Section 54 EC to invest in bonds that turn the profit tax free
- Know a out 80C - 1.5L tax deduction
Things I might have done wrong:
- The books says holding mutual fund as SOA instead of Demat is cost effective However, Demat is a better format to hold multiple type of investments