Fee-Only Blog
Featured Posts
All Posts
- All
- Audio
- Banking
- Featured
- Financial
- Governments
- Insurance
- International
- Investments
- Mutual Fund
- Personal Finance
- Press
- RIA
- Taxes
- Uncategorized
- Video
- All
- Audio
- Banking
- Featured
- Financial
- Governments
- Insurance
- International
- Investments
- Mutual Fund
- Personal Finance
- Press
- RIA
- Taxes
- Uncategorized
- Video
Financial
Rely on rolling returns, not point to point data
"FD can give better returns over a 10 year period than stock markets". That was the shocking statement that triggered this article in Business Standard more so because is true 5% of the time (95% of the time stock markets beat fixed deposits over 10 years). Clients often struggle to embrace rolling returns, which offer a clearer picture than misleading point-to-point comparisons. Mark Twain's words on 'lies, damned lies, and statistics' resonate when cherry-picking exceptional periods like the rare 10 year period where FDs beat the stock market—ignoring that 95% of the time, stocks outperform FDs. Investors reading this please ...
Investments
Sebi´s new product: MF´s efficiency, PMS´ control
The New Product (earlier called New Asset Class) approved by SEBI Board, is excellent for investors comfortable with high risk investments. It will also allow Long short strategies and is designed to wean investors away from unregulated products. Whilst the New Product will do that, the operational ease and tax benefits of the MF structure will most probably also result in the New Product eating into the existing Rs. 2 lakh crore PMS market. If the fund manager is offering a choice to the investor between the two , there is no doubt the investor will choose the New Product.
Investments
Evaluate funds on rolling returns over long term
Momentum funds have become the flavour of the season with their outsized "extra" returns over the already high returns provided by the market over the last one year. Harsh's article in the Business Standard highlighting how they are not the absolute certainty they are made out to be. There is a need to take a conscious decision on the tradeoffs involved while evaluating investments in such factor funds.