Mutual Funds Articles

We have covered Principal Emerging Bluechip Fund a number of times in our fund reviews. The scheme has been a strong performer over a long investment horizon (5 years plus), but the fund underperformed in 2018 and also in the first half of 2019. We had discussed the reasons for the 2018-19 underperformance of this scheme...

As per SEBI’s directive, medium duration debt funds invest in debt and money market instruments such that the Macaulay Duration of the scheme portfolio is between 3 years to 4 years. Regular Advisorkhoj readers know that prices of debt securities have an inverse relationship with interest rate movement. When interest rate goes...

Services Sector is one of the most attractive sectors for equity investors in India. Service sector growth in India is led by rising purchasing power, fast growth in social mobility and increasing urbanization needs. Over and above this, outsourcing by foreign companies in the business services, BPO and IT services segment have given Services sector in...

With less than 60 days remaining in this financial year, investors should ensure that they complete their tax planning for the year as soon as possible unless they have already completed. As a tax payer you can claim deduction of up to Rs 1.5 Lakhs from your gross taxable income in this assessment year (AY 2020-21) by investing in...

I came across this chart over the internet which suggests that instances of negative returns decreases with increase in Mutual Fund SIP tenure. This led me to another question. What would this chart look like if we change the criteria from 0% returns, as implied above, to a minimum of 14% returns that is generally expected by...

Principal Multicap Growth fund invests in large, mid and small sized companies which are fundamentally strong with characteristics like superior management quality, distinct and sustainable competitive advantage, good prospects to grow revenues and profits in the future and financial strength. One of the main advantages of investing in...

Rapid advancements in technology are transforming industries and people’s lives around the world. Technology in the conventional sense has been used to automate manual processes and improve productivity. However, development in information technology in the last 20 years or so, particularly artificial intelligence (AI) and...

If you had invested Rs 1 lakh in Nippon India Growth Fund in its NFO in October 1995, your money would have multiplied to more than Rs 1.1 Crore. Nippon India Growth Fund is undoubtedly one of the biggest wealth creators for mutual fund investors in India over the last 25 years or so. The phenomenal wealth creation story of Nippon...

Value funds are equity mutual fund schemes which follow value style of investing. The essential feature of value style is investing in stocks which are trading at a considerable discount to the fair value (intrinsic value). Fund managers buy and hold these stocks for a long period of time to capture the valuation upside i.e. when the valuation of the...

While evaluating performance, a lot of attention is given to returns while ignoring the risk taken to achieve the returns. Investors have limited control over the quantum of returns they can generate. But certainly, they have more control over how much risk they are willing to take. It is commonly believed that by taking higher risk you would generate...