Hey everyone, and welcome back to my new blog post. I recently received an email from a reader asking, “If more people buy units of a mutual fund, does that push the NAV higher?” It’s an intriguing question, and it’s something a lot of investors wonder about. So today, through this blog post, we’ll be…
Recently, I received this query from one of my readers over email. The person wanted to know, what return can be expected from SIP for 20 years investment horizon. As the person has not specified the type of mutual fund scheme, I’ll assume that he likes to get a general perspective on the returns. With…
Recently I met a young investor who wanted to know what happened in 2008 with the mutual fund investors. In the 2008 market crash, caused by the subprime mortgage crisis in the US, equity mutual funds saw havoc. The market crash significantly impacted several equity mutual fund schemes. Allow me to mention a few prominent…
Investing in the stock market can be both thrilling and intimidating, especially for beginners. It’s like a journey with the promise of wealth creation. But it’s often fraught with uncertainty. Here I’ll share a time-tested strategy that is also very effective. This strategy is known as the 7-5-3-1 Rule of SIP. Introduction Imagine you’re embarking…
The purpose of writing this article is to highlight how the expense ratio is calculated and deducted by mutual fund schemes from our investments. Many people think that the expense ratio of mutual funds is a one-time expense. But on the contrary, it gets deducted from our investment on a daily basis. The daily deduction…
Why Iām blogging about this topic? SIP is an investment method that most people use to invest gradually and consistently. It is a very practical method to accumulate wealth over time. But there is a way to make the SIPs even more effective. Step-up SIP is the way to do it. I feel the conventional…
Recently a friend asked me about how exit load in SIP is calculated. Before we can answer it, let’s understand a bit about the exit load itself. Check our Mutual Fund Screener. We have mainly four types of mutual funds in India, equity, debt, hybrid, and gold funds. Among these types, the majority carry an exit…
Sharpe ratio is a measure of risk-adjusted returns generated by mutual funds. Looking at ‘returns’ through the filter of ‘risk’ is advisable for investors. What we need as an investor? High returns but at low risks, right.? Sharpe ratio is a tool which helps us to identify such mutual funds – which generates high returns…
I have already written an article on Systematic Investment Plan (SIP). So why a separate post on SIP return calculator? Writing a separate post was necessary to explain a very important point about returns from SIP. To explain the concept of returns from SIP, it was also obvious to code a SIP return calculator. You can use…
