“Should I invest in this equity mutual fund scheme?” is one of the most common investor queries. I today share with you a simple way of finding the answer for yourself using a smart bot.
So, you are planning to invest in this mutual fund scheme and add it to your portfolio. You have looked at the numbers. The performance is amazing. Your friends also recommended it. Yet you don’t feel sure.
You go around asking on blogs, forums, twitter, Facebook for a second or a third opinion. Unfortunately, nothing seems to help.
Not to worry!
Here’s a simple and quick way to know if this equity mutual fund scheme deserves to be a part of your portfolio or not.
The smart robot is here to help you.
This smart robot takes in your Yes and No response to 14 points/questions and then tells you if you should ask commit your money to a mutual fund scheme or not.
The bonus part is that these 14 questions make you think and focus on the quality of your investment decision.
The 14 points are listed in an excel sheet.
All you have to do is download it, enter your scheme name and then proceed to answer a Yes or No against each of the points/questions.
The “smart” robot inside the sheet will turn on its super algorithm and tell you what to do with the scheme – INVEST or AVOID.
Simple, isn’t it?
So, no more waiting.
Click here to download the smart bot and find out if you should invest in that equity mutual fund scheme.
What if you want to just cut down on the several schemes in your existing portfolio?
That is you don’t want to add but remove schemes.
You can use the smart robot again. Give the name of your existing scheme in the portfolio, answer the questions (yes/no) and find out if the scheme continues to deserve its place in your portfolio or not.
So, you can prune your mutual fund portfolio and make it more focused to work towards your stated goals.
Note: This is not the perfect list and not the only set of questions.
It helps if you can also read through the factsheets, scheme information document and other details about any scheme that you wish to invest in.
Remember, at the end of the day, a focused, well diversified portfolio will not only give you more bang for the buck but also let you sleep peacefully at night.
Did the smart robot help you? What else would you look into before making an investment decision? Do share your feedback in the comments.
If i add same category of fund but less than 6 funds in total , Still the Robot says fine to add schemes 🙂
Yes it is still not perfect. Robots have their limitations. 🙂
Indeed, Vipin. I never got a No for any fund chosen! 😉
Can you share with me your responses for 2 or 3 schemes? Let me see. Thanks.
I chose Aditya Birla Sun Life Index Fund – Direct Fund, Aditya Birla Sunlife NIFTY ETF, ICICI PRUDENTIAL NIFTY INDEX FUND; Chose the following responses for the 14 Qs to each of the funds: Yes
ROBO was always recommending: Yes, you can consider adding this scheme to your portfolio.
Hahaha, robot is John Bogle 🙂
Yes to all index funds.
As pointed out by Srikanth in another comment, Mr John Bogle of Vanguard along with the ‘passive’ believers will be very happy. 🙂
On serious note, index fund comes out as a different category, which most investors will not have and given that you are suggesting you have done your homework on the scheme, the robot is happy to have you consider it.
The final decision remains with you.
That’s a super robot :))))))
I think it would be great for readers if you display the date of publishing the article because several news articles in the financial world loose importance due to change in policies, regulations & simply become obsolete. So, it would enable the readers to distinguish between latest and obsolete articles.
Point taken. And the date is added. Thanks.