It is a known fact that the returns of an investment instruments (say mutual fund) and the actual return of an investor vary significantly. Why is that? Before we take it up, let’s look at this question. Is it advisable to continue SIP for ICICI Prudential Dividend Yield Equity Fund Growth Direct Plan (return of […]
Does this investment make sense?
Recently, I asked for your help on evaluating an investment product. An executive of a large mutual fund company pitched a mutual fund product. The investment uses a dynamic asset allocation method where they would invest in a set of equity and debt funds based on predefined allocation and also rebalance the portfolio to maintain the allocation. He claimed […]
The problem with Sharpe Ratio and other measures
The Sharpe Ratio is one of the risk adjusted returns method used in evaluating financial investments. Created by William Sharpe, the ratio tells us how much an investment instrument compensates us for the risk it takes. Put it simply, life is good without risk. You and I can safely invest in a government bond, a bank […]
The road to financial ruin and how to avoid it
The Unovest twitter handle follows The Motley Fool. The Fool shares some really insightful notes, quotes and posts. I couldn’t help but share this one with you today on what causes financial ruin. The road to financial regret is paved with: Debt. Commissioned salesmen. Shortsightedness. Ego. Poor education. Overconfidence. — The Motley Fool (@themotleyfool) July 28, 2017 […]
Nifty 50 – The next 10000
So, the Nifty 50 stock market index is at a value of 10,000. The stock markets are celebrating and so are some investors. There is also a crop of new investors who have just begun their investments in stocks/mutual funds. And then there are others who worry themselves to no end. Of course, not all 5 […]