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 […]
Should you invest in dynamic bond funds?
“Can I invest in a Dynamic Bond fund? They seem to be giving good returns.” my friend asked me. My friend’s investment thinking starts at returns and ends there. It is time to enlighten a bit. What are Dynamic Bond Funds? Dynamic bond funds are a unique category of debt funds, where the intention is to make […]
Versus the benchmark – The pitfalls of evaluating mutual fund performance
A mutual fund scheme is required to have a benchmark. SEBI wants every fund to choose and share comparative performance with this chosen benchmark. A benchmark is typically a publicly available market index such as the Sensex, Nifty 50, Nifty 500, BSE Mid cap, etc. This is true for equity funds. In case of debt or hybrid funds, some institutions, such […]
Should I invest in this mutual fund scheme? (Download a 20 point MF selection checklist)
Out of the thousand of schemes and options, a mutual fund investor faces a hugely complex job of figuring out those 5 or 6 schemes that should make it to his/her winning portfolio. Further, once the investments start, there is something more attractive that keeps showing up. Then there is opinion from the media and the experts. A lay investor […]
