Can I generate higher returns compared to traditional investment products without any risk? This was the query posed to me by one of the clients. The answer is definitely YES. At this stage, it is advisable to switch to Short Term Debt Mutual Funds. Now you must be wondering why? I will answer it in this post with proper justification. Before I proceed, It is important to know the impact of interest rate movement on the performance of Long term debt funds and Short Term Debt Mutual Funds. I explained it in detail in my post, why you should buy long term debt funds? The conclusion was that ... Read More
How to Generate Double Digit Returns from Your Investment Portfolio
As I keep highlighting in my posts that with each passing day, the investors are finding it difficult to generate double-digit returns from their investment portfolio. In my last post, I shared, Low-Interest Period - How to generate additional returns. After that, I received multiple queries from readers how to generate double-digit returns without substantial risk. Trust me 10% annual return is a psychological barrier for conservative investors. The reason being, long-term return on equity is just 12%. Also, note that returns % referred in this post are after tax. On the contrary, expecting a ... Read More
Asset Allocation – What to do now?
Asset Allocation is the biggest headache for any investor. The financial planners suggest a model asset allocation. There is a famous saying that one size does not fit all. The concept of model asset allocation is vague and farce. It does not take into account all the factors that influence investment risk. A bad mix of asset allocation may destroy your wealth at a faster rate. An asset allocation mix of the investors of the same age and income level can be entirely different. In past, i have observed extreme portfolio allocations. The risk-free investors are heavily invested in traditional ... Read More
Equity Investments – Why i Quit?
Equity Investments are subject to market risk. You must have read this disclaimer thousand times cautioning investors about Equity Investments. We can handle RISK but when we anticipate DANGER, it is better to QUIT. Today was very beautiful day till 1 PM, but suddenly markets crashed by 300 Points. The CRASH came immediately after European Markets opened for trading. It was swift and sudden. The index/Nifty has broken its crucial support level of 7750. It was quite SHOCKING and ABNORMAL behavior from Market. Few days back, i cautioned my readers about the imminent threat but was praying that ... Read More
Should i invest in Capital Protection Fund ?
There is a famous saying that Marketing rules the roost. Capital Protection Fund is one such example. The biggest fear of any investor is to lose money. Capital Protection Fund capitalize on this fear. Its like providing safety net to your principal aka Capital invested and delivering returns over and above the principal amount invested. In short, the fear of loss of basic capital/principal is eliminated...Sounds interesting!!! Some MF advisors project Balanced Funds as type of Capital Protection Fund but it is not correct. Balanced Funds are riskier as they are classified as Hybrid Funds - ... Read More