Showing posts with label mutual funds risk. Show all posts

Aditya Birla Sun Life Banking ETF Floats On

sandeep capitalstars dividend mutual funds , managed mutual funds

Aditya Birla Sun Life Mutual Fund has launched a new fund named as Aditya Birla Sun Life Banking ETF, an open-ended exchange-traded fund tracking Nifty Bank Index. The new fund offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 16 October 2019 to 22 October 2019.

The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the Nifty Bank Index.

The scheme Plans/ Options Not Available

The scheme would invest 95% to 100% of assets in stocks comprising Nifty Bank Index with medium to high-risk profile and would invest up to 5% of assets in debt/money market instruments with a low-risk profile.

The minimum application amount is Rs 5000 and in multiples of Rs 1000 thereafter during the NFO period.

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 10 crore under the scheme during the NFO period.

The entry and exit load charge will be nil.

Benchmark Index for the scheme is Nifty Bank Index

The fund manager of the scheme will be Lovelish Solanki.

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Sebi Finalises Graded Exit Load Structures For Liquid Funds

sandeep capitalstars dividend mutual funds , growth mutual funds

The Securities and Exchange Board of India (Sebi) finalized the graded exit load structure on liquid funds on Tuesday. Sebi informed the structures of exit loads in a letter to the Association of Mutual Funds in India (AMFI). The proposal on graded exit loads was earlier made by Amfi in a letter to Sebi on October 11.

According to the letter that Sebi sent to Amfi, the graded exit load has been set at 0.0070% on redemption on day 1, 0.0065% on day 2, 0.0060% on day 3, 0.0055% on day 4, 0.0050% on day 5, 0.0045% on day 6 and 0.00% from day 7 onwards. Sebi also said that the load structure will be changed annually based on the interest rates in the system.

Earlier, Sebi had mandated liquid funds to introduce an exit load for investors who exit the fund within seven days. This directive was aimed at minimizing the impact of frequent inflows and outflows by institutional investors. The movement of big money used to leave smaller investors vulnerable.

Sebi, in its letter also asked AMFI to inform the asset management companies about the new rules pertaining to graded exit load structures. Sebi has also asked the AMCs to communicate the new structure to their respective investors. The letter also says that no changes should be made in the exit load structure without consulting Sebi.

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स्टॉक की पिटाई का म्युचुअल फंड पर असर, क्या करें निवेशक?

sandeep capitalstars dividend mutual funds , hybrid mutual funds

शेयर बाजार में उतार-चढ़ाव तो रहता ही है, लेकिन कभी-कभी, कुछ स्टॉक ऐसे होते हैं, जिनकी गिरावट से शेयरधारक की जेब तो खाली होती ही है, म्यूचुअल फंड की परफॉर्मेंस पर भी असर होता है। कौन से हैं वो स्टॉक जिनकी पिटाई की वजह से म्यूचुअल फंड के फंड मैनेजर के पसीने निकले, और शेयर होल्डर के मुकाबले म्यूचुअल फंड निवेशक को कितना नुकसान हुआ। योर मनी आज आपको ये पूरी कहानी बताएगा और साथ ही, म्यूचुअल फंड निवेशक होने के नाते क्या है आपके लिए राहत की बात क्या हो सकती है इसपर भी चर्चा करेंगे, जिसमें हमारा साथ देने के लिए मौजूद हैं आनंदराठी प्राइवेट वेल्थ मैनेजमेंट के डिप्टी सीईओ फिरोज अजीज।

मनपसंद बेवरेजेज का शेयर आज फिर 20 फीसदी नीचे है। पिछले 2 दिन में मनपसंद बेवरेजेज में 40 फीसदी की भारी गिरावट दर्ज की गई है। जोरदार पिटाई के बाद मनपसंद बेवरेजेज बेस्वाद नजर आ रहा है। कल से इस शेयर में लोअर सर्किट लग रहा है। कंपनी के ऑडिटर डेलाइट हास्किन के इस्तीफे के बाद से ही इस शेयर की पिटाई शुरु हुई है।

मनपसंद बेवरेजेज का शेयर में गिरावट के कारण एसबीआई मैग्नम मिडकैप 0.85 फीसदी, एसबीआई मैग्नम लार्ज & मिडकैप में 1.11%, एसबीआई मैग्नम कंजपशन फंड 1.70% औऱ एमओएफएसएल फोकस्ड मल्टीकैप 35 में 0.7 फीसदी की गिरावट आई है।
पीएनबी बैंक के स्टॉक्स में लगातार गिरावट आई है। पीएनबी बैंक में 15 दिन में 40% पिटाई हुई है। पीएनबी के पिटाई के कारण एबीएसएल फ्रंटलाइन में -0.48%, डीएसपीबीआर इक्विटी में -1.44% और एचडीएफसी इक्विटी में 2.60% घटा है।

यूएसएफडीए की आपत्तियों से ल्यूपिन में पिटाई हुई है। ल्यूपिन में स्टॉक में 19 फीसदी तक गिरावट दर्ज हुई है। वहीं सेबी की जांच के बाद वक्रांगी शेयर में 52 फीसदी की गिरावट हुई है। 25 जनवरी से 2 फरवरी तक वक्रांगी शेयर में 242 रुपये गिरावट आई है। ऑडिटर पीडब्ल्यूसी ने कंपनी पर चिंता जताई है।

स्टॉक में गिरावट के बाद म्यूचुअल फंड पर असर से निवेशक नहीं घबराएं। उतार चढ़ाव से म्यूचुअल फंड में गिरावट होती है। 1 से 2 फीसदी से ज्यादा गिरावट मुमकिन नहीं है। फंड मैनेजर फंड के निवेश पर काम करते हैं। म्यूचुअल फंड में स्टॉक के मुकाबले जोखिम कम होता है। म्यूचुअल फंड निवेशक के मुकाबले शेयरधारकों को ज्यादा नुकसान होता है। म्यूचुअल फंड में निवेशक फंड में बने रहें।

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Franklin Templeton MF Announces dividend under its schemes

sandeep capitalstars dividend mutual funds , managed mutual funds

Franklin Templeton Mutual Fund has announced 18 October 2019 as the record date for declaration of dividend under the following schemes. The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be:

Image result for klin Templeton MF Announces dividend under its schemes

Franklin India Fixed Maturity Plan - Series 2 - Plan C (1205 days)-Quarterly Dividend:

Individuals & HUF: 0.144

Others: 0.133

Franklin India Fixed Maturity Plan - Series 4 - Plan B (1098 days)-Dividend:

Individuals & HUF: 0.144

Others: 0.133

Franklin India Fixed Maturity Plan - Series 4 - Plan F (1286 days)-Dividend & Direct Plan - Dividend:

Individuals & HUF: 0.547

Others: 0.506

Franklin India Fixed Maturity Plan - Series 4 - Plan F (1286 days)-Quarterly Dividend & Direct Plan - Quarterly Dividend:

Individuals & HUF: 0.133

Others: 0.123

Franklin India Fixed Maturity Plan - Series 5 - Plan A (1273 days)-Dividend & Direct Plan - Dividend:

Individuals & HUF: 0.569

Others: 0.526

Franklin India Fixed Maturity Plan - Series 5 - Plan A (1273 days)-Quarterly Dividend & Direct Plan - Quarterly Dividend:

Individuals & HUF: 0.144

Others: 0.133

Franklin India Fixed Maturity Plan - Series 5 - Plan D (1238 days)-Quarterly Dividend:

Individuals & HUF: 0.144

Others: 0.133

Franklin India Fixed Maturity Plan - Series 5 - Plan E (1224 days)-Quarterly Dividend & Direct Plan - Quarterly Dividend:

Individuals & HUF: 0.140

Others: 0.130

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Mutual Fund Inflow Hits 4-Month Low On Profit Booking

sandeep capitalstars Closed-Ended Mutual Funds , dividend mutual funds

Investors continue to invest in equity mutual funds through SIPs while lumpsum flows remain a mixed bag
Despite the decline in inflows, the asset base of equity mutual funds increased to ₹7.57 lakh crore

Equity mutual funds witnessed a net inflow of around ₹6,489 crores in September, the lowest in the last four months, due to profit-booking by investors after a rally in markets following a reduction in corporate tax.

According to data by the Association of Mutual Funds in India (Amfi), open-ended equity schemes witnessed an infusion of ₹6,609 crores, while there was an outflow of ₹120 crores from close-ended equity plans, translating into a net equity inflow of ₹6,489 crore in September.

In comparison, net inflows in equity and equity-linked saving schemes stood at ₹9,090 crore in August.

Among debt-oriented schemes, liquid funds -- with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for shorter horizon --- saw an outflow of ₹1.41 lakh crore.

Besides, gold exchange-traded funds witnessed an infusion of ₹44 crores against an inflow of ₹145 crores in August.

The outflow has pulled down the asset base of the MF industry, comprising 44 players, by 4 percent to ₹24.51 lakh crore in September-end from ₹25.47 lakh crore at end-August.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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Kotak Mahindra Mutual Fund has launched a new fund named as Kotak Pioneer Fund

sandeep capitalstars Closed-Ended Mutual Funds , dividend mutual funds

The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 09 October to 23 October 2019.

The investment objective of the scheme is to generate capital appreciation from a diversified portfolio of equity, equity related instruments and units of global mutual funds which invests into such companies that utilize new forms of production, technology, distribution or processes which are likely to challenge existing markets or value networks, or displace established market leaders, or bring in novel products and/or business models.

The scheme offers growth and dividend (payout and reinvestment) option.

The scheme shall invest 80% - 100% of assets in equity and equity-related securities of companies having pioneering innovations theme with high-risk profile and invest up to 20% of assets in equity and equity-related securities of companies other than having pioneering innovations theme with medium to high-risk profile and invests up to 20% of assets in debt & money market instruments with low to medium risk profile and invests upto 10% of asset in Units issued by REITs and InvITs with medium to high-risk profile.

The minimum application amount is Rs 5000 and in multiples of Rs 1 for purchase and switch-ins.
The minimum additional amount is Rs 1000 and in multiples of Rs. 1/- for purchase and switch-ins.
The fund seeks to collect a minimum subscription (minimum target) amount of Rs 10 crore under the scheme.

Entry load: Nil

Exit load: For redemptions / switch outs within 1 year from the date of allotment of units, irrespective of the amount of investment: 1%

If units are redeemed or switched out on or after 1 year from the date of allotment of units, irrespective of the amount of investment: Nil.

The performance will be benchmarked against 85% IISL KOTAK INDIA PIONEERING INNOVATIONS INDEX + 15% MSCI ACWI INFORMATION TECHNOLOGY INDEX TRI.

Harish Krishnan will be the Fund Manager for the Scheme. Arjun Khanna will be the Dedicated Fund Manager for investments in foreign securities.

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Mutual Funds' Asset Base Rises Marginally To Rs 25.68 Lakh Crore In Sep Quarter

sandeep capitalstars Closed-Ended Mutual Funds , hybrid mutual funds

Mutual Funds' Asset Base Rises Marginally To Rs 25.68 Lakh Crore In Sep Quarter

The mutual fund industry asset base saw a marginal one percent increase in the July-September quarter to Rs 25.68 lakh crore against the preceding three months, mainly on account of increase in the valuation of stocks due to corporate tax cuts. According to Association of Mutual Funds in India (Amfi), the asset under management (AUM) of the industry, comprising 44 players, stood at Rs 25.50 lakh crore at the end of June quarter.

The total asset base of all the fund houses put together was at Rs 24.31 lakh crore in July-September a quarter of 2018-19.

In recent months, the mutual fund industry has been grappling with redemption pressures in the wake of debt crises at various groups, including IL&FS, Essel and DHFL.

Fund managers said that the industry assets have remained stable in the July-September period of 2019-20 and a slight rise in quarterly AUM could be attributed to a rise in valuation of stocks due to a reduction in corporate tax by the government.

"The increase in quarterly AUM is mainly due to the increase in the valuation of stocks due to corporate a tax cut," said Omkeshwar Singh, head of mutual fund distribution business at Samco.

Kaustubh Belapurkar, Director-Manager Research at Morningstar said, "Overall industry assets have remained stable. But we have witnessed that many of the smaller asset management companies (AMCs) have lost assets which have migrated to the larger AMCs.

"Additionally, AMCs which had investments in some of the stressed credits have also witnessed outflows from these funds," he said.

In terms of asset size, HDFC MF continued to lead the pack with an AUM of Rs 3,76,597 crore (excluding fund of funds) at the end of the September quarter, followed by ICICI Prudential MF (Rs 3,48,068 crore) and SBI MF (Rs 3,20,663 crore).

The overall share of assets managed by the top 10 AMCs (by AUM) is marginally up from 82.83 percent to 83.66 percent.

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Investors Are Moving From Real Estate To Mutual Funds For Higher Returns

sandeep capitalstars Closed-Ended Mutual Funds , growth mutual funds

The wealth management area in the Republic of India has witnessed vital changes terribly the very short span of your time. To begin with, the important estate sector that was undeniably one in every of the foremost wanted investment choices until recently has lost its former shininess.

One of the explanations cited for this is often demonetization. However besides this, they come on investments from the important estate had already been on a gradual slump even within the most favorable Indian cities.

Investors are invariably moving towards higher alternatives to spice up their overall returns. One clear winner during this regard has been the mutual funds business. Investment company finance has seen enhanced capitalist engagement lately. The convenience and ease of finance, in conjunction with the likelihood of a comparatively higher come on investment may be attributed to its quality. As per the AMFI information, assets managed by the Indian investment company business underwent a growth of 7.72% from July 2018 to July 2019 to square at Rs 25.81 trillion; quite half that belonged to individual investors.

Several factors are the same to be chargeable for this alteration. additionally to AMFI's 'Mutual Fund Sahi Hai' campaign, aspects just like the ease and access to investments thanks to digitization have additionally helped in boosting participation during this business.

Not too long ago, mutual fund investment was perceived to be for the rich alone. But now with ample awareness around the subject, the focus has shifted to make it a more inclusive affair. The growing penetration of smartphones coupled with affordable high-speed internet has made investing simple and convenient for the masses. In addition to this, the entry of big players in this market backed with digital channels to penetrate the B30 cities has helped bring MF investing to the masses.

The notion that one required a large sum of money to be able to start investing has been thwarted with the offering of investment options that now start with amounts as low as Rs 100. This initiative by the Asset Management Companies (AMCs) has enabled first-time investors and investors from B30 cities to participate extensively in mutual funds. Such was the impact of this move that in July 2019, nearly 23 percent of the individual mutual fund assets were registered from the B30 cities of India.

Initiatives by AMFI and Investment Advisors to promote direct plans have worked well to instill investor confidence. Investor education and awareness programs run parallelly by the AMFI have enabled the financial services ecosystem to change with investors deconstructing their investing habits and taking on direct investing plans. This is evidenced by the increased investments in direct plans by retail investors which grew by 2 percent to stand at 12 percent in July 2019 as compared to the previous year, as per AMFI.

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5 Things To Visualize Whereas Compare and Filter Mutual Funds

sandeep capitalstars dividend mutual funds , growth mutual funds

You should continuously perceive the parameters through that you'll compare and filter mutual funds out of the massive universe of offerings.

1. Investors realize it a small amount troublesome once it involves scrutiny a theme with another one. Veteran investors have conjointly accepted that mistakes do happen over and over whereas choosing funds for creating investments. However, one continuously learns from past mistakes. allow us to perceive the parameters through that one will compare and filter and choose the correct mutual funds out of the monetary universe

2. Review fund managers skills | 1st, measure the past performance of the fund manager with their individual benchmarks and check if they need to be performed fairly. Next, having through with the analysis of the fund manager, check what's the broader investment kind of the theme.

3. Understand the fund’s investment objectives | it's necessary to appear into the funds’ investment vogue (Growth, intermingled or value) as each fund has its distinctive identity. a number of the ways are:-
a) worth investment
b) Growth strategy
c) intermingled strategy

4. Compare returns in an exceedingly right means | you ought to attempt to watch the past performance of the fund. it's a vital consider analyzing an open-end investment company. however past performance isn't everything, because it might or might not be sustained within the future and thus, it shouldn't be used because the sole parameter to pick out an open-end investment company.

5. Four risk parameters to envision between funds -
a) variance - that measures the volatility of the returns from an open-end investment company theme over a selected amount.
b) Sharpe ratio- that measures however well the fund has performed vis-a-vis the chance is taken by it.
c) Alpha - the surplus comes of a fund compared to its benchmark index.
d) Beta - measures a fund's volatility compared to it of a benchmark.

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RBI slashes rates for 5th consecutive time; top 10 takeaways from MPC statement

sandeep capitalstars Closed-Ended Mutual Funds , growth mutual funds

The Reserve Bank of India’s monetary policy committee, as expected, slashed policy rates for the fifth time in a row on October 4, but the quantum was lower than market expectations.

The Indian rupee and bond prices fell after the RBI announced a cut in repo rates by 25 basis points to 5.15 percent. The Indian market also pared gains, while rate-sensitive stocks turned negative. But, the big takeaway is that the central bank and the government are in sync on the policy response to revive faltering growth in Asia’s third-largest economy.

“RBI has once again proved to be well ahead of the curve in unleashing monetary efficacies to combat the economic slowdown, in perfectly complementing the fiscal initiatives,” Dr K. Joseph Thomas, Head Research-Emkay Wealth Management

“In conformity with this aggressive approach, RBI is likely to continue with its campaign for more rapid transmission of the benefits to credit users, through lower rates to a large extent linked to the base rate.”

Top 10 takeaways from the fourth bi-monthly monetary policy statement, 2019-20:

1.       Rate cut
2.       Stance
3.       Inflation
4.       GDP growth
5.       Majority decision
6.       Monetary Transmission
7.       Lending limit increased for NBFC-MFIs
8.       Offshore rupee markets
9.       Liquidity support for NEFT
10.   Internal ombudsman for large non-bank Prepaid Payment Instrument (PPI) issuers

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Mutual Fund Investors And Blind Fund Managers Following

sandeep capitalstars dividend mutual funds , hybrid mutual funds

Are you Mutual Fund Investor? Are you following Fund Managers cautiously along with the funds they manage? Are you switch the funds whenever there is a change in Fund Manager? Read these facts about Fund Managers before you act on your investments.

Let us understand few untold or unshared stories about Fund Managers.

# They need new theme and stories to accumulate AUM

Yes, to be in the market they have to float new stories and new themes. This way they attract new investors. With boring only 5-10 funds, how can they accumulate the AUM? How can they sustain in such a competitive business?

Therefore, once in a while they come up with the theme or stories to attract and float the new fund offer (NFO). Advisers or middlemen brainwashed with lucrative NFO commission. Finally, scapegoats will be investors.

# Equities will work in the long run

Yes, definitely and none have the second view on that. However, to sustain in the long run as an investor, it needs a tremendous behavior training and mind control.

Sadly your fund manager will not teach you such lessons. Also, they do not define what is the meaning of the long term. Hence, for few investors, it maybe 3-4 months, 3-4 years or 10-15 years.

# Have you heard Fund Managers confession?

Have you heard somewhere that Fund Manager came up and confessed his wrong theme selection, wrong stock selection, wrong entry or understanding the market wrongly?

In my view, they never do that. They have every reason ready to defend of what they did (even if it is wrong). They are also human beings. Doing errors is human nature. What if we assume that during a role as our fund managers they never did any mistake? Is it believable?

# Do they suggest you to exit from equity?

Have you ever heard from Fund Managers suggesting you that you must exit from equity NOW? Exit may be due to your nearing of financial goal or high market valuation.

They never say you exit. However, they defend at each level the growth story of India whether the market PE is at 10 or 100 level. Because at the end they need AUM to run their show. How can they themselves suggest you exit and reduce the AUM?

# They predict always a POSITIVE story

No matter whether your goal is 2-3-5-10 years, for them it is always a positive equity story and forces you to invest. They never confess that their macro or microeconomic views MAY be wrong. Instead, they talk with confidence as if everything is happening as per their term.

Sadly it does not happen in this way. Including the Fund Managers, we all humans. While expecting future scenarios, they may or may not happen. However, they act like GODs who knows everything in advance.

# They defend the expense ratio

Today morning I was reading an article. In that article, they compared the Liquid Funds returns with other Debt Fund types. It was shown that Liquid Funds with less than around 0.2% expenses, generated around the same or more return than the other types of debt funds during the last period of 1 Yr, 5 Yrs and 10 yrs.

These are the few bitter truths which you must digest before investing in Mutual Funds or start following Fund Managers like their fans. Stick to your basics of investments. Mutual Fund Companies, Fund Managers and Advisers need money from you to run their show. Hence, they floated these many 1000+ funds. If they are so caring towards your need, then they might have satisfied with 5-10 funds in each Mutual Fund Companies.

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Invest in Mutual Funds in India – But read these common mistakes first

sandeep capitalstars budget 2019 , dividend mutual funds

Many of us invest in Mutual Funds in India. However, we may hardly learn the stories of those who already invested and their problems, mistakes or issues. Let me share a few of them with you.

With the advent of the internet and online advisory portals in the investment world, many of Mutual Fund investors by default think that they are capable of handling their portfolio on their own and claim themselves as Do It Yourself or DIY investors.

A typical journey of Mutual Fund investor in India starts as soon as he starts to earn. However, in many cases what I found is that their first entry into equity market is not through Mutual Funds but through DIRECT stocks. Because he hears a lot of success stories through their colleagues, relatives and again so-called media.

After burning their hands by experimenting in direct stocks, futures and options, they feel equity mutual funds are the best choice. Because by that time, they start to read about Investment Gurus like Warren Buffet or Charlie Munger. After learning the basics of investment and the tags like BUY RIGHT and SIT TIGHT, they enter into the world of Equity Mutual Funds.

But do you feel by jumping into equity mutual funds their investment mistakes vanish within a day? Sadly NO. The reasons are as below.

You must invest in Mutual Funds in India, but learn the basics of investing at first. Once a young or fresh energetic investor decided to jump into the Mutual Fund world, they start to search their answers in Google BABA. Google will provide you wonderful Crores of results for your one keyword research. Slowly new investors start to look for readymade answers. Because he or she does not have time to learn and digest and then invest.

Their first priority is that they MUST invest in Mutual Funds which are BEST and will remain BEST forever. Because who wants a BAD choice? We are human and we run behind BEST only. But sadly they forget what one must do before Invest in Mutual Funds in India. They jump into my fund choices and invest BLINDLY. Along with mine, they also dig into other finance blogs, portals like Moneycontrol or Valueresearch rating. Finally, they start with the BEST and STAR rated funds.

This will go for a few months or years. Suddenly they notice that a finance expert or a few online portals which he is following has recommended a few more funds due to the changed scenario or based on India Growth stories. This makes the new investor that if I do not invest in such a solid fund which is currently a trend and many are recommending, then I may lag behind others or my returns may be lesser than others. Hence, let us add this or these new funds in my investment.

Slowly the start with 2-3 funds now increased to 7-8 funds. Because they need all the BEST recipe available in the Mutual Fund industry. They feel fear if one best performing fund or 5 star rated fund is not in their portfolio means a HUGE LOSS or a MISTAKE.

Hence, they go on adding new funds based on INFORMATION provided by Google BABA. Finally, their portfolio consists of 10+ funds.

By this time, it does not mean they are running the monthly investment (SIP) in all such 10+ funds. They simply stop the ongoing SIPs and start afresh SIP in a new fund which makes them eye-catching. Hence, even though they may be holding around 10+ funds, their monthly investment is only in 4-5 funds. But due to their doubt on their own decisions and the laziness, they never come out from the existing funds. One more reason why they don’t want to switch is that they want to come out from funds only with PROFIT, not with LOSS.

Finally, their mutual fund portfolio ended with these below mistakes.

# No Goals

While investing in Mutual Funds, they just looking for fancy returns but sadly they never set their financial goals. This should be the first step of any investor. However, around 99% of so-called mutual fund investors will hardly bother about investing based on financial goals.

# No Asset Allocation

When you did not set any financial goals, then no question of thinking about debt to equity asset allocation. Hence, many of these investors portfolios are highly linked to equity funds. They may be holding Liquid, Abirtrage or other types of debt funds but not for the purpose of asset allocation but with the purpose that someone suggested them that they beat the FDs in long run and better than Bank FDs or other alternatives of debt part.

# Fancy Funds

If you look into their portfolio, you notice that they are holding all those FANCY, top RATED or sector funds. One thing is common that they are holding all those fancy funds to create a good recipe of the portfolio.

# Overexposed to the sector or particular market cap

They usually exposed highly towards one or two particular sectors or heavily invested in Mid and Small Cap without bothering the Large Cap. Because they noticed that sector funds, Mid Cap Funds or Small Cap Funds have given around 15% to 25% returns RECENTLY. They forget for a moment that by doing this activity, they are risking their money and they never bothered about overlapping.

# Not ready to reduce the fund numbers

It may be due to laziness or feeling uncomfortable to invest only in 3-4 funds. Because as per them, lessor the funds means higher the risk as this approach will not provide a proper asset allocation.

# For many of them switching to another fund under LOSS means a REAL loss

When your fund is underperforming and it is under loss, then when you switch to another fund, then there may be a certain loss for taxation purpose. However, as an equity investor, it is not a REAL loss but I call it as a notional loss. Because you are not coming out of equity, but simply shifting from one fund to another fund. Hence, whatever the loss in such activity is a notional loss but not the real loss. But sadly many are reluctant to do this. Because they decided that by hook or crook, they have to come out with PROFIT.

Investing in Mutual Funds nowadays is like buying a product in Amazon or Flipkart. But do remember that in Amazon or Flipkart, you are buying a product to consume but not for investment. Hence, never compare the ease of buying products on Amazon or Flipkart with your online mutual fund buying.

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Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

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Investment trading in securities market is always subjected to market risks, past performance is not a guarantee of future performance. CapitalStars Investment Adviser: SEBI Registration Number: INA000001647

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