List Headline Image
Updated by Moneyworks4me on Jun 29, 2018
Headline for Mutual Fund Basics
 REPORT
7 items   1 followers   0 votes   10 views

Mutual Fund Basics

Current practice of investing in MF based on past performance is grossly inadequate. You need to get 3 things Sahi
1. Sahi Fund
2. Sahi Time
3. Sahi Allocation

Kuch hi Mutual Funds Sahi Hai - Moneyworks4me

Mutual Fund Sahi Hai…but not all! To find a right Mutual Fund, you need to look at 3 things,

  1. Quality of the Underlying Assets, and the risks the Fund is carrying; and how does it compare to its Benchmark.

  2. Consistency of Returns generated compared to the Benchmark. Investors enter a Mutual Fund at different times, and hold it for different period. A Sahi Fund needs to deliver consistent returns immaterial of when the investor has entered the Fund. Off course provided, s/he holds it for a reasonable period of time.

  3. Fund’s Expense Ratio in comparison to the total excess returns it has generated over its Benchmark. It has to justify, our investment and paying the fees.

We, at MoneyWorks4me, generate scores for each of these parameters, based on that the overall score for each MF; and then rank them within a category to find the Sahi funds.

We have colour-coded Mutual Funds as Green, Orange & Red, so you can easily identify the Sahi ones.

Mutual Funds Wohi Sahi, Jo Hai Andar Se Strong!

Register for free - https://www.moneyworks4me.com/registration

Raymond Moses (Founder, MoneyWorks4me) explaining, why one has to review the funds one has invested in are doing from time to time

Why you need to review the Underlying Asset Quality in a Fund, and not leave everything to its Fund Manager.

It’s best explained thru’ a Sufi story.

Once there was a Master who was traveling with one of his Disciples. In the night, they arrived, tired, to a caravanserai. It was the Disciple’s job to take care of the camel. But instead of tying it; he left it loose. And, started praying to God, “Please God, look after the camel” and, promptly fell asleep. In the morning the camel was gone. The Master came and asked: “What happened to the camel? Where is the camel?” The Disciple said “I don’t know. You ask the God. I had told the God to take care of the camel, and I was very tired, I slept. Now don’t look at me with anger. Because, you have only taught me to trust the God, so I trusted. The Master said, “Trust in the God, but tether your camel first — because the God has no other hands than yours!”

In MF investments, the camel is the money and the God is the Mutual Fund Manager. And, the solution is the same, tether the camel first, and then trust the God. So, what is tethering the camel in MF investing? It is looking at Quality of Underlying Assets, because that’s what gives us the returns.

One important difference between the story and real life MF investing is that the Fund Managers are not God. They cannot always predict or manage uncertain future. And, it we will be very naïve of us and foolish of us if we are going to believe that they are always looking at our best interest.

So, what do we do, tether your camel once again! That is, review the investments you have made in Mutual Funds from time to time

Invest in Mutual Funds the Sahi Way: https://bit.ly/2qUEvF3

Compare Mutual Funds: https://bit.ly/2oSRmXg

Learn Investmentshastra : https://bit.ly/2M3akok

How to invest in Mutual Funds - The New Way

Register for free - https://www.moneyworks4me.com/registr...

Raymond Moses (Founder, MoneyWorks4me) explaining, looking at past returns and investing in today’s top performers is grossly inadequate. It’s like driving a car by looking only at the rear–view mirror! In the upcoming series of Posts, we'll share the Sahi Way to Invest in Mutual Funds.

As an Investor, you need to get answers to 3 questions before taking a decision.

  1. Sahi Fund: Find if a Fund is investment-worthy within its category based on its Underlying Asset Quality, Risks, Returns Performance and Expense Ratio.

  2. Sahi Price: If the likely future 3 years CAGR for a Mutual Fund, at the current price, is more than that of its Benchmark and Liquid Bees (FD), then it’s the Right Price to invest at.

  3. Sahi Allocation: A Sahi Mutual Fund is Sahi for you only when it complements your existing portfolio to ensure a diversified portfolio to reduce risk while enhancing returns.

Invest in Mutual Funds the Sahi Way: https://bit.ly/2qUEvF3

Compare Mutual Funds: https://bit.ly/2oSRmXg

How will you know, if the Fund Returns Good Enough

Ketan Gujarathi (Equity Analyst, MoneyWorks4me) explaining, how one can find if the Fund Returns good enough

Fund Returns is the returns generated by the Fund. If the Fund has done better than Benchmark, we colour-code it as Green or if it's less it is Red. Benchmark sometimes may give negative returns. However, if the Fund performance is less negative than the Benchmark, it is considered as good, and hence colour-coded as Green.

To pick a Right Fund, you have to see whether the Fund is consistently better than its Benchmark. That is why; we have colour-coded Fund Returns of 10 years. If it is mostly Green then it’s a Right Fund.

Learn Investmentshastra : https://bit.ly/2M3akok

How to use Moneyworks4me MF Dashboard to Invest in Mutual Funds

Mutual Fund Dashboard: Your customized page that gives you update of your portfolio, watch-lists at-a-glance and acts as gateway to the site. Login/Register for Free and track Mutual Funds of your choice. https://bit.ly/2tE6c5I

How to Choose Mutual Funds using Moneyworks4me

Current practice of investing in MF based on past performance is grossly inadequate. You need to get 3 things Sahi:
1. Sahi Fund:
Find if a Fund is investment-worthy within its category based on its Underlying Asset Quality, Risks, Returns Performance and Expense Ratio. Unique tools to identify Sahi Funds for FREE.
2. Sahi Time:
If a Mutual Fund is likely to give more returns than FD & its Benchmark in the next 3 years, then right time to invest in it. (170 of 299 Funds are likely to generate 'Less Returns than FD')
3. Sahi Allocation:
A Sahi Mutual Fund is Sahi for you only when it complements your existing portfolio to ensure a diversified portfolio to reduce risk while enhancing returns.

Invest in Mutual Funds the Sahi Way: https://bit.ly/2qUEvF3

Compare Mutual Funds: https://bit.ly/2oSRmXg

How to Compare Mutual Funds using Moneyworks4me

Choosing a right Mutual Fund can be a tricky affair. With an array of products being offered in the market by different fund houses, it may be confusing for you while choosing or avoiding a fund. MoneyWorks4me’s unique method of comparing Mutual Funds on the most appropriate parameters will help you invest in Mutual Funds that match your needs and Risk Profile.

Compare Mutual Funds: https://bit.ly/2oSRmXg
Invest in Mutual Funds the Sahi Way: https://bit.ly/2qUEvF3