Comments on: Use and Misuse of statistics… http://www.subramoney.com/2009/11/use-and-misuse-of-statistics/ Personal Finance Sat, 11 Feb 2012 16:56:34 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: CA Sukumaran http://www.subramoney.com/2009/11/use-and-misuse-of-statistics/comment-page-1/#comment-1962 CA Sukumaran Thu, 19 Nov 2009 07:31:02 +0000 http://www.subramoney.com/?p=2643#comment-1962 Last week I was watching ET TV's Investor Guide. One very prominent "Head of Wealth Management" came on air and said "Over the past 5 years ELSS has given the best return of 25% so for the long term ELSS is the best option". Another friend interpreted it as "As a foreign bank I am still to tie up with a UL provider so please buy ELSS from me. Once I tie up with the highest commission paying guy, I will let you know". LOL. Last week I was watching ET TV’s Investor Guide. One very prominent “Head of Wealth Management” came on air and said “Over the past 5 years ELSS has given the best return of 25% so for the long term ELSS is the best option”.

Another friend interpreted it as “As a foreign bank I am still to tie up with a UL provider so please buy ELSS from me. Once I tie up with the highest commission paying guy, I will let you know”. LOL.

]]> By: jagoinvestor http://www.subramoney.com/2009/11/use-and-misuse-of-statistics/comment-page-1/#comment-1960 jagoinvestor Thu, 19 Nov 2009 04:29:12 +0000 http://www.subramoney.com/?p=2643#comment-1960 Yup .. You hit at the best place :) Even in India this happens a lot , I recently saw Sun Birla Tax Relief Fund ad as "World's Best Fund for 14 or 16 yrs" by Blah blah blah ... Not that I dont believe about its good ness .. but its a turn off seeing one making claims like this . When I choose any Mutual funds , I keep it simple and Logical 1. If a fund is good , Its return over all the time frame should be respectable like Since Launch , 10 yrs , 5 yrs , 3 yrs . 2. return over 1 month , 6 month does not count much to me , as Its so short term that Its Returns more depends on other factors rather than their abilities . 3. The Fund has to beat its benchmark most number of times .. Return of 50% is not enough if it has not beat its benchmark by respectable margin . 4. AND some more things ... Manish Yup .. You hit at the best place :)

Even in India this happens a lot , I recently saw Sun Birla Tax Relief Fund ad as “World’s Best Fund for 14 or 16 yrs” by Blah blah blah … Not that I dont believe about its good ness .. but its a turn off seeing one making claims like this .

When I choose any Mutual funds , I keep it simple and Logical

1. If a fund is good , Its return over all the time frame should be respectable like Since Launch , 10 yrs , 5 yrs , 3 yrs .
2. return over 1 month , 6 month does not count much to me , as Its so short term that Its Returns more depends on other factors rather than their abilities .
3. The Fund has to beat its benchmark most number of times .. Return of 50% is not enough if it has not beat its benchmark by respectable margin .
4. AND some more things …

Manish

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