When the mutual fund industry was groaning about the ban on entry loads, the sounds seemed genuine, but not any longer! Why do companies start a mutual fund (big houses in other financial products) we assume they do this to earn money, correct? Well I am not so sure now.
The latest giga offer I have [...]
FMPs have had a great relationship with Asset management companies and with the investors. Fixed Maturity Plans (FMPs) were initially instruments which were mutual funds with ‘banklike’ products. You could buy a FMP with maturity ranging from 30 days to 180 days. Then a couple of FMPs were launched with 300 days maturity, then 366 [...]
If you have seen the Sprite ad, you will appreciate this for sure! Mutual funds have a compulsion to raise money continuously – and this they can do only if their sales team is able to sell.
However, in a very funny way, ‘what sells is what gets sold’ – so they need to come out [...]
In the past I had done 3 articles calling the article ‘ranking trap’. These articles were written on 5th july, 20th july and 19th dec. Using past data to judge is height of “&^%$#*” – fraud or comedy depending on your point of view.
Mutual fund ranking is a fantastic money spinning game for most of [...]
this article appeared in reuters india’s personal financial page….
If my students do not ask “When will the market touch 21000 again?”, I ask them the same question.
The most optimistic answer I have got is 6 months and the most pessimistic answer I have got is 2 years. Very clearly short term memory is [...]
Whenever I meet clients who are new to investing I can make out who has been their adviser for their earlier investments. It could be a cousin, neighbor, or a banker. They leave a lot of trail. The greatest thing that they do is emphasize on recent history. Though we all know that today was [...]
PHASE I – 1964 – 87
Mutual Fund Industry started in India in 1963 with the formation of UTI
Launch of First Scheme – US 64 – it was a very popular scheme, largely perceived as a debt fund with assured returns. However, it never [...]
this article by Suraj of moneycontrol.com first appeared on ibnlive.com – i have reproduced it here as it contains my quote and reasonably explains what is an etf. So here it is as a part of my tutorial…
Hovering at around 9,000 levels, the Sensex has shed more than 50 per cent of its value, [...]
With interest rates stagnant – and perhaps moving south bonds may become an interesting option for some investors. Though I am not a great lover of bonds, I do hold some in my Dad’s portfolio. If you are investing in bonds, look out for the following:
1. Are there call and put options – if so [...]
If you have wondered what is a CDO, CMO, CP, CD…welcome to the first lesson. A commercial paper is a short term unsecured negotiable issuance promissory note instrument issued by corporate bodies to meet short term requirements of working capital.
It was issued for the first time (I think) in 1991 – maturity varies from 90 [...]