One of the oft-asked questions in my Art of Investing Workshops is – “How to identify the right equity mutual fund schemes from among the thousands available?”
Well, here’s an e-book that tries to answer the question – How to Identify Winning Mutual Funds.
This e-book explains the key attributes you need to identify the best equity mutual funds from among the thousands available. It also helps understand the pitfalls while selecting the right equity funds for your portfolio.
Let me know your feedback on the e-book in the Comments section below.
If you like it, I would be happy if you can share this with your friends and colleagues who might be interested in the subject.
A really good e-book it was. Its important to know on what basis one should take decisions on buying a fund, not just its returns or the AUM or the AMC or say the recommendations on tv channels. They were covered pretty well in the book 🙂 Thanks a lot! Am sure it will help a number of people who are serious in learning and making investments.
Thanks for you feedback, Prasad!
unputdownable. It is a great resource. Many people ask me how to start investing in MFs. I tell them to first search for a large-cap fund which is about 10 years old and start a SIP and then read .. a lot.
One problem I see with equity investors (stock/MF) is that they get emotional a lot. They either invest without purpose or forget what the purpose is. I think one of the important benchmarks for a MFs performance is the rate of interest you expect YOY when you calculate a goal (assuming it is practical and reasonable). As long as a MF delivers returns equal/greater to this figure I would prefer to do nothing even if it drops from a 5* fund to a 3* fund.
Appreciate your inputs, Pattu!
Dear Vishal,
A very good book that provide insights on Mutual Fund. Why don’t we add a check list at the end (similiar to the Safal Niveshak Stock Talk Check list) that would atleast prevent in some very bad exotic funds.
Regards
Thanks for your feedback and suggestion Ajay! Let me see how I can implement the same. Regards.
Nice E-Book Vishal and a very good opening. The part 2 of the book (a followup or more detail) is provided in “how-to-choose-a-mutual-fund” by pattu. The combo actually would be the best one available for any Indian MF investor.
I am an active MF investor and one factor that i actively track is performance of my SIP(each instance) vs Benchmark of the fund vs Sensex. This helps me in monitoring short term and long term performance and weed out funds which underperform.
Nice one, Vishal — Maybe you can do a new article next time where you highlight the reasons for choosing your MF portfolio .If I remember correctly, you had a couple of HDFC Funds and Quantum LTEF. And you can throw the stage open for the readers to share their MF portfolios and the reasons for selecting the same,would help each investor to get some fresh perspective
A good compilation. I do wonder though where are all the tools to do this kind of analyses while yes the site you have mentioned is a good tool and there are a few others like http://www.valueresearchonline.com but I am not sure if they give turnover ratio etc.
Index funds with their low expense ratios are another good bet.
A point to be noted is that while the 2% expense ratio is just that, when you initially invest but as the value of the investment grows to say 5 times the 2% is now levied on this increased amount and this would be 10% of the original investment amount. Of course you can say that it is well earned but it is a cost the investor must keep in mind !
Excellent post Vishal. One question. Do you consider investment companies like Tata Investment Corporation equivalent to Mutual Fund?
Hi Vishal,
Excellent! I read the book in one go … could not put it down. Thanks!
You might already be aware that Parag Parikh (PPFAS) is launching a mutual fund next month. Mr. Parikh has been a ardent preacher of Value Investing principles and over the past many decades he has build up a envious track record as a portfolio manager. He plans to apply these principles in building up this mutual fund too.
I concur with your advice on ignore NFOs but this is seems to be different because (a) many decades of outperforming the market by PPFAS in portfolio management (b) they plan to have only one fund in their AMC. Another ‘comforting’ factor is that the promoter’s themselves will invest (and declare the amount) their personal money in this fund. Therefore, they plan to be eat their own cooking.
In my opinion, Mr. Parikh comes second only to Prof. Bakshi when it comes to preaching (and hopefully practicing) Value Investing in India.
Please share your thoughts on this fund.
Thank You!
I have a question but didn’t know where to ask, so am putting it in your latest blogpost.
Could you please guide me to the best brokerage to open a demat account.
Additional detail: I am interested in the good till cancelled feature which I have heard is no longer available on nse but is provided by some brokerages.
Hi Sarthak,
You can checkout http://www.fundsindia.com. It has GTC feature.
Regards
Vijay
Thanks a lot Vijay
I like ICICI Direct. It is a good site, decent speed, has good till cancelled and is up to date features and conveniences. Brokerage though may be high (it is nearly 1% including 0.25% of STT) compared to others.
thanks sudhir!
Very good my dear friend
really useful book for new and existing mutual fund investors,its give insights about all necessary details about mutual fund
Vishal I am a big fan of Safal Niveshak website and your writing style too.I just wanted to know what in your view is the better strategy buying separate mutual funds for large cap,mid cap ,small cap category or buying few diversified equity funds?Please answer