Ask me anything about becoming a good Mutual Fund investor

AMA (Ask Me Anything)
72

What thematic mutual funds are at lowest valuations right now?

73

Hi Sir

I have just started investing in mutual funds and my goal is to have decent returns (Neither too risky nor too safe).
My technique is that I generally google the best equity funds (Growth and Direct) in the market and invest in them. I am not investing in any other type of funds.
I want to know how good this technique is? and what am I missing in not investing in other type of funds?

Please note my investment is long term like 10-15 years and the goal is just to have good returns.

74

As per the returns given in your question if you had invested 10000 at the beginning of 1st year it would be 21528 after 5 years so CAGR will be 43% and total returns will be 215%

75

I have a question on DSP blackrock mutual fund. Why DSP blackrock mutual fund is not performing like other Mutual fund. Their returns is much less then other mutual fund from 2-3 years?

76

You have made a mistake, in the fourth year there is a negative 20% return. And anyway how can CAGR be 43% when all the 5 years have return below that.
My question is not regarding calculation, I know how to calculate but this is rather a trick some funds in the US use to show higher return. So i wanted to know how does the funds in india calculate the average return.

Thank You

77

oops, sorry my bad,so if you take the negative 20% return into account it gives the below returns.

year return% value
10000 15 11500
11500 20 13800
13800 30 17940
17940 -20 14352
14352 25 17940
17940-10000 = 7940
79.4% compounded in 5 years so the CAGR is 12.4%.

78

I want to start investing in mutual fund but I don’t know how to judge which mutual is best and how can I judge that in which I will get more benefits …

79

Which one is better ULIP or mutual fund. I mean return wise.

80

I have…
2 SIPs of Ultra Short Term Debt Funds
2 SIPs of Multicap Funds
2 SIPs of Balanced Funds
2 SIPs of ELSS Funds
2 SIPs of Small Cap (one of each of my daughters which I wish to redeem after 20-22 yrs).

I have 2 of each to average it. At the moment I see one of the Small Cap is outperforming the other one by huge % - 8% v/s 15%

81

Sir;
Do mfs only operate by investing the money in different stocks, or also make money through frequent intraday/ swing trading ?( index, stocks, F&O)
And for Investment How do you select stocks; is it purely fundamentals or you will take anythinf that is Cheap (like FIEM IND)