You often come across newspaper advertisements from fund houses stating that their fund performed exceedingly well over a one-year period, with some comparative chart. They sometimes also disclose their three- and five-year performance.
On the face of it, it might appear impressive. But if you ignore the top-performing year and look for the average, the fund could have given mediocre returns.
Always compare the fund’s performance across market cycles with its benchmark and its peers.
At times, a fund could have taken higher risk to achieve a higher return compared to its peers. Or, the fund could have churned the portfolio more often to earn returns.
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| Suresh Parthasarathy |
Bear in mind that high risk always does not guarantee high returns.
If the fund had a higher portfolio turnover over a certain period, it meansthat its conviction aboutthe stocks held in the portfolio is low or the fund is trying to time the market. Bothare not good for investors.
Long - term investment..!
A classic example was in 2009, when to contain the downside, several fund houses turned to cash, but within a few months the market zoomed and they all underperformed.
If you are investing in mutual funds directly, without taking the help of an advisor (to save cost) and are only looking at any one piece of information, such as current performance,it may not be right for long - term investment.
You can still cut costs & invest directly, with sound advice from a knowledgeable and impartial advisor, for a small fee.
At myassetsconsolidation.com, we will help you build a portfolio based on the risk you are willing to take.
myassetsconsolidation.com will then suggest funds that will deliver results. We can say this with confidence.
myassetsconsolidation have a team of experienced financial professionals. The chief of myassetsconsolidation.com, Mr. Suresh Parthasarathy, is a certified financial planner, with 20 years’ experience guiding investors.
He has researched about 300 mutual funds and has been writing a popular column every Sunday on personal finance in India’s leading financial daily, The Hindu Business Line for more than 8 year.
Advisor:
Mr.Srinivasan V ,Founder CFO-Bridge, A Chartered Accountant with over 23 years of experience in finance & accounts with leading companies of which the last 10 years as CFO
Work experience starting from the last:
CFO of Bharti AXA Life Insurance - Sep 2007 to August 2012
Sr. VP with ICICI Prudential Life Insurance - Dec 2005 to Sep 2007
CFO of AMP Sanmar Life Insurance - Feb 2002 to Dec 2005
General Manager Finance of Cairn Energy - Feb 1996 to Feb 2002
Accountant 1990 to Feb 1996
Areas of expertise:
In depth understanding of profitability and growth drivers
Financial planning, analysis of data including trend analysis
Experienced in selection and application of strategy including 'modeling' of the business (Strategic Planning) for testing 'what if' scenarios - (Sensitivity Analysis).
Implementing IT Systems - changeover from one to other
Implementation of Finance transformation projects - Review of People-Process-Systems , compare with best-in-class and implement identified measures
Interfacing with regulators, government authorities, industry bodies - Represented in almost every committee of IRDA or MoF on insurance finance
Training and Development of Finance Talent
Process Review - identify "leakages", identify improvements etc.
To learn more about this write to at info@myassetsconsolidation.com
Mr. Suresh Parthasarathy,
CEO and Chief Financial Planner,
SPP Wealth and Financial Planners P Ltd
My Assets Consolidation
Land Line 044 - 42046359.
Email: suresh@myassetsconsolidation.com, info@myassetsconsolidation.com
Web Site: www.myassetsconsolidation.com
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