How to choose best Mutual Funds scheme?

How simple is it selecting the best funds from approximately 40 mutual funds and hundreds of schemes? It’s certainly not simple. Suppose we’re choosing a few. Is those funds going to be the best? Not Sure. So how do we select the best funds in this challenging and uncertain task? Therefore, don’t go to the Best. Select the right thing for you. Let’s see an instance for a better understanding of things. Consider that you went for Apparels shopping. You’re not just choosing what looks great. First, you’re looking for what kind of clothes you need. Whether formal or casual. You then choose your size. Then you see the one that looks best. The question then is whether or not the pricing is justified. Finally, you’re going for the one that’s right for you. This is how you’re shopping for the correct thing for you. The choice of the fund should be based on your goals, time horizon, risk appetite that informs you what asset allocation and categories to look for and then selec

Different parameters for baIance sheetreading

*1. BOOK VALUE PER SHARE* The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. The term "book value" is a company's assets minus its liabilities and is sometimes referred to as stockholder's equity, owner's equity, shareholder's equity, or simply equity. Common stockholder's equity, or owner's equity, can be found on the Balance Sheet for the company. In the absence of Preference Shares, the total stockholder's equity is used. *Concept of Book Value per Share* Book value per share is just one of the methods for comparison in evaluating a company. Enterprise value, or firm value, market value, market capitalization, and other methods may be used in different circumstances or compared to one another for contrast, e.g, Enterprise Value would look at the market value of the company's equity plus its debt, whereas Book Value per share only looks at the e

An analysis of Dividend vis-a-vis SWP

Of late we see that there is a lot of interest in Mutual Fund Dividends and Systematic Withdrawal Plan (SWP) as income solutions for investors. Many investors prefer dividend options for regular income, but there is a growing interest in SWP in the last few years. Let us now compare and contrast the two solutions. Let us also discuss various factors, which can help investors make informed decisions. *What is dividend option?* In Dividend Option the profits made by a scheme are distributed to investors at regular intervals as dividends. SEBI stipulates that dividends can be paid from accumulated profits. Investors should note that, as per SEBI regulations, only realized profits (when portfolio securities are sold at profit) are eligible to be distributed as dividends. Fund Managers may not pay the entire profit realized by the scheme during an particular period as dividends. They may retain certain amount of profits in the accumulated profits reserve, so that they can continue to m

How Loss Aversion behaviour can destroy your wealth

We spend a huge amount of time trying to make smart decisions with our money. It is possible that we could add just as much value—if not more—by avoiding dumb ones. You, as an investor, must get acquainted with Loss Aversion. It holds that all else being equal, losses fundamentally loom larger than gains. People talk about risk aversion. But there is also something call loss aversion. It is not that people don't like taking risks. What people don't like is losing things. We feel losses twice as keenly as we feel gains. So, we hate losing Rs 100 as much as we like making Rs 200. People that go into casinos can validate that when you go in at the start of the night, people tend to spend their chips at the roulette table very carefully, and try and lose money as slowly as possible. But when they get to the end of the night, they just have a few chips left in their pocket, they tend to go for really high risk bets. So, people move from being risk averse at the beginning of the e

Law of Attraction

If you had a magic lamp with a genie who could grant you 3 wishes, what would you ask for? I am sure one of your wishes will be for more money (probably a lot of money). If so, you are not alone. Almost every one wishes he had more financial freedom in his life. Sadly, most of us try to grow our wealth in the wrong way. It is our belief that it is all about working harder or longer hours. But the secret is not about how hard you work. It's about changing the way you think about money. What is required is how to develop a powerful wealth mindset. It's time to unlock your true money making potential and liberate yourself from financial worries once and for all. Use the law of attraction to overcome your limiting beliefs about money, so that you can generate the wealth in abundance. *Activating the Law of Attraction* Law of Attraction is one of the most powerful forces in the world. It surrounds us, affects us and can be used to positively impact our future. Like gravity, it

Married Women's Property Act - Implications on Life Insurance Policies

The Married Women's Property (MWP) Act was enacted with a view to protect the properties of women against the creditors. Under MWP Act all the properties that belong to the women gets insulated and protected from all the other court attachments or any income tax department attachments that the husband has run up. Let's take an example of a business family; the family could be a trader or a manufacturer or any other business. In due course of business there are some credit limits or there are bank loans, which have been taken by the business. The bank secures these credit limits against the assets of the business and also takes a personal guarantee of the owner of the business which could be the husband or the family. In case of the untimely death of the husband the bank starts recovering their loans and in the process they liquidate the assets of the business and also they attach the properties that belong to the guarantor, which in this case is the husband. In order to p

Investment Lessons - Paradoxes of successful investing

Speculation can be fun. But investing is not supposed to be fun. Wise investors saw it for what it is: a temporary price adjustment based on nonfundamental factors. Some people like to keep a small portion of their money in cash for exactly this kind of speculative event. Speculation is fun. It's why a lot of people love investing, and if you speculate with only money you can afford to lose, events like these can be exciting and sometimes profitable. If you are new to investing and don't understand the difference between fundamental value and market price, this is not for you. If you are considering putting money on the line that you need for your present or future security: stop, breathe, and walk away. Just like you wouldn't take your rent money to Las Vegas, don't put your life savings on the line trying to guess what the herd will do next. If you can't afford to be wrong, don't make the bet. And certainly not with money you cannot afford to lose. *Bore