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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...

*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...

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...

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...