One of the widely accepted facts among investors now is that mutual funds can be a powerful tool for wealth creation, especially when it concerns retail investors. This is evident from the substantial monthly inflows into equity mutual fund schemes over the past few years. In June 2024 alone, inflows, including a few new fund offers, surpassed 40,000 crore. SIP contributions also remained robust, exceeding 21,000 crore. However, another set of data tells a different story. According to the Association of Mutual Funds in India (AMFI), 49.74 lakh new SIP accounts were registered in May 2024 as compared to 63.65 lakh in April. Moreover, SIP discontinuations rose by 32.21 per cent, reaching 43.96 lakhs in May from 33.25 lakhs in the previous month.
Consequently, the SIP stoppage ratio, which measures the number of SIPS discontinued or expired as a percentage of new SIPs registered, hit 88.38 per cent in May, surpassing the previous high of 80.69 per cent in May 2020. One of the reasons that investors are currently cautious in their approach is that they are waiting for the air to be clear of the uncertainty around higher market valuation and the election outcome, including the Union Budget. However, long-term investors should avoid trying to time the market and instead focus on honing their fund selection skills. An important metric in this regard is the Information Ratio, which measures investment performance.
Defining Information Ratio
Bu hikaye Dalal Street Investment Journal dergisinin July 29, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Dalal Street Investment Journal dergisinin July 29, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
