Investing in shares is for sensible, shrewd and diligent investors, whereas MFs are for those who don't want to indulge in making decisions on their own. I agree with you on a lot of points, Sir.
Dear Mr. Basu, Sir I really become a fan of yours after reading the column you had written on BS about the housing loan EMI and how banks fraud to us . Please take my bow for such a informative and interesting video. Someone need a brave heart for telling the truth against such fund illusionist on public forum. (sab)"MF Sahi (nahi) Hai".
Dear Basu , Thanks for your g8 presentation , please clarify one thing that i am a senior citizen and suppose i put 1 lac in 10 year Fds @9.50% after 10 year i get 255715/- effective comounding yeild is 15.57% and if i need money in between or suppose iam businessmen and i need money in between bank give me loan aginst my Fds at just nominal charge of 00.50% difference and in your every presentation you insist to invest in equity and you said that overall equity return is max 14% per year with 100% risk which share goes where only god knows better so please explain how equity is better choice
With respect to risk weights, Would it be that the fund managers are following some proprietary algorithms to arrive at the Security Market Line/ CML.... ?? the variables in sml will be different for different funds and hence the weights...
Currently Expense Ratio of all types of equity MF DIRECT scheme is between 0.95 to 1.45 % for example Birla Sun Life top 100 DIRECT scheme's is Only 1.07%
Basu, Thanks for the very informative presentation on stocks vs funds. I have a question related to ELSS funds. Principal Invested in these funds tax exempted. If one has to strictly move away from the funds, then what other alternatives does one have for tax exemption on the principal with good returns.
this is the right time to invest in AMC company as the mutual fund growth been at same place for last two year. market is not growing from 2 year. just invest in amc and wait for bull market then exit. its simple.
Well I feel how much a layman would really apply this when it is seen that she/he dreads the name of stock market/mutual funds rather keeps his money in fds and surprisingly insurance.
I disagree over investing in MF. AFAIK, in US market, 75% of (8000+ MFs) are under-performed the market's average. And 85% of MFs haven't even performed the market's average constantly for 10 years. Only 15% of MFs give you market average. Additionally they have their own expenses and fees (expense ration, management fees etc.) that will also make a huge effect on your returns. Most of the millionaires/billionaires in US don't invest in MFs but equities or hedge funds. Remember, all products (MFs, equity, debt, hedge funds etc.) are subjected to market risk so if you want to invest then invest in good blue chip or mid cap stocks. If market's down then no-one can save your money...not even MF. It's my 2 cents.
I agree. MF doesn't really add any value. The 2 most important things which decide your returns are >> entry price and exit price. Entry and exit itself is chosen by the retail investor, so the MF manger has no control over this. If a person invests a few hours a month, he can manage his own stock portfolio without the help of an MF, and you will most certainly outperform the MF.
@@prabhumaddy9156 Even in India, MFs have underperformed their respective Index. You'd get an extra 4-5% CAGR if you simply held a diversified portfolio of 10-15 stocks (ideas copied from the same MF portfolio) over the same period. The SEBI mandate for MFs states that they can't hold more than X% in a single stock, this makes the manager hold too many stocks and trim good stocks when they grow too much, consequently the highest return stocks are hit the worst and the median-return stocks overpower the portfolio, giving you sub-Index returns after you deduct expense ratio. If you pick top 10-15 individual stocks from the same MF portfolio, you can buy each at their lows, buy them in higher concentrations, hold them longer, avoid churning fees and expense ratio altogether. The compounded effect of this is that you get 20%+ CAGR over a decade from the same set of stocks whereas the Index from where you picked them gives 15% due to its inefficiency.
Dont fall in the traps like stocks, ulips, sip, mutual funds. Whether you earned a single penny or not, all these people around this business gets earning for them on your money.
Investing in shares is for sensible, shrewd and diligent investors, whereas MFs are for those who don't want to indulge in making decisions on their own. I agree with you on a lot of points, Sir.
Dear Mr. Basu, Sir I really become a fan of yours after reading the column you had written on BS about the housing loan EMI and how banks fraud to us . Please take my bow for such a informative and interesting video. Someone need a brave heart for telling the truth against such fund illusionist on public forum. (sab)"MF Sahi (nahi) Hai".
By when the loan is paid up, nearly twice the Mkt price of flat is paid too.
He was correct.. I am in 2023.. now getting 12% cagr
amazing eye opener. thanks for the disillusionment and enlightenment
I cannot thank you enough for this information.
Dear Basu ,
Thanks for your g8 presentation , please clarify one thing that i am a senior citizen and suppose i put 1 lac in 10 year Fds @9.50% after 10 year i get 255715/- effective comounding yeild is 15.57% and if i need money in between or suppose iam businessmen and i need money in between bank give me loan aginst my Fds at just nominal charge of 00.50% difference and in your every presentation you insist to invest in equity and you said that overall equity return is max 14% per year with 100% risk which share goes where only god knows better so please explain how equity is better choice
He is God damn right every way. Glad to know everything, sure subscribe to this magazines
With respect to risk weights, Would it be that the fund managers are following some proprietary algorithms to arrive at the Security Market Line/ CML.... ?? the variables in sml will be different for different funds and hence the weights...
Funds at top of the Bell Curve. Remains so in the top in most of the case.... I learned this from Personal Finance Calculators
superb and very sincere teacher ... lot of materials for learning ..
still meaningful in 2021
Currently Expense Ratio of all types of equity MF DIRECT scheme is between 0.95 to 1.45 %
for example Birla Sun Life top 100 DIRECT scheme's is Only 1.07%
V.informative,thanks.
Brilliant video. Thank you.
Thanks a lot for this awesome video!
Basu, Thanks for the very informative presentation on stocks vs funds. I have a question related to ELSS funds. Principal Invested in these funds tax exempted. If one has to strictly move away from the funds, then what other alternatives does one have for tax exemption on the principal with good returns.
yes tax exemptions are there for elss based funds
Sir,
I have watched full video.
And learn how to take decision.
I am grateful to you..
Thanks
..................................................good talk...
informative session..
pls upload the link to download the ppt.
very informative.. Fundamental knowledge stuff.
basu sir namaskar ji,plz hundi mei mutual fund kei baarei bataayei plz ki top up kab or kitna down ho karna chaahiyei thanxxx
this is the right time to invest in AMC company as the mutual fund growth been at same place for last two year. market is not growing from 2 year. just invest in amc and wait for bull market then exit. its simple.
Thank for sharing.
Very nicely expained. Thanks
nice presentation.........thnks
Very informative Video.
32:30 plz mention the year on the chart..
45:00 ..
Can anybody explain what is over valuation ?
WHere do we get the ROCE figures ?
Well I feel how much a layman would really apply this when it is seen that she/he dreads the name of stock market/mutual funds rather keeps his money in fds and surprisingly insurance.
Excellent
Excellent ...
thanks for sharing
wonderful..
I disagree over investing in MF. AFAIK, in US market, 75% of (8000+ MFs) are under-performed the market's average. And 85% of MFs haven't even performed the market's average constantly for 10 years. Only 15% of MFs give you market average. Additionally they have their own expenses and fees (expense ration, management fees etc.) that will also make a huge effect on your returns. Most of the millionaires/billionaires in US don't invest in MFs but equities or hedge funds. Remember, all products (MFs, equity, debt, hedge funds etc.) are subjected to market risk so if you want to invest then invest in good blue chip or mid cap stocks. If market's down then no-one can save your money...not even MF. It's my 2 cents.
I agree. MF doesn't really add any value. The 2 most important things which decide your returns are >> entry price and exit price. Entry and exit itself is chosen by the retail investor, so the MF manger has no control over this. If a person invests a few hours a month, he can manage his own stock portfolio without the help of an MF, and you will most certainly outperform the MF.
We are taking about Indian markets.. Aren't we?
@@prabhumaddy9156 Even in India, MFs have underperformed their respective Index. You'd get an extra 4-5% CAGR if you simply held a diversified portfolio of 10-15 stocks (ideas copied from the same MF portfolio) over the same period.
The SEBI mandate for MFs states that they can't hold more than X% in a single stock, this makes the manager hold too many stocks and trim good stocks when they grow too much, consequently the highest return stocks are hit the worst and the median-return stocks overpower the portfolio, giving you sub-Index returns after you deduct expense ratio. If you pick top 10-15 individual stocks from the same MF portfolio, you can buy each at their lows, buy them in higher concentrations, hold them longer, avoid churning fees and expense ratio altogether. The compounded effect of this is that you get 20%+ CAGR over a decade from the same set of stocks whereas the Index from where you picked them gives 15% due to its inefficiency.
Camera man needs to improve interms of focusing better on the presentation
hi
Dont fall in the traps like stocks, ulips, sip, mutual funds. Whether you earned a single penny or not, all these people around this business gets earning for them on your money.
If u know how to buy stocks u will make money... If u dont invest inflation will eat away your money.
There r only 43 mutual funds mgmnt comp but u told its 352 !! Kindly justify so that either of us can accept mistake
He's not talking about the Mutual fund companies, it's about the Mutual fund schemes