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Going into details of the dividends declared by mutual fund

Going into details of the dividends declared by mutual fund

There are dividends declared by mutual funds but often investors do not understand the exact position of the dividends and whether they are high or low nor the kind of position that it reflects about the scheme where they have invested. This happens … Continue reading at moneycontrol.com

5 Goldman Sachs Mutual Funds with Long Track Records

Goldman Sachs Asset Management (GSAM), the division of Goldman Sachs that provides investment and advisory services to both institutional and individual investors, was founded in 1988. GSAM was launched as the result of the split of the company’s asset … Continue reading at investopedia.com

Multialternative Funds: Best And Worst Of November

Mutual funds and ETFs in Morningstar’s multialternative category generally suffered losses in November, with the average fund losing 0.20% for the month. Year-to-date through November 30, the category averaged returns of -1.24%, but over the longer term … Continue reading at seekingalpha.com

Mutual Funds Strategies

Only 27% Of Mutual Funds Outperform in 2015 As FANGs Lead The Way

Only 27% of large-cap core mutual funds have outperformed the S&P 500 year-to-date according to Goldman Sachs' analysis of 708 mutual funds with $ 1.2 trillion of assets under management, as they were underweight many of the hot stocks IE FANGs. Continue reading at valuewalk.com

3 Top-Rated Allianz Mutual Funds to Invest In

Allianz Global Investors – a segment of Allianz SE – seeks to provide financial services throughout the globe including the U.S., Europe and Asia-Pacific by following their philosophy: Understand. Act. According to Morningstar, the company currently has $ … Continue reading at nasdaq.com

Mutual Funds Strategies

The 10 Best Fidelity Mutual Funds for 2016

A central theme for 2016 is likely to be diversification. However, spreading risk among several mutual funds doesn't have to mean that you will water down your returns -- investors can be tactical in their portfolio management and potentially juice … Continue reading at investorplace.com

Foreign firms cash out as Indian mutual funds near Rs 15-lakh crore mark

The industry is hopeful of trebling its Asset Under Management (AUM) to around Rs 40 trillion over the next three years. Representational Image Getty Images In an irony of sorts, foreign players have begun cashing out in a big way from the Indian mutual … Continue reading at dnaindia.com

Rate Hike Leads to Bond Funds’ Biggest Withdrawals: 3 Funds to Sell

This turned out to be true last week when bond mutual funds and exchange traded funds saw a record wave of withdrawals. Bond market funds saw the largest redemptions since 1992, when Lipper started tracking the flows. Remember, a low interest rate … Continue reading at finance.yahoo.com

How to maximize gains from mutual fund SIPs

If mutual funds help investors to diversify across a basket of stocks, SIPs help him di- versify over time. By spreading the invest- ment across a long period, the investor is able to average out the cost of p urchase. The best thing about SIPs is that … Continue reading at economictimes.indiatimes.com

What Impacted the Performance of China-Focused Mutual Funds?

In this series, we'll provide a performance analysis of Chinese mutual funds for November 2015. We'll analyze the following funds: The factory output grew at an annual 6.2% rate in November--compared to 5.6% in October. From January to November … Continue reading at marketrealist.com

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Types of Equity Mutual Funds: Part 1

Equities is a subject that's of great interest amongst investors the world over! And it can't really be explained in a few minutes... So let's start slowly... Before we jump right into equity mutual funds, how about we spend a few minutes, understanding the words "Equity Stock" or "Equity Share" – collectively called 'Equities.'
This word comes from the word "Equitable" or "Equally Divided".

Okay, imagine this - you go to a fruit market in the peak of the summer and see this gigantic watermelon. Now, a lot of people want to buy it but can't afford to do so because it's really large and so very expensive. The owner of this large watermelon is aware of this, so he decides to cut the watermelon into smaller, equal sized pieces. In other words, equal sized shares.... Well, this makes a lot of sense to the prospective buyers and they all queue up to buy the pieces. And the more money they have, the more pieces of the watermelon they can buy!

Well, just like each piece of watermelon, an Equity stock is nothing but a "Share" of a company. The more shares investors own, the larger is their share of the profits or dividends declared by the company. But, obviously, investing in shares of companies is far more complicated than buying a share of the watermelon....

So basically Equity Funds are those that invest primarily in 'equity shares or stocks, which are also collectively known as equities'. Got it!

Yup! And here's a broad way of classifying equity funds based on the style of investing. Value Style, put simply, is bargain buying. First the equity analyst team or fund manager will assess the business of a company and assign a value to the price per share based on various factors. A value investor will only buy if the current market price of that share is lower than the assessed price.

Umm, let's try this with an example. Say it's still summertime, and a shop that sells woollen jackets, is relocating to another city. They announce a stock clearance sale, to get rid of their inventory. Now, a lot of people may not see the value of buying woollen jackets in the summer, but a few people decide to buy the entire stock out at a discount as they know that come winter these woollen jackets can be sold at a substantial mark up.

Pretty smart, huh? Well, similarly, there are times in the stock market when investors panic and sell out, making stocks available at low prices. Under-pricing of stocks also occurs when the value of the company is not known, and it's mis-pricing like this that value investors lookout for. You see, the fund manager can identify the hidden value in a company that others may have missed, and begin buying this stock. When the others realize the value of the company, they start buying too and the stock prices appreciate, making a person's investment appreciate with it! this will give an investor a great bargain, worth his while...

But what if you'd rather invest in a collectible, like a Micheal Angelo painting? Oh yeah it's going to be expensively priced, but you might be interested in investing in this particular item because you know it's value will only appreciate tomorrow and bare better returns for you.

Exactly! That's the logic the 'Growth Style' of investing follows, investing in companies that are likely to continue growing their profits at a reasonable rate. In that case, the fund manager may buy stocks even if they seem fairly priced, because the future growth justifies the current high price.

It's actually quite simple, right? So what you might want to do in order to make an optimum purchase is to invest in a suitable combination of cheap stocks at a great bargain and expensive stocks with an appreciating value. Now THAT's a great assessment of how you can make your decisions....

These aren't all! There are other ways, in which equity funds can be classified, each with unique characteristics, making it easy for investors to find one that suits their needs. Watch our next 2 videos for more kinds of equity funds, based on the themes of their portfolio constructions and on the size of the underlying companies in their portfolio.

We hope you enjoyed watching this video! Watch more, and we'll help you learn about different investing concepts. You can also write to us with your feedback (editor@templeton.com)

Mutual Funds Strategies

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