When people compare mutual funds, they often look at returns first. A fund that gave 18% returns may look better than a fund that gave 15%. But there is one important question that many investors miss: Did the fund actually perform better than its benchmark? This is where Alpha in Mutual Funds becomes useful. Alpha helps investors understand whether a mutual fund manager added value compared with the fund’s benchmark, after considering the level of risk taken. In simple words, it can help you see whether a fund truly outperformed or simply benefited from a rising market. For example, imagine…
Browsing: Mutual Fund Investment
A common question people ask when investing in mutual funds is: Should I invest through SIP or use an STP? The answer depends on how you receive your money. Although both strategies involve investing in mutual funds over time, they serve different purposes. Understanding how they work will help you make smarter investment decisions. STP vs SIP at a Glance FeatureSIPSTPFull FormSystematic Investment PlanSystematic Transfer PlanBest ForMonthly incomeLump sum investmentInvestment SourceBank accountExisting mutual fundInitial Lump Sum RequiredNoYesInvestment StyleRegular investmentsGradual transfer from one fund to anotherMarket Timing RiskLowerLower than lump sum investingSuitable ForSalaried individualsInvestors with bonuses, inheritance or sale proceeds What…