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How proper diversification benefits your portfolio?

New geo4

As per Harry Markowitz - The father of Modern Portfolio theory, diversification is the only "free lunch" in finance world. This notion that you’d get something for nothing is nearly unheard of in economics. The key concept behind the “free lunch” is correlation—or rather, a lack of it. Typically, the performance of individual asset classes isn’t perfectly correlated. If asset values do not move up and down in perfect harmony, then a diversified portfolio will have less risk. It protects the portfolio against unexpected or unpredictable events.

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How we choose best mutual funds for your portfolio?

How we select Mutual fund?

"Mutual fund sahi hai" is true only if you select the right one :) Many investment advisers will argue that mutual fund selection is an art. We, however, believe that it is more of a science. With our many years of investment experience, we have tried to master the science of mutual fund selection process for our customers. We use sophisticated analytical tools like Morningstar Research Workbench and FE Analytics for our analysis. The process is repeated every quarter or if there is a trigger to re-evaluate (whichever is earlier). This article is our endeavor to explain the mutual fund selection process at FinAtoZ in detail.

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How an International mutual fund can add value to your portfolio?

International fund Article cover

 From childhood we are listening, never put all your eggs in a single bucket. We all understand the importance of diversifying our mutual fund portfolio into different equity caps mutual fund and debt mutual fund. Now, let’s see how it make sense to diversify our portfolio Geographically?

What all are the different options available for diversifying portfolio internationally? and, How are they regulated?

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Is it Right Time to Invest in Small-Cap?

Small Cap

Time and again, investors have been lured by high return potential of small-cap companies. This is because smaller companies have potential to give very high returns in a very short duration of time. There are instances when a small-cap company has given more than 10x returns within one year of time. Such huge returns are unheard of in any other segment of stock markets, viz. Large and Mid size companies. 

With such a high return potential also comes the risk of losing your capital. One of the best ways to reduce this investment risk is to time your entry. Though difficult, timing is not impossible. This article gives our in-depth analysis of how to make use of the current opportunity in the small-cap space...

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