My choice in Equity Diversified Mutual Fund

[lonsharim]

Saurabh.Sau,

We can never predict accurately if there is going to be further correction because it is not in our control. Many external factors, both global events and domestic events effect market movement, up or down. The market has already corrected a bit and recovered some of it. It maybe be a good time to invest provided there is no bad news over the coming weeks.

 

[Saurabh.Sau]

Saurabh.Sau,

We can never predict accurately if there is going to be further correction because it is not in our control. Many external factors, both global events and domestic events effect market movement, up or down. The market has already corrected a bit and recovered some of it. It maybe be a good time to invest provided there is no bad news over the coming weeks.

Thanx,
One more thing i need to kno is that what abt investing in Canara Robeco Tax Saver. Is it a good bet for long term and tax saving?

 

[Saurabh.Sau]

What does it mean exactly?

i am not able to understand clearly that what is this annualised and absolute return?How to interpret it with an in invester point of view? i dont kno if i could ask it clealy or not but please explain.

 

[rajeshn2007]

Saurabh,
e.g. current year a fund has given 75% return for 9 months, then it is the absolute return. but it works to 100% annualised for 12months/1yr.

 

[Saurabh.Sau]

Saurabh,
e.g. current year a fund has given 75% return for 9 months, then it is the absolute return. but it works to 100% annualised for 12months/1yr.

Thanx Rajesh ji,
But e.g. if for any fund suppose
1 year return is 40%
3 year return is 25%
5 year return is 20%

Now if i had invested 1000/- 5 yrs back then how much i would be getting now?
And how much my investment had been 2 yrs back (i.e. after 3 yrs of investment)?
I am asking this, as this kind of information is promplty displyed for any fund on any website and i could not interpret that to myself.
plaese clarify...

 

[lonsharim]

Over a year returns are represented as compounded returns known technically as the Compound Annual Growth Rate (CAGR)

A 20% annual return would be
End of Year 1 - 1200 There after it would be compounded
End of Year 2 - 1440
End of Year 3 - 1728
End of Year 4 - 2073.6
End of Year 5 - 2488.32

CAGR is used to determine the compounded growth which we have worked backwards.

Therefore for a 5 year calculation it would be

2488.32/1000 raised to the power of 1/5 -1
In an excel sheet this would be represented as (2488.32/1000) ^(1/5) -1
To calculate the annulised growth rate after 3 years it would be (1728/1000) ^(1/3) -1


So next time you see a MF trumpeting its growth rate you know what they means and how they arrived at the number.

Cheers
MS

 

[Saurabh.Sau]

Over a year returns are represented as compounded returns known technically as the Compound Annual Growth Rate (CAGR)

A 20% annual return would be
End of Year 1 - 1200 There after it would be compounded
End of Year 2 - 1440
End of Year 3 - 1728
End of Year 4 - 2073.6
End of Year 5 - 2488.32

CAGR is used to determine the compounded growth which we have worked backwards.

Therefore for a 5 year calculation it would be

2488.32/1000 raised to the power of 1/5 -1
In an excel sheet this would be represented as (2488.32/1000) ^(1/5) -1
To calculate the annulised growth rate after 3 years it would be (1728/1000) ^(1/3) -1


So next time you see a MF trumpeting its growth rate you know what they means and how they arrived at the number.

Cheers
MS

Thanx a lot Lonsharim Ji (Sorry i dont kno ur name.
It would helm me and others a lot to have a better picture of the data provided by MFs.

 

[mrindia]

Thanx,
One more thing i need to kno is that what abt investing in Canara Robeco Tax Saver. Is it a good bet for long term and tax saving?

Hello!
Can Ro Tax saver although showing a good performance in recent times; has mid-cap tilt. Hence carries inbuilt risk of sharp downturn also!
mr india

 

[Saurabh.Sau]

Hello!
Can Ro Tax saver although showing a good performance in recent times; has mid-cap tilt. Hence carries inbuilt risk of sharp downturn also!
mr india

Thanx Mr India,
But i am having long term perspective (say 20 yrs). keeping that in view can i go for can india?

 

[arrawsFaw]

Hey I'm new

What's up everyone, I'm new to the forum and just wanted to say hey. Hopefully I posted this in the right section!