We review the ten Funds
of the desired investment objective and category with the top
performance over a 5-7 year period.
The bottom five performers are then eliminated.
Then they are narrowed down
to two Funds with the lowest Beta performance.
The Fund with the lowest operating expenses of the two is then selected for the
portfolio.
Parameters for
selecting funds
Organization (20%) – Evaluates the strength of the manager’s organization.
Information Gathering (20%) – Gauges a manager’s edge in gathering and processing information.
Forecasting (20%) – Determines the accuracy of a manager’s forecasts.
Portfolio Construction (20%) – Rates how a manager’s portfolio reflects its investment objectives.
Implementation (10%) – Measures a manager’s trading and back office efficiency.
Attribution (10%) – Assesses a manager’s ability to understand its exposure.
Safety Amount of risk involved
The biggest risk is the risk of losing the money you have invested. Another equally important risk is that your investments will not provide enough growth or income to offset the impact of inflation, which could lead to a gradual increase in the cost of living. There are additional risks as well (like decline in economic growth). But the biggest risk of all is not investing at all.
Liquidity Accessibility of the cash
How easily an investment can be converted to cash, since part of your invested money must be available to cover financial emergencies. You may need money anytime in future and if the investment is not liquid (Land, real estate) then you might find yourself in complete fix. You may have huge amount of money, but if you cannot use it when you require it the most, then what is the use of these investment. Accessibility to your own money is very important so that you can use it when you require it the most.
Reasons to visit
our website
Learn how to manage all major risks of investing
Learn how to take better control of your investments
Learn how to invest in funds that give the best returns
Learn how invest in funds that have the lowest expenses
Learn how to invest in the funds that are most tax efficient
Learn how to know when you have enough money to retire
Learn how to overcome the most common mistakes investors make
Learn how to tell the difference between legitimate investment information and “investment pornography”
Return The gains you get out of investment.
Investments are made for the purpose of generating returns. Safe investments often promise a specific, though limited return. Those that involve more risk offer the opportunity to make - or lose - a lot of money. To a large extent, the choice of the right investment option will also depend upon your financial goals. For example, if you want to invest for funding your vacation next year, don't choose an investment vehicle that has a three-year lock-in. Similarly, if you want to invest for your daughter's marriage after 10 years, don't invest in 1yr bonds for the next 10 years. Instead, choose an option that matches your investment horizon.
