Optimus Wealth’s Post

Investors are finally waking up to the fact that the fees charged by active funds are significantly higher than those charged by index funds. In fact it’s not uncommon for them to be TEN TIMES higher. But that’s just part of the story, because very time your fund manager trades, there’s a long line of people waiting to be paid — and it’s YOU, the investor, who foots the bill. Remember: YOU provide 100% of the capital. YOU take 100% of the risk. Why give away the bulk of your returns to third-party gate-keepers who do little or nothing to earn it? 🤔 #Investing #WealthManagement #IndexFunds Index Fund Advisors, Inc.

Most of us believe that the number of mutual funds has increased over the last four years, but guess what? That's not true. The number of mutual fund schemes has actually decreased due to a decrease in the number of closed-ended mutual funds in the market. For the younger generation of investors, mutual funds have become synonymous with open-ended mutual funds. Closed-ended mutual funds, such as fixed term mutual funds, are becoming a thing of the past. Fun fact: Fixed term plans constituted close to 25% of AUM in 2008, today their MarketShare isn't even 0.5%. Did you know that fixed term plans and closed ended mutual funds have fallen out of Favour due to change in market structure, credit market crisis, regulatory involvement (including capping of expense ratios of closed ended funds), and improved investor awareness? Here's another interesting fact: The number of equity oriented mutual funds has grown around 25% in the last few years. Can you guess what category of equity mutual funds have increased the most? #MutualFunds #Investments #FinancialMarket

When selecting mutual funds, many individuals tend to focus on past performance. However, it’s crucial to remember that a fund’s future success depends on the fund manager’s ability to select the right stocks at the right time. As a result, there’s no guarantee that a fund will replicate its past performance in the future. The image illustrates this point well. From 2017 to 2019, most funds delivered similar year-on-year growth. However, in the following three years, fund from Parag Parikh Financial Advisory Services Limited stood out by achieving a 44% growth in 2022.

🗣️ Ready for more mutual fund myth-busting? Let’s go! Part 2 1️⃣ Myth: Need a Large Amount to Invest Think you need a fortune to start? You can begin with as little as ₹500!   2️⃣ Myth: Must Have a Demat Account Do you need a Demat account? Not for most mutual funds! You can hold them in regular accounts.   3️⃣ Myth: High NAV Means Peak Performance Is a high NAV a sign of a fund’s peak? Not at all! It reflects underlying asset values, not the fund’s potential.   4️⃣ Myth: Top-Rated Funds Always Perform Best Just because a fund is top-rated today doesn’t mean it will be tomorrow! Track performance regularly. 🚀 Stay informed and make better investment choices! 🎯 Follow @CertoAdvisors for more insights on mutual funds! #investmentstrategies #wealthbuilding #growyourwealth #financialplanning #smartinvesting #personalfinance #wealthmanagement #mutualfunds #mutualfundssahihai #mythbuster #mythvsfact #mutualfundmyths #CertoAdvisors

NAV mystery in mutual funds? Solved! This post explains why it matters. NAV (Net Asset Value) is the key metric to understand a mutual fund's worth. It reflects the value of its holdings minus liabilities, divided by shares outstanding. Essentially, it's the price per share on a given day. ⤷ Why NAV Matters:  - Knowing NAV helps you gauge fund performance and make informed investment decisions. It fluctuates daily based on the fund's holdings. ⤷ Mutual Fund Must-Know:  - You buy/sell shares at NAV, typically at day's end. Remember, NAV differs from market price for closed-end funds. NAV = Your Investment Compass Mastering NAV empowers you in the world of mutual funds. Share your questions below! #mutualfunds #NAV #investing

🌟 The Mutual Fund Market in 2024: Navigating the Opportunities 🌟 The mutual fund landscape is evolving, with index funds continuing to gain popularity due to their low costs and reliability. Investors are increasingly shifting away from actively managed funds as they seek simpler, cost-effective strategies to grow their portfolios. That said, sector-specific funds, particularly in infrastructure and technology, have posted remarkable returns, making them attractive options for those willing to take on some risk. 🚀 Whether you're just starting or looking to diversify your investments, staying informed is key. Mutual funds remain a powerful tool for growing wealth, but understanding where the market is headed can make all the difference. #Investing #MutualFunds #WealthManagement #Finance #FinancialPlanning #InvestmentTrends

Are you looking to invest your money in the right mutual fund? Look no further! We've got the performance of value/contra funds for the past 2 years, capturing AUM, net equity, equity exposure, small/mid/large cap distribution, PE and PB of the portfolio. The difference between the top and bottom funds is almost double, Choosing fund category and fund selection is crucial. This makes all the difference to your portfolio in the long run. Active fund management is the need of the hour, as buy & hold will no longer work. These are just a few observations - we hope this helps you choose your fund wisely. #MutualFunds #Investment #ValueFunds #ContraFunds #ActiveFundManagement Disclaimer: Please note that investing in mutual funds carries market risks. It is important to carefully read all scheme-related documents before making any investment decisions. The information contained in the reports is intended for informational purposes only and should be used solely by the recipient. While we have taken great care in compiling the data and contents of this report, we make no representations about the reasonableness of the assumptions or accuracy of any data. Any decisions made based on this information are the sole responsibility of the recipient. We reserve the right to correct any errors or discrepancies in the reports if they are observed or brought to our attention at any time.

Thanks Robin Powell , your posts are so insightful! Friends and followers, do you know how much you are paying in charges? It’s worth finding out and exploring the many options open to you. High charges will have a serious impact on how much you have to spend each month in retirement AND what legacy you leave to your loved ones. I can help you gain clarity around your situation and what changes you can make to improve YOUR situation. Just DM me and we can set up a meeting without cost or obligation ……… #retirementplanning #retirementincome #retirementgoals #peer2peer #meaningfulconversations

Have you ever wondered what determines the value of your investments? Exactly 6 months ago, I started diving deeper into understanding mutual funds. So, here's my journey wrapped up: > 𝗡𝗲𝘁 𝗔𝘀𝘀𝗲𝘁 𝗩𝗮𝗹𝘂𝗲 (𝗡𝗔𝗩) is the price of a single unit of a mutual fund. > It reflects the value of all assets in a mutual fund, minus its liabilities, divided by the number of outstanding shares. > NAV is calculated daily at the end of the trading day by dividing the total value of all the assets and cash of the fund by the number of outstanding shares. > Units of open-ended mutual funds can be bought and sold by investors at their NAV, which is declared daily. > An increase in NAV indicates an increase in the value of the assets held by the mutual fund, leading to higher returns for investors. > However, NAV alone is not a reliable indicator of a fund's performance. Investors should consider factors like the total expense ratio (TER), past performance, and underlying assets before investing. > Closed-end mutual funds have a fixed number of shares, which can be traded on exchanges based on market demand, unlike open-ended funds, which are bought and sold directly with the mutual fund company. I am sure I am missing out on a few things, but these were the key highlights. Mutual fund NAV will always be special. Can't wait to see what further exploration into financial instruments has in store #MutualFunds #NAV #Investing #FinancialEducation #InvestmentJourney #PersonalFinance

💸𝟱 𝗼𝗰𝗰𝗮𝘀𝗶𝗼𝗻𝘀 𝘄𝗵𝗲𝗻 𝘆𝗼𝘂 𝘀𝗵𝗼𝘂𝗹𝗱 𝘀𝗲𝗹𝗹 𝘆𝗼𝘂𝗿 𝗺𝘂𝘁𝘂𝗮𝗹 𝗳𝘂𝗻𝗱 𝟭. 𝗚𝗼𝗮𝗹 𝗮𝗰𝗵𝗶𝗲𝘃𝗲𝗺𝗲𝗻𝘁 When you've hit your financial target sooner than expected—go ahead and cash out. Celebrate your success when you have achieved the goal intended. 𝟮. 𝗖𝗵𝗮𝗻𝗴𝗲 𝗶𝗻 𝗰𝗶𝗿𝗰𝘂𝗺𝘀𝘁𝗮𝗻𝗰𝗲𝘀 Life happens. There may be a financial/medical emergency. If you suddenly need money and have exhausted all your cash reserves, you have no option but to sell your fund. 𝟯. 𝗥𝗲𝗯𝗮𝗹𝗮𝗻𝗰𝗲 𝘆𝗼𝘂𝗿 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 If your portfolio’s asset allocation has changed (say, your 60% equity investment grows to 80%), it’s time to rebalance by selling relevant funds and restoring the original ratio. 𝟰. 𝗙𝘂𝗻𝗱 𝘂𝗻𝗱𝗲𝗿𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 If your fund consistently lags its benchmark index or peers, it’s a red flag. But before you divest, follow it closely for around three years. Knee-jerk reactions can backfire. 𝟱. 𝗪𝗵𝗲𝗻 𝘁𝗵𝗲 𝗳𝘂𝗻𝗱’𝘀 𝗗𝗡𝗔 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 Let’s say your fund is giving off chameleon energy and changes from being a mid-cap fund to a small-cap one, you may say nay and bid bye to it. 𝗪𝗮𝗶𝘁 𝗮 𝘀𝗲𝗰𝗼𝗻𝗱 However, there are three occasions when you need to be watchful and not necessarily SELL your fund. ➡️To know when, read the full story: http://vro.in/s201305 #investingtips #investment #fundinvestment