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Showing posts from March, 2019

Why my overall returns from Mutual Funds is less than my current FD rates(6%)?

Why my overall returns from Mutual Funds is less than my current FD rates(6%)? This is the question i get today from most of my mutual fund clients.To clarify this i take one investor who has invested in L&T Hybrid Equity fund ,which is an balanced fund(in old context to keep it simple) which invests 65-75% in direct equity(stocks) and 35-25% in Fixed income products like Bonds,NCD,Gilts etc from year 2015. you can see first 18 investments from oct'15 till Dec'16 he has got more than 8% annualized returns in all cases that is  invested above 800 days Let us see what happend after this you can see investments made 1 year(365 days) before till 799 days he has got less than +8% to -4% varies. Let us take the overall investment how it looks like His overall investment has given +3.5% returns which is less than the current FD interest rates (6%).  Sounds right?  No. It is not true.  Observation 1 Out of overall 57 installments made fro