We had asked you to avoid SIPs in late 2006. We are suggesting that you buy them now but in a different way

In the MoneyLIFE issue of 14 September 2006, we had pointed out that using the systematic investment plan (SIP) is bad for your wealth. SIP is a planned investment programme under which a small amount is invested in a mutual fund at regular intervals such as every month or every...

Some funds were significantly in cash at the market peak last year. Yet, they were not the year’s best performers

The cornerstone of the mutual funds’ investing process is to stay invested most of the time and not try to time the market. The basis for this is the assumption that nobody knows what the market will do in the short term. In trying to get in and out of the market, you may end up...

Many funds are sitting on illiquid stocks

Careful stock selection, rather than right entry into a stock and exit is the most important aspect of investing. But fund managers have to keep in mind another aspect: liquidity. That is why they try to avoid small companies. In fact, large foreign funds may avoid even a country because they cannot buy and sell a stock in large enough volumes for...