A Thread on Mutual Fund Saga Simplified for layman warrior.
Krishna asked Arjuna to choose either Krishna himself, unarmed with passive involvement in the war as a charioteer or his mighty Narayani Sena, the most powerful army in the world at that time.
Arjuna chose Krishna over the Narayani Sena. Duryodhana was pleased by Arjuna’s choice, and the thought of adding the mighty Narayani Sena to the Kaurava’s ranks gave him a feeling of great strength. And the rest is history.
TL;DR: Jump to the spicy tables in the last few tweets of the thread. 1/16
Expense ratio is one of the most important parts of investing through mutual funds. There is a high chance that it is not discussed with you by your banker, agents or MFD advisor.
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In case you know it, there is a high chance that you are unaware of its impact on your future goals. In simple terms, expense ratio is the fee deducted from your investment or each SIP. This deduction happens instantly and gets adjusted within NAV.
There are several types of returns to get an idea about stocks or funds. The most widely used around the financial world is trailing returns.
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While it is good to glance at trailing returns, that is a point to point return, it does not actually give the idea about what an investor has experienced over time. 2/10
Rolling returns are the most underrated types of returns, it is useful for examining the behaviour of returns for holding periods, similar to those actually experienced by investors.