Finding information regarding Mutual Funds

Mastering Mutual Fund Investment: Part 2 of 3 Indicators and Metrics for selecting Mutual Funds to invest in
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Transcript

Welcome to this new section. So far we have seen what are mutual funds that we have studied different types of mutual funds. And then we saw some essential terms, which are required for dealing with mutual funds. Now, let's gradually start putting all this knowledge into practice. We start with finding out where to find information regarding mutual funds. Now in most countries, there are specified newspapers which carry economic information.

These newspapers should definitely carry information on mutual funds. Even the normal newspapers in most countries have a section on finance, and the financial section should definitely carry information on mutual funds. However, in today's world, more than newspapers, websites are more popular to find information on mutual funds. Almost every financial newspaper and magazines have websites, which carry information on mutual funds. Now we start by looking at some popular websites around the world which information on mutual funds. The largest search website is young finance, that is finance@yahoo.com.

They This is the largest in the world which carries financial information. Also popular is Google Finance, that is WWE google.com slash finance. In India, we have the websites from economic times money control, which are most popular in terms of finding information on mutual funds in India. Also we have your Yahoo Finance specifically centered on Indian market, as well as Google has specific information on the Indian market. It will be very difficult to go through all these websites. So, what I will do is I will take an example of Economic Times website and go through what are the information available for mutual funds.

Now, the information what is available we will discuss it in some details and the same information can be found on other websites. When you can take some time to study the different websites before settling down on which website or which websites you'd like to follow on a regular basis. Let's start exploring the economic time surf site on in a browser type www dot economic times.com. You should see a web page like this, as shown here. Of course the news will keep changing from time to time. So you may see something different from what I what you're seeing in this screen right now.

Important Thing is, notice a search bar as pointed to by the red color arrow. In this search bar, you can type the name of a mutual fund for which you are seeking information. So I have typed mutual fund arbitrarily and we will see what information we get about the mutual fund. We will type the name of the mutual fund and press enter. You should see a screen similar to this where all the information regarding their particular mutual fund is provided. You can see on the top, the nav for the is provided they then it says shows the nav which is the high and low over a period of time.

Then there is some essential information regarding what is the aim of this fund? What is the expense ratio, what is the entry load, exit load etc. And then they chose what are the risks associated with this fund. The speedometer on the right shows whether the fund is high risk or a moderately risky fund or a low risk fund. Below the information we just discussed, you will notice that there are five tabs. I have highlighted these in the red box and I pointed out through the red color arrow, so you can take a closer look at this.

The first tab is the fact sheet. The fact sheet it shows the funds which are similar to this fund and it gives a comparative analysis between these funds and how the index is behaving, etc. So you can scroll through this and there's a lot of information which you can study on this. The next tab is the Performance tab. Here you can see the performance of The mutual fund since its inception, so, you can see one year three year five year etc since its inception all the performances of the mutual fund can be studied on this particular sheet. When we scroll down the performance page, we see some very vital information.

First vital information we see is the peer group analysis, that is which are the funds that comparable to this fund and what is the performance of those funds is provided here. Then the second most important thing is the risk return matrix. So, this return matrix shows how risky this fund is versus how much return it provides. For example, this particular fund there is seems to be average and the returns are very high. So, this is a very good fund to have actually fund is considering investing in mutual funds. There are another very important aspect shown on this page is the performance metrics.

Now there are many metrics which are provided here. We will study each of these metrics in this section in more details. So now your for now you can take a look at the different matrices which are shown here. These are very vital indicators for how the fund is behaving. And these are very vital indicators while selecting which funds to invest in for the investor. The third tab is the portfolio tab.

In this tab we get information regarding how is this fund composed of that is where this fund is invested all the money of the investors in as you can see here in this particular Fund, the equity investment is not there actually they have taken borrowed some from the equity investment, this is highly invested in debt and more investments are there in other things, maybe in commodities, etc. Now, on the bottom right corner, you can see the company's asset allocation. Here you can see the different asset classes and how much assets have been allocated here. Right now it shows the equity, you can click on the different tabs which shows the debts and commodities etc. Okay, another important thing to notice is the asset allocation over time time that is how the asset allocation pattern has been changing for this particular fund by the fund managers. also shown here are the different commodities or the different stocks where the fund is visually invested in the fourth tab provides the fund information.

It's titled as fund info. So, here you can see information like which is the fund house without which is the AMC and what is the type of the fund is for example, this is open ended fund, then the objective of the fund is very clearly stated. There it shows the inception date when the fund is opened, where the fund is listed and information I call the fund managers. The fund managers file also is provided here. Then important information like what is the aim of the fund, what is the expense ratio etc all this information is provided in this particular page. The fifth and the last time gives information Regarding the investment details, that is how the investor could invest in this particular fund.

You can see here this fund allows for lump sum investment, or it allows for systematic investment. It allows for systematic withdrawal plan. So it allows for systematic transfer plans. So all this information can be gathered from this particular tab. Please take some time to go through these information on this website. Now, most of the terms should make sense as we have gone through the essentials in the course already.

Also take a look at the other websites that we have discussed and find out where this similar information is available, and how they're arranged. So whichever side you feel comfortable, then stick on to the website and carry on investing in mutual funds using that websites information. So see you in the next lecture. Thanks and thanks for listening.

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