10/15/2016

Wanttobecomerich?InvestinourMutualFundPortfoliosTheEconomicTimes

SearchforNews,StockQuotes&NAV's

Youarehere: ETHome Wealth Invest

04:05PM|14OCT

SENSEX

MARKETSTATS

27,674

NIFTY50

30.49

8,583

10.05

GOLD(MCX)(Rs/10g.)

USD/INR

29,638

66.71

71.0

0.22

CREATE
PORTFOLIO

DownloadET
MARKETSAPP

CHOOSE
LANGUAGE

ENG

Wanttobecomerich?Investinour
MutualFundPortfolios
ECONOMICTIMES.COM | Updated:Oct13,2016,05.48PMIST

Hereareafewmutualfundportfolios

0
Comments

Everybodyknowsthattheeasywaytocreate
wealthforlongtermfinancialgoalsistostarta
SystematicInvestmentPlan(SIP)inequity
mutualfundschemes.However,many
individualsneveractuallystartanSIPbecause
theyfinditextremelydifficulttochoosetheright
schemestoinvest.

forinvestorswithdifferentriskprofiles

Thatexcuseisnomorevalid.ET.comhas
createdafewmutualfundportfoliosfor
investorswithdifferentriskprofilesaswellas
SIPinvestmentamounts.Thethreeriskprofileschosenare:conservative,
moderateandaggressive.WehavealsoconsideredthreeSIPbaskets:Rs
2,0005,000,Rs5,00010,000andaboveRs10,000.Wehaveonlyconsidered
equitydiversifiedandequityorientedbalancedfundsforthepurposeof
recommendation.Wehavealsoassumedthattheinvestorisinvestingwithan
investmenthorizonoffiveyears.
aswellasSIPinvestmentamounts.

http://economictimes.indiatimes.com/wealth/invest/startsipsinetmutualfundportfoliostocreatewealth/articleshow/54790580.cms?prtpage=1

1/3

10/15/2016

Wanttobecomerich?InvestinourMutualFundPortfoliosTheEconomicTimes

ETMFhasemployedthefollowingparametersforshortlistingthemutual
funds.
1.MeanRollingreturnsrolleddailyforthelast3years
2.Consistencyforthelast3years:The3yearperiodisdividedintosmaller
timeperiodseachwithaprogressingweighting.
3.Downsiderisk:Inthiscase,wehaveconsideredonlythenegativereturns
givenbythemutualfundscheme.
X=Returnsbelowzero
Y=SumofallsquaresofX
Z=Y/numberofdaystakenforcomputingtheratio
Downsiderisk=SquarerootofZ
4.Outperformance:MeasuredbyJensen'sAlphaforthelastthreeyears.
Jensen'Alphashowstheriskadjustedreturngeneratedbyamutualfund
schemerelativetotheexpectedmarketreturnpredictedbytheCapitalAsset
PricingModel(CAPM).HigherAlphaindicatesthattheportfolioperformance
hasoutstrippedthereturnspredictedbythemarket.
AveragereturngeneratedbytheMFScheme[RiskFreeRate+Betaofthe
MFScheme*{(AveragereturnoftheindexRiskFreeRate}]
5.AssetSize:Forequitydiversifiedfunds,thethresholdassetsizeisRs100
crore,whereasthethresholdcorpustakenisRs50croreforbalancedfunds.
READMORE: wealthcreation|Wealth|SIP|portfolio|mutualfund|investing|invest

Comments

AddYourComments

http://economictimes.indiatimes.com/wealth/invest/startsipsinetmutualfundportfoliostocreatewealth/articleshow/54790580.cms?prtpage=1

2/3

10/15/2016

LiveMarket

Wanttobecomerich?InvestinourMutualFundPortfoliosTheEconomicTimes

News

Portfolio

Mobile

LiveTV

Newsletter

Commodities

Speed

QnA

Blogs

Alerts

RSS

OtherTimesGroupnewssites

Livingandentertainment

HotontheWeb

Services

TimesofIndia | 
| MumbaiMirror
TimesNow | Indiatimes
 | x 
M | Lifehacker
Gizmodo | Eisamay | IGNIndia
NavGujaratSamay

Timescity | iDiva | Bollywood

Zoom | Luxpresso
OnlineSongs | Travel
Guides | Hotel
Reviews | Cricbuzz.com | Prepaid
MobileRecharge

FestivalGuide2016 | GoldRate
G oogleexpectedtounveilPixel
smartphones | USElections2016
Live:India'ssurgicalstrikeson
PoK | RBIRateCut
RBIMonetaryPolicy

Bookprintads | Onlineshopping | FreeBusinessListings

Matrimonial | Astrology | Jobs | Property | Buycar | BikesinIndia
UsedCars | OnlineDeals | RestaurantsinDelhi | MovieShowTimingsin
Mumbai
RemittoIndia | BuyMobiles | ListenSongs | VoiceGreetings | Technology
News | AugmentedReality | MobileRecharge | CompareMobilePhones

Networking
itimes | MensXP.com

Aboutus / Advertisewithus / TermsofUse&GrievanceRedressal / PrivacyPolicy / Feedback / Sitemap / CodeofEthics / / Disclaimer

Copyright2016Bennett,Coleman&Co.Ltd.Allrightsreserved.

http://economictimes.indiatimes.com/wealth/invest/startsipsinetmutualfundportfoliostocreatewealth/articleshow/54790580.cms?prtpage=1

3/3