Falling market and redemption pressure pull down AUMs Total asset under management (AUM) of equity mutual funds (MFs) in October 2009 stood at Rs203,826 crore, 4.3% lower than that in September 2009. On adjusting for net inflows/outflows, the same declined by 3.2%, which was better than the market decline of 7.2% in the same period. … [Read more...]
Fosback Index and Mutual Funds.
The Fosback Index,was created by Normal Fosback, has fallen out of favor in recent years. but it is a quick and easy tool that belongs in every mutual fund investor's toolbox. The Fosback Index measures the cash holdings or liquidity of mutual funds against the normal levels. Zero = Neutral Positive = Extra cash. The more positive the more bullish. Negative = Deficit … [Read more...]
Pros and Cons of Variable Annuities
Variable annuities are offered by insurance companies as retirement investments. Variable annuities are similar to mutual funds with some significant differences, most substantially, regular payments after retirement. Prospectus Insurance companies offer variable annuities with varying stipulations attached. It is advisable to review the prospectus carefully … [Read more...]