Today, we shall see some tools which help in mutual funds comparison.
Morningstar's SIP Calculator - You can compare the SIP performance across three different funds. But, it gives the performance review as on a particular date. There are a few things that this comparator does not tell you:
1. How does a SIP perform across time periods, across different schemes? This helps in selecting a scheme to invest in.
2. How will a daily or weekly SIP perform vs monthly or quarterly SIP?
FreeFincal (Dr Pattu) gives a rolling SIP returns calculator. He has a series of calculators on various components of personal finance!
https://freefincal.com/mutual-fund-sip-rolling-returns-calculator/
The way to interpret is this: As on a point on X axis - say Aug 2013 (one of the lowest points of Sensex / Nifty), what would be my CAGR had I invested for the past 5 years (starting in 2008 Aug) and redeeming in Aug 2013? It is 5% for rolling BSE Sensex.
Here, he compares the performance of several funds - HDFC Equity, HDFC Top200, Quantum LTE, IDFC Premier Equity against their benchmarks. HDFC Equity and HDFC Top200 on the way to bottom, beats the benchmark - not good, losing more than the benchmark! See Quantum LTE and IDFC Premier Equity - consistently beating benchmark and during the slide manages to lose less than the benchmark.
https://freefincal.com/nifty-200-dma-buying-high-vs-buying-low/
Here Dr Pattu analyzes whether there is an advantage doing SIP when the index (or the NAV) is less than the 200 day daily moving average vs index being greater than the 200 day daily moving average. The revealing and counter-intuitive observation is that the buying when the index is higher than the 200 DMA, the corpus is higher!
Morningstar's SIP Calculator - You can compare the SIP performance across three different funds. But, it gives the performance review as on a particular date. There are a few things that this comparator does not tell you:
1. How does a SIP perform across time periods, across different schemes? This helps in selecting a scheme to invest in.
2. How will a daily or weekly SIP perform vs monthly or quarterly SIP?
FreeFincal (Dr Pattu) gives a rolling SIP returns calculator. He has a series of calculators on various components of personal finance!
https://freefincal.com/mutual-fund-sip-rolling-returns-calculator/
The way to interpret is this: As on a point on X axis - say Aug 2013 (one of the lowest points of Sensex / Nifty), what would be my CAGR had I invested for the past 5 years (starting in 2008 Aug) and redeeming in Aug 2013? It is 5% for rolling BSE Sensex.
Here, he compares the performance of several funds - HDFC Equity, HDFC Top200, Quantum LTE, IDFC Premier Equity against their benchmarks. HDFC Equity and HDFC Top200 on the way to bottom, beats the benchmark - not good, losing more than the benchmark! See Quantum LTE and IDFC Premier Equity - consistently beating benchmark and during the slide manages to lose less than the benchmark.
https://freefincal.com/nifty-200-dma-buying-high-vs-buying-low/
Here Dr Pattu analyzes whether there is an advantage doing SIP when the index (or the NAV) is less than the 200 day daily moving average vs index being greater than the 200 day daily moving average. The revealing and counter-intuitive observation is that the buying when the index is higher than the 200 DMA, the corpus is higher!
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