The Tortoise Speaks...

A blog which periodically revisits evergreen investment principles!

Mutual Funds: The missing “I” in Monthly Income Plans

By Jayant Pai | [email protected]

I feel that the financial product with the most misleading moniker is the ‘Monthly Income Plan (MIP)’ offered by mutual funds. The nomenclature suggests that these schemes assure some income to their unit holders every month but this is far from reality. Many of these schemes not only declare dividend at irregular intervals, even the quantum of dividend declared each time varies widely. A bigger irony is that most MIPs offer a “Growth” option too, something which is anachronistic, to say the least. In a nutshell, “True-to-label” MIPs are more the exception than the rule.

Getting it wrong

By Raunak Onkar | [email protected]

Investing requires a lot of conviction. Especially in equity investing where the future outcomes of any business are uncertain & many variables can affect business performance in the long run. In such a case conviction is a good currency to have.

But what is this conviction made of?

Conviction is to believe that something is right by judging the facts which we gather after going through available data. Why do we believe that something is right? Well its tricky to answer it this way. So we can try and invert the problem into thinking – why do we get things wrong? To put it into context, why do investors make mistakes?

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