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Showing posts from February, 2024

Fair Returns Or Good returns

A conversation between two friends regarding equity mutual fund returns.   M1: Did you check this out? Recent CAMS report on investment in mutual funds by millennials says 36% of mutual fund investors who redeemed in full from equity investments made losses   M2: Yes, have seen the report. Nothing strange, given 50% redeem within 2 years. But there is more to it. CAMS report also says rest make money. Or redeem in profit.   M1:  That's good no. Majority of investors made money…   M2: That's what the data says. Though me thinks data hides more than it reveals   M1: Elaborate on your conspiracy theory on this data please   M2: 1% return is also profit, and so is 5% and 10%   M1: Ohh. Agree, data does not elaborate much on quantum of gains or profit.   M2: Absolutely. Gains per se are irrelevant until and unless we know the quantum and that too in comparison with risk free returns   M1: So at what level of returns should ...