How should you make mutual fund performance analysis?

You should not solely rely on performance rating by third party websites and mutual fund returns for the last year to assess the best possible mutual fund for you. This is because performance keep changing every year. The top performers of today may not be on the list next year. When making a mutual fund comparison, there are specific performance indicators that you need to look out for. Let’s evaluate them here in detail.

Look at returns beyond 1 year: You need to evaluate the mutual fund performance over 1 year, 3 years, 5 years and 7-year performance. A reasonable yardstick is the mutual fund performance over the last 5 years.
Mutual fund performance comparison against benchmark: You can start by making a mutual fund performance comparison against the benchmark. When you compare, you need to evaluate the period of consistency during different market cycles against the benchmark. This will help you assess whether the mutual fund has outperformed or underperformed the benchmark.
Risk-reward tradeoff: You need to understand how effective is the mutual fund in offering risk-adjusted returns. As per risk-return tradeoff, if you take a higher degree of risk, it should be compensated by a greater level of returns. For instance, small-cap funds more significant downside risk, but it also has the potential for high returns. The risk is measured with the help of specific mutual fund performance indicators such as standard deviation and Sharpe ratio. Standard deviation is how much the mutual fund performance deviates from the benchmark. The greater the standard deviation, greater is the inherent volatility. Sharpe ratio is the return per unit of risk. In other words, it evaluates the risk-adjusted returns. Look for a fund with a higher Sharpe ratio to earn a better risk-adjusted return.
Compare Average Maturity and Duration: While evaluating debt funds, the average maturity and duration of the fund should match your investment duration. The Average maturity relates to the period after which the underlying securities will mature. A short-duration debt fund has lower interest rate sensitivity than longer-duration funds. You can use Macaulay Durations and Modified duration to evaluate the risk of investing in debt funds. Macaulay Duration indicates the time it takes for the price of the underlying bond in the debt fund to be repaid through its internal cash flows. Modified duration indicates how much the NAV of a debt fund would change if interest rates move by 1%.
Compare Fund’s cyclical performance: Evaluate how effective is the fund manager in outperforming the benchmark across different market cycles. A good mutual fund performance indicator is the Alpha. Alpha measures the return over the benchmark index. When making a mutual fund performance comparison, a fund that generates alpha indicates a well managed fund.

You can use the above mentioned mutual fund performance indicators to help you compare two mutual funds and make a decision. It would help if you considered your financial goal and risk profile carefully in this exercise.

How to Get MS Office for Free

Source: How to Get MS Office for Free

Microsoft Office is one of the most used and preferred applications for managing corporate and official works with a wide range of Office Suites. The MS Office suite includes various programs such as MS Word, MS PPT, MS Excel, MS Excel and much more. MS Office provides various features to its users such as text editing, data creation, spreadsheet, splendid and creative presentations. The Office program can be easily accessible at home or even at Office premises.

Generally, Microsoft Office takes the subscription fee from the base fare of Dollar 70 but if you want to get the subscription of Office for free, then need not to worry. We have some interesting tricks so that you can avail the benefits of the Office package for free.

Using MS Office Online

If you want to avail free benefits of Microsoft Office, then it is recommended to visit the site of Microsoft online and use online Office program. The online edition of Office suite won’t be available in Offline mode, but it provides very powerful editing features for its users. With an online method, you will avail the benefits of various Office tools such as PowerPoint, Excel, and MS Word from your browser.

If you wish to access web-based Office suite, then follow these guidelines:

First and foremost, visit the site www.office.com and log in to the account.
Make sure that you have to opt for a free subscription of MS Office.
Now, you will view various app icons and select your desired one from the following. The Office suite includes MS Word, MS Excel and MS PowerPoint. You will get the web edition of MS Office program.
If you wish to access and save your document in storage programs such as OneDrive storage of MS Office, then pick and drop the files into the web-based page of office.com. The contents will automatically upload to the designated program of Office suite. If you wish to launch the particular content or program, then you can use a particular designated application.
There are various limitations for the web-based Office suite:
It won’t provide the full-featured accessed as usual offline mode.
Some of the Office features fail to work as it only needs a compatible subscription for the same.
Apart from these things, MS Office provides powerful accesses to some of the supported applications.

Using Free Subscription Trials

The free trial provides all the features and accesses of MS Office related subscription for one month. You have to hit the “Try Office for Free” option for getting the complete features just as usual for one month. To do so, visit the site of Microsoft and hit the Sign Up option for a free subscription.
Then the Microsoft will ask you to enter your credit card information for creating a fresh account.
Once the account has been created, you have to follow all the guidelines, terms and conditions of MS Office.

Note: After a complete month, the Office will automatically renew, and a fair subscription fee will be deducted as subscription fee for a year. One can cancel the free subscription at any stage just after signing up to your account. Once you have cancelled your subscription, you won’t be asked for the payment as your payment will not be made after a month. Even after cancelling the subscription plan, once can use the account for a month as free.

Once you have taken the free trial subscription for your account, you have to install the complete edition of MS Office on your device, be it Windows or Mac. You can also install a full edition of these applications on other various platforms such as iPad etc.

Cynthia Strickland is a creative person who has been writing blogs and articles about cyber security. She writes about the latest updates regarding webroot.com/safe and how it can improve the work experience of users. Her articles have been published in many popular e-magazines, blogs and websites.

What mistakes should investors avoid when evaluating mutual fund returns?

Every investor, at some point in time, makes a mistake while evaluating investment decisions. There are five valuable lessons learned in the investing arena from these mistakes. Let’s understand them in detail.

Mutual Fund returns over the past year: This is the most popular form of comparing two mutual funds. Comparing mutual fund returns in India over the last year may be the starting point of assessing mutual funds. However, you should look beyond 1 year to make a realistic expectation of the mutual fund returns.
Investing without a financial goal: Your investment decision should not be based upon recommendations of friends and a good financial advisor is a must. For example, suppose you are planning to invest for your children’s education and you have 10 years, you can consider investing a diversified equity fund portfolio instead of parking your money in a debt fund or a fixed deposit. Once you have a financial goal, you can use a mutual fund return calculator that helps you to get an idea of how to calculate mutual fund returns with time.
Timing the market: Another mistake that mutual fund investors make is hasty decisions to redeem or sell their investments due to market uncertainty. Do not invest with the intention to reap short-term profits. You also need to understand that mutual fund returns are taxable. On redemption, the capital gains are taxed as per the holding period. For equity mutual funds, short-term capital gains are taxed at 15% while long-term capital gains are at 10% for gains exceeding Rs. 1 lakh. Taking a hasty decision can be detrimental to your wealth creation journey.
Mutual fund returns comparison without factoring your risk appetite: You need to assess whether, for every risk you take, you are getting commensurate performance/returns? Solely evaluating mutual fund returns won’t suffice, you need to assess the risk-adjusted return using performance indicators such as standard deviation and Sharpe Ratio.
Over-diversification: Diversification is a good thing, but over-diversification is not. For the sake of earning additional mutual fund returns, do not resort to investing in too many mutual funds.