Every single PMS fund manager keeps talking about how great their PMS investment returns are. That is great for them because that is their business. But how do you as an investor understand whether their returns are good?
Look at this example from cricket:
In 5 innings:
Batsman A: has scores of 50, 50, 50, 50, 50
Total: 250 runs
Batsman B: Scores of 0, 0, 0, 0, 250
Total: 250 runs
Even a lay observer of cricket will know that Batsman A is a far better player than Batsman B because he is delivering consistent returns even though his total and average are identical to that of Batsman B. Similarly, it is visibly clear that Batsman B is delivering a lot more pain for the 250 runs that he has scored.
One can easily apply the same logic to PMS Fund returns. There is a simple PMS return calculator to help you understand your Gain to Pain Ratio.
Let us take the example of 2 PMS funds
Fund A: Has monthly returns (%) of 5, 8, 5, -6, 8
Total Returns: 20%
Total of "Pain Months": 6%
Gain to Pain for Fund A: 20÷6=3.33
Fund B: Has returns of 2,-2, 15, -8, 13
Total Returns: 20
Total of "Pain Months": 10
Gain to Pain for Fund B: 20÷10=2
Now you see exactly how easy to calculate the Gain to Pain Ratio is!
The higher the Gain/ Pain Ratio, the better that Fund Manager is.
You can get monthly investment performance data for every single Portfolio Management Service easily. Sitting in the comfort of your living room, you can easily calculate this intuitive and amazingly insightful ratio for various types of PMS investments.
Therefore, do not look at total returns only. Apply this simple ratio to give you insight into how much pain that fund manager is making you endure, in order to get to the gains.
Investment portfolio management becomes more systematic and clear with the Gain to Pain Ratio.
As you can see, a particular batsman can deliver a high series total just as a fund manager can deliver a high return over a period, but when it comes down to your hard-earned money, what is important is to look for a fund manager that delivers high returns but with low pain.
After all, you cannot take chances with the fund manager who is batting like batsman B, can you?!
Economists Think Dollar's Fall May Explain the Recent ‘Rally’ by Steve Liesman
Einstein taught us about relativity in nature. Now come Devina Mehra and Shankar Sharma of First Global to teach us about relativity in financial markets -- and raise some serious questions about just what is driving stock prices.
First Global reports are quite credible and, on occasion, more than that.
What prompts this mention is Intel's earnings report and the fact that First Global has had a pretty good bead on the company and its stock.
AMD up again following First Global upgrade to ‘buy’ (AMD) By Tomi Kilgore
Analyst Kuldeep Koul at First Global upgraded Advanced Micro Devices (AMD) to "buy" from "outperform," given the "exceptional traction" that the chipmaker's Opteron line of processors has been able to get.
Baidu Climbs on First Global’s ‘Outperform’ Outlook
Baidu Inc., the operator of China’s most-used Internet search engine, rose to the highest price in two weeks after First Global rated the shares “outperform? in new coverage.
Personality counts: Walmart's frugal, but Target charms
"It's better to take a slight hit on [profit] margins and keep on moving and inventing," says First Global Securities. And at least for now, Target is inventing in a way that appeals to consumers with money to spend.
At 11 times trailing earnings, Energizer is cheaper; Gillette's multiple is 25. But cheaper doesn't mean better, says First Global.
Bipinchandra Dugam @bipinchandra90
invested in both GFF-GTS and Super I50. Thank you very much for such wonderful investing experience with completely new approach. In my 15years of investing first product I felt which close to what customer want.
Shishir Kapadia @shishirkapadia1
by far you are the best, I have not come across transparency, acumen, global expertise, exposure, protection of capital, delivering return from any fund/ fund managers. Invested very small size in 3 products will keep on increasing it over the period
Copyright 2019, All Rights Reserved. Developed By : Hvantage Technologies Inc.