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In my fund management vertical, I am often confronted by the variances in the returns. No doubt, my approach is a lot more hands on, a lot more proactive when compared to say, a Debt fund return. But then, when one seeks superior returns, will volatility of returns not be a part of the deal? In this matter, I find that investors have quite a double standard – in their approach as well as their thinking. And this double standard creates a great deal of problems for the non-MF fund management or advisory business. It will also soon- or perhaps already has- create problems for the mutual fund managers.

The returns in the standard areas of investment are pretty standard too- with most of them moving around the 7-12% range (multiyear average). When an investor wishes to chance his arm for a higher return, he should, at the same time, be also willing to accept a greater volatility in the returns. Typically, this fluctuates from high positives to deep negatives and then back again to positives, finally ending (mostly) at a higher percentage return. But the minute the returns starts to experience volatility, the investors start to palpitate. They question the manager on the methods and offer unsolicited suggestions and opinions on how things are to be done and finally, withdraw much ahead of the promised tenure. Thus, they do not give the approach a chance to succeed. The ‘lesson’ they think they learnt is that such approaches don’t work! This is just dandy for the standard bearers of money management. They don’t do anything more to secure the returns, they can always blame the markets for the lack of performance and they can point to several other of their peers doing worse!

Turning to another aspect, I am beginning to think there is inherent shift in the way the market is functioning that is impacting returns. MF equity schemes for example have been showing considerably higher volatility in their returns in the last few years but no one really questions these. Back in Nov 2013, most large cap schemes were minor to deep negative in returns but the market rally this year has now taken the returns to a good positive. So, essentially, the market improvement produced the changes rather than any specific actions by the fund manager.
I then checked out the returns given by a famous deep value investor’s PMS and I find that their returns peaked back in 2003-4 (80%) and post 2009, the returns have been dropping steadily down into single digits (right into Mar 2014). There were several half-year rests within that had negative returns. It can be presumed that since this was a more actively managed portfolio, the fund manager would have done something to improve returns. But results are far from impressive.

In my own area of expertise, I checked the performance of trend following vs the trend forecasting approaches and find that the returns there too are changing quite visibly. Trend following approaches used to be quite successful but of late they are not. Most people avoid forecasting, stating that it is very subjective, but across global CTAs as well as within my own organisation, I find that the forecasting approach is delivering better and more consistent returns.

So no matter whether the approach is top down or bottom up, whether it is growth oriented or deep value seeking, whether it is trend following or subjective forecasting, it seems that volatility of returns is here to stay in every form of investing. Could it be because of the increase in the role of machine-led trading? Are algos changing some fundamental characteristics of markets? Is the focus shifting away towards shorter term?
Whatever the answer may be, one thing is for sure. Investors need to now begin accepting that volatility of returns is here to stay. If they aspire for anything higher than the standard sub 10% bracket of returns, they should be prepared for seeing a bit of a yo-yo ride in their portfolios no matter which approach they choose. This acceptance can make the job of the fund manager a lot easier as he does not have to be defensive about the volatility at every client meet. And can concentrate on extracting a higher return from fast changing markets. The double standard of wanting but not accepting what comes with the want has to end.

Companies need to file taxes forms before deadline ends every year. Businesses involving in lots of transactions can find difficult in filing forms nicely due to complication taxation rules. Processing of taxes forms are not easy and require lots of expertise in this field. Late payment of taxes can lead to penalty of higher amount than the actual taxes. It is essential to file the forms according to taxation rule and to the internal revenue service within the deadline. This is why taxation experts are being hired from the market to process the forms and provide exact taxable income within the time frame. But, filing the forms through the traditional method is not effective and requires lots of time and money for company. This is why companies are filing the forms through online media for effective, fast, and reliable transaction with IRS. Let us look at the reasons of filing the forms through online media.

Huge capital is required in performing works of companies during the year. But, most of the new companies are facing acute problems of deficient in cash. It has to be fulfilled by mortgaging the property to the financial institute in the market. Lenders provide capital to companies with a fixed rate of interest to be paid at the end of tax year. But, the total amount of interest paid to lender must to be shown to IRS to get tax return from the government. File 1098 online to show mortgage statement to the IRS effectively and file for tax return. Businesses are filing this statement through online media to avoid risks involved in traditional method. It is effective, cheap, appropriate, and even helpful in filing the forms easily. This is why taxpayers are using online media instead of traditional method in filing forms to IRS immediately.

Big companies require lots of skilled professionals in carrying out the works effectively. The employees contribute for the growth and development of the company in market. To reward the contribution of employees, companies pay remuneration to the employees every month. But, it is essential to show the total income of employees to IRS for tax payment. File W-2 online to show tax-wage statement to the government immediately. Filing the forms through the online media enables employees to show income tax statement immediately to the government. Don’t use the traditional method of filing taxes as it is in-effective, slow, costly and even risky due to handling by middlemen.

Apart from the regular remuneration, the students are paid extra income by the companies during the year. The different miscellaneous incomes paid to the employees are social security, renting, royalties, medical insurance, crop insurance, and even award. But, it is essential to file a special form to show total miscellaneous incomes if it is more than 600 dollars. File 1099 misc form to show total miscellaneous incomes paid to the employees during the tax year. Companies can even take help of taxation experts in filing the form at affordable price of the market. Provide the complete tax detail and rest of the work will be done by the professionals immediately. Take help of our taxation experts in filing the forms at affordable price.

Many times you keep wondering whether there could be a way to trading better? Such moods come on when one has lost some money or the market is giving you a hard time. For almost all the people the answer to that question is a Yes. Despite knowing the answer we continue to think about it. Then we go into a small journey of finding the possible reason. Often, people come up with items various causes for this, such as: I don’t have good information; I don’t have the right kind of broker; My job doesn’t permit me to trade properly; My wife/husband/father/etc are not in favour of me trading; I don’t have enough money; I can’t afford to lose money; I don’t know technical; I don’t know fundamentals; I think it’s not in my fate…etc., etc. There could be more such ‘reasons’ but you get the idea of what I am talking about. Before reading further, I suggest you do this exercise with yourself right now.

Notice in that list- and perhaps also in what you came up with by yourself- there is no mention about YOU. It is always all about how something ELSE is wrong. Truth be told, it is always YOU. Is there a better way to trade? Of course there is. Well, then, what is it? Answer is not what you might want but here it is (according to me)- Execute better. I can almost hear you saying ‘WTF?’ Execution is something that is done by the dealer, by the broker. I don’t execute, I trade! But take two minutes off and sit down to think about it. Trading is only Execution and nothing more. YOU buy or YOU sell. The broker is just the medium for doing this. YOU decide to buy or sell. YOU analyse and arrive at the decision to buy or sell. All this analysing and deciding are all thinking. When you pick up that phone and place the order, you have Executed.

Now, is that such a difficult thing? Well, no…. perhaps,….you say to yourself. But still, what has execution got to do with making money, you wonder? Think some more. Isnt what/when/ you buy or sell that is going to decide the profit or loss? And the what and when are nothing but decisions about executing. Now that you come to think about it, is it such a difficult thing, this desire to trade better? All you got to do is execute better.

Question then is how does one do that? Easy enough. Think more before executing. Ask the right kind of questions. Is this the right stock or is the stock trading right? Is it the right time to execute? Unless you get a resounding Yes answer from within, don’t take the trade. Without this answer, you are probably trading for many wrong reasons. So start right away by asking these simple questions. You might find yourself surprised by the answers that you get. And if you go as per the rule (the resounding Yes from within) and leave out all the others where the answers were Maybe or No or Could be or I don’t know etc. then you will also find that, suddenly, you are trading better!