Direct mutual fund plans were introduced from Jan 1st 2013. In this article, we list the return difference between an 8-year SIP in a direct plan and a regular plan mutual fund. Scared that it would disrupt sales, SEBI has still not renamed “regular plans” for what they really are: “commission plans” – nothing “regular”…
Continue reading →It is now seven months since direct mutual fund plan were introduced. Using NAV history of HDFC Top 200, I have calculated the actual difference in returns between the regular-plan and direct-plan (growth option) obtained so far (Excel sheet attached). Let use recall that regular funds will have a higher expense ratio than direct funds. …
Continue reading →LIC’s Jeevan Akshay – VII (UIN – 512N337V05) is an Immediate Annuity plan. You can purchase a pension (annuity) by paying a lump sum. The annuity rates applicable from Feb 2024 are listed in this article. According to LIC’s online purchase portal, the rates are the same as last year. Additional resources Use this annuity…
Continue reading →So many investors search for the best investment strategy and products offering the highest returns (and lowest risk and tax!). When we tell them these do not exist, they get irritated and move to someone who hopefully can offer them these. Investors want constant confirmation that they have chosen the right products and are on…
Continue reading →In this edition of the reader story, 31-year-old Mr Yo (name withheld on request) explains how he has systematically structured his money management and tracks his financial goals. This is a follow-up to his previous audits: How I track financial goals without worrying about returns. (2021), My net worth grew 33% last year, but my focus…
Continue reading →Owning a home is a cherished dream for many in India. It represents a significant milestone in one’s life, providing a sense of security, stability, and pride. However, the path to homeownership often entails availing of a home loan, which may span several years. While it brings us closer to our dream home, it exposes…
Continue reading →I have written many articles on term insurance, health insurance, and retirement planning. A few of my readers have previously asked me – Can you create a sample financial plan for a family with a simple example of financial planning for salaried employees in India? So, here we go! About the author: Ajay Pruthi is…
Continue reading →In this edition of the reader story, we meet a 28-year-old who has created an elaborate retirement strategy to navigate the stormy waters of the IT industry. About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers. Some of the previous editions are linked at…
Continue reading →We explain why “guaranteed income plans” with “assured returns” are inefficient investment avenues for our money and are best avoided. Benjamin Franklin wrote in 1748 that Time is Money in a note titled “Advice to a Young Tradesman“. Insurers use this idea to their benefit in all traditional insurance policies, including guaranteed income plans. Consider a typical…
Continue reading →Hi, this is Sahil. This is the way I track my personal finance-related metrics. This should be helpful for DIY investors and should help them to focus on what and how to measure. About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers. Some…
Continue reading →Hi, this is Abhineeth. I am a 30-year-old working as an Engineer in the state government service. I joined this position in 2016, and this is my 7th year. This is how I aim to achieve financial independence and buy/construct a decent house for my family. About this series: I am grateful to readers for…
Continue reading →In this article, Vijay discusses guidelines on how to build a direct equity portfolio. This is the second part of the series. The first part is here: How to build a direct equity portfolio – Part 1. About the author: Vijay is an electronics engineer and management graduate (IIM Bangalore). He has worked as a…
Continue reading →1st Jan 2023 will mark the 10th anniversary of the introduction of direct plan mutual funds. This article discusses whether their introduction has caused more harm than good for investors. About 46% of total assets are in direct plans (a good chunk of it is as institutional and HNI assets). The honest answer to this…
Continue reading →This article discusses the most crucial steps in defining and planning for a financial goal. Only after the goal is defined should one consider products for investments. Sadly most investors have a product-first, plan-later approach. Some assume they do not have a financial goal and only want to create wealth. They need to find a…
Continue reading →A reader writes, “Sir, you have mentioned several times that equity mutual fund investing comes with no guarantees. I find this quite unsettling. Each time the market falls, I feel worried and am in two minds about investing. My mind tells me to stay invested, but my heart is worried. Please advise.” It is true…
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