Biggest Parenting Mistake: Assuming that we know our children

At work, I have the privilege of constantly interacting with gen-X (or Y/Z/AA!) – 18+, 20+ young adults coming to terms with an environment very different from school. It is natural to encounter students who are generally unhappy with life and existence. They first seem distracted in class. Then they stop coming and if you ask around, their friends also have noticed similar changes in the hostel. Students become distant, don’t talk to their friends and spend a lot of time alone. While this is a cause for concern, it is quite common and often a phase in growing up. However, it does need attention else it can result in depression and in extreme cases suicide. read more

Do we even need mutual funds? Why should we invest in them? MF FAQ Video Series Part 3

In the third part of the video series on MF FAQ, we consider the following questions: 1:  Do we even need mutual funds?; Why should we invest in mutual funds? What are the benefits? 2: What is so special about a debt mutual fund? 3:  What are the risks associated with a debt mutual fund?  4: How to select a debt mutual fund?

A: Before we begin, Sebi Registered Fee-only Financial Advisor Melvin Joseph has made a fantastic guide on   How to Start Online SIPs in Direct Plan of Mutual Funds  Be sure to read that and switch to direct funds today. Also, show this to new investors. read more

Forget tax and exit loads, this is why your portfolio should be rebalanced each year

Portfolio rebalancing refers to resetting your asset allocation (equity: fixed income ratio) from time to time – typically once a year – to lower risk in your portfolio. In this post, I show backtesting results and discuss exactly how much is the risk reduction and in spite of tax and exit loads, it is totally worthwhile to rebalance the portfolio.

This post is part of Resolve – a series of steps on investing and portfolio management. read more

Download New Versions: Mutual Fund Lump sum & SIP Screeners

Download new versions of the mutual fund lump sum and SIP screeners that pull & analyze data from Value Research. The new VR fund categories have been incorporated. Since many funds have changed after the SEBI recategorization, users must check (in the sheet) if the fund is rate or not. If the fund is unrated, then in VR’s opinion the change in the fund is too big to ignore past data. Therefore for presently unrated funds, this screener should not be used. read more

How much equity should I hold in my portfolio?

A few days ago, I gave a talk at a CFA Society meeting. One of the modules is covered in this post: How much equity should I hold in my portfolio? We know that equity has the potential offer better returns than fixed income (emphasis on potential) but how much equity – either as direct equity or as mutual funds or as both should I hold in my portfolio? Let us find out how volatile different equity exposures have fared over the last 20+ years. read more