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Here is this month's screener data of how consistent a fund has performed with respect to a category benchmark over every possible 3-year, 5-year and 7-year investment duration since 3rd April 2006. All equity funds and equity-oriented balanced funds (excluding equity savings funds) have been considered*.

The method adopted is based on this report:  A simple way to measure mutual fund performance consistency. Screener data for October 2016 can be found here.

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5

In the second part of the buying "low" vs buying "high" study, I consider return differences for identical investment amounts. And guess what? The results are most surprising!

For those who have not read the first part, I request that you head over to Equity: Buying “High” vs Buying “Low” and then come back.

Some definitions:

1 Buying low (low-SIP): Buying when index (S&P 500 and Nifty total returns indices) has a value lower than its ten-month average. This is checked only once a month - on the first.

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5

Bond yields have been dropping rapidly since the demonetization announcement. As a result, the NAV of long-term gilt mutual funds has been on the increase. At a time when many investors want to benefit from this move, Mr Srinivasan Sundarajan, in this third guest post, cautions to look before you leap.

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About 10 days ago, SBI announced its decision to slash the interest rate for deposits, post the huge fund flow from the demonetization scheme. In fact, they published interest rates less than the Savings Bank deposit rate of 4% for bulk fixed deposits.

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7

Suppose you invested in a stock market index only when it was "high" and compared the return obtained with that from an investment made only when the index was "low", how much do you think the returns would vary? How would these returns compare with an investment made regardless of index levels? Let us find out.

In real-time, market highs and lows cannot be determined. Therefore, it is common practice to compare the current value of the index with the average value of the last 100 days, 200 days, 365 days, 10 months etc. This is known as trend following. The average reduces the daily noise in the index values and provides a "trend'. Here are some examples: Nifty Valuation Charts Nov 2016: PE, PE, Div Yield, ROE, EPS Growth and a tool to calculate: Nifty Valuation Analyzer: PE, PE, Div Yield, ROE, EPS Growth Rate.

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8

Here is a free Google spreadsheet for tracking financial goal portfolios with an option to receive email alerts. This sheet created by Amol Wable, is a modified version of the financial freedom progress tracker published earlier by Guhan Ramanan.

Amol was kind enough to share his sheet at FB group, Asan Ideas For Wealth and allowed me to share it here.

Guhan developed his sheet without focussing on returns and daily email alerts. His thinking is that the user should focus on the current value of the corpus and what percentage of the target corpus has been achived. I concur. For example see:

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