Here are some examples of the risk and reward associated with equity mutual fund investing using the twenty year NAV history of Franklin Blue Chip Fund (a large cap fund) and Franklin India Prima Fund (mid, small-cap funds). I had compared these funds a few years back, but I think a re-visit will not hurt.
NAV data from 17th Dec 1993 and 23rd June 2017 was considered to compute rolling returns. In this interval, almost 800 20-year return computations are possible. Each blue dot and red dot in the picture below is a 20-year return.read more
Each week I answer generic questions from readers. Here is this weeks edition. You can use the form below to ask your question.
D. Bose: How do you identify and invest in multi-bagger stocks before they become multi-bagger, and how to find out the right time for entry and exit.
Pattu: Wrong person to ask this question. My two cents for what they are worth: Let us stop and think for a moment, how many stock investors would have asked this question (at least to themselves) over 100s of years of stock trading and if it is practical to expect a formulaic answer to both parts of your question?read more
Use this Excel sheet to automatically calculate rolling upside capture, downside capture and rolling returns for equity mutual funds by comparing them with 72 BSE/NSE Indices. While the rolling returns provide a consistency measure for overall reward (return), the upside/downside captures provide a consistency measure for outperformance during up-market periods and protection during down-market periods respectively.read more
Under certain circumstances, long-term or short-term capital gains tax to be paid can be significantly reduced. It is not routinely possible and therefore important to recognize this possibility if and when it arises. This post stems from a discussion at Facebook Group Asan Ideas for Wealth, started by Subrat Dash, with the circumstances explained by Ashal Jauhari and contributions by Harrsh Ankola.read more