The employee pension scheme (EPS) is a component of the employee provident fund that provides a pension to its subscribers. Yesterday, news about how Mr. Praveen Kohli got a 1200% hike in pension created a stir. This was because, in October 2016, the Supreme Court directed the EPFO to increase the pension of 12 petitioners as per a 1996 amendment that should have increased their EPS contributions. In this post, I discuss what this increase in EPS contribution is all about and why you should not increase EPS contribution in the hope of getting higher pension during retirement. It will affect your ability to handle inflation in expenses.
How would you invest if you suddenly got one crore? That is a nice thought is it not? In this weeks Q & A, we consider what should a sudden crorepati do, along with other questions. Perhaps you may have seen it already, this is my article in the Economic Times: Mutual fund advisers earning commission from AMCs may not give you the best advice. Thanks to Dr. Narendra Nathan for the opportunity. Readers may be aware that I had earlier written in ET about: Why investing is not only about equity.
₹e-assemble is a video series covering the basics of money management and goal-based investing for absolute beginners. Step 1 was listing Goals, Dreams and Nightmares. Step 2, laying the foundation of wealth with an emergency fund and in this week, we shall move on to step 3, buying life insurance policy. If you already have such a policy, do check if you completed these tasks: Things to do AFTER you take a term insurance policy! Also, please do share this article with friends who don’t and use the calculators linked to check if your life is cover sufficient.
Would you prefer a fund that beats the index whenever the index moves up or would you prefer a fund that falls lower than the index? Our first response would be, why not both? Unfortunately, it is not as simple as that. Very few funds manage to do both. In this post, I discuss why downside protection is important in choosing a mutual fund.
In this post, I would prefer to steer clear of exact definitions. Those interested can consult: Nov 2017 Freefincal Equity Mutual Fund Outperformance Screener
In this post, I discuss two quiet, consistent performers in the equity-oriented (or “balanced”) mutual fund space: Franklin India Balanced Fund and Canara Robeco Balance Fund. Let us begin with some definitions: (1) consistent performer: A fund that has consistently outperformed a chosen benchmark over the period studied (in this case, every possible 3Y, 5Y and 7Y period from April 2006) both in terms of risk and downside protection.