Judging fund managers by whether they invest their own money or not is wrong!

Skin in the game refers to a situation where the major decision makers (in any field) have a personal stake in the decisions that they make. In finance, one example is a fund manager and/or fund management (the fund house) investing their own money in the funds that they manage. I argue that demanding such a … Continue reading Judging fund managers by whether they invest their own money or not is wrong!

What percentage of my salary should I invest each month?

Happy Independence day to all! Yesterday, the site was plagued with access issues. They have been sorted out now. So if you missed reading about my mistake, here it is Dangers of relying on mutual fund star ratings and past performance. Now, as you know, I just finished a 3-part podcast on financial freedom. So a … Continue reading What percentage of my salary should I invest each month?

Dangers of relying on mutual fund star ratings and past performance

Readers may be well aware that I am no fan of mutual fund star ratings. Star ratings and past performance if not understood with the right perspective can result in mistakes. In this post, let me give you an example - of my laziness that lead to a mistake in the July 2018 Equity Mutual Fund … Continue reading Dangers of relying on mutual fund star ratings and past performance

Should Resident Indians Invest in Internationals Stocks or Funds?

Diversification is a word that many investors use rather loosely. Whenever they seem something “offer good returns" I have seen many investors want a piece of that action and say “I have added it for diversification". Again that classic mistake. Choosing a product/security/asset class by looking at its (recent) returns and not its risk. People who … Continue reading Should Resident Indians Invest in Internationals Stocks or Funds?

Lok Sabha Elections 2019: Worried about how markets will react? Here is a way out

In about nine months, India will be voting to choose its 15th prime minister in the Lok Sabha Elections 2019. It is well known that in the build-up to every general election and immediately afterwards, the market is filled with excessive fear and hope resulting in swings that can unsettle the nerves. So is there … Continue reading Lok Sabha Elections 2019: Worried about how markets will react? Here is a way out