Want to time the market with Nifty PE? Learn from Franklin Dynamic PE Fund

Do you wish to time the market using Nifty PE ratio? Here are some lessons from Franklin India Dynamic PE Ratio Fund of funds – a mutual fund that has been timing the market with the NIfty PE for almost 15 years. Is it possible to reduce the risk in a portfolio and enhance its return at the same time? Many people naively believe that it is possible to do this by timing the market and the Nifty PE ratio is one such market timing tool. They say this is “intuition”, “common sense to buy low and sell high”. Well before you start dreaming based on that, have a look at some evidence. read more

Fee-only advisor journey: Swapnil Kendhe’s successful transition into a SEBI RIA

This week on fee-only advisor journey, we showcase Swapnil Kendhe’s successful transition from corporate executive to insurance and mutual fund salesman to a fee-only SEBI registered investment advisor (RIA). Swapnil is part of both fee-only India – an association of fee-only financial planners and the freefincal list of fee-only RIAs.

As someone who has witnessed part of this transition and how Swapnils thought process changed in favour of fee-only advisory, I am immensely proud to present his journey to you. It is one thing to listen to your calling and follow it, but quite another to abandon a lucrative income source to do so. Swapnil not only got rid of his mutual fund distribution but also made sure he switched his regular plan customers to direct plans once he embraced fee-only advisory.  There was no need for him to do so as SEBI regulations permit old commissions to continue, but that was not acceptable to him. read more

Here is why you can safely consult a fee-only advisor living in another city

For the last four years, freefincal and AIFW has helped connect hundreds of investors with financial advisors who do not receive any commissions – a matter of pride and achievement for me. Such financial advisors, are known as fee-only advisors and need to be registered with SEBI as Registered Investment Advisors (RIAs). When you work with these advisors, you are sure that they work only for you as they do not recommend any commission-based products. In this post, I showcase some feedback from investors who have worked with Melvin Joseph, one of the first RIAs in the country. This will help readers understand the financial planning process and appreciate the fact that your fee-only advisor need not reside in the same city as you do. read more

How to buy a house with a home loan: Tips to maximize benefits

If you are planning to buy a house in the next few years with a home loan, here are some tips to maximize benefits. Wanting to live in a place that we call our own is an emotional and instinctive need. There can be no doubt about that. Very few of us would have no issues with “renting forever”. However, careful planning and an all-around perspective is necessary to buy the house or property that we desire. A hurried emotional purchase can come back to bite us years later. If you are servicing a home loan, you can share your experiences in the comment section below. read more

Fantastic online learning resources for kids and adults

Here is a list of fantastic learning resources for kids and adults of all ages. Much of this list has been compiled by my 8-year old, Srikanth. So this makes it his first guest post. While he was growing up, I was hoping that he would have a real talent for fine arts like singing, dancing, painting or be an athlete or at the very least like sports. Instead, he turned out to super nerdy who cannot catch a ball, but can explain in detail the intricacies of plant reproduction. No, we did not show him that. He browsed around Youtube and found it himself in his daily 2-hour internet window. The list below is suitable for all ages – infants to toddlers – kids – teens – young adults and older adults. read more