An overdraft account is a credit service a bank provides that allows the account holder to withdraw more funds than they have, such as writing an Rs. One lakh cheque from an account with no balance. This article will explore when it’s appropriate to use an overdraft account. They can be established with fixed deposits…
Continue reading →This ETF screener is based on tracking errors and differences (ETF return minus index return). It will help users evaluate how efficiently an ETF has tracked its underlying benchmark. The tracking error is the ETF’s standard deviation minus the index’s monthly return differences. The lower the tracking error, the more efficient the ETF is in…
Continue reading →A reader asks, “I have a sum of Rs. 10 lakhs to invest for the long term. How should I invest this in equity mutual funds?” Please ask yourself these questions first. 1: Will this amount be associated with a single goal or multiple goals? If it is the latter, for each goal what is…
Continue reading →A SIP, SWP or STP is an investment mode, not an instrument. Many still ask, “Which SIP can I invest in?”. You do not invest in a SIP. You invest via a SIP. We explain why SIP, SWP or STPs are not necessary to invest in mutual funds. 1 A SIP is an automated way…
Continue reading →The latest freefincal Equity Mutual Fund Performance Screener is now available. Use it to screen for consistently performing equity mutual funds. You can screen based on fund category & benchmark to identify mutual funds that offer higher returns than the benchmark while maintaining lower risk. Inside, you get discounted links to our robo advisory tool…
Continue reading →A reader suggested we write an article about combining base and super top-up health insurance policies — a discussion. First, let us point out some helpful resources for those looking to understand more about health insurance and how to buy one: Select the right health insurance policy with these free resources FAQ: Super Top up…
Continue reading →Investors typically focus on the tax-free, risk-free, and tax-saving benefits of PPF. Even those who cannot afford it often scrounge for Rs. 1.5 lakh for PPF investment within the first five days of the financial year. See: Investing Rs. 1.5 lakhs in PPF before April 5th may not be healthy for your portfolio! An under-appreciated…
Continue reading →This is a National Pension Scheme Fund Screener to shortlist consistently performing NPS schemes. You can also spot NPS schemes with a higher return than a benchmark at a lower risk. This is similar in design to the freefincal Equity Mutual Fund Performance Screener. Inside, you get discounted links to our robo advisory tool and…
Continue reading →Investors, especially those who have just started to invest, spend a lot of time and energy worrying about current market conditions and trends in the near term. Instead, they can easily reduce portfolio risk with these simple steps we refer to as goal-based risk management – a combination of passive, systematic investing and active risk…
Continue reading →I was recently asked in an interview, “What is the most common mistake made by new mutual fund investors?” The short answer is not understanding the nature of the stock market. Even experienced mutual fund investors are also guilty of this. Many mutual fund investors expect excellent performance every year. So when they see a fund…
Continue reading →In Aug 2024, we published a reader story about a young earner’s journey to one crore and plans to build further wealth: Crossing the Million Mark: Our Journey to the First Crore. This is an update. About this series: I am grateful to readers for sharing intimate details about their financial lives, which benefits us all. Some…
Continue reading →We publish a list of stocks with low volatility and momentum each month. We provide data for BSE 500 and BSE 100 stocks. There are now three different screener files available. (1) Stocks with low volatility and momentum from the BSE 100 large cap universe are available as a separate file (2) Stocks with low…
Continue reading →There is a misconception, even among experts, that a low tracking error for a passive fund (index fund or ETF) implies the fund’s returns closely match the benchmark. This is not true. What is a tracking difference? This is the fund return minus the benchmark total return over a period. This will typically be a…
Continue reading →In July 2023, we shared an interesting reader story about Shankar (not his real name), who had been burdened with debt for several years. He is now debt-free and rapidly building his equity portfolio. This was quite a different journey compared to an earlier story: My Journey to a Ten Crore Portfolio. As a follow-up,…
Continue reading →Financial Independence, Retire Early has revolutionised the way a generation approaches work and finances. But as more parents achieve financial freedom in their 30s and 40s, a troubling question emerges: What happens to our children when they grow up watching us live without traditional financial stress? This isn’t about leaving kids financially unprepared. It’s about…
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