This is the archive of all our articles related to goal-based investing
If there is one action that most investors who appreciate asset allocation are hesitant to do, it is probably portfolio rebalancing. On the one side, there is fear of taxes and on the other, uncertainty on how to rebalance and which to sell. In this article, we shall consider some examples of portfolio rebalancing. Many…
Continue reading →On Friday (Nov 26th 2021), the Sensex fell by 2.87%. One can easily speculate reasons for the fall and start wondering if we should stop investments or pull out money (we have started receiving such emails!). However, it would be far more productive to develop a simple market-independent strategy. Here is how one can do…
Continue reading →Pulkit has designed an investment dashboard for planning and tracking his investments in a goal-based manner. He had shared some screenshots in the goal-based investing Facebook group. Pulkit immediately agreed to share the thought process behind creating this dashboard. There is no better way to showcase the benefits of managing an investment portfolio as per…
Continue reading →We continue answering frequently asked investor questions on portfolio rebalancing to help with practical implementation. The first part (question 1 to 13) is available here: Portfolio Rebalancing: We answer frequent questions investors worry about (part 1) and the second part (question 14 to 28) here: Portfolio Rebalancing FAQ Part 2. Q29: How should I consider…
Continue reading →We continue answering frequently asked investor questions on portfolio rebalancing to help with practical implementation. The first part (question 1 to 13) is available here: Portfolio Rebalancing: We answer frequent questions investors worry about (part 1). Par 3 is linked below. Q14: Rebalancing if it involves multiple assets will it be model-based (quantitative)? For instance, the…
Continue reading →In this article, we answer frequently asked question on portfolio rebalancing. Theoretically, it is easy to understand rebalancing but when it comes to practical implementation, investors have so many questions and mental blocks. The idea behind rebalancing is fairly simple and one that we have dealt before with examples multiple times: it is a process…
Continue reading →Here is a set of slides from the DIY investor meets that hopefully might convince you that there is more to investing than getting high returns. That is, a return above inflation (called a real return) is only one side of the investing coin. Consider some product or a service or a fee that costs 10L today….
Continue reading →Here is a step-by-step guide for planning your child’s education and marriage. 1. When to start planning. The moment the pregnancy is confirmed! 2. What do to first? Evaluate your insurance cover and buy more if required. 3. How to evaluate insurance cover? Let us consider a couple with a two-year-old child. The male is…
Continue reading →Are you considering the purchase of an endowment policy? Perhaps a cash back policy? Perhaps your friendly agent told you about a policy or a “magic plan” that would offer constant pension guaranteed by the government? Please read the following before buying an LIC policy or any insurance policy that has an investment component associated…
Continue reading →“Why should I invest for my child’s future needs like education or marriage?”, asked a reader. “Why can’t I simply get them an education loan?”, “why can’t they foot their own marriage bill?”. Well, we need to invest what we can for the simple reason that life does not pan out the way we plan. Especially…
Continue reading →This is a guest post by S R Srinivasan, who is one of the most erudite users of freefincal. I had the pleasure of interacting with him twice at the Bangalore investor workshops. He talks about money management and growing wealth to new employees in his company and he kindly agreed to describe his approach and…
Continue reading →Investing requires a target. The future needs of our family or financial goals serve as natural targets. Goal-based investing is a process in which invest according to the needs of the goals. The amount to be invested and where it will be invested will depend on the nature of the goal. Once the goal based…
Continue reading →For a given financial goal, how do I determine the asset allocation? That is, how do I decide the amount of equity exposure and therefore, fixed income or debt exposure? Let us try and discuss this and use a calculator to see how different asset allocations will affect the future corpus intended for a financial…
Continue reading →Here is a list of SEBI registered fee-only financial planners in India (revised and updated for 2020). A fee-only planner is someone who charges a fee for financial plan creation and advisory and does not receive any commissions/incentives from mutual fund houses, insurers or other financial product sellers. Financial advice is provided, and clients are…
Continue reading →Many of us have trouble understanding how the growth of volatile instruments like equity, bonds gold or even real estate can be quantified. We come across many terms like CAGR, IRR and XIRR in this context. In this post, the similarity and differences between the CAGR (compounded annualised growth rate) and the IRR (internal rate…
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