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…
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