Let us discuss a question from a reader who prefers anonymity: “Is it ok to invest in 50% index funds (passive funds) and 50% active funds for the equity portfolio in my retirement portfolio?” The answer depends on what the motives behind such an allocation are. This discussion applies to any mix of active funds…
Continue reading →A reader asks, “Dear Pattu Sir, as pointed out by you several times, active large cap funds have struggled to beat the Nifty/Sensex over the last few years. Although things are a little better after the market recovery in the last few months, will this be the norm in the future too? Does this mean…
Continue reading →In this article, we review a new index from NSE. The Nifty Microcap 250 Index has 250 companies beyond the Nifty 500, with weights determined in terms of free-float market capitalization. That is, any stock part of the Nifty 500 will not be part of this new index. Companies ranked within the top 1000 based…
Continue reading →In this article, we discuss why it does not make sense to invest in an index fund that does not track the top 100 stocks or lesser weighted by market capitalization. In other words, not all index funds are the same! We shall not discuss ETFs here as they come with their own problems of…
Continue reading →Regular readers may be aware that we have maintained a list of SEBI registered fee-only financial advisors for the last the seven years. Hundreds of our readers work with these advisors receiving advice free from commissions and associated conflict of interest. Over the years, some readers have asked, “what is the solution for people who…
Continue reading →The Nifty Next 50 is a unique index. The index can provide joy and frustration in equal measure to its investors. At the time of writing, it has failed to beat the Nifty 50 for the last five years. We address the question asked by two worried investors: is it time to exit Nifty Next 50…
Continue reading →The TER (total expense ratio) of the Tata Nifty Index Fund shot up from 0.05% to 0.15% on 5th April 2021. From 16th April UTI Nifty Index fund will charge a TER of 0.18% instead of 0.1%. From 15th April 2021, HDFC Nifty and Sensex Index funds will cost twice as much – from 0.1%…
Continue reading →The interest in index investing is growing in India, but few understand what indexing is and why it works. In this article, SEBI registered fee-only advisor Swapnil Kendhe explains the basics of indexing and why it is effective. About the author: Swapnil is a SEBI Registered Investment Advisor and part of my fee-only financial planners’ list….
Continue reading →Interest in passive investing has increased in India over the last few years. This trend was driven by perceptible outperformance: first was the increase in interest in Nifty Next 50 – as usual after the index started moving south in 2018. Then in the Nifty and Sensex as they were held up by a few…
Continue reading →Over the past few years, freefincal has regularly reported how hard it has been for Indian fund managers to beat the Nifty/Sensex and the Nifty Next 50. Did you know that 582 US large cap mutual funds have outperformed the S&P 500 over the last ten years! In this article, we present some results from…
Continue reading →Aditya Birla Sun Life Nifty Smallcap 50 Index Fund is an open-ended scheme tracking Nifty Smallcap 50 total return Index. In this review, we find out if investors considering this index would get anything different or extra compared to existing index funds like NIfty Midcap 150 or Nifty Next 50. The AMC is also launching…
Continue reading →UTI Nifty200 Momentum 30 Index Fund is an open-ended fund that will track the Nifty200 Momentum 30 index. The new fund offer is from Feb 18th to March 4th 2021. In this review, we discuss what interested investors should be aware of; who should invest in this fund and who should avoid. What is momentum…
Continue reading →The market rally in the last few months has had a dramatic impact on SIP returns especially when you track them on a monthly basis. The Nifty 10-year SIP return as on 4th Feb 2021 is a healthy 14% (including dividends but before expenses, tracking error and taxes). What does this mean for investors? An…
Continue reading →Nippon India Nifty Midcap 150 Index Fund is an open-ended index fund tracking the Nifty Midcap 150 index – the second such fund after Motilal Oswal Nifty Midcap 150 Index Fund. The NFO period for the Nippon India fund begins Feb 4 and lasts until Feb 12th 2021. What is the Nifty Midcap 150 Index? Out…
Continue reading →Nippon India Nifty 50 Value 20 Index Fund is an open-ended passive fund that will track the Nifty 50 Value 20 Index. The NFO period of this fund is from Feb 4th to Feb 12th 2021. This article looks at the risk and reward of the underlying index and answers if it makes sense to…
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