It is clear from how many readers, particularly young earners, respond to freefincal content these days that they are overconfident about their equity investments. Especially investments in small cap funds, mid cap funds, etc., that have soared in recent months. This could spell trouble for their goals and dreams. I hate to break it to…

A reader says, “I am currently 37, married (no kids yet), based out of Bangalore and, as usual, a very late starter to equity investing. My debt portion (PPF, EPF, FDs) is much higher than equity, and all I am trying is to catch up and make debt to equity 50:50 and regularly rebalance once…

While recording an episode for the Let’s Get Rich With Pattu Podcast, a question that naturally emerged was, “Can I bet on the India growth story and invest in equity?” The question discussed in the podcast has been covered here: What is the probability the Indian equity market will perform well in the long term?…

Equity savings funds are recommended as a tax-efficient alternative to debt mutual funds. This is more so with the debt fund units purchased on or after 1st April 2023 taxed as per slab regardless of the holding period. See, for example, the new debt fund tax rule: How do I change my investment strategy? What…

A reader says, “I have been trying to get information on how to invest in Index Funds but could not find much info. I would appreciate it if you could provide your guidance on this”. Our investing mantra is process-first, products-last. So, selecting an index fund should be the very last step. We recommend asking these questions…

A listener to the Let’s Get Rich With Pattu podcast writes, ” What is the probability that a particular equity market (just the index) will perform well (beating inflation) in the long term? I can see all the examples taken comfortably from the US and India everywhere. But what about other equity markets? And what’s…

Should gold be part of your portfolio? We argue it need not be. But if you must invest, then we argue why a multi-asset fund is a better choice.

SEBI released a consultation paper (CP) on 28 June 2024 on disclosure of Risk Adjusted Return by Mutual funds, for “enabling informed investment decision by the investors”. It is open for public comments where all market participants such as brokers, advisors, investors can give their feedback on the paper. An important point to note is that…

On June 23rd 2024, Moneycontrol reported that SEBI conducted search and seizure operations at two locations of Quant Mutual Fund on suspected front-running. The initial reaction from the AMC: It confirmed via email to investors that it has received inquiries from SEBI. Then, on June 27th 2024, it sent an FAQ to unitholders. The first…

Many readers accuse us of scaring them by stating the factually obvious: Long-term equity investment comes with no guarantees of success! So, we discuss how to stay invested in equity without worrying about market falls. Equity investing (via mutual funds or direct equity) has no guarantees. Still, there is more than a reasonable chance of achieving…

It is uncanny that several investors have emailed or commented over the last few days asking if they should stop their investments now and wait for the market to cool down a bit. Or they are waiting for the right time to invest a lump sum or start a sip. Our short answer is: If…

On 1st July 2024, SEBI released a consultation paper for “Introduction of Mutual Funds Lite Regulations (MF LITE) for passively managed Mutual Funds Schemes.” aimed to “reduce the compliance requirement, foster innovation, encourage competition and promote ease of entry for the MFs interested in launching only passive schemes”. About the author: S. R. Srinivasan (SRS) is a…

On 1st July 2024, SEBI released a consultation paper for “Introduction of Mutual Funds Lite Regulations (MF LITE) for passively managed Mutual Funds Schemes.” aimed to “reduce the compliance requirement, foster innovation, encourage competition and promote ease of entry for the MFs interested in launching only passive schemes”. In this paper, SEBI has proposed the…

SEBI released decisions made in its board meeting on June 27th 2024, which will significantly impact the income of finfluencers. The circular says: 1.1 The persons regulated by the Board and the agents of such persons shall not have any association, like, any transaction involving money or money’s worth, referral of a client, interaction of…

So far, Quant Mutual Fund has not made it clear whether it is being investigated for front-running. They have only said that they received inquiries from Sebi. It then released an FAQ that sheds no light on the investigation. The first faq is, “Has the SEBI enquiry concluded? : No, it is a regular ongoing…