A subscriber to our YouTube channel asks, “How many equity funds are required for adequate diversification?” At first glance, the answer seems easy, but it is not. Diversification can refer to diversification across asset classes like equity, fixed income, gold, and real estate or diversification within an asset class. We believe the subscriber refers to…

We recently conducted a poll on X (formerly Twitter) – “Why are you invested in Sovereign Gold Bonds?”. We asked a similar question on the Facebook group Asan Ideas for Wealth. The results were similar and suggest that most investors buy Sovereign Gold Bonds for the wrong reasons. The X poll had 1154 participants. The…

A reader asks, “I read your posts and blogs a lot. I try and declutter my portfolio and follow the kiss principle. If an actively managed mid-cap fund has a lower expense ratio almost equal to an index fund, provides better downside protection, and beats the benchmark index, should we still consider switching to the…

“I have a long-term investment goal and a moderate risk appetite. Which mutual funds should I select?” This is a query often seen on personal finance forums. We delve into what actions should be taken by investors in such scenarios. However, when asked the seemingly simple follow-up question, “What does a moderate risk appetite entail?”…

This is a list of the worst-performing equity mutual funds over every possible five, four, and three periods—study period: From inception of direct plans (Jan 2013) to Dec 8th 2023. Some caveats before we begin:  (1) The definition of a “worst mutual fund” is as arbitrary as the definition of a “best mutual fund”. We…

A global recession is on our doorstep at the time of writing. There are doomsday predictions everywhere. Equity mutual fund investors are worried about the lack of returns over the last several months. We discuss using “emotional logic” to fight fear and stay invested in equity mutual funds. Emotional logic It is only an idea,…

A balanced hybrid fund is an open-ended fund that invests in equity (40-60%) and debt (40-60%) instruments. No Arbitrage would be permitted in this scheme. A reader wants to know if we can invest in balanced hybrid funds and, if yes, when. If you are wondering why you have not heard of this type of…

Often many investors write to us saying they have a lump sum to invest in equity mutual funds and want to know how to plan and go about this —a discussion. Ask yourself the following questions 1: Have you done a goal planning exercise to determine the right equity: fixed income mix for your goals?…

There has been a lot of hype around getting loans using equity or debt mutual fund units as collateral. Many readers have asked if this is a good idea. In this article, we discuss whether loans against MF units are necessary. The basic idea is quite simple. You pledge your MF units (to the extent…

Asking us, “How much equity should I hold after retirement?” is a common concern for many nearing retirement. However, it is challenging to provide a definitive answer as it varies from person to person. Nevertheless, it is crucial to address this question well before retirement, considering the potential risks and planning accordingly, rather than waiting…

A reader wants to know a way to convince his friend to start investing in equity —a discussion. To not invest in equity is a choice. Whether that is an informed choice or not is another matter. Friend or relative, I don’t think we should try and convince anyone too set in their ways to…

A reader asks, “What should I do with my mutual funds if the market crashes? I started my SIPs three years ago. Today, I don’t know if the market will zoom up or come crashing down. Should I redeem and start again or hold the investments even though I may lose all my gains?” When…

A reader says, “I have a generic question about retirement planning. Can you retire if your annual expenses equal 6% of your corpus?  Say my monthly expenses are 1 lac. My corpus is two crores. I do SWP for 1 lac monthly. If the returns exceed 6% pa, it will also cover inflation. Is there…

A viewer on our YouTube channel wants to know,  What are the “must have” mutual fund categories in a portfolio? But do you even need mutual funds in a portfolio? The answer is no. Mutual funds are a good choice, but they are only a choice. There are other ways to invest, even if they…

Every time stocks in the small cap universe move up prominently, interest in small cap mutual funds and confidence in this sector zoom up even more. Notions like “A small cap mutual fund will beat all other categories (and indices) over the long term” start making the rounds among gullible young earners who naively believe…