Parag Parikh Long Term Equity Fund has now become Parag Parikh Flexi Cap Fund, in order to fall in line with the SEBI Multicap MF Rule issued in Sep 2020 forcing multi caps to invest in 25% in midcap and 25% in smallcap stocks and taking advantage of the new scheme category introduced in Nov…

The e-vote to decide on the winding up of six affected Franklin Templeton debt funds will be held during 26-29 Dec 2020. Here is why investors should vote “Yes” to the closure and gradual disbursal of withheld funds instead of “No”. Ideally, SEBI should have played an active role in the matter, told Franklin to…

A few days ago, I rebalanced my son’s future portfolio from 67% equity to about 54%. This means selling a big chunk of equity mutual funds and reinvesting them into fixed income. In this article, I explain why I choose ICICI Gilt fund as one component of the fixed income portfolio. I would like to reiterate…

Kotak International REIT FOF is an open-ended fund of fund scheme investing in units of SMAM ASIA REIT Sub Trust fund and/or other similar overseas REIT funds. The NFO period closes on Dec 21st 2020. In this review, we explain how a Real Estate Investment Trust (REIT) works and what kind of return one can…

With the Nifty/Sensex zooming to all-time highs within months of the biggest intraday fall when 10-year Nifty SIP Return fell to 2.3%, and 14-year SIP Return to 5%, investors are not happy to see healthy gains and double-digit mutual fund returns. With the natural nervousness associated with a market up move, investors would like to…

If you do not like to do complex financial planning calculations, here are some interesting and easy to use back-of-the-envelope financial planning calculations! About the author: Swapnil is a SEBI Registered Investment Advisor and part of my list of fee-only financial planners. You can learn more about him and his service via his website Vivektaru….

Motilal Oswal 5 Year G-Sec ETF is an open-ended scheme replicating/tracking Nifty 5-year Benchmark G-Sec Index. It is being marketed as a “safe” and “a low-cost alternative to FDs”. In this review, we show this is not true and what investors need to know about this ETF. Suppose you buy a five-year G-sec bond vis…

We compare the SIP performance of Aggressive Hybrid Funds versus CRISIL Hybrid 35+65 – Aggressive Index and NIfty 50 TRI. The CRISIL Hybrid 35+65 – Aggressive Index has 65% of the 200 TRI index and 35% of the CRISIL Composite Bond Fund Index. In the last year, that for a SIP started 12 months ago…

SEBI has today announced a new equity scheme category: “Flexi cap fund”. This comes after Septembers announcement of multicap asset allocation rules (25% each of large, mid and small cap stocks) was met with fear by investors and put many large fund houses in a fix, especially those with a large AUM: How SEBI’ss Multicap MF asset…

Each time we point out that Sensex or Nifty returns have reduced considerably over the last decade and caution investors to lower expectations, there are always a few comments that go, “why to invest in equity or equity mutual funds if there is no guarantee of returns? The risk of investing for a long time…

Profit-booking is a colloquial trade name for selling stocks or mutual funds. Many investors are confused by what it actually refers to and how it is different from terms like redemption and rebalancing. This is a simple explanation for newbies. Let us understand profit booking with an example. Suppose you purchased 100 stocks of a…

“Which SIP is best for five years?” is a question often asked by mutual fund investors new and old. We are introducing a new category, shorts where we shall provide crisp answers to such common mutual fund questions. We would like to first point out that this is an incorrect question. You cannot invest in a…

Shyam Sunder asks, “I have been investing in SBI Bluechip Fund via SIP for about six years now. The fund has underperformed its benchmark for the last five years. Should I stop my SIP and invest elsewhere?” Let us discuss this dilemma faced by many large cap mutual fund investors. At this point, it is…