Yesterday, SEBI announced its new “Categorization and Rationalization of Mutual Fund Schemes”. In this post, I discuss the positive and negative aspects of this move. As with any change, it is a mixed bag, especially for existing investors. SEBI has made it clear that only one scheme per category will be allowed and that AMCs…

You would be surprised as to how many people ask, Why not invest in multiple mutual funds to “average” out returns? and how often such an advice is provided in the media and in real life too! This post is in response to a question from S.B.Raajesh Kannan as it gives me a chance to cough up some portfolio…

Lump sum vs SIP investing: Which is “better”? You might have heard this question often in personal finance forums. Perhaps you have thought about this yourself. In this post, let us trace the month-by-month return from a SIP investment and a lump sum investment started on the same date. What is the point of this…

I received this interesting question from R Siva Prasad: “Sir, While selecting/screening a mutual fund, you advise to compare it with benchmarks. But I want to compare with Mutual Funds in the same category. As long as my fund is on top in the category why do I have to think about the benchmark? And if a…

In this post, I discuss a simple way to find out if a certain fund or a certain fund category is suitable for our need. We shall the use often-mentioned idea of standard deviation as a simple measure of volatility. Although not perfect, it is good enough to differentiate type based on daily market risk…

This year marks twenty years of computer and internet usage for me. In a two-part series, I discuss my experience and learnings on managing multiple passwords (part 1) and computer security (part 2).  From spending the whole day in the IIT, Madras library in the mid-90s to rarely entering it in the 2010s, it has…

With each passing day, our parents are growing old and their ability to be independent is gradually diminished. Elder care or senior care is a young, but rapidly evolving business, however, the ground reality is that, even if we are willing to pay, the competence and training levels are nowhere near adequate. If there is…

In this post, I discuss why it is important for investors to not take mutual fund market cap classifications seriously. In particular, your “large cap fund” is probably either a multi-cap fund all the time or now and then. The notion of what is a giant cap, large cap, mid-cap, small-cap or micro-cap stock is not…

Use this tool to calculate the annualized return (XIRR) of your mutual fund SIPs month by month since the date you started it and compare its performance with its benchmark. This now offers a range of about 70+ benchmarks from the BSE and NSE to compare mutual fund performance. What is XIRR? When you invest…

“Pessimism is a self-fulfilling prophecy”. These words by Sandeep keep ringing in my head all through the day. Two days ago I was chatting with a few friends on FB. I stepped out for a bit, and came back to find my less than 2-year old laptop screen say, “ disk not found”. A few…

Update: The scenarios mentioned in this article are no longer applicable as per our understanding from 1st Oct 2024. For details see: New PPF rules apply only to irregular accounts! The maximum amount per pan number is 1.50 Lakhs, including the minor accounts from 1st Oct 2024. If you have 3 PPF accounts (self, spouse, and minor)…

Use this free Mutual Fund Portfolio Overlap Tool to compare five mutual funds and find out the common stocks and percentage portfolio overlap. Update April 2022: This tool is now available on Google Sheets. How to use the mutual fund portfolio overlap comparison tool? If you are trying to build a diversified mutual fund portfolio…

A so -called bull market reveals interesting behavioural traits. The worry about the dip in performance of ICICI Prudential Value Discovery Fund is part fact and part behavioural (in my opinion, of course). A look at the performance of this fund. One feeling a bull market brings about is, “why is my fund alone not…

Suppose my current annualised return from an equity mutual fund is 25% and my expectation is only 12%, can I book the excess return (13%) as profit into a safe investment? What if I do this from time to time? Reader Prakash Bala wanted me to create a tool for this and in this post, I…