I discuss simple ways in which a mutual fund portfolio associated with a long-term goal can be reviewed. This is a grey area in personal finance and there is no optimal way to do this. Each individual must necessarily develop their own style of review.  So multiple solutions are the norm here. This post is…

Download a free spreadsheet Mutual Fund Portfolio Growth Visualizer With Index Benchmarking. This will allow you to compare the growth of your mutual fund portfolio with a variety of BSE and NSE benchmark indices. This was to compare my retirement equity portfolio with Sensex and Nifty Next 50. Now it is your turn! Along with the sheet,…

Every time a young investor reads John Bogle or Warren Buffett’s statements on low-cost index funds, they want to know if index investing will work in India? if in the long run index funds will outperform actively managed mutual funds, should I not switch to an index fund? I recently showed how the Nifty Next…

Looks like mutual fund star ratings are useful for something after all! To understand how much you lose via commissions, study the difference between the star rating of the direct plan (no commissions) and regular plan (where commissions are removed from your investment value before NAV is reported – because what you can’t see cannot hurt…

Each December I take stock of how well my goal-based investment is moving along (or is it?) Since 2013, I have been publishing these audits. Here is this years edition with some analysis of my retirement and sons-education goals. The only reason I am sharing this is to advertise the benefits of goal based investing. Kindly do…

Would you prefer a fund that beats the index whenever the index moves up or would you prefer a fund that falls lower than the index? Our first response would be, why not both? Unfortunately, it is not as simple as that. Very few funds manage to do both. In this post, I discuss why downside…

“If I have a lump sum, what is the best way to invest it in an equity mutual fund?”, is a question that I am asked repeatedly. In this post, let us discuss simple ways to invest a lump sum in an equity mutual fund. Lump sum in a debt mutual fund Let us first get…

Each financial year, we do our best to reduce as much income tax as possible. I am only referring to legal means (!)- the most common of which is investing in tax-saving instruments. We do this because income tax hurts. The thought of losing a significant chunk of our salary fills us with a sense of loss*….

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…