Here is an analysis of a mutual fund SIP investment in which purchases are systematically ‘timed’ using an index PE. I made this analysis following the suggestion of ET Wealth analyst/columnist Dr. Narendra Nathan (@drnarendranET) after (or amidst!) some fierce discussion over the usefulness of the SIP. The SIP is a useful way to invest…

Upside and Downside capture ratios are easy-to-understand mutual fund performance measures. Consistent downside capture ratios can be combined with consistent returns (try the mutual fund screener) to select and review mutual funds. Regular reader may be aware that I am a fan of the downside capture ratio. In this post, I present a video that describes how these…

Here is an illustration of Sukanya Samriddhi Yojana vs. PPF when used for a girl child’s education goal. It also serves to understand why liquidity is more important than higher interest rates. Update:  Current Sukanya Samriddhi Yojana rate is 8.3% and current PPF rate is 7.8% (the same 0.5% difference as assumed in the article).  This does…

Worried about turbulent markets? Thinking about stopping your stopping your SIP instruments? If you believe that our economy is bound to grow and that we should profit from it, I would strongly suggest that you do not stop your SIPs or equity investments now. Instead use the time to accumulate more units. Let us track…

MF Utility is a free “Transaction Aggregating Portal” run about 25 AMCs jointly. It allows users to invest in direct mutual fund plans. Here is a step-by-step user guide prepared by Anish Mohan to buy and sell direct mutual funds using the MF Utility portal. If you are thinking about getting an MF Utility account,…

Use this tool to analyse the consistency in performance of your mutual fund holdings with respect to their benchmarks (43 indices from BSE and NSE). You can also use this to evaluate new funds that you want to invest in. This is the fourth version of the  Rolling returns calculator  The present version is an offshoot…

Closed-ended equity mutual fund NFO started cropping up frequently a little before the 2014 Lok Sabha elections. They represent the efforts of AMC and distributors to lock-in AUM and therefore, profits regardless of market volatility. I had earlier written about why one should not invest in closed-ended mutual funds from a financial goal planning point of…

Your online mutual fund investment platform is not free! Be it a bank or an online distributor, why on Earth would someone offer you a robust platform for transaction convenience and consolidation for free?! A little background before we dig in: It is raining Direct mutual fund portals! As people start discussing the fees these…

Have you ever wondered when and how a mutual fund declares a dividend? Or what is dividend stripping in mutual funds and shares? In this post, let us try to answer these questions with simple illustrations. Perhaps due to the complex accounting principles involved, the standard answer to this question is, “when it has a…

It is raining direct mutual fund investment portals! First MF Utility Online platforn went live. Then we heard of Invezta, Unovest (launching soon), BharosaClub(open) and ORO Wealth (went live last week). More are in the works!! Here are the details of ORO Wealth portal along a comparison of its features with MF Utility, Invezta and Bharosa…

If we invest in market-linked products like stocks, debt mutual funds, gold etc. it is a good idea to benchmark our returns with respect to the volatility associated with the instrument. This can be done with the an idea known as risk-adjusted returns. Unfortunately, this volatility is often referred to as ‘risk’. When we refer to…