A method to analyse mutual fund performance during a particular investment duration in terms of consistency of returns is discussed in this post. Many mutual fund investors are unable to rationally analyse the performance of their equity mutual fund holdings and often ask, When should I exit an equity mutual fund?. I would like to suggest…

It is inevitable that any activity governed by human behaviour has similarities in the core approaches regardless of associated area or discipline. Investing is no exception. During the Pune workshop, when I said, “the returns of an asset class is not the same as the returns of an investor”, Ashish Deshpande in the audience remarked,…

Asset allocation or the percentage allocation to different asset classes in a portfolio is probably the key aspect of investing. Not only does it determine the corpus that we would accumulate, it also determines the volatility associated with the portfolio. Update: The template has been merged with Freefincal Robo Advisory Software Template. Those who start investing…

A discussion on the pros and cons of a manual systematic investment plan (MSIP), instead of setting of automating it with an ECS bank mandate. I have been practising the MSIP for a few years now and when the topic was broached recently at FB group, Asan Ideas for Wealth, I thought I will list…

Investors tend to display extreme behaviour. Most of them want the solace of risk-free returns without understanding the impact of inflation. A few who do understand this impact tend to obsess over ‘how much their portfolio made’. A look at why keeping things simple, with minimal effort and systematic investing,  is all that is required…

Banks are the pillars of any economy.They create credit, accept deposits, ensure liquidity and serve as the veins and arteries of the financial system. The dream of owning property would remain a dream, but for the loans offered by banks. Yet,  to borrow a line from cartoonist Walt Kelly, “We have met the enemy and…

‘How does one define wealth?’ is a question that I often think about, often with a tinge of sadness that there is no universally accepted definition. A compilation of attitudes about wealth based on my insignificant experience. Speaking purely from a financial point of view, wealth is the ability to tackle emergencies. When life chugs along like…

Beware! Corporate fixed deposits that offer 8.25% annual return are being marketed by prominently quoting their ten-year annual yield of 12.09%. A look at how this form of mis-selling based on a technicality. The ad says, Earn assured returns (first line – font size about half an inch) upto 12.09* % p. a.  (second line…

Here is a compilation of selected posts from the young earner category, meant as a ‘getting started’ money-management guide.  I have not made any attempt to connect the posts, but I hope the sequence should make enough sense for the reader to introspect about money management and enumerate the necessary steps to get started. This…

“How to choose an index fund in India?”, Three people asked me this question in the last two days! My typical response is, “choose a Sensex or Nifty index fund, from the AMC you are comfortable with”.  I thought let me expand my response a bit more. Should I adopt passive investing in India? Aarti…

Use this Mutual Fund SIP Rolling Returns Calculator to determine how consistently an equity mutual fund  has performed wrt to its benchmark. Returns can be broadly categorised into two types: for a lump sum investment (CAGR) and for periodic investment (XIRR) Please consult this post to understand What is XIRR?. You can consider using this Mutual Fund SIP…

Here is a simple illustration that will help you understand how growth and dividend-reinvestment  mutual funds work. You can use it to decide which is better for you, taking into account the investment duration and your tax-slab. This is a re-publish taking into account changes made after budget 2014. When a mutual fund offers regular (typically)  dividends…