A global recession is on our doorstep at the time of writing. There are doomsday predictions everywhere. Equity mutual fund investors are worried about the lack of returns over the last several months. We discuss using “emotional logic” to fight fear and stay invested in equity mutual funds. Emotional logic It is only an idea,…

A balanced hybrid fund is an open-ended fund that invests in equity (40-60%) and debt (40-60%) instruments. No Arbitrage would be permitted in this scheme. A reader wants to know if we can invest in balanced hybrid funds and, if yes, when. If you are wondering why you have not heard of this type of…

Often many investors write to us saying they have a lump sum to invest in equity mutual funds and want to know how to plan and go about this —a discussion. Ask yourself the following questions 1: Have you done a goal planning exercise to determine the right equity: fixed income mix for your goals?…

There has been a lot of hype around getting loans using equity or debt mutual fund units as collateral. Many readers have asked if this is a good idea. In this article, we discuss whether loans against MF units are necessary. The basic idea is quite simple. You pledge your MF units (to the extent…

Asking us, “How much equity should I hold after retirement?” is a common concern for many nearing retirement. However, it is challenging to provide a definitive answer as it varies from person to person. Nevertheless, it is crucial to address this question well before retirement, considering the potential risks and planning accordingly, rather than waiting…

A reader wants to know a way to convince his friend to start investing in equity —a discussion. To not invest in equity is a choice. Whether that is an informed choice or not is another matter. Friend or relative, I don’t think we should try and convince anyone too set in their ways to…

A reader asks, “What should I do with my mutual funds if the market crashes? I started my SIPs three years ago. Today, I don’t know if the market will zoom up or come crashing down. Should I redeem and start again or hold the investments even though I may lose all my gains?” When…

A reader says, “I have a generic question about retirement planning. Can you retire if your annual expenses equal 6% of your corpus?  Say my monthly expenses are 1 lac. My corpus is two crores. I do SWP for 1 lac monthly. If the returns exceed 6% pa, it will also cover inflation. Is there…

A viewer on our YouTube channel wants to know,  What are the “must have” mutual fund categories in a portfolio? But do you even need mutual funds in a portfolio? The answer is no. Mutual funds are a good choice, but they are only a choice. There are other ways to invest, even if they…

Every time stocks in the small cap universe move up prominently, interest in small cap mutual funds and confidence in this sector zoom up even more. Notions like “A small cap mutual fund will beat all other categories (and indices) over the long term” start making the rounds among gullible young earners who naively believe…

There is no limit on the number of sectoral or thematic mutual funds an AMC can produce. So, they do just that! These have huge fees and are marketed as the next big theme to profit from. But how consistent are they in beating a large cap index like Nifty 100 TRI? Note: These are…

It is clear from how many readers, particularly young earners, respond to freefincal content these days that they are overconfident about their equity investments. Especially investments in small cap funds, mid cap funds, etc., that have soared in recent months. This could spell trouble for their dreams. I hate to break it to you, but…

A reader sent us a rather strongly worded email after reading the Handpicked List of Mutual Funds Oct-Dec 2023 (PlumbLine). He was unhappy that we are against investing in active mid cap and small cap fuds and wanted to know why. Our decision stems from our monthly equity mutual fund screeners. These use rolling returns…

This article aimed at new mutual fund investors discusses three common myths about mutual funds. Experienced investors may find this information quite basic, but please consider sharing this post with someone who may benefit from it. The three myths are: “I want my money back!” Nope! A mutual fund is not a bank FD to…