The key to successful mutual fund investing

‘Look before you leap’ is simple commonsense thatĀ escapes us Homo sapiensĀ in most of our day-to-day activities.Ā From eating, driving, breeding(!), spending, investing …. When it comes to investing, the following pattern appears to be way too common for comfort: A young earner realises the need to saving tax. A couple of months before March, a pension…

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Rupee Cost Averaging in a Sideways Market

Whenever there is a discussion on stocks versus fixed income, someone or the other would say, ā€˜volatility is short-term but growth is long-term.Ā  One can expect the markets to always rise over the long-term.Ā  So buy and holdā€™. To this, someone or the other would respond, ā€˜have you not heard of the Nikkei 225ā€™? Ā Stop…

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Relevance of the Nifty PE for the long-term investor

Ever since I introduced the concept of SI-PE (PE based SIP investing) in the post, ‘Are Mutual Fund SIPs Suitable for Disciplined Long-Term Investors?‘, I haveĀ been worried because it instantly struck a chord with many readers. SI-PE refers toĀ manual investment based on the PE value of an established index. If the PE is greater than…

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Portfolio Diversification: Correlation among Stock Sectors

In the third part on portfolio diversification, we shall study the correlation among stock sectors. Part I covered the diversification among asset classes and market caps, and part II covered international equity indices. Regular readers may recall that we already saw how to build a diversified equity portfolio with sector mutual funds. The mutual chosen…

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