In this post, let us consider how to calculate returns from ‘dividend’ and ‘dividend reinvestment’ mutual funds. This post represents an understanding of an issue which has always troubled me since the (first) manual version of mutual fund tracker (notice the frequent revisions). I thought I finally had it right in the automated version, until …

Use this tool to  analyse the performance of equity mutual funds with 31 indices from BSE and NSE. Monthly SIP and lump sum investments for periods ranging from one to seven years can be compared. This is the third version of the Mutual Fund SIP Returns Analyzer.  The present version is an offshoot of the  S&P BSE Indices…

Since the post on, ‘What you need to know before hiring a financial advisor’, I have been bombarded by two kinds of emails/comments. Requests for sharing the list of fee-only financial planners, which is a pleasant and welcome surprise and About how mutual fund distribution is not necessarily a bad thing and how I just…

Ever since I revealed that I invest for my son’s marriage in the year-end personal financial audit, several friends, and readers have chided me about this: ‘Why do you want to invest for your kids marriage?’ ‘Our kids should fund their own marriage’ ‘Weddings should be simple affairs devoid of all lavishness’ Journalist Sunderajan Padmanabhan…

At some point or another mutual fund or stock investors would have encountered the acronym, CAGR  – Compounded Annual Growth rate. I would like to discuss what this stands for, its limitations and how to use it to interpret mutual fund or portfolio performance in a series of posts. Imagine a fixed deposit that is…

If I were to redeem an amount today from your mutual fund holding, What would be the short term capital gain? What would be the long term capital gain? What is the tax corresponding to these gains? what amount is free to be redeemed from an ELSS fund? How would I lose due to exit load? Here…

With an aim to encourage readers to analyse and evaluate mutual fund performance on their own, using my excel files when possible ;), I would like to post the analysis of a fund from time to time. In the past, I have covered HDFC Top 200 twice: Step by step analysis guide Rolling returns analysis…

While investing periodically for long-term goals, an investor should be aware of two factors: The power of compounding oh-hum, boring!  I am sure most people reading this are tired of see how a small investment grows to an unimaginably large value … after several decades! Volatility Most of us must invest in volatile instruments like…

Recently I had posted an analysis of Franklin Indian Blue Chip fund (FIBCF). In response, Swapnil suggested that I compare the fund with Sensex or Nifty including dividends. In the same post, I was able to include a comparison with the Nifty total returns index, as the data is conveniently available  (as Swapnil pointed out)….

You might be wondering why the title refers to mutual fund ‘categories’.  Would it not be more enticing and perhaps more useful had it read, ‘how to select mutual funds suitable for your financial goals’? Perhaps so.  However, I choose to focus on how to select mutual fund categories first, for two reasons I am…

Mutual fund investments are subject to market risk!  Haven’t we heard that one before?! If we wish to analyze the performance of a mutual fund, we should know how to evaluate returns and how to evaluate volatility. Volatility, not risk. Risk pertains to your financial goal.  Volatility pertains to the instrument. There are many ways to…

Regular readers of freefincal would recognize that the blog now has a decent set of resources for mutual fund evaluation and analysis. I would like to encourage the use of these tools and calculators by publishing analysis of a few mutual funds from time to time. The aim is to make it clear that mutual…

How different is a large cap equity mutual fund from an exchange-traded fund (ETF) that tracks an equity index?  The portfolio of an index ETF is likely to be nearly identical to that of the index at any point of time. Typically the portfolio of all large cap mutual funds will have a good amount of…