Do you know what happens when money is redeemed from a mutual fund?

In this post aimed at new mutual fund investors, I discuss the basic aspects of the mutual fund redemption process. Knowledge of this is crucial from the viewpoints of risk, reward, taxation and product selection. Experienced investors may find this information quite basic, but please do consider sharing this post to someone who may benefit from it.


Announcement: As readers may know freefincal has an automated stock analysis spreadsheet for Indian stocks. Now I have extended it to cover US stocks listed at NASDAQ/NYSE. Do share the link with those interested. read more


Project DIY: List of 64 freefincal “How To” Articles

Here is an updated compilation of 64 “how to” articles published over time.  They have been organised into different sections for easy reference. Let me know if you have suggestions for such articles.



  • Personal Finance Basics – 9 posts
  • Investing for Financial Goals – 7 posts
  • Portfolio Managment – 9 posts
  • Income Tax – 4 posts
  • Mutual Fund Investing – 13 posts
  • Understanding Investment ‘risk’ – 6 posts
  • Stock Investing -3 posts
  • retirement planning – 2 posts
  • Other Topics – 11 posts

Personal Finance Basics

How to fortify your financial castle

How to get started in money management

Money Management: Where to Start and How to Start


How to Buy a Term Life Insurance Policy

How to choose a term life insurance provider in 30 minutes! read more

PPF vs ELSS: Beware of Faulty Comparisons!

Tax savings season is here! No, not for those who integrate tax-planning with goal-based investing and invest throughout the year. This is the season when millions of investors who are not interested in holistic money management, buy random products based on random advice at the last minute.


Much of this random advice stems from the media, online magazines and blogs that often carry a PPF vs ELSS or NPS vs ELSS comparison this time of year (post-Diwali to March). read more


Home Loan Transfer Calculator (Mortgage Refinance)

Use this home loan transfer calculator to determine if it is worth refinancing your mortgage, that is, transfer your home loan to a new bank or new loan scheme. When a new home loan offer at a lower interest rate appears, it is tempting to want to shift an existing home loan, because the EMI will decrease for the same duration.


However, this involves costs – exit fees  and processing fees. Also, a lower EMI implies, lesser tax savings.  This is because the interest component decreases, while  the principal component increases, resulting in a net saving after accounting for the extra tax to be paid. read more


DIY Personal Finance Cheatsheet: How long does each step take?

Go to a bank or post office and you can locate a board that lists typical transaction times. Here is how long each basic step in financial planning will take.



  • You know that equity investing is necessary to combat inflation.
  • You recognise the bad investments in your folio and have decided what to do about them. If not, spend a couple of hours over a weekend to sort this out.
  • You dont have any debt except a home-loan. If you do, perform steps 1-8 below, clear your debt and then resume.
  • You do not ask for product solutions in Asan Ideas for Wealth. Do that and the decision-making time will at least triple.

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1) Scrounge around for extra cash to set up an emergency fund. – 10 mins  to think about it and less than a few hours to implement it. read more