In this article, we discuss two different questions on asset allocation. Reader (1) says, “I am 25 years old and in a well-paying IT job. After all my expenses, including supporting my family, I can comfortably invest around 100% of my monthly expenses. I am investing it purely in equity to catch up with my…
Continue reading →For decades, a “stable job” has been a cornerstone of financial planning in India. Parents encouraged their children to seek government jobs or corporate careers with gratuity, provident funds, and bonuses. But as times have changed, so have aspirations and economic realities. Today, freelancing—working independently without being tied to a single employer—is no longer just…
Continue reading →The latest freefincal Equity Mutual Fund Performance Screener is now available. Use it to screen for consistently performing equity mutual funds. You can screen based on fund category & benchmark and spot mutual funds with a higher return than a benchmark at a lower risk. Inside, you get discounted links to our robo advisory tool…
Continue reading →In this article, Sunil shares how he and his friends and family came together to assist a student with this medical college tuition. Sunil believes, “While we always discuss our own personal finance improvement, many of us also want to help society by supporting education or medical support. The support can help a needy family…
Continue reading →We recently did a Let’s Get Rich With Pattu podcast episode on buying cars, and one of the questions was, “What should be the budget for my first car?” A discussion. My answer was: Whether you buy with cash or via EMI, ensure the car cost does not exceed your annual income. Admittedly, I am…
Continue reading →Many readers write, “We like your content, but you have written so much that it is hard for us to determine which article to read first. Can you provide a quick-start guide for us to start our investment journey the right way?” The following is a list of steps for young earners. Older readers can…
Continue reading →This is a National Pension Scheme Fund Screener to shortlist consistently performing NPS schemes. You can also spot NPS schemes with a higher return than a benchmark at a lower risk. This is similar in design to the freefincal Equity Mutual Fund Performance Screener. Inside, you get discounted links to our robo advisory tool and…
Continue reading →Here is how one can use a safe withdrawal rate (SWR) to gauge the health of our retirement corpus. This discussion also answers broader questions like, ‘When can a retiree take risks after retirement?’ and ‘How much equity exposure can I have after retirement?’ Note: In this day and age, using a proper retirement calculator only…
Continue reading →We have repeatedly emphasised the importance of asset allocation and its periodic rebalancing. A two-asset portfolio comprising equity and fixed income will do the job for all goals with minimal effort. However, what if the equity predominantly comprises a direct equity portfolio (stocks)? How can we rebalance such a portfolio? Those who wish to understand…
Continue reading →We discuss what investors should do if they think their risk appetite is “moderate”. “What does moderate risk appetite mean?” We cannot define in any meaningful way what risk appetite is, let alone categorize it as low, medium, or high. That said, determining risk appetite is a regulatory requirement, and expensive tools exist. An honest,…
Continue reading →We publish a list of stocks with low volatility and momentum each month. We provide data for BSE 500 and BSE 100 stocks. There are now three different screener files available. (1) Stocks with low volatility and momentum from the BSE 100 large cap universe are available as a separate file (2) Stocks with low…
Continue reading →Having a clear goal can be a key differentiator to managing our finances. A discussion
Continue reading →A 35-year-old reader wants to know if he can retire comfortably by age 55 and what he should do to achieve this. He is married to a homemaker aged 30. When he reaches 55, his wife will be 50. So, we shall plan for retirement income until she (the younger spouse) reaches 90. Therefore, he…
Continue reading →I have tracked the amount invested in my goal portfolio for over 13 years. It has been a life and game changer for my family. Whether you track your spending or not, tracking your investment amount is crucial. Today, I can invest more for retirement than my target investment. That was not the case when…
Continue reading →My parents had a simple rule: If you cannot pay for it, you cannot afford it. This means avoiding debt at all costs. My father was 40 when he was urged to buy a two-wheeler on EMI. He reluctantly agreed because public transport to his workplace was a nightmare. That was the only item my…
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