Neils Bohr, one of the founding fathers of quantum physics, said, ”If quantum mechanics hasn’t profoundly shocked you, you haven’t understood it yet.” The same is true of retirement planning. When you sit down to do a retirement calculation for the first time, it should shock you. If it does not, you are probably making…
Continue reading →There are several misconceptions surrounding debt mutual fund selection. We shall discuss a couple of them in this article. Many investors believe dynamic bond funds are better than gilt mutual funds because of active fund manager calls on the portfolio’s duration. Investors also believe that corporate bond funds (or banking and PSU funds) are less…
Continue reading →A reader who wishes to be anonymous wanted to know the corpus need to retire in India by age 45. Before we get down to the calculation, “retire by 45” requires some clarification. This means goodbye to regular employment, to a salaried job. This does not mean the person will sit around all day doing…
Continue reading →This is a list of mutual funds that gained the most in AUM after the March 2020 market crash. To ensure we account for the fund inflow and not the fund returns, we compare the NAV and AUM on March 31st 2020 and May 31st 2021 and subtract the percentage change in NAV from the…
Continue reading →In this article, we discuss why it does not make sense to invest in an index fund that does not track the top 100 stocks or lesser weighted by market capitalization. In other words, not all index funds are the same! We shall not discuss ETFs here as they come with their own problems of…
Continue reading →We are living in the era of a pandemic, which has altered the way we used to look at insurance. Most Indians perceived insurance as an ‘investment’ or tax-saving instrument earlier, but the pandemic has made us realize the importance of protection. About the author: Vivek Sulegai is a SEBI Registered Investment Adviser and member of…
Continue reading →In this article, we review Quant Active Fund, which seems to have caught the attention of young DIY investors. Why has it caught the attention of investors? Returns! It is always returns! And in particular the last one year return, without any regard to the fund’s history. Quant Active Fund has delivered 96.1% returns in…
Continue reading →This is a debt mutual fund screener for fund selection, fund portfolio tracking and learning. It also includes hybrid funds that invest in bonds. It will satisfy investors who wish to invest in money market funds, banking and PSU funds etc. The credit quality of the bonds in the portfolio and the bond maturity profile…
Continue reading →You may have come across articles in your news and discover feeds on “how to become a crorepati with PPF”. There is only one reason such articles get written: for traffic. “PPF” in itself is an attention grabber. Add the emotional hook “crorepati” to it then it is a magical combination. It is possible to…
Continue reading →This is my monthly retirement stock portfolio analysis compared with an equivalent investment in a Nifty index fund. I have finally been able; to compute the annualized return (XIRR) of the portfolio after considering all corporate actions like dividends, splits etc. However, before we begin, investors need to appreciate the context of these investments. I…
Continue reading →Sharad asks, “Have you ever analysed property as a long term investment option? If I have a debt-free second house, should I liquidate it and invest in markets or continue to hold the property for the next 15 years? Assuming all the other things like emergency expenses etc., are taken care of. What is the…
Continue reading →On June 7th 2021, SEBI introduced a “potential Risk Class Matrix for debt schemes based on Interest Rate Risk and Credit Risk” In this article, we explain what it is and discuss if it helps investors. The new rule comes into effect from 1st Dec 2021 but can be implemented immediately by fund houses if…
Continue reading →This is a passive fund screener based on tracking error and return difference wrt benchmarks. The screener will help a user evaluate how efficiently an index fund has tracked its underlying benchmark. It will also help a understand how tracking a midcap index or the Nifty 100, 500 is quite different from tracking the Sensex…
Continue reading →Alok asks, “dear pattu, sir, thanks to your articles, we have started investing with confidence for retirement and my son’s education (he just turned two). There is one aspect we are not able to decide on. Should we invest for our son’s marriage expenses or not? My wife says no, but I am not sure….
Continue reading →We are delighted to announce a new spreadsheet that can be used to evaluate the annualised return (XIRR) of individual stocks and that of a stock portfolio after properly taking into account corporate actions like dividends, stock splits, bonuses, buybacks and rights issues. We had recently published an example using this sheet: Stock XIRR Example:…
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