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…
Continue reading →I’m happy to share my financial journey on this platform and would like to thank Pattu Sir for giving me the opportunity. I have structured my journey into three sections: Family Background, Financial Mistakes, and Course Correction. About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit…
Continue reading →These are the freefincal handpicked list of mutual funds. New and old investors can use it according to their specific needs. The list is called “PlumbLine” and has been published since September 2017 for beginners to accompany the freefincal robo advisor tool. Most important! Plumbline is a mix of my opinions + skin in the…
Continue reading →Here are 16 personal finance resolutions and resources to help you start your wealth creation journey. In his 2013 Ted Talk, former Google search quality chief Matt Cutts discussed the power of trying something new for 30 days. He says if you try something new for 30 days or stop doing something for 30 days,…
Continue reading →We discuss an efficient investment strategy for our financial goals without worrying about market conditions. This simple strategy will help you achieve your financial goals independent of market conditions. We have extensively backtested different variable asset allocation strategies, and the results are available in our goal-based portfolio management course. Be clear about when you need…
Continue reading →I was recently asked to share my thoughts on “How do you increase equity/bond market participation in India?”. I figured the best way to collect my thoughts was to write an article about it. Financial inclusion typically means enhancing the reach and deliverability of financial services to reduce inequality. So, by aiming for enhanced capital…
Continue reading →This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We post this comparison each month. Before we begin, new readers need to appreciate the context of these investments. Update: We recently added a new tool to the freefincal investor circle…
Continue reading →Each time a financially independent person is interviewed on YouTube or the media, many comments go, “Oh, this guy had a huge salary; she went on-site, that is why she can save so much. He says he is financially independent and retired, but his wife is still working so that does not count” and so…
Continue reading →I evaluate the performance of my retirement portfolio and my son’s future portfolio each year in a personal finance audit. This is the 12th edition. Published from 2013 onwards, these audits provide a sense of accountability and ensure I do not fall prey to fear of missing out, preventing bad investment decisions. They also point…
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