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…
Continue reading →This is a debt mutual fund screener for portfolio selection, 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 PSU funds, etc. The credit quality of the bonds in the portfolio and the bond maturity profile can be tracked….
Continue reading →In this article, SEBI-registered flat fee-only financial advisor Swapnil Kendhe discusses how we can implement a unified portfolio approach for all our long-term goals. About the author: Swapnil is a SEBI Registered Investment Advisor and is one of the sought-after advisors on the freefincal fee-only financial planners’ list. You can learn more about him and his…
Continue reading →Back when I was still in college, I stumbled onto Freefincal. I’d open one article, and the next thing I knew, I’d have 20 tabs open—each leading me deeper into this endless maze of personal finance. It was a strange obsession for someone who had zero money to their name. I read, I learned, and…
Continue reading →A reader asks, “Our daughter is five months old. How should we start investing for her future?” It is always best to start planning on a clean slate before making any investment. Let’s dive straight into the goal-planning steps. The goal-planning steps We need a target corpus after 17/18 years, depending on when she was…
Continue reading →This index fund screener is based on tracking error and returns difference wrt benchmarks (aka tracking difference). The screener will help users evaluate how efficiently an index fund has tracked its underlying benchmark. It will also help to understand how tracking a midcap index or the Nifty 100, 500 differs from tracking the Sensex or…
Continue reading →I am Alok, 31 years old, a Group A officer in the central government, and this is my journey to financial independence. I have a 3-year-old child. My wife is a housewife. I joined the service in August 2015. While joining, I had 14000 in my account and nothing else. My starting salary was around…
Continue reading →A reader asks, “Is it possible to use PPF as a source of regular income? For example, withdraw 7 per cent per year”. Once a PPF account has completed 15 years, there are two ways to keep it alive: (1) Without further contributions (interest will be paid) and (2) with contributions (Rs. 500 min per…
Continue reading →This ETF screener is based on tracking errors and tracking differences (ETF return minus index return). The screener will help users evaluate how efficiently an ETF has tracked its underlying benchmark. The tracking error is the ETF’s standard deviation minus index monthly return differences. The lower the tracking error, the more efficient the ETF is…
Continue reading →A reader says, “For a salaried employee contributing to an employee PF, would it be good advice to invest 50% of take-home pay first into PPF and the remainder into an index fund? This would be an investment towards a retirement corpus. The EPF and PPF would be the fixed-income part of the corpus, and…
Continue reading →Many individuals close to retirement are unfamiliar with buying government bonds vis RBI Retail Direct and how it differs from purchasing a life insurance pension plan*. We discuss the essential differences in this article. In this article, a life insurance pension plan refers to an immediate annuity plan, not a deferred one. Always avoid deferred…
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