These are the 30 Sensex stocks with weights for September 2020. Sensex is the oldest stock index of India. It has the top 30 stocks by market capitalization trading in the BSE. Notice the huge allocation to RIL and HDFC Bank which can result in concentration risk: Do index fund returns depend upon just a few…
Continue reading →Arbitrage mutual funds invest a predominant part of their portfolio in derivative and arbitrage instruments associated with the stock and bond markets. Aside from unnatural events (see below), their day to day volatility is similar to ultra-short-term funds. Thus typically arbitrage funds have debt fund-like NAV fluctuations and equity-fund like taxation. This makes it appealing…
Continue reading →A common question investors have is, “should I use the Nifty or the Sensex for passive investing?” In this article, we report the return difference between the Sensex and Nifty for various durations to appreciate how a 30 stock index can differ from a 50 stock index. Sensex is the oldest stock index of India….
Continue reading →We present the result of SIP returns comparison: Nifty 50 vs active mutual funds (large cap, large and mid cap, mid cap, small cap and multi-cap) over the last fifteen years. The dramatic drop in outperformance seems to have started seven-eight years ago and not just from Feb 2018 as earlier believed. We had earlier…
Continue reading →“What return can I expect from a Nifty 50 SIP over the next 10 years?” This is a typical newbie question. We have pointed out that no one can or no one should expect returns from mutual funds. Yet we still see statements on social media that 10-12% return is “easily possible”. On what basis…
Continue reading →The freefincal Equity Mutual Fund Performance Screener (October 2020) 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 that have got a higher return than a benchmark at a lower risk. Inside, you get ~ 40% discounted links…
Continue reading →In this article, we present results from an analysis of the NIfty 50 portfolio over the last ten years. We find that the weight of the top five stock is currently the highest and six stocks dominate the top five positions. We use the portfolio of Nippon India ETF Nifty BeEs as a proxy for…
Continue reading →Govt of India (GOI) has announced the sale (Re-issue) of 7.16% Government bonds maturing in 2050. Approximately Rs. 400 crores of these can be bid by retail investors via the NSEgoBid platform on 13th and 14th Oct 2020 (10 am to 5 pm). The auction will be conducted by the RBI on 16th Oct. Details…
Continue reading →A combination of Nifty (N50) and Nifty Next 50 (NN50) index funds is enough for investors to create a well-diversified equity portfolio – large cap heavy (more of Nifty) or a midcap-heavy (significant exposure to Nifty Next 50). What if one avoids Nifty and invests 50% in Nifty Next 50 and 50% in debt? This…
Continue reading →Here are some examples of passive income that work in more ways than one. Many people have wrong ideas about what passive income is, how to aim for it and achieve it. Tell people the truth about the passive income – income without continual effort is a myth – they refuse to believe it. You…
Continue reading →This is a review of Edelweiss Balanced Advantage Fund, an open-ended dynamic asset allocation fund. In its 12th year, the fund has an AUM of Rs. 1496 crores. It varies its equity exposure between direct equity and arbitrage as per market conditions but will remain an “equity fund” with respect to taxation. Depending on market…
Continue reading →The seventh tranche of Sovereign Gold Bonds 2020-21 (Series VII) will be available for sale from October 12-16, 2020. The issue price of the Bond per gram during the subscription period will be Rs. 5041 (down from Rs. 5,117 for series VI and Rs 5,334 for series V). However, it is not a product for…
Continue reading →These are the issue dates of Sovereign Gold Bond Scheme 2020-21. The finance ministry has announced six further tranches for the current financial year. This is the schedule. Also see: Sovereign Gold Bond Scheme 2020-21 (Series VII): Should you buy? Tranche Subscription Dates Issue Dates 2020-21 Series VII October 12 – 16, 2020 October 20,…
Continue reading →Stocks with momentum and low volatility for October 2020 are listed in this stock screener for 100 stocks from the Nifty 100. This month as many as 29 stocks quality after filtering Nifty 100 with (1) positive 1-year return, (2) positive six-month return, (3) price > 200-day moving average, (4) 50% of daily positive returns,…
Continue reading →In a circular dated Oct 5th2020, SEBI once again changed the norms for “Product Labeling in Mutual Fund schemes” – the third such change in the last seven years. In what can only be seen as bizarre, SEBI ruled that a change in the “risk-o-meter” dial for a fund need not be considered as a…
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