Parag Parikh Long Term Equity Fund Review
This is a performance review of Parag Parikh Long Term Equity Fund. We shall look at its portfolio history and evaluate its trailing return performance (lump sum and SIP).
Continue reading →Four ELSS Funds that have consistently outperformed Nifty 200
Here are four ELSS funds that have consistently outperformed the NIfty 200 Total Return Index (dividends included) in terms of both returns and risk.
Continue reading →Are investors refusing to graduate beyond the basics?
Most investors wish to live in a certain “la la land” where they want a path that would lead to success. They want to hear what they want to and settle down with convenient truths. It is a refusal to graduate beyond the “basics” and confront cold reality. This means leaving the future of their…
Continue reading →Motilal Oswal Multi Asset Fund Review
Motilal Oswal AMC its new fund – Motilal Oswal Multi-Asset Fund – that on the face of it looks like an interesting, exciting idea (like every other NFO). Let us dig deeper to find out more about the investment strategy and who is the fund suitable for.
Continue reading →How should senior citizens invest in 2020
As interest rates fall, the economy in doldrums, equity markets uncertain, debt funds scary and the safety of at least some banks questionable, senior citizens are faced with a difficult problem: “where should I invest with protection and reasonable reward?” Sadly that this has been a recurring issue for the last decade or so and…
Continue reading →Midcap mutual funds struggle to beat this factor-based midcap index
A factor-based index is one in which parameters like volatility, momentum, alpha, ROE, PB, PE etc are used to construct the index instead of market capitalization. This is one way to reduce concentration risk in traditional indices like Nifty and Sensex. Midcap mutual funds have struggled to beat the NIFTY Midcap150 Quality 50 Index.
Continue reading →Do index fund returns depend upon just a few stocks (Concentration risk)?
Take the NIfty 50 index. It has 50 stocks and that sounds like a lot, but just ten of then make 62.7% of the total weight. In the case of the Sensex, it is 71.11%. Even in the case of the S&P 500 the top 10 accounts for 27.1% of the total weight (all nos…
Continue reading →Should I pay more tax if my fund’s equity holdings drop below 65%?
“I checked the monthly fact sheet of my equity mutual fund and found that the equity allocation was less than 65% of domestic equity shares. Does this it will be classified as a debt mutual fund and I have to pay more tax on it?”. A discussion.
Continue reading →Is this market rally bad for equity mutual funds (active/passive)?
Readers may recall that the Nifty/Sensex moved up since Feb 2018 (until the crash this year) while the rest of the market moved down. We had reported that this market imbalance/inhomogeneity lead to an all-time high return difference between Nifty 50 vs Nifty 50 Equal-weight indices in Dec 2019 and also pointed out that Market crash…
Continue reading →Should I pay a financial planner who only recommends index funds?
A natural, emerging question among investors looking for professional help from a SEBI registered fee-only advisor is, “If the financial planner only recommends index funds, why should I engage with him?” We requested SEBI Registered Investment Advisor Swapnil Kendhe to explain the nature of the financial planning process and what clients are actually paying for.
Continue reading →Here is how Franklin Segregated Portfolio (Vodafone) payout will be taxed
Franklin Templeton AMC has received 1252.44 crores from Vodafone Idea towards full principal and interest dues for the period June 12 to July 9, 2020. The AMC will now close the segregated portfolios (side-pocket) and payout investors. Here how this payout will be taxed. Thanks to an amendment in budget 2020, the taxation of segregated…
Continue reading →Should I rebalance between Nifty and Nifty Next 50 systematically?
Investors can create a simple, minimalistic two-fund equity mutual portfolio by investing in a Nifty index fund and a Nifty Next 50 index fund. While one should rebalance between asset classes, for example between equity and fixed income, in a standard two-asset class portfolio, should one rebalance between Nifty and Next 50?
Continue reading →List of international mutual funds in India 2020 (with classification)
This is a listing and classification of international mutual funds available in India as on July 2020 classified by their investment mandate to serve as a ready reckoner for investors attempting to navigate this category.
Continue reading →DSP Midcap Fund: SIP Performance Review
We evaluate the SIP performance of DSP Midcap Fund with multiple benchmarks. The fund may not be popular on personal finance forums but it has the second-largest AUM in the midcap fund category with almost Rs. 6500 crores.
Continue reading →Which Nifty Index Fund has the lowest tracking error?
We find out which Nifty Index Fund has the lowest tracking error over the last six years. Readers may recall that we have earlier shown that lower expenses do not mean lower tracking error! We have also earlier looked at return differences for different durations for various index funds.
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