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 →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 →“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 →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 →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 →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 →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 →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 →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 →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.
Continue reading →This is the July 2020 momentum, low volatility stock screener for 100 stocks from the Nifty 100. Inside, you also get an Rs. 1000 off, discounted link to the lectures on goal-based portfolio management. This month 17 stocks quality (nine new entrants) after filtering Nifty 100 with (1) positive 1-year return, (2) positive six-month return,…
Continue reading →The finance ministry has notified the National Pension Scheme Tier II- Tax Saver Scheme, 2020 under section 80C for central government employees.
Continue reading →The NSE has made several changes to its indices in its late-June portfolio reset. Notable are fives changes in Nifty Next 50, twelve from Nifty Midcap 100 and twenty-five from Nifty 500. Here is a selected listing.
Continue reading →Retirement planning is the hardest exercise in financial planning or in other words making sure we are heading towards an adequate retirement corpus that will outlive us. There are many unknowns and uncertainties while planning for retirement. A good plan is essential to counter these. Also essential is a yearly review and recalculation of the…
Continue reading →The second tranche of Bharat Bond ETFs from Edelweiss AMC will be available for purchase from July 14th 2020. Here is why investors should not buy such products in the name of safety.
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