Don’t get fooled: Mutual funds have no compounding benefit!

There is no compounding in mutual funds! Do not get fooled by “power of compounding”, “miracle of SIPs” and “8th wonder of the world” illustrations!  The term “compounding” has no separate meaning than to represent compound interest. Since mutual funds offer no interest, the notion of compound interest or compounding does not apply to them. Here…

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Eight ways to combine Nifty Next 50 with active funds

Interest in the Nifty Next 50 (NN50) has increased over the last couple of years due to its fantastic track record against many diversified equity mutual funds: Nifty Next 50: The Benchmark Index That No Mutual Fund Would Touch?! However, the NN50 is a volatile index with a huge peak to low falls (drawdown). So naturally, investors…

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Pure Fee-only Advisors are Growing in Number! Your support is the reason!

On Dec 9th, 2018, Fee-Only India, a community of SEBI registered pure fee-only advisors met in Bangalore (pictures below). As patrons of fee-only financial planning,  they invited Ashal and me. This is the third fee-only meet and the second this year. The first was in Sep 2017 at Mumbai, the second in March at Hyderabad. It…

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ICICI Prudential Equity & Debt Fund (ICICI Balanced) Performance Review

This is a performance review of ICICI Prudential Equity & Debt Fund (previously called ICICI Balanced) and a comparison with ICICI Prudential Balanced Advantage Fund. Let us find out how these funds have fared against equity benchmarks and discuss when to choose which fund. Let us start with the basics. What is the difference between…

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Should I now shift active mutual funds to index funds? A step by step guide

It should now be reasonably apparent to the regular freefincal reader that Index funds are becoming harder and harder to beat and that one have easily constructed a minimalist index fund portfolio suitable for all risk appetites and ages. So the question now in many active mutual fund investor is, should I now shift current active funds…

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