Here are five index funds based on Sensex and the Nifty that have beat their indices in the last year! Therefore, investors should avoid such funds! Since an index fund has expenses associated with management and commissions (in the regular plan), it is impossible for an index fund to produce a return more than the index…
Continue reading →Here is how you can combine NIfty 50 (Nifty or N50) and Nifty Next 50 (NN50) index funds to create large and mid cap index portfolios. Since both N50 and NN50 index funds have been around for many years, index investors can use these two instead of new or low AUM ETF or index fund…
Continue reading →It is well known that small cap stocks and therefore small cap mutual funds are high-risk instruments with potential high return. The small cap investor may feel like riding a roller coaster on Red bull – stupendous gains or losses over a short period, followed by years of no returns. So it is a natural choice…
Continue reading →A review of SBI Small Cap Fund previously called SBI Small & Midcap fund. The small cap mutual fund space is an adrenalin filled rough ride not suited for many. Spectacular returns in a short time is often followed by extended periods of meagre returns. This segment is most sensitive to AUM increases as the…
Continue reading →The interim budget announced on 1st Feb 2019 has proposed a change in the tax rebate under section 87A. Here is how it will work. Revised Tax Rebate Under Section 87A (FY 2019-2020) If you are resident individual and your total income after all eligible deductions is equal to or less than 5 lakh, then…
Continue reading →The government announced in the interim budget on 1st Feb 2019 that house property capital gains exemption under section 54 of the income tax act can be claimed by the purchase of two new house (residential) properties. Also read: Revised Tax Rebate Under Section 87A (FY 2019-2020) Explained Existing House property capital gains exemption (section 54) Section…
Continue reading →One of the most popular beliefs about a mutual fund SIP is that it reduces risk because the buying price is “averaged”. Many also believe a SIP helps achieve higher returns. We show that statements are not true and merely myths propagated by the mutual fund industry for profit. That a mutual fund SIP cannot…
Continue reading →This is a review of Mirae Emerging Bluechip Fund and a discussion on why new investors should not consider this fund. This started out as a midcap fund but became a large and midcap fund because of an increase in AUM. They then made this official due to SEBI mutual fund categorization rules. Mirae Emerging…
Continue reading →This is a review of Motilal Oswal Multicap 35 Fund. This is a multicap fund that seeks to invest in no more than 35 stocks across market cap and sectors. Thanks to its distributor friendly approach and transfer from its PMS arm, the AUM of this less-than-five year old has quickly swelled to 13,000 plus crores….
Continue reading →Here are eight ways in which a website can make money. This is a sub-set of the many ways one can make money online. If you are interested in a secondary source of income and will work on it slowly and consistently, these methods could work if you are patient for a few years. When…
Continue reading →A risk and return comparison of Gold (INR, per gram) and Sensex data over the last 40 years reveals that gold is a high-risk, low-reward investment! This is an updated gold vs equity study, much more comprehensive than previous reports. It is important for investors to understand these results especially when gold returns look promising during periods when equity…
Continue reading →Imagine that you are a risk-averse investor and wanted to “park” some money for a few days, and desired to earn a bit more than a savings bank account, an overnight mutual fund is a reasonable choice. If you wanted to extend the investment duration to a few months, a liquid mutual fund is not bad…
Continue reading →A typical NRI with no set return date to India has a unique financial planning dilemma. Should I plan to stay put or for return? Do I invest in NRE FDs paying 7% or global equities expected to deliver between 4-6%? Should I buy a house abroad or rent instead? It’s an endless list. In…
Continue reading →This is a review of Franklin India Prima Fund: a 25-year-old fund that invests predominantly in mid cap stocks with a mix of value and growth style. Started on Dec 1st 1993, the fund has performed across fund manager changes. R Janakiraman who also manages Franklin Smaller companies has been at the helm since Feb 2008….
Continue reading →In this guest post, R. Srivatsan discusses the importance of time and energy budgeting for financial success! Srivatsan would only like to be referred as a “long time reader” of freefincal. Regulars may recall that he wrote a wonderful guest post on the importance of looking at the earnings power of a stock: It’s Earnings That Count: Forget…
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