Change in any sphere of life is inevitable. In the last decade or so, change has been so rapid in the Indian financial industry space – especially that concerning mutual funds and investment advise – that it is scary to watch even from the sidelines. A couple of years ago, PV Subra(money.com) asked a gathering…
Continue reading →Using the August 2018 Equity Mutual Fund Performance Screener published yesterday, we find out how large-cap and value-oriented mutual funds have fared against the Nifty 100 Equal Weight Index. This index has equal exposure to the top 100 stocks by free-float market capitalization. Sundaram and Principal AMC have index funds based on this. So like the Nifty…
Continue reading →Here is a list of equity mutual funds with low risk and good returns. There are 53 such funds across ten fund categories. How and why I compiled this list: Parag Parikh Long-Term Equity Fund (PPLTE) turned five last May (I am an NFO investor). So I wanted to review this funds performance for a post…
Continue reading →One of my favourite quotes about goals is by Harvey Mackay: “A dream is just a dream. A goal is a dream with a plan and a deadline.” That just about sums it up!! In this post, let us look at how to define a financial goal with the Audi as a dream car. It…
Continue reading →An exchange-traded fund (ETF) is one in which each unit of the fund (a basket of stocks or bonds) is traded among other unitholders via a demat account. How easily one is able to buy and sell these ETF units is referred to as liquidity. A common complaint is that Indian ETFs are not liquid enough….
Continue reading →Skin in the game refers to a situation where the major decision makers (in any field) have a personal stake in the decisions that they make. In finance, one example is a fund manager and/or fund management (the fund house) investing their own money in the funds that they manage. I argue that demanding such a…
Continue reading →Readers may be well aware that I am no fan of mutual fund star ratings. Star ratings and past performance if not understood with the right perspective can result in mistakes. In this post, let me give you an example – of my laziness that lead to a mistake in the July 2018 Equity Mutual Fund…
Continue reading →Diversification is a word that many investors use rather loosely. Whenever they seem something “offer good returns” I have seen many investors want a piece of that action and say “I have added it for diversification”. Again that classic mistake. Choosing a product/security/asset class by looking at its (recent) returns and not its risk. People who…
Continue reading →In about nine months, India will be voting to choose its 15th prime minister in the Lok Sabha Elections 2019. It is well known that in the build-up to every general election and immediately afterwards, the market is filled with excessive fear and hope resulting in swings that can unsettle the nerves. So is there…
Continue reading →Here is a list of stocks that have traded close to their all-time high and how it correlates with returns. This can be seen as an alternative low volatility strategy while picking stocks. Readers may recall that this is an ongoing exploration of studying low volatility stocks and lazy investing – See Aug 2018 lazy portfolio updates and 30 Low…
Continue reading →I was invited as a guest on the Paisa Vaisa Podcast hosted by Anupam Gupta, a CA and equity research consultant. The podcast was co-hosted by CFP Anees Rao. In the first part, we had defined what exactly is financial freedom, why it is for everyone and why we need to replace conventional notions of retirement and pension…
Continue reading →A few days ago, I had presented backtest results for investing a lump sum in one-shot into an equity mutual fund vs gradually. I had shown that those looking to reduce investment risk or looking for better returns via gradual investing will be disappointed as there was no clear trend as to which is better….
Continue reading →I was invited as a guest on the Paisa Vaisa Podcast hosted by Anupam Gupta, a CA and equity research consultant. The podcast was co-hosted by CFP Anees Rao. In the first part, we discuss what exactly is financial freedom, why it is for everyone and why we need to replace conventional notions of retirement…
Continue reading →If you have a lump sum and would like to invest it in an equity mutual fund, what is the best way to go about it? Invest in one-shot or gradually over a few months? Is there any benefit in investing gradually other than psychological comfort? Let us find out with a backtest. Before we…
Continue reading →When I was trying to compile a list of mutual fund benchmarks after the SEBI recategorization, something strange caught my eye. Value Research had included the new benchmarks in the NAV growth charts. The Nifty 100 Midcap (N100M) is a popular midcap benchmark and I noticed many funds struggled to beat it over the long…
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