If we wish to build the financial well-being of our family, one of the first things to do is to protect it. With life insurance, in case the breadwinner(s) die; health insurance, in the case of a hospitalization; an emergency fund, to handle unexpected expenses; an accident insurance to cover of temporary or permanent loss of…
Continue reading →I discuss ways in which we can visualise and interpret the annualised return, also known as the compounded annualised growth rate or the CAGR and volatility of returns. Franklin India Prima Fund had a NAV of 201.75 on April 3rd, 2006 and a NAV of 878.5 on 12th April 2017. What is the annualised return?…
Continue reading →The 13th edition of the freefincal stock analyzer now auto-generates Hewitt Heiserman Jr.’s Earnings Power Box, thank to efforts of Rs. Srivatsan, who explained how to identify good business from bad one using it in yesterdays guest post: It’s Earnings That Count: Forget the next Infy; Can you identify the next Satyam? The automated stock analyzer pulls financials…
Continue reading →In this guest post, R. Srivatsan explains how to differentiate a good business from a bad one, using a stock valuation technique known as Earnings Power Box, introduced by Hewitt Heiserman, Jr, in his book, “It’s Earnings That Count: Finding Stocks with Earnings Power for Long-Term Profits”. Following his suggestion, I have added this feature in the…
Continue reading →Use this Excel sheet to track and compare the annualized return (XIRR) of your mutual fund investments with that of a benchmark. This is the updated version of the Mutual Fund SIP XIRR Tracker thanks to Krishna Chaitanya who pointed out an error in the sheet. The Nifty strategic indices have also be updated up to April 10th 2017. The sheet…
Continue reading →Last week, Pranav Surya and I had announced our new book: Gamechanger. In the second part of his guest post, Pranav explains about what to expect from the book. Pranav is a mechanical engineer with an MBA in hospitality and tourism. He has worked in 4 countries across 3 continents and is currently working in the tourism industry….
Continue reading →Concerned that the stock market is overheated? Here is why it makes sense to focus on the risk associated with the money already invested and not worry about investing more. Suppose, I have a long-term goal and I can only spare Rs. 500 towards an equity SIP. I choose a nondescript mid-cap mutual fund and start…
Continue reading →If you have attended one of the DIY investor meets, you might have heard me say, “the secret to ageing well is to surround ourselves with intelligent youngsters”. Be it investors like Krishna Kishore, Indraneal Balasubramanium or superior coders like Pranav Date, eloquent writers like Anish Mohan, I and hopefully the freefincal community has benefited immensely…
Continue reading →Two of my close family members had health scares in the last couple of months. One of them realised (by chance) there that communication between the heart and brain was faulty. The other had a cardiac arrest and was revived. In both situations, there was mention of a pacemaker – a device that sends electrical…
Continue reading →When it comes to money management, success can be measured in many ways. If it is personal finance, then it makes sense that the milestones be personal. Here are a few personal finance milestones that can help you gauge “where you stand today”. Before we begin, my book with PV Subramanyam, You Can Be Rich Too…
Continue reading →Everyone wishes they were a crorepati and this seems apparent from the sum insured chosen for a term life insurance policy! Why is everyone buying a “one crore” policy? Because it is a large sum? One followed by seven zeros (ten million) is just a number. It may or may not be the right number…
Continue reading →Finance Bill 2017 was passed in the Lok Sabha on 22nd March 2017. Several amendments were introduced just before it was passed. Some of the key amendments involve the Aadhar card. In this post, I discuss why linking Aadhaar to PAN is not necessary for filing AY 2017-18 Income Tax Returns. The amendments: (1) After…
Continue reading →There were reports yesterday regarding SEBI thinking about asking fund houses to use benchmark indices where the dividends are assumed to be reinvested. Such total return benchmark indices (TRI) offer anywhere between 1-2% higher return each year over the normally used price indices (for large cap stocks) which do not consider dividends. While this is…
Continue reading →Are you one of those guys who has trouble making money decisions? Join the biggest club on Earth! I have some good news and some more good news for you. The good news is that everyone is confused about one thing or the other – that is a certainty! The more good news is that…
Continue reading →“Which is the best way to compare my mutual fund with other funds from the same category?”. The best way would be to not compare the performance of the funds that you hold with others. The second best way would be to use the exact dates in which you invested and only those dates for the comparison….
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