Would you prefer a fund that beats the index whenever the index moves up or would you prefer a fund that falls lower than the index? Our first response would be, why not both? Unfortunately, it is not as simple as that. Very few funds manage to do both. In this post, I discuss why downside…
Continue reading →₹e-assemble is a video series covering the basics of money management and goal-based investing for absolute beginners. Last week, in step 1 we consider the need to list our Goals, Dreams and Nightmares. In part 2, we will consider the essential foundations for getting rich and staying rich. When we talk about getting rich or building…
Continue reading →Readers may be aware that in September 2017 I had introduced a handpicked list of mutual funds and called it PlumbLine to accompany the freefincal robo advisory template. While we are still waiting for AMCs to fall in line after SEBI announced its mutual fund classification rules, this month, I focus on simple ways to review a…
Continue reading →Each week, I try and answer generic questions from readers. Here is this week’s edition. You can use the form below to ask your question. The tougher the question, the more I learn and hopefully more the benefit for readers. This week we consider questions on the PE of a mutual fund, health insurance for…
Continue reading →Dear reader, starting this week I would like to cover the basics of money management and goal-based investing for absolute beginners in the form a video series: ₹e-assemble. Each week I will discuss one step. The first step covered in this post is: goals, dreams and nightmares. Each step will take between 30 minutes to a…
Continue reading →“If I have a lump sum, what is the best way to invest it in an equity mutual fund?”, is a question that I am asked repeatedly. In this post, let us discuss simple ways to invest a lump sum in an equity mutual fund. Lump sum in a debt mutual fund Let us first get…
Continue reading →Each financial year, we do our best to reduce as much income tax as possible. I am only referring to legal means (!)- the most common of which is investing in tax-saving instruments. We do this because income tax hurts. The thought of losing a significant chunk of our salary fills us with a sense of loss*….
Continue reading →Buying a house is often an emotional decision and as I have argued before, it makes no sense to use buy vs rent calculators. In this post, I discuss the pros and cons of buying a house as soon as possible vs later vs never. Regardless of what decision we make (or have made) it…
Continue reading →Deciding where to invest, when and how much in each instrument for a given financial goal is known as asset allocation – it is the key to successful money management. For a given financial goal, how do I determine the asset allocation? That is, how do I decide the amount of equity exposure and therefore, fixed…
Continue reading →You would be surprised as to how many people believe that by investing an additional 50,000 in NPS, they “instantly” get a return equal to their tax slab! This is a case of mis-accounting or innumeracy. In this post, I discuss what exactly is the implication of “saving tax” via investing in 80C and with…
Continue reading →This post is a response to a question posed to me by a PhD student: Everyone seems to be predicting that price of Bitcoin will increase by a lot in the coming years and it will become popular. So should I buy some (accumulate) now? To answer this, let us discuss the economics surrounding bitcoins…
Continue reading →There are times in life when you require money for a need in stages. The most common example is monthly income. Those who do not have much money to play with, cannot take risks and must rely on interest income which is always taxable as per slab. On the other hand, those who have some…
Continue reading →Readers may be aware that last month I had introduced a handpicked list of mutual funds and called in PlumbLine to accompany the freefincal robo advisory template. I was all set to write this months post, when SEBI announced its mutual fund classification rules, to be implemented by year-end. So I wanted to wait until…
Continue reading →When I announced the launch of Fee-only India, a coming together of SEBI registered fee-only financial planners to help clients and each other, Alok Singh, made this interesting suggestion: “It’s a good initiative to bring fee-only FPs under one roof. Would it possible to come up with a post describing as to what factor/points one…
Continue reading →In this post, I discuss how to calculate the annualized return from a stock investment after accounting for corporate actions like dividends, stock splits, bonuses, buybacks and rights issues. I have made a calculator that will compute the annualized return (CAGR for single investments, IRR for periodic investments and XIRR or investments on random dates)…
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