In this article, we address a popular misconception about the contribution of NPS employers. Before we begin, we would like to point out that your employer is most likely handling this contribution correctly. The misconception is only among the employees. The NPS employer’s contribution falls under 80CCD(2) and is separate from the 80C limit of…
Continue reading →This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We post this comparison each month. Before we begin, new readers need to appreciate the context of these investments. Update: We recently added a new tool to the freefincal investor circle…
Continue reading →On June 23rd 2024, Moneycontrol reported that SEBI conducted search and seizure operations at two locations of Quant Mutual Fund on suspected front-running. In response, the AMC has confirmed via email to investors that it has received inquiries from SEBI but has not added more information. At the time of writing, information on this (first,…
Continue reading →“How does it feel after reaching financial independence?” is a common question for readers. Recently, a reader asked if I had thought of any outreach activities like social service after achieving financial independence. I enjoyed the journey towards financial independence a lot more. The planning. The discipline to invest. The tracking of monthly investments and…
Continue reading →This is an update on my mutual fund investing journey, which began on 19th June 2008. In the last three decades, I have gone from being a spend-thrift to being in debt to financial independence. New community members can refer to these articles for an account. The Financial Arrow of Time and My Journey: Driven by the…
Continue reading →In this edition of the reader story, Sanjoy shares his investment mistakes and lessons learned. In a previous article, he discussed the Financial Lessons Learned During and After a PhD About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers. Some of the previous editions are linked…
Continue reading →This is a debt mutual fund screener for portfolio selection, tracking, and learning. It also includes hybrid funds that invest in bonds. It will satisfy investors who wish to invest in money market funds, banking PSU funds, etc. The credit quality of the bonds in the portfolio and the bond maturity profile can be tracked….
Continue reading →Several news portals have reported that the government is considering a proposal to offer 40% to 50% of the last drawn salary as a guaranteed pension for central government NPS subscribers. It may never come to pass (because if the subscribers’ NPS corpus is not big enough to meet this guaranteed pension, the shortfall would…
Continue reading →Here is a step-by-step guide to selecting an index. 1. Where and how you invest does not matter if you do not have a proper investment plan. The right return expectation, the correct initial asset allocation, an excellent risk-management strategy, systematic investing, systematic increase in investing and periodic reviews. The freefincal robo advisor tool can…
Continue reading →Aarthi is 35 and wishes to retire by 50. In this case study, we shall find out how she can plan for financial freedom in retirement. We shall find out how Aarthi can derive an inflation-protected income and be financially free after retirement. What is inflation-protected income? This retirement income increases each year as per…
Continue reading →This index fund screener is based on tracking error and returns difference wrt benchmarks (aka tracking difference). The screener will help users evaluate how efficiently an index fund has tracked its underlying benchmark. It will also help to understand how tracking a midcap index or the Nifty 100, 500 differs from tracking the Sensex or…
Continue reading →When we discussed the lifestyle of Santhosh, a middle-class crorepati, we received questions from young earners that can be paraphrased as “I cannot be like Santhosh. I like to live a good life with a car and expensive smartphones. However, I feel guilty that continuing my lifestyle will impact my investments and the wealth I…
Continue reading →If you have capital gains and dividends to report to the taxman, correct this auto-fill while filing ITR! About the author: Manmohan Sethumadhavan is a freelancer, investor, and personal finance enthusiast “in search of the absolute truth.” You can follow Manu on Twitter @ManuTsr. Also, read his article: How to calculate LTCG with Grandfathering for equity shares…
Continue reading →This ETF screener is based on tracking errors and tracking differences (ETF return minus index return). The screener will help users evaluate how efficiently an ETF has tracked its underlying benchmark. 70-plus ETFs are now covered. The tracking error is the ETF’s standard deviation minus index monthly return differences. The lower the tracking error, the…
Continue reading →This article discusses how to handle PPF accounts that are about to mature. When and how to extend it and when not to. A PPF matures after 15 financial years from the FY of opening. For example, an account opened in FY 2000-01 (or before 31st March 2001) will mature on 1st April 2016. There…
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