A reader says, “You discussed money market and arbitrage funds as debt instruments and average maturity values. I could not grasp this concept of average maturity. Google search tells me that avg maturity value of money market funds are like one year. Does this mean I have to withdraw the amount after one year to…
Continue reading →Tax expert Manmohan Sethumadhavan has prepared a downloadable comprehensive capital gains taxation rules ready reckoner for freefincal readers based on the amendments to the Finance Bill 2024. When the budget was presented on 23rd July 2024, it was immediately apparent that the wording obscured the complexity of the changes to capital gains taxation. The following…
Continue reading →I have a ten lakh base policy and a 15 lakh super top-up (10 lakhs deductible) family floater policy from oriental insurance from 2008 covering me, my wife, and my daughter. As you mentioned in the article, – it has a room rent sub-limit of 1 % of the insured amount. So, I bought another…
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 →There are currently two ongoing NFOs – Motilal Oswal Nifty 500 Momentum 50 Index Fund (and ETF) and Nippon India Nifty 500 Momentum 50 Index Fund. In this article, we analyse the risk and reward potential of the underlying index and what you need to know before considering a momentum index. According to the index…
Continue reading →In this edition of the reader story, Sahil shares his financial audit. A sequel to How Sahil Plans to Achieve Financial Independence by Efficient Tracking. 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 at the bottom of…
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. The tracking error is the ETF’s standard deviation minus index monthly return differences. The lower the tracking error, the more efficient the ETF is…
Continue reading →Indian parents. Or what you call that species of human beings for whom you will always be a baby in your diapers, no matter how old you get and what great things you achieve in life. Or the ones who will always be there to help you navigate through life and at the same time…
Continue reading →In this edition of the reader story, we meet a retiree who has been investing in mutual funds for the last 23 years. This is an addition to our “mutual fund success stories” series. See, for example, How mutual funds helped me reach financial independence. About this series: I am grateful to readers for sharing intimate details…
Continue reading →The latest freefincal Equity Mutual Fund Performance Screener is now available. Use it to screen for consistently performing equity mutual funds. You can screen based on fund category & benchmark and spot mutual funds with a higher return than a benchmark at a lower risk. Inside, you get discounted links to our robo advisory tool…
Continue reading →On 21st Aug 2024, the GOI announced Guidelines for regularising accounts opened in deviation from Rules stipulated under National Small Savings Schemes. This only applies to irregular PPF accounts and not all PPF accounts. A clarification by SEBI Registered Investment Advisor Ajay Pruthi. About the author: Ajay Pruthi is a fee-only SEBI registered investment advisor. He…
Continue reading →In a Consultation Paper on Review of Regulatory Framework for Investment Advisers and Research Analysts dated Aug 6th 2024, SEBI has proposed the concept of a part-time investment advisor and research analyst. The comments on this paper closed on Aug 26th 2024. It is quite likely that it shall come to pass. A recent news…
Continue reading →A reader insisted that gold is a “safe ” instrument and should be considered part of a portfolio’s fixed income or debt. Nothing could be further than the truth: Gold is as risky as equity and not a debt instrument! Here is some supporting data. Let us start with the standard deviation of gold, equity*…
Continue reading →It is clear from how many readers, particularly young earners, respond to freefincal content these days that they are overconfident about their equity investments. Especially investments in small cap funds, mid cap funds, etc., that have soared in recent months. This could spell trouble for their goals and dreams. I hate to break it to…
Continue reading →This is a National Pension Scheme Fund Screener to shortlist consistently performing NPS schemes. You can also spot NPS schemes with a higher return than a benchmark at a lower risk. This is similar in design to the freefincal Equity Mutual Fund Performance Screener. Inside, you get discounted links to our robo advisory tool and…
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