Here is what you need to know and do to be a successful equity mutual fund investor. This also applies to the long-term direct equity (stock) investor. Understand the true nature of the stock market: All those stories of “compounding” that you have been fed do not pan out in real life. See: Don’t get…
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 →A reader says, “I’m 45 and have reached 60:40 Equity: Debt portfolio. I have 15 more years of service and don’t plan to take Early retirement. My target corpus has not yet been reached. I have invested in NIfty 50 and NIfty Next 50 for equity, PPF, NPS, and gilt funds for long-term equity and…
Continue reading →A reader says, “I am 36 and have a 4-year-old daughter, trying to save some money for her education, marriage and my retirement. In one of your podcasts, you mentioned that 50-50 allocation is enough to create a good corpus. I can invest 1 lakh per month based on my current financial situation. Do I…
Continue reading →In this edition of the reader story, we meet a 33-year-old planning to retire by 45. 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 this article. You can also access the full reader…
Continue reading →NPS Vatsalya is a contributory pension scheme regulated and administered by the PFRDA for all minor Indian citizens. Just like PPF, the account will be opened in the name of the minor and operated by Guardian with the minor as the sole beneficiary. The minimum contribution each year is Rs. 1000 with no maximum limit….
Continue reading →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…
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