How many mutual funds should I hold?

Most freefincal readers would be familiar with this question and perhaps more familiar with the answer – do not hold more than 3 or 4 funds. More funds do not mean higher diversification!

So why bother writing another post on this?

In academia, we have a saying: there is no such thing as a dumb question but there is definitely such a thing as a dumb answer!

When it comes to personal finance, perhaps the more appropriate adage is, ask a piece-meal question, you get a generic answer. Ask a holistic question, you get a holistic answer. read more

Mutual Fund Portfolio Comparison Tool

This is an update to the popular Equity Mutual Fund Portfolio Overlap Checker

In this edition I have included all open-ended mutual funds from Value Research Online.

The tool extracts data from the portfolio page of VR Online for 3 mutual funds and determines

  • the composition of equity and debt portfolios and plots a bar chart
  • the overlap in portfolio among equity and equity oriented balanced funds (a suggestion by Ms. C K Aparna)
  • common stocks among equity and equity oriented balanced funds and gives the combined value of each stock holding if the user inputs value of investment (a suggestion by Mr. V Muthu Krishnan)

There are some issues with portfolio comparison with debt and debt oriented balanced funds. If you are interested in such comparisons let me know. I will sort them out and post an updated version. read more

Is it possible to retire early in India?

Is early retirement in India possible? Can a 45-year-old with ‘enough’ saved up, hang up his boots and avoid a full-time job for the rest of his life?

In this post, I do a feasibility study considering three different scenarios for early retirement to determine the most practical approach.

Early retirement is a phrase that has become extremely popular in recent year thanks to successful blogs like read more

Are Mutual Fund SIPs Suitable for Disciplined Long-Term Investors?

Should disciplined long-term goal based investors use mutual fund systematic investment plans (SIPs) or rupee cost averaging?

This question has been bugging me for long and personally, I hate a SIP I think it is a product tailor made for mutual fund distributors and sold to lazy people.

Should intelligent investors buy SIPs? Here is why my vote is a vehement NO.

I PE-based investing

Investing has to be goal-based. If you have no expense in mind, why would you need the money anyway! Even for the idiots who think they have no goal in mind, retirement is a  goal! read more

National Pension Scheme (NPS): Do not invest even if you get tax benefits!

Here is why I think one should not invest in the National Pension Scheme even if you get tax benefits. This is the updated version of an earlier post.

Earlier I had recommended subscribing to the NPS if you get tax benefits via the employer contributions. Tax benefits have actually increased since the govt. announced an additional 50,000 tax benefits over and above the 1.5 Lakh possible under section 80C. read more