Have you ever wondered why a corporate fixed deposit offers a higher rate of return than a bank deposit? Have you ever considered investing in corporate FDs, but worried about the “risks”? In this post, I simple ways to invest in corporate fixed deposits. Before we begin, allow me to point out that You Can…
Continue reading →If you click on “images” after searching for “medicine side effects”, you will notice a t-shirt with a message that goes, “I take medication for diabetes which is a side-effect from my high BP which I got from taking sleeping tablets due to insomnia caused by anxiety which I got from a tablet given for…
Continue reading →Many investors worry that they would lose the benefit of compounding or growth if they switch mutual funds. A discussion on why is not true as part of the freefincal Q/A. As mentioned last week, I will respond to reader queries each Saturday. I was supposed to make a video response, but I don’t quite feel…
Continue reading →A napkin drawing is a rough sketch drawn to effectively communicate an idea. It is called a napkin drawing or a back-of-the-envelope sketch because it can be done anywhere. Carl Richard’s napkin drawings are famous and he is an inspiration for me to attempt the same. A visual representation of a complex fact can be quite convincing….
Continue reading →In the recent past, three mutual funds houses (Reliance, DSP Black Rock and SBI) have launched a facility in which it buys back units from its investors and instantly credits the equivalent value into a registered bank account. At first sight, this seems like a wonderful idea. However, on closer inspection, we begin to understand…
Continue reading →In this guest post, Anish Mohan presents a step-by-step guide to applying online for an MF Utility account. MF Utility is the transaction aggregation portal run jointly by a consortium of 26 mutual fund houses. It offers investors way to invest in direct mutual fund plans (and switch from regular) via a single portal. It has…
Continue reading →In the second part of the introductory series on debt mutual funds, a non-technical discussion of the aspects to consider before buying units of a debt mutual fund. You will be surprised as to how many people buy and then worry about these aspects. The first part is here: What is a Debt Mutual Fund? -meant for absolute beginners. If…
Continue reading →Last week I had published FU Money Calculator. This is android app version which you can download for free at the Google Play Store. Also, I discuss freefincal plans in 2017. FU Money is internet slang for saying goodbye to your employer when you have enough money saved. Here F stands for a popular four-letter…
Continue reading →In this post, I discuss the basic ideas necessary for a beginner interested in debt mutual funds to get started. I shall keep it short, sticking to the essentials. Many of you may know that I have a separate category for debt mutual funds. My Book, You Can Be Rich Too For Goal-Based Investing has a…
Continue reading →Jan 1st, 2017, marked the fourth anniversary of direct mutual funds plans. These are mutual funds you can buy without any commission, directly from the AMC, its aggregation portal MF Utility or one of the many new direct mutual fund + robo advisory portals. This is the fourth anniversary report. If you are already a…
Continue reading →Use this calculator to check the benefits (if any) associated with switching your home loan. Either from one bank to another or from base rate to MCLR (Marginal Cost of Funds based Lending Rate). This is an updated version of the Home Loan Transfer Calculator (Mortgage Refinance) with an ability to check benefits for (a) same EMI, lower…
Continue reading →An ultra short term mutual fund is a type of fixed income or debt mutual fund that invests in short-term bonds issued by banks, PSUs, corporate, cash and govt bonds. In this post, I discuss how and when to select ultra short term (UST) funds. First, wish you all a happy new. Second, Amazon has…
Continue reading →As 2016 draws to a close, a look at some of the personal finance developments that made a difference and the lessons from them. Before we begin, allow me to wish you a happy new year and pray for the ability to make informed decisions. If we get that right, the rest should take care of…
Continue reading →“FU Money” represents the amount required for a person to stop being employed. She is then free to follow her passion and wait for it to generate an income without having to worry about expenses for at least a few years. Or the corpus could be large enough to generate an inflation-protected income for the rest…
Continue reading →There has been a lot of confusion regarding the exit and withdrawals rules of the National Pension System (NPS). I apologise if I have contributed to it. In this post, I shall attempt to get rid of my own confusion and clarify my understanding. Until today I have incorrectly believed that 40% of the NPS corpus…
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