Each week I try to answer generic reader questions on money management. Here is this weeks edition. Hi Sir, I follow your blog regularly – you helped in a great deal choosing the right funds as per goals. Now, my question is – when is a good time for a retail investor to consider portfolio…
Continue reading →Here is a list of 15 different ways to invest in direct mutual funds and how to choose a direct plan portal. MF Utility (MFU) a transaction aggregation portal where one can invest in 26 AMCs, is the game changer for the evolution of such portals. At six portals in the list below use for transacting….
Continue reading →Nearly 11 years ago, I sat down to face my IIT, Madras faculty interview. One of the faculty members who I knew from my student days sat beside me as he was waiting for his promotion interview. When he found out that was a particularly troubled time for me he said, “Pattu, I am glad that…
Continue reading →While discussing the distribution of wealth in India, I had referred to the idea of self-similarity with the example of the Pareto principle. Today I would like to discuss how the stock market behaves in a similar way! The first part of this series is here: Fat Tails: The True Nature of Stock Market Returns –…
Continue reading →In a two-part post, I discuss the nature of stocks market returns, first by pointing out the influence of extreme market events and then by considering their fractal or self-similar nature. Readers may recall that last week, we considered self-similarity in wealth distribution where I had mentioned their universal nature. Both posts in this series shall deal with…
Continue reading →In the last quarter of the financial year, we are likely to encounter advertisements and sales pitches for how ELSS mutual funds are better than other tax saving instruments. A common sales pitch is that ELSS mutual fund investments are locked for three years and hence the fund manager can deploy funds without worrying about redemption…
Continue reading →In this weeks freefincal Q/A, we discuss matters ranging from last year’s star ELSS fund to portfolio rebalancing. Before we get to the questions, a quick mention that the Q/A is a feature in which I address generic questions from readers. You can use the form below to ask your questions. I will address them next week….
Continue reading →The distribution of wealth cannot be even among the members of a society/country. This is just not practical. Oxfam International’s global inequality report released this month points to the world in which the gap between the rich and poor is alarmingly getting wider. In this post, I discuss how to make (statistical) sense of this…
Continue reading →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 →