An interval income mutual fund or more generally, interval funds is a lesser known class of mutual funds that are open for subscription and redemption only at specified time intervals. A discussion about their main features and how to use them. An open-ended mutual fund allows purchase and redemptions on all business days. A closed-ended…
Continue reading →Each December, I conduct a personal financial audit. I take stock of my financial goals and other aspects of personal finance relevant to me. For the last three years, I have been sharing the gist of such audits at freefincal. The idea behind doing is this to put some context into the several goal based…
Continue reading →A mutual fund Fixed Maturity Plan (FMP) is a closed-ended debt mutual fund. A discussion on how and when to choose FMPs. A closed-ended mutual fund is one in which no purchase or redemption can be made after the new fund offer (NFO) period. The scheme has a fixed maturity date and unitholder can redeem…
Continue reading →One advice about investing in debt mutual funds that never made any kind of sense to me is: “pick a debt mutual fund whose maturity profile matches your investment horizon”. You will find this in many articles online and here is why I think it is plain wrong. Say you wanted to invest in a…
Continue reading →Here is an updated step-by-step user guide prepared by Anish Mohan to buy and sell direct mutual funds using the MF Utility portal – a free (as of now) “Transaction Aggregating Portal” run about 25 AMCs jointly. Whether you are considering getting a new account or already have one, this guide will help you understand the pros…
Continue reading →I would like to discuss the dangers of investing in debt mutual funds without understanding risks in the next few posts. There are two problems associated with putting all eggs in one basket and we only talk about one – the basket coming apart. The second and equally important problem is the search for the…
Continue reading →When it comes to an actively managed market linked instrument, the ideas of downside protection and upside performance are easy enough to understand and expect. In particular, with respect to active mutual funds, downside protection refers to the fund’s losses when compared to benchmark losses. For example, during a period in which the benchmark dropped by…
Continue reading →Last week I had posted a comparison of large cap funds with few relevant indices. This time let us do the same with mid-cap funds – compare SIP and Lump Sum returns over the last 1,2,3,4,5,6,7,8,9 years. As before, a passive mutual fund is just an index (either cap-based or strategic). The expenses associated with…
Continue reading →An exposure to equity is not necessary to beat inflation or finance our future if we know how to account for inflation by other means. It is merely a choice. Many of us did not have any equity exposure when we started managing our money. We read about it; thought it might a be a…
Continue reading →The corpus obtained when buying “low” or when the Nifty is below its 200 day moving average (dma) is compared with the corpus from buying “high” (nifty above 200 dma). Apologies for yet another post on this subject, but I had to satisfy my curiosity. Kindly bear with me. Before we begin a clarification on nomenclature. As we…
Continue reading →The previous two studies on buying “low” vs. buying “systematically” pointed to the surprising regularity with which systematic investing does better (or at least as well as – good enough). In response to this, many suggested that in order to ensure buying “low” wins, I should ensure the cash that is put away waiting for…
Continue reading →Here are few charts based on a systematic investment in gold. I did this primarily to satisfy my curiosity after a similar study with S & P 500 and Nifty: Buying “low” vs Buying “systematically: Surprise, Surprise! Regular readers may be well aware of my stand on gold: that it is riskier than Stocks! I had also suggested understanding…
Continue reading →Here is a comparison of SIP and lump sum returns of active and passive large-cap equity funds over the last 1,2,3,4,5,6,7,8,9 years. I shall follow this up with other categories – mid-cap, small-cap etc. and repeat this study from time to time. Before we begin, would like to point out that our new book, You Can Be…
Continue reading →Each December, I conduct a personal finance audit. As part of this years audit, I thought of updating my mutual fund investment journey, in particular, the rise and fall of my retirement corpus. The idea behind this post is not to boast or claim how intelligent my investing strategy is. It is only to study…
Continue reading →A mutual fund is not an LIC policy. One buys an LIC policy for 20 years to receive money-back every 5 years or so. One does not choose a mutual fund to invest for 20 years. A mutual fund is also not a stock. One need not read a balance sheet or understand the business model…
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