A simple way to screen mutual funds using downside capture and upside capture ratios is discussed. The capture ratio data obtained for equity-cap funds is used as an example. With such a batach analyzer, it is a simple task to get the data for other fund categories. However, it is also boring – one needs…
Continue reading →Here is a step-by-step to guide, plus calculator, to begin and track long-term goal based investing. Most goal planning calculators tell you how much you should invest. This sheets asks you, how much you can invest and goes about calculating the portfolio return. With that you can calculate the asset allocation required (equity to fixed income ratio)….
Continue reading →Risk represents the probability of loss and volatility a measure of fluctuation. The loss here refers to a loss of capital and fluctuation the ups and downs in the movement of an asset. Now these are textbook definitions. When applied to real-life new dimensions get added on, as with everything else. Let us start with the…
Continue reading →Last week I had written a post about exams: Do marks determine the future of our children? and received many insightful comments (as always). Two comments rang a few bells in my head. Hence this post. Context: I wrote, Marks represent effort. Marks do not represent knowledge or intelligence. Mr. Arvind wrote: there is a difference between ”…
Continue reading →Use this sheet to calculate the downside protection offered by a mutual fund for different investment durations (last 1-9 years). It also includes an ulcer index calculator. The present version has been updated with multiple indices from the Mutual Fund SIP XIRR Tracker This tool has been specifically designed to aid investors who would like to…
Continue reading →Every March, thousands of households are stressed out because of school board exams. The 12th standard exam is considered as the make or break exam in determining the future of a child. How important are marks/grades in determining the future of our children? Do board exams represent a do-or-die situation? It is very easy to say…
Continue reading →A simple method to review your mutual fund SIP investments by tracking the month-on-month returns is discussed. In a previous post, the data presented for 10-year SIPs had a huge spread. Analysis: 10-year Lump sum vs 10-year SIP returns That alone should be clear to you that one cannot simply let the SIPs continue hoping for…
Continue reading →Financial freedom seeker and early retiree, Balaji Swaminathan shares his experience in an extraordinarily forthright interview. Balaji retired in his 40s in India after having achieved financial independence. He explains how he planned his investments and when and how he decided that he was ready to retire. Ever since I wrote a post on ‘Is…
Continue reading →A method to choose debt mutual funds with no credit rating risk and low volatility or interest rate risk from a category known as short-term gilt funds – is discussed. This is post is a follow up to Debt Mutual Fund Investments: Minimizing Risk which referenced the fall in NAV of several Franklin Funds due to…
Continue reading →When someone wants your money, they offer you an interest rate and lock up your money for a few years so that they can invest your money elsewhere in peace! If you want 80C tax benefits, your money will get locked in for a few to several years (min 3Y in ELSS to max. when…
Continue reading →Franklin Templeton AMC hailed for its ‘strong research’ in selecting corporate bonds has come in for a lot of criticism due the downgrade (Feb 15th 2016) and subsequent default (March 9th 2016) of Jindal Steel bonds. A discussion on how to minimize risk associated with debt mutual fund investments. First, a look at the Jindal…
Continue reading →‘I would like to start managing my money better, but do not know where to start and how to start’. Is a statement I have come across in many forms. I have been accused of ‘providing mathematical answers’. So in this post, I try to do something different. Where to Start and How to Start?…
Continue reading →This year, direct mutual fund plans have taken off in a big way. This is exciting news not just because there is a single window to invest in direct mutual fund. In order to grow these portals must advertise*. Meaning commission-free investing will be the USP. Meaning more and more people will understand that their current online…
Continue reading →Here is a compilation of posts that hopefully can serve as a guide to last minute tax saving. Do not use ELSS mutual funds to save tax in the last minute! Unless you understand the volatile nature of equity returns, do not listen to any AMC or agent and invest in ELSS in the last minute….
Continue reading →Women members of Facebook Group Asan Ideas for Wealth listed several problems that women (married/unmarried, working/non-working) face when it comes to money management. Here is a compilation. Some problems are due to deep-rooted notions about ‘what a women can do or should do’ and some problems are due to lack of communication between a couple…
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