The mutual fund industry has done a mighty propaganda job of ‘educating’ investors about ‘systematic investing’. So much so that many investors believe (not just new ones) that SIP is a financial instrument in of itself! 1. SIP is not different from lump sum when you invest Every time you make a mutual fund purchase,…
Continue reading →This is a guest post by Butun Mohapatra. When he posted his experience with a SEBI registered fee-only financial planner at FB group, Asan Ideas for Wealth, Vivek Vishwanathan suggest that it be published here. Butun immediately agreed and turned in a draft in just a few hours! Let us find out what Butun wants us…
Continue reading →A little while ago, I was invited to participate in an informal gathering of humanities students from various institutes. We watched the movie, Hector and the search for happiness and there was a presentation by a student who was studying the movie for a mini-project and a discussion on ‘what makes us happy’. The title, Side effects…
Continue reading →The Pension Fund Regulatory and Development Authority (PFRDA) has announced guidelines regarding partial withdrawal from the National Pension System (NPS). (1) A subscriber whose NPS account is at least 10 years old will be eligible for withdrawing 25% of his/her contributions alone. Employer contributions (if any) cannot be withdrawn. Notice the similarity with the recently…
Continue reading →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…
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