The Nifty Next 50 is a strange index. Although theoretically part of the large cap universe, due to large impact costs (significant difference between buy and sell price), its volatility is comparable to that of a mid cap index, as repeatedly pointed out by us: Warning! Nifty Next 50 is NOT a large cap index!…
Continue reading →A reader asks, “I cannot decide between Nippon India Nifty 50 Bees ETF and UTI Nifty 50 Index Fund. The ETF has a total expense ratio of 0.05%, while the index fund’s TER is 0.2%. My friends tell me that ETF is bound to outperform the index fund over the long term and that choosing…
Continue reading →Dear reader, The end of the year is the perfect time to plan and organise your finances and plan for the future. Use the links below to enjoy year-end discounts on our courses and robo-advisory tool! (1) Build a complete financial plan with our Robo Advisory Tool! Get the freefincal robo advisory tool to plan…
Continue reading →A reader asks, “Sir, I have read several of your articles and noticed that you always recommend 50-60% equity for long term goals. I am 31 and wish to retire by 60. However, I am extremely uncomfortable with stock market investing. So can you please let me know if I can manage with not more…
Continue reading →This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We post this comparison each month. Before we begin, new readers need to appreciate the context of these investments. I started direct equity investing only after achieving a comfortable level of…
Continue reading →In this article, CA Karan Batra shares seven practical and successful ways to make money through a blog based on his extensive experience. If you want to get started in this direction, check out some resources at the end of the article. About the author: Karan Batra is a chartered accountant and is regularly featured…
Continue reading →In May 2021, we carried a reader story by Mr G – My net worth doubled in the last financial year thanks to patient investing! Mr G has kindly consented to provide an update and explain how the following financial year was one in which he achieved “investing nirvana”. About this series: I am grateful to…
Continue reading →A reader asks, “Sir, I have been reading about the safe withdrawal rate in retirement planning. I am, however, surprised that you do not talk about it. Why is this so? Is there a way to calculate my safe withdrawal rate when I retire 25 years from now? I am presently 30″. What is a safe…
Continue reading →A reader writes, “Can you please write an article on the best way to combine a normal (base) health insurance policy with a super top-up policy? That is, how much should the base insurance be and how much the super top-up policy?” First let us point out some helpful resources for those looking to understand…
Continue reading →Over the last ten years, we have witnessed a big shift in how young earners manage money. Investing is getting popular instead of saving. Many more think of future money management (a better-sounding phrase than “retirement”) earlier than ever. However, not all of them sit down and do a proper retirement planning exercise. Here is…
Continue reading →A reader asks, “I recently asked the members of a personal finance forum to review my 25 mutual fund portfolio. Everyone said that I held too many funds and that my portfolio resembled an expensive index fund. Is it wrong to hold that many funds? If so, what should I do?” They are right in…
Continue reading →We review the performance consistency of UTI Pension Fund Scheme E – NPS TIER I measured against Nifty 50 TRI and UTI Nifty 50 TRI. The scheme was launched in May 2009 and currently has an AUM of about Rs. 1,423 crores, much lower than the corresponding AUM of HDFC and SBI equity schemes reviewed…
Continue reading →A reader asks, “how do we decide the right rate of inflation to be used in financial planning calculations?” Let us first address the easy part: “What inflation rate NOT to use!” Financial planning is a personalized exercise. All inputs and assumptions should reflect our personal circumstances. Therefore the rate of inflation we assume has…
Continue reading →In this edition of the debt fund profile, we look at ICICI Prudential Savings Fund. This is an open-ended Low Duration debt scheme investing in instruments such that the Macaulay duration of the Portfolio is between 6 months and 12 Months. The fund’s category, “Low Duration”, gives one the impression that it is suitable for…
Continue reading →I have been tracking the amount I invest for my goals for more than 11 years. It has been a life and game changer for my family. Whether you track your spending or not, I believe tracking the amount we invest is crucial. Today I can invest more for retirement than my target investment. That…
Continue reading →It is quite easy to see extreme reactions to many aspects of personal money management. Yield-chasing or seeking to invest in high-interest rate fixed income products is no different. Many investors vehemently believe that there is no place for risk in a portfolio. “We have enough risk from equity, so why take on more risk…
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