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Published on 3 Comments on Axis Dynamic Equity Fund NFO: Investment Strategy Analysis

Axis Dynamic Equity Fund NFO is yet another dynamic equity fund that proposes to tactically change its asset allocation to reduce risk (with no guarantee that the backtesting will work in the future). When Anish Mohan sent me the funds KIM*, his description piqued my interest to look deeper. Here is a description of its strategy. a backtest followed by a discussion.

Announcement: Travel to Europe at 40-50% lower air fares!!
Pranav Surya just posted in AIFW that "Oman Air + Lufthansa are running a fantastic promotion for cities to travel from Delhi". If you want to avail such huge discounts (eg. Delhi to Berlin only Rs. 23K) , follow the steps pointed out in our new book: GameChanger (Rs. 199 hardcover; Rs. 99 Kindle). Additional tips are available in the Travel Training Kit (Rs. 199) read more

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Published on 8 Comments on Why can’t I invest in 608 equity all my life?!

A friend asked me this question: "I currently have an asset allocation of 60% equity and 40% fixed income. My retirement is many years away. Why can't I continue to hold 60% equity after retirement too? In fact, all my life?". Since the answer is not a simple "yes" or "no" and since it can illustrate certain aspects of reviewing the strength of a retirement corpus before or after retirement, let us discuss this with the aid of an example. read more

Published on Leave a comment on Freefincal Q & A: Too many funds; Surviving Crashes; Indexed Capital Gains

Each week I answer generic questions on personal finance & investing from readers.  Here is this weeks edition. You can use the form below to enter your question.

Announcement: Venkatesh Jambulingam has been kind enough to translate few of my posts in Tamil. Please support his work by sharing it. Latest posts:

How to review a mutual fund portfolio (Tamil) (English version is here)

Minimalist portfolio ideas for young earners (Tamil) (English version is here) read more

Published on Leave a comment on Freefincal Monthly Mutual Fund Screener (July 2017): Risk vs Reward Consistency

The July 2017 Freefincal Mutual Fund Screener is out! This tells you how consistently a fund has beat its chosen category benchmark over 3,5,7 year periods. In addition, its consistency in downside protection and upside performance is also included, along with lump sum and SIP returns over 1,2,3,4,5,6,7,8,9,10,11 year periods.

Announcement: Venkatesh Jambulingam has been kind enough to translate few of my posts in Tamil. Please support his work by sharing it. Latest posts: read more

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Published on 5 Comments on Beware of Misinformation: Mutual Fund SIPs Do Not Reduce Risk!

Many mutual fund SIP buyers and sellers incorrectly believe that SIP is a disciplined form of investing that reduces market risk because it averages the cost of purchase. In part 2 of "this is how a real market crash “feels” like", let us travel with a SIP started ten years apart and see for ourselves how well they manage to reduce risk.

Let us stop and think for a moment how the SIP works. Equate your corpus to the water in a bucket. Initially, you have no wealth to speak of and the bucket is empty. Each month you receive a salary - say some amount of water in the salary bucket. read more