You may have seen that mutual fund annualised returns are computed using a method known as XIRR (extended internal rate of return). We explain what this means using a simple example. When you make a single investment (lump sum for want of a better word) in a mutual fund or stock, the return (after a…
Continue reading →We have added a Coast Fire calculation option to the freefincal robo advisor. Coast Fire is best explained with an example. Suppose you are 25 years old and wish to retire by age 55. You estimate the retirement corpus required to maintain your current lifestyle to be Rs. 5 Crores. Suppose you wish to invest each…
Continue reading →The latest freefincal Equity Mutual Fund Performance Screener is now available. Use it to screen for consistently performing equity mutual funds. You can screen based on fund category & benchmark to identify mutual funds that offer higher returns than the benchmark while maintaining lower risk. Inside, you get discounted links to our robo advisory tool…
Continue reading →Many investors display strong emotions whenever a mutual fund or MF asset management company gets into trouble (bond defaults, redemption pressure, front running, etc.). One group blames the AMC, the regulator, and finfluencers and goes into “I want my money back mode” Another group attacks those who are critical of the AMC under pressure and…
Continue reading →It is well known that passive fund enthusiasts recommend an index fund that captures as much of the market as possible – large cap, mid caps, small caps. This gives you complete market participation at low cost. According to the NSE, “The Nifty 500 Index represents about 92.29% of the free float market capitalisation of…
Continue reading →This is a National Pension Scheme Fund Screener to shortlist consistently performing NPS schemes. You can also identify NPS schemes that offer a higher return than the benchmark while maintaining lower risk. This is similar in design to the freefincal Equity Mutual Fund Performance Screener. Inside, you get discounted links to our robo advisory tool…
Continue reading →In this article, we discuss a reader’s question, “How should I benchmark my equity MF returns?”This is an important step for those investing in active mutual funds as it often reminds them that beating a benchmark index is not easy. See: Why are you recommending index funds when your portfolio has beaten the market? However, it…
Continue reading →Everyone associated with a mutual fund says, “the best way to build wealth is via SIP in an equity mutual fund over the long term”. However, where is the proof that a long-term equity mutual fund SIP would work? In this article, we analyse 40+ years of the Sensex and 110 years of the S&P…
Continue reading →Many readers ask us from time to time how to increase their equity exposure for long term financial goals. Their current portfolios are debt-heavy and largely ill-liquid. This is a serious problem many investors face, particularly those who started earning early in their 20s. In my case, I started earning and investing for retirement only…
Continue reading →We compare the rolling returns of Nifty 50, Nifty Next 50, Nifty Midcap 150 and Nifty Smallcap 250. We publish this comparison from time to time. This is the September 2025 edition. Returns for a financial instrument that fluctuates can be calculated in two ways: Point-to-point returns: The effective annual compounded growth rate (CAGR) is…
Continue reading →We publish a list of stocks with low volatility and momentum each month. We provide data for BSE 500 and BSE 100 stocks. There are now three different screener files available. (1) Stocks with low volatility and momentum from the BSE 100 large cap universe are available as a separate file (2) Stocks with low…
Continue reading →Whenever I share my investment portfolio in annual audits or other articles, readers ask about my investment strategy. See, for example, “17 Years of Mutual Fund Investing: My Journey and Lessons Learned.” “How did you select the funds you hold?”, “How do you decide when to exit a fund?” and so on. Others are angry…
Continue reading →Are you shocked to see the corpus required for retirement and the necessary investment amount? See, for example, the results of a retirement planning exercise. Don’t worry. The situation is perfectly normal, and you still have a shot at financial independence in retirement. Here are some generic steps to consider during and after a retirement planning…
Continue reading →I believe securing our family and wealth with multiple safeguards is essential. To do this, we must ask, “What could upset our plans or harm our family?”. While I was setting my affairs in order, I often used to ask, “What is the worst that can happen to us from a financial standpoint?” This always…
Continue reading →I encountered an interesting YouTube comment: “3% withdrawal is safe to retire at what age? The withdrawal rate is clear, but I am not sure if it has age attached to it. The longer the post-retirement life, the higher the uncertainty?” What does the term “safe withdrawal rate” mean? The safe withdrawal rate, or SWR,…
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