A reader says, “I was very happy with my mutual fund returns over the last few years until I started reading your articles. They made me realise it is just luck or one fortunate sequence of returns. I now recognise that the going will not always be good. This makes me wonder what the maximum…
Continue reading →A reader wants to know how to account for taxes while planning for retirement — a discussion. Tax is always tricky to guess. Many individuals assume their tax liability will reduce after retirement, and this need not be the case. If we want to achieve comfortable financial independence after retirement, we should probably hope to…
Continue reading →A reader says, “I am 30 and plan to remain single. My current expenses are about Rs. 50K, I have a corpus of Rs. 75 Lakhs but only 40% equity. Can I become financially independent by 40? I can invest a little more than two lakhs a month.” You can invest about four times your…
Continue reading →Over the years, especially in the last two decades, the INR has been relatively resilient against the USD compared to its past performance. As our economy grows, we should have more faith in our currency. Before we look at the data, let us understand why the Rupee fluctuates in value against the US Dollar. Note: I…
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. Update: We recently added a new tool to the freefincal investor circle…
Continue reading →Every time gold prices spike, everyone becomes an expert on the commodity. There is a lot of “I told you so,” “why gold is always the safest asset,” and “why its value never comes down.” If you are interested in investing in gold for its “return, ” there is a lot to consider before diving…
Continue reading →Sometimes, an idea, phrase, or action becomes so commonly used that we take them for granted and don’t stop to think about why they are used. So, can we pause momentarily and ask, “Why should I diversify my investment portfolio?” When we push ourselves into a corner and force ourselves to answer, we will probably…
Continue reading →In this edition of the reader story, we have a response to our recent article – Is it better for a young family to rent than to buy a home? My father retired in 2008 from a PSU in Hyderabad. The company is not part of any govt pension scheme, so all he had was a…
Continue reading →This is a debt mutual fund screener for portfolio selection, tracking, and learning. It also includes hybrid funds that invest in bonds. It will satisfy investors who wish to invest in money market funds, banking PSU funds, etc. The credit quality of the bonds in the portfolio and the bond maturity profile can be tracked….
Continue reading →We discuss some mistakes to avoid while planning for early retirement. Whether or not early retirement is a wise choice is a highly debatable topic. Ultimately, it is up to the individual to be clear about why they wish to retire early and what they intend to do afterwards. We shall get into this debate…
Continue reading →A common criticism from those who read our robo advisor-based illustrations is, “Why are you recommending small equity exposure even to early retirees?” We shall try to explain in this article. If you have not read these illustrations, see: Retirement plan review: Am I on track to retire by 50? I am 30 and wish…
Continue reading →A reader says, “I am an Army Officer and have been a DIY investor for some time now, thanks to the invaluable lessons from you and many other knowledgeable teachers on YouTube. My investment approach has been quite sufficient for my requirements, and being in a pensionable service (by the grace of the Almighty!), I…
Continue reading →This index fund screener is based on tracking error and returns difference wrt benchmarks (aka tracking difference). It will help users evaluate how efficiently an index fund has tracked its underlying benchmark. It will also help them understand how tracking a midcap index or the Nifty 100 or 500 differs from tracking the Sensex or…
Continue reading →A reader asks, “Leaving aside the emotional component, is it “better” for a retired couple to live in a rented flat rather than buy a flat with the sale proceeds of their home?” This is a tough one as there are many factors to consider. Assuming they lived in an old independent house, the usual…
Continue reading →In this edition of the reader story, “I’m 42 years old and currently working as a Product Manager in the healthcare sector. My spouse, aged 49, previously worked in the IT industry but chose to step away for personal reasons. We have two children—my son is in the 7th standard and my daughter is in…
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