Nearly three years ago, I was introduced to an interesting idea in goal-based investing by Chenthil Iyer, Horus financials. You invest a monthly sum of X in a single portfolio for all financial goals. The portfolio is allowed to grow and when the time for each goal arrives, the necessary sum is withdrawn. The final…
Continue reading →I have fond memories of my BSc days. From the pressure cooker situation of 12th standard, we found ourselves suddenly having a lot of time in hand. A LOT of it Thankfully, cable tv was at its infancy and there was no internet. So I had the most creative and productive years of my life…
Continue reading →How many stocks does an equity mutual fund hold? It is related to the assets it is managing? It is related to performance relative to peers (aka star rating)? Let use see if we can get some insights into these questions. I started digging around in this direction because I would like to do (yet…
Continue reading →While recommending equity as an asset class or equity mutual funds as an instrument suitable for newbies, illustrations about the power of compounding, past returns and how they have comfortably beat inflation are typically used. This is followed by caveats (besides past performance disclaimers) that the investor must be ready to stomach the ups and…
Continue reading →The automated stock analyzer now pulls annual (standalone/consolidated) and quarterly financials from Value Research online. It also pulls financials from morningstar, adjusted stock price from money control and calculates intrinsic value five different ways! Note: If you are not familiar with valuation techniques, I suggest that you download the tool, and read the references provided…
Continue reading →Should a subscriber be given the option to make partial withdrawals from a pension plan? The EPFO always allowed it. That is how mom and dad funded my education! Which, many argue is the main reason why retirees do not have much of a corpus to speak of! Now the pension fund regulatory and development…
Continue reading →A newspaper knows how to get your attention! The economic times carried an article yesterday titled, “EPFO may have ruined your retirement plans. Here’s how”. For its standards, the article makes the sensible conclusion that young people should invest enough in equity. The subject of the article is the following: EPFO will now invest 5%…
Continue reading →So social media is abuzz* that someone called Kenneth Andrade is quitting IDFC amc (update: now official). To be frank, I had no clue who he was, until I saw an AIFW post. When I googled his name, I then remembered seeing his interview at VR and that he is the manager of IDFC premier equity. Perhaps I…
Continue reading →Asset allocation refers to the proportion of different asset classes in a portfolio. For example, percentage allocation to equity and debt. The allocation is (or rather should be) decided with an aim to balance risk and reward. The adage, “do not put all your eggs in the same basket” is usually used to explain this…
Continue reading →“who is a financial adviser? What do they do?”, are, for me, surprisingly difficult questions to answer. Perhaps if I did not know anything about advisory regulations, I might have said something naive like, ‘a financial advisor is a money-management doctor’ Unfortunately, since I know a bit about these regulations, I take it upon myself to irritate…
Continue reading →Use this sheet to generate a schedule of future EPF and EPS contributions. It uses the new salary threshold of Rs. 15,000 and include the three ways in which the contributions are computed if the basic salary is above the threshold. Pratheek John suggested this would be more useful than the EPF corpus calculator published…
Continue reading →Here is a simple EPF corpus calculator derived out of the retirement calculator sheets. The corpus calculation is the same as any SIP calculator. Just that we need to factor in increasing contributions due to a salary increase and the correct total EPF contribution from salary. The formula used for total contribution (employee+employer) has been…
Continue reading →In this third and final part on “how to select an equity mutual fund”, we will consider different ways in which one ‘make a choice’ from a shortlist. Yes, there are several ways to choose from a shortlist, just like there are several ways to make a shortlist. You will have to take your pick….
Continue reading →Any selection process should have three components: (a) an objective; (b) a method to create a shortlist and (c) a method to finalize with the shortlist. Yesterday we discussed the objective. Today we shall consider how to create a shortlist from which an equity mutual fund can be selected. If you have not read yesterday’s…
Continue reading →Over the next few days, I would like to do a series on “How to select an equity mutual fund”. This is the long overdue update to the step by step guide to mutual fund selection. I write this primarily because my understanding about mutual funds has grown significantly since I wrote the pdf guide. I…
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