In an interview to Wealthforumezine, Shankaran Naren, CIO, ICICI Pru AMC, suggested that buying low and selling high using the price to book value (PB) is better than the price to earnings (PE) model. Since I have earlier shown that there is absolutely no merit for long term investors to buy at low PE and sell at…
Continue reading →Here is how I visualize the growth of an equity portfolio as a tilted pendulum. It is a simple ‘mental model’ that might* aide a new investor with regard to what he/she should expect from equity investments. (*) might because, it makes sense to me, but I am not sure if it will to you….
Continue reading →So many people have told me, one should assume that expenses will decrease after retirement due to a change in lifestyle, that I am now convinced that it is a cognitive response to avoid pain. The pain associated with staring at the results of a retirement calculation made with meaningful inputs. It is abject cluelessness when a…
Continue reading →Living in a hotel after retirement has been my fantasy for long. Let us calculate how much it would cost to live in a hotel after retirement. Yes, this is a fantasy post and I will never be able to pull it off, but it is intriguing to calculate the costs and consider the benefits of…
Continue reading →Do not assume that your insurer will hand out your life insurance amount (term, endowment, ulip etc.) on a platter to your nominee! Deepak Shenoy of capital mind posted about how ICICI Pru Life bitterly fought a claim settlement and delayed it by about 7 years. http://capitalmind.in/2015/07/has-icici-prudential-life-taken-to-fake-doctors-prescriptions-to-avoid-paying-out-claims/ This led to the swift clamour that one should not…
Continue reading →Here are some charts from yesterday’s post: Should gold be part of your long-term investment portfolio? Franklin Indian Blue Chip is chosen as representative of equity Franklin Indian Income fund as representative as debt. Per gram price data obtained from indexmudi is used to represent gold investment Data range is June 1997 to June 2014 (quite small…
Continue reading →Should gold be part of your long-term portfolio? Does it help to have some exposure for the sake of diversification? This is the second part of “asset allocation for long-term goals”. The first part which considered only equity and debt, can be found here This post was made possible, thank to Balaji Swaminathan. He got…
Continue reading →This is a step by step guide to e-file AY 2020-2120 (FY 2019-20) income tax returns using forms ITR2, ITR3 and ITR5. This is an updated version of the second part of a guest post by Aparna C K. She describes LTCG, STCG, carry forward and income from other sources sections of ITR-2 and…
Continue reading →Here is a step by step guide to file income tax return (ITR1) for AY 2019-20. Please consider forwarding this to a person who is going to file returns for this first time. This is an updated version of a guest post by Aparna C K. You can also consult Guide to efile Income Tax…
Continue reading →Use this calculator to analyze if you should pre-pay your home loan asap or invest instead. This is now republished after correcting a bug pointed out by Ankush. I had posted an illustration of prepay vs invest in June but did not post the associated sheet. I have now modified the sheet to include new…
Continue reading →Those who attended the second Chennai investor workshop had the privilege to listen to R. Balakrishnan – Crisil co-founder; former head of equity research at DSP Merrill Lynch, former executive VP of Edelweiss, Money Life columnist and blogger (to name a few!) He spoke about “investing for keeps: in equities I trust”. The video was shot by my friend,…
Continue reading →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 →