The RBI has cut interest rates thrice this year. On the one hand, this has made those who are using equity to accumulate wealth happy, as it could mean the start of a bull market driven by growth and not hope. On the other hand, this development has worried senior citizens who are used to…
Continue reading →Here is how the revised pension will be calculated as per the seventh pay commission pay matrix. This is applicable for all civilian pensioners who retire before 01-01-2016. After the seventh pay commission comes into being, as an interim measure, the revised pension will initially be equal to 2.57 times the pension fixed at the time of…
Continue reading →Here is a seventh pay commission calculator based on the pay commission report which allows you to determine your new salary based on the pay matrix. Do share this sheet with your colleagues or friends who work for central or state governments. For pensioners: Seventh Pay Commission Revised Pension Calculation The six pay commission introduced…
Continue reading →Here are some must-know facts about accident insurance policies in India that a buyer should be aware of. An accident insurance policy is one that provides 100% of sum insured in case of accidental death, 100% -50% of sum insured in case of permanent total disablement (eg. loss of both limbs, both eyes, both feet)*…
Continue reading →A few years back, I took my entire M. Sc class to lunch. Don’t remember why. They probably coerced me into it! As someone who never eats outside, I was clueless about pricing and was trying to get a rough estimate as they wanted to go to a high-end place (relative to the campus cafeteria!)….
Continue reading →Visu is a Tamil writer, actor, director and producer well known for his “family-oriented” movies and plays. He also became popular on the small screen when he began hosting a debate on social issues. Recently he was felicitated by the ‘Humour club’, a Chennai-based organisation that promotes healthy humour and humorists. I got to see…
Continue reading →The most important input while planning for a financial goal is the current cost of the future expenditure. When the goal is several years away, the current cost is a crude estimate. For retirement, we can assume present lifestyle barring child’s education expenses and liabilities. For a Ferrari, we can enter the current cost. For a…
Continue reading →Claim settlement ratio does not matter anymore from 2015 if your life insurance policy is at least 3-years old because IRDA has amended the section 45 of insurance act such that any life insurance policy which is at least 3-years old cannot be denied claim “on the ground of misrepresentation or suppression of a material…
Continue reading →Here is why one should not buy the sovereign gold bonds which are on sale from Since Nov. 5th 2015, despite the sovereign guarantee and the 2.75% interest rate. From today (5th Nov. 2015), Sovereign gold bonds will be available for subscription at an issue price of Rs. 2,684 per gram. Subscribers can buy bonds which…
Continue reading →The automated stock analysis Excel sheet (version 8) now calculates thePiotroski Score for the last 9 financial years for Indian stocks. In January 2002, Prof. Joseph Piotroski wrote a paper titled, Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers which detailed a method of buying stocks based on 9 balance sheet…
Continue reading →Mutual fund downside protection refers to instances when the weekly or monthly or year return of the fund is better than its benchmark, when the benchmarks corresponding return is negative. For example, suppose a fund gives a monthly return of -10%, when the benchmark has given a return of -15%. The fund has only captured 67%…
Continue reading →Should NRIs Invest in the National Pension Scheme? A discussion on why the National Pension Scheme (NPS) is not a good option for NRIs to invest in. RBI has allowed NRIs to invest in the National Pension Scheme. While such a move would be beneficial for the country, I don’t think investing in the NPS is…
Continue reading →How important is it to select a ‘good’ mutual fund for investment? Although I have written step-by-step guides to select equity and debt mutual funds, ‘does fund selection matter at all’ is a question that has often bugged me. What if I chose funds randomly for investment?! In this post, let us consider the effects…
Continue reading →ICIC Amc launched a new feature called ‘moneyback’ in its ICICI Balanced Advantage fund. Here is why retirees or young investors should not choose the moneyback feature of ICICI Balanced Advantage fund. The moneyback feature is a terribly misleading term for a Systematic Withdrawal Plan or a SWP (check out a Step-up SWP Calculator). A SWP is the…
Continue reading →A method to analyse mutual fund performance during a particular investment duration in terms of consistency of returns is discussed in this post. Many mutual fund investors are unable to rationally analyse the performance of their equity mutual fund holdings and often ask, When should I exit an equity mutual fund?. I would like to suggest…
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