Debt Mutual Fund vs. Fixed Deposit Comparator – Version II

There are many articles on the web that talk about the difference in the way debt mutual funds and fixed deposits are taxed. Almost all of them (including the ones by self-proclaimed beacons of financial literacy) talk about post-tax returns typically over 3-5 year periods.

To my knowledge there is only one article, written by Subramoney which talks about the advantages of debt funds over fixed deposits when one stays invested for several years (much more than 5!): Money Control article dated Nov 26, 2011: Advantages of debt funds over fixed deposits read more

Weekend viewing:- The Last Lecture: Achieving Your Childhood Dreams

Every semester whenever I teach a new set of students I suggest that they watch a youtube video titled:

Randy Pausch Last Lecture: Achieving Your Childhood Dreams  (click the link to read details on Wikipedia).


A dying professor tells his students and colleagues about how he achieved all his childhood dreams and how anyone can do it.

Here is the video. I strongly recommend you spend a some time watching it this Sunday. read more

Weekend Reading: Pattu, Freefincal Aur Woh

In a recent post on some changes to Freefincal, I had mentioned a desire to write about non-financial subjects.  I decided to revive my old blog, The Ground State – the trouble with being open-minded, and publish such posts there, so that Freefincal suffers from only one kind of neural diarrhea.

Here is my first such post:

Is Astrology a Science or Psychological Exploitation?

For those who were interested in ‘how to lose weight without exercise’, I am working on it. I will post it after a few days. read more

Anyone Interested in This Free Stock Returns Simulator?

I received the following email from Mr. Jyoti Kumar, Director- Development (Co-founder) at Bazaar Analysis Pvt. Ltd on LinkedIn (blue text within the message is mine)


Dear Sir, 

I read your article

Understanding the Nature of Stock Market Returns

I was really surprised by the figure
…for 15 years will have returns ranging from 15.8% – 5.4% to 15.8% +5.4%…

(Context: Long term stock returns. “68 out of 100 investors who have stayed invested for 15 years will have returns ranging from 15.8% – 5.4% to 15.8% +5.4%.”) read more

Step-by-Step Guide to Selecting a Mutual Fund

Warren Buffet, in a letter to his shareholders said, ‘do not ask a barber if you need a haircut’. This applies to many situations in life. In the present context, ‘never ask someone in the financial advisory business, if mutual fund selection is hard’.

Selecting a mutual fund is not rocket science. It can be done by anyone. Of course it requires a bit of effort, nothing unnatural about that. Anything in life that is worth doing requires effort. read more