In this edition of the reader story, we have an account of how a 55-year-old who retired recently securely draws an income and manages spending. About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers. Some of the previous editions are linked at the bottom of…
Continue reading →Hiring a professional financial advisor has become a common trend due to the increasing hype and importance of financial planning. Moreover, the upsurge in the demand for financial planners has resulted from rampant online promotion. You also must have come across various promotional posts encouraging users to hire Fixed Fee Comprehensive Financial Planner in India….
Continue reading →We discuss how pretty much all of investing (lump sum or SIP) and borrowing (debt., EMI) can be described by a single equation! In finance workshops, people are often taught to use spreadsheet commands like PV, FV, PMT, NPER, etc., without a deeper understanding. Consider a lump sum investment we shall label as pv (for…
Continue reading →Readers often ask, “How much capital gains tax should I pay if I have no other income source?” The answer is quite simple. Up to the tax-free limit (using the then prevailing tax slabs), the capital gains are tax-free if there are no other sources of income (this is quite rare, if not impossible). We…
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 →In this article, SEBI registered fee-only advisor Ajay Pruthi explains how to choose a health insurance policy. About the author: Ajay Pruthi is a fee-only SEBI registered investment advisor. He can be contacted via his website plnr.in. Ajay is part of the freefincal list of fee-only advisors and fee-only India. Do you think there’s no need for personal health insurance…
Continue reading →Are you worried about market volatility due to the elections and beyond? You can easily reduce portfolio risk with these simple steps we refer to as goal-based risk management – a combination of passive, systematic investing and active risk reduction. If implemented sequentially, these steps would result in greater focus and success. You can automate…
Continue reading →This index fund screener is based on tracking error and returns difference wrt benchmarks (aka tracking difference). The screener will help users evaluate how efficiently an index fund has tracked its underlying benchmark. It will also help to understand how tracking a midcap index or the Nifty 100, 500 differs from tracking the Sensex or…
Continue reading →Taxation of multi-asset funds can be complicated—a simple explanation of the rules and how to choose funds in this category.
Continue reading →We discuss modifications that can make the National Pension Scheme (NPS an attractive retirement solution accommodating changing needs. The New Tax Regime has made redundant the “extra Rs. 50,000 tax saving” (or reduction in taxable income). So, finally, NPS can attract the right kind of investor. The new-generation retiree wants the flexibility to retire early…
Continue reading →A reader says, “I am investing next month with a nest egg of Rs. 5 Crores. Please guide me on how to invest this for a peaceful retirement. I am 55 years old. My wife is 56. Our annual expenses are Rs. 8 lakhs (including Rs. 20 lakh health insurance cover)”. We shall punch this…
Continue reading →This ETF screener is based on tracking errors and tracking differences (ETF return minus index return). The screener will help users evaluate how efficiently an ETF has tracked its underlying benchmark. 70-plus ETFs are now covered. The tracking error is the ETF’s standard deviation minus index monthly return differences. The lower the tracking error, the…
Continue reading →A reader asks, “Which will fetch more returns over 15 years, an SIP or a lump sum investment?” Comparing the returns of a SIP with a lump sum investment has little practical use. After all, none of us will invest just once in the market or always systematically. Even if we did make the comparison,…
Continue reading →I am a 23-year-old girl living in Mumbai and the sole breadwinner of my family of 4. I work as a Graphic Designer at a publishing company with an in-hand income of ₹27,000 a month. I am sharing with you how I started my investment journey, and I hope to learn more from Freefincal’s articles….
Continue reading →A reader says, “Given the changes in debt fund indexation benefits, I come across market veterans recommending equity savings and multi-asset funds as alternatives. I have the SBI, Kotak and Parag Parikh conservative hybrid funds in three different portfolios in my family. Would you continue to recommend these conservative hybrid funds for a long term…
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