A reader wants to know, “Can I find out how much I need to invest for retirement without a calculator? Is there any thumb rule for this? Similarly, can I determine how much equity exposure I can have after retirement without a calculator?” We will discuss the first part of his question in this article…
Continue reading →A reader asks, “We have a retirement corpus of over Rs. Ten Crores. While we agree that having fewer funds is more manageable, we are nervous about stacking one cr in each fund, debt or equity. Do you think that fear is unfounded?” The number one goal in portfolio management is a peaceful sleep. So…
Continue reading →Many are drawn to the concept of generating passive income, yet few can achieve substantial results. This piece will explore the reasons behind such shortcomings and provide a passive income framework that can lead to a consistent income stream. Our focus will be on cultivating passive income online. Many of us struggle to build passive…
Continue reading →This article presents an outperformance consistency report of active mutual funds. This analysis was done for a SEBI-sponsored talk given to Tamil Nadu Investors Association Members on March 24th, 2024. Disclaimer: Fund performance reports present return and risk analysis of a fund with representative benchmarks and not investment recommendations. It must be expressly understood that the data…
Continue reading →These are the freefincal handpicked list of mutual funds for Jan-Mar 2024. New and old investors can use it according to their specific needs. The list is called “PlumbLine” and has been published since September 2017 for beginners to accompany the freefincal robo advisor tool. Most important! Plumbline is a mix of my opinions +…
Continue reading →This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We post this comparison each month. Before we begin, new readers need to appreciate the context of these investments. I started direct equity investing only after achieving a comfortable level of…
Continue reading →If diversification is about ‘not keeping all eggs in the same basket‘, rebalancing recognises that ‘what goes up, will come down‘. Let us revisit the topic of portfolio rebalancing and discuss what it is, why to do it, and simple ways to do it. What is portfolio rebalancing? Rebalancing is redeeming from one asset class…
Continue reading →We discuss a tactical entry and exit strategy for small cap mutual funds. This is the second such article. In the first part, we discussed a strategy based on the ratio of the small cap index to Nifty 50. This had a lower risk than a systematic investment in a small cap instrument and a…
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, we discuss a simple tactical entry and exit strategy for small cap mutual funds based on how expensive they are compared to the Nifty 50. The aim is to reduce the risk of investing in a small cap mutual fund. Before we proceed, several warnings, disclaimers and caveats should be disclosed. Unless…
Continue reading →A reader says, “Dear Sir, you have convinced us with clear data that most active funds cannot beat the index and that index funds are the way to eliminate high fees and fund manager risk. However, does this mean index investing is risk-free? Are there any risks with index investing? Kindly elaborate with an article”….
Continue reading →A reader says, “Thank you for the fantastic new tax regime vs old tax regime calculator for FY 2023-2024 (AY 2024-2025). It is really easy and useful. Currently, the new regime is beneficial for me. Can I switch back to the old tax regime if I wish to buy a house in future?” The old tax…
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 →A 35-year-old reader asks: “I would like to get Rs. one lakh a month pension when I retire. How should I invest to achieve this?” A pension after retirement is a necessary component of a post-retirement investment portfolio. However, it is not sufficient. Nothing beats the comfort and security of a guaranteed pension payout each…
Continue reading →In this article, we explain in simple terms what a mutual fund stress test is and what investors need to appreciate while investing in mutual funds, especially small cap mutual funds. If you have not seen the movie Margin Call, I strongly suggest you do so after reading this article. You could appreciate the situation…
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