In this post, I discuss the basics of robo advice, its pros and cons for the benefit of the interested layman as a lead up to the launch of the freefincal robo advisory template next week. What is robo advisory? Suppose you wish to plan for your daughter’s college expenses 10 years from now and wish…
Continue reading →In this post, I discuss why it is important for investors to not take mutual fund market cap classifications seriously. In particular, your “large cap fund” is probably either a multi-cap fund all the time or now and then. The notion of what is a giant cap, large cap, mid-cap, small-cap or micro-cap stock is not…
Continue reading →Axis Dynamic Equity Fund is yet another dynamic equity fund that proposes to tactically change its asset allocation to reduce risk (with no guarantee that the backtesting will work in the future). When Anish Mohan sent me the funds KIM*, his description piqued my interest to look deeper. Here is a description of its strategy….
Continue reading →Have you not read the mutual fund past performance disclaimer? Then how can we select mutual funds using past performance alone? In this post, I discuss this question asked by Swati Joshi. It is no secret many in the financial services dislike me. So their favorite approach to criticism is to claim that my “fund…
Continue reading →For a person who has been investing in equity (directly/indirectly) for several years, the question, “how much equity exposure should I have after retirement?” is not so hard to answer. However, that is not the case for most 50+ investors heading towards retirement. They would have little or no experience with equity or any market-related…
Continue reading →Why blame Value Research For awarding Taurus Liquid Fund that is in trouble for continuing to buy a near-junk bond (Ballarpur Industries), five stars (four stars when commissions are removed)? That is like blaming someone because they could not predict a market crash! Before we go any further, it is important to recognise that many…
Continue reading →Here we go again! Yet another AMC has been caught on the wrong foot with one of its bonds downgraded in value. This time it is Taurus Mutual Fund which held at least 65 crores of Ballarpur short-term bonds in four of its funds. In what was a probably a first for the Indian industry, Taurus liquid…
Continue reading →Each week I try to answer generic reader questions on money management. Here is this weeks edition. Hi Sir, I follow your blog regularly – you helped in a great deal choosing the right funds as per goals. Now, my question is – when is a good time for a retail investor to consider portfolio…
Continue reading →In this weeks freefincal Q/A, we discuss matters ranging from last year’s star ELSS fund to portfolio rebalancing. Before we get to the questions, a quick mention that the Q/A is a feature in which I address generic questions from readers. You can use the form below to ask your questions. I will address them next week….
Continue reading →Have you ever wondered why a corporate fixed deposit offers a higher rate of return than a bank deposit? Have you ever considered investing in corporate FDs, but worried about the “risks”? In this post, I simple ways to invest in corporate fixed deposits. Before we begin, allow me to point out that You Can…
Continue reading →Many investors worry that they would lose the benefit of compounding or growth if they switch mutual funds. A discussion on why is not true as part of the freefincal Q/A. As mentioned last week, I will respond to reader queries each Saturday. I was supposed to make a video response, but I don’t quite feel…
Continue reading →Bond yields have been dropping rapidly since the demonetization announcement. As a result, the NAV of long-term gilt mutual funds has been on the increase. At a time when many investors want to benefit from this move, Mr Srinivasan Sundarajan, in this third guest post, cautions to look before you leap. +=+=+=+ About 10 days ago,…
Continue reading →The notion of risk and reward is key to any investment plan. However, our understanding and expectation of risk and reward are often clouded by an inability to distinguish between probability and possibility. Here are a couple of examples that hopefully might bring out the difference. First some book news: Our new book, You can…
Continue reading →Go to a bank or post office and you can locate a board that lists typical transaction times. Here is how long each basic step in financial planning will take. Assumptions: You know that equity investing is necessary to combat inflation. You recognise the bad investments in your folio and have decided what to do about…
Continue reading →In this post, I describe a visual tool for analysing mutual funds and portfolios, referred to as fingerprinting by its developer,Jim Otar, a Canada-based financial planner. I thank Swapnil Kendhe for bringing this method to my attention. As the song goes, ” I get by with a little help from my friends”. I have developed…
Continue reading →