The number of equity investors (stocks + mutual funds) in the last 5-7 years has increased dramatically. Most of these investors are young and have much to learn about market risk vs reward. Meanwhile, there is a silent transformation underway. More and more Indians are retiring in their 50s with higher and higher capital market-linked…
Continue reading →There is no limit on the number of sectoral or thematic mutual funds an AMC can produce. So, they do just that! These have huge fees and are marketed as the next big theme to profit from. But how consistent are they in beating a large cap index like Nifty 100 TRI? Note: These are…
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. Update: 76 ETFs are now covered. The tracking error is the ETF’s standard deviation minus index monthly return differences. The lower the tracking error,…
Continue reading →Many state and central government employees are against the national pension scheme (NPS) and want to restore the old pension scheme. Some state governments have also reverted to the old pension scheme. Unfortunately, this is financially unsustainable. Take, for instance, the DA announcement on Sept 28th 2022. “The additional financial implications on account of this…
Continue reading →A Financial Health Check Tool developed by M. Pattabiraman is now available at SEBI’s Investor Education Portal. A prototype was tested in Jan 2023 with members of the Facebook group Asan Ideas for Wealth, and their feedback was implemented. Later, the SEBI Investor Protection Education Fund Advisory Committee gave further feedback, and the tool has…
Continue reading →In this article, we consider non-financial aspects of planning for our children’s future. We have already covered the basics of how to be financially ready for college expenses. We shall limit ourselves to “doing well” in school and college although there is ample overlap with all walks of life. Many people have the incorrect opinion…
Continue reading →Income tax filing might look like a tedious process. However, it brings a smile to your face when you see there is a refund due from the income tax department. So, after you file ITR, the wait starts, especially if the refund amount is a little more significant. In this article, we will learn how…
Continue reading →Recently, a reader shared his post-retirement investment strategy: Hold expenses for five years in a cash bucket (savings funds + liquid fund + money market funds + safe bank fixed deposits) at all times during retirement and invest the rest in equity! I do not share the reader’s enthusiasm and would prefer the approach adopted…
Continue reading →A reader asks, “If you started investing one year and four months back with 60 -40 equity-debt, Its current value is 59 – 41. Should you rebalance now or wait for the further difference?” What is portfolio rebalancing? Asset allocation is the most important aspect of your portfolio. It tells you how much equity you…
Continue reading →The latest freefincal Equity Mutual Fund Performance Screener is now available. Use it to screen for consistently performing equity mutual funds. You can screen based on fund category & benchmark and spot mutual funds with a higher return than a benchmark at a lower risk. Inside, you get discounted links to our robo advisory tool…
Continue reading →Many clients often inquire whether to use their personal or corporate health insurance policy first. Let’s figure out whether you should use your corporate or personal health insurance in case of hospitalization, assuming there are no room rent sub-limits in both policies. I thank Melvin Joseph Sir (Finvin Financial Planners), who provided valuable input for…
Continue reading →By now, everyone knows the drill. For a long term goal, you can have 50-60% of equity exposure (preferably in an index fund) and the rest in fixed income. Get set, go. Sadly, the race has just begun, and there are plenty of pit stops to worry about. The number of people who care about…
Continue reading →We publish a list of stocks with low volatility and momentum each month. We provide data for BSE 500 and BSE 100 stocks. There are now three different screener files available. (1) Stocks with low volatility and momentum from the BSE 100 large cap universe are available as a separate file (2) Stocks with low…
Continue reading →It is clear from how many readers, particularly young earners, respond to freefincal content these days that they are overconfident about their equity investments. Especially investments in small cap funds, mid cap funds, etc., that have soared in recent months. This could spell trouble for their dreams. I hate to break it to you, but…
Continue reading →Groww Nifty Total Market Index Fund is an open-ended scheme replicating/ tracking the Nifty Total Market Index (TRI). In this article, we compare the rolling returns of the underlying index with Nifty 50 TRI. The Nifty Total Market Index tracks the performance of 750 stocks covering large, mid, small and microcap segments. Nifty 500 index…
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