A reader wants to know if he can expect “10% per annum” if the investment period is a “minimum of five years”. Again, regular readers of freefincal might dismiss this as a newbie mistake, but it is a common mistake and deserves some attention. The first point to appreciate is unless we are investing in…
Continue reading →This is a debt mutual fund screener for fund selection, fund portfolio 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 and PSU funds etc. The credit quality of the bonds in the portfolio and the bond maturity profile…
Continue reading →A reader asks, “In your experience, what is the biggest mistake mutual fund investors make? Can you write an article about this?” This can be answered in three words! Shiny Object syndrome – most mutual fund investors, suffer from this, which is their biggest mistake. The trailing one-year return is often the only factor an investor…
Continue reading →We often get emails from readers wanting to know if they are on the right financial path. Here is a simple check to find out. The answer to all questions below is a simple yes or no. The aim here is to maximise the number of yeses. Even if you can’t answer yes to a question…
Continue reading →It is not even May, and already 2023 is the year of AI and as Bill Gates recently proclaimed, the age of AI has begun. We recently discussed how ChatGPT could be a game-changer in personal finance. We also demonstrated Retirement Planning with AutoGPT and pointed out that the future of Investment advisory is informal….
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 a understand how tracking a midcap index or the Nifty 100, 500 differs from tracking the Sensex or…
Continue reading →A reader says, ” Thank you for the Robo Advisory Tool. It has given me insight into my retirement plans. A query: As we can recall, monthly expenses during the year 2002 were approximately Rs.10,000/- p.m. In 2022, our expenses escalated to Rs.1,00,000/- p.m. (in 20 years)”. “The Retirement Corpus calculated in the year 2002…
Continue reading →This is an ETF screener 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. The tracking error is the ETF’s standard deviation minus index monthly return differences. The lower the tracking error, the more efficient the ETF…
Continue reading →AutoGPT is an open-source Python code using Open AI’s GPT4. Unlike ChatGPT, which requires human intervention at every step, AutoGPT can “self-prompt” and find additional information from its knowledge base or the web (depending on the application). It is supposed to be a step towards artificial general intelligence. They are also referred to as Task-Driven Autonomous…
Continue reading →Over the last few weeks, many readers have asked if they can sell their mutual funds or other investments to partially pre-pay their home loans due to steep loan interest rates after the RBI Repo rate hike. One reader wanted to liquidate his entire MF holdings to part-pre-pay and decrease investments to increase the EMI…
Continue reading →Many of us convert the salary received by Indians going abroad in local currency (USD, Euro etc.) into INR and assume that “they” are doing much better than us. This is, however, incorrect. The exchange rate does not help us compare the cost of living in the two countries. That is, it does not help…
Continue reading →The cost inflation index for the financial year 2023-2024 was recently announced. The index increased from 331 in the previous financial year to 348 – an increase of 5.14%. We compile 42 years of cost inflation index data to understand the devastating consequences of inflation and why our singular focus should be on beating inflation…
Continue reading →On April 12th 2023, The Business Standard reported the Nifty criteria may be tweaked before RIL’s financial services arm demerger as the current rule could lead to the firm’s exclusion from the index. On Feb 24th 2022, the NSE announced that the “Minimum listing history requirement in case of a new listing and companies traded subsequent…
Continue reading →A reader wants to know if investing in an ESG-themed mutual fund is worth it. So some numbers and some discussion. In general, all thematic funds are unnecessary. The same logic applies to ESG, which gives off a “saving the planet vibe”! What is the Environmental, Social and Governance (ESG) investment theme? It involves choosing…
Continue reading →A reader says, “Please advise which small cap mutual fund I should include in my portfolio?” The short answer: There is no need for small cap funds in any investment portfolio! Regular readers are maybe aware of our stance on small cap mutual funds: Why a SIP in Small Cap Mutual Funds is a waste…
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