A reader asks, “I recently asked the members of a personal finance forum to review my 25 mutual fund portfolio. Everyone said that I held too many funds and that my portfolio resembled an expensive index fund. Is it wrong to hold that many funds? If so, what should I do?” They are right in…
Continue reading →We review the performance consistency of UTI Pension Fund Scheme E – NPS TIER I measured against Nifty 50 TRI and UTI Nifty 50 TRI. The scheme was launched in May 2009 and currently has an AUM of about Rs. 1,423 crores, much lower than the corresponding AUM of HDFC and SBI equity schemes reviewed…
Continue reading →A reader asks, “how do we decide the right rate of inflation to be used in financial planning calculations?” Let us first address the easy part: “What inflation rate NOT to use!” Financial planning is a personalized exercise. All inputs and assumptions should reflect our personal circumstances. Therefore the rate of inflation we assume has…
Continue reading →In this edition of the debt fund profile, we look at ICICI Prudential Savings Fund. This is an open-ended Low Duration debt scheme investing in instruments such that the Macaulay duration of the Portfolio is between 6 months and 12 Months. The fund’s category, “Low Duration”, gives one the impression that it is suitable for…
Continue reading →This is an index fund screener 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 is quite different from tracking…
Continue reading →I have been tracking the amount I invest for my goals for more than 11 years. It has been a life and game changer for my family. Whether you track your spending or not, I believe tracking the amount we invest is crucial. Today I can invest more for retirement than my target investment. That…
Continue reading →It is quite easy to see extreme reactions to many aspects of personal money management. Yield-chasing or seeking to invest in high-interest rate fixed income products is no different. Many investors vehemently believe that there is no place for risk in a portfolio. “We have enough risk from equity, so why take on more risk…
Continue reading →Before Twitter announced massive (~ 50%) layoffs after Elon Musk’s acquisition, financial services company Stripe announced a 14% layoff. Transport company Lyft followed with a 13% layoff, and on 9th November 2022, Meta, which owns Facebook, Instagram and WhatsApp, announced that it would cut 13% of its workforce. Earlier, Amazon announced that it would freeze…
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 →A few weeks ago, in response to our article, “My salary is low, is financial independence an impossible dream for me?”, reader and contributor Anand Vaidya pointed out, “those with low incomes are often more irresponsible with money and expenses. I can share two examples” So we invited him to do so along with lessons…
Continue reading →Two readers have the following questions. “Given the relative performance between Indian and US markets, my asset allocation is running low on international equity exposure. (1) Should I now increase my international equity exposure?” “(2) Is there any ideal rebalance frequency (identified via backtesting)? I’ve usually encountered rules such as – rebalancing once a year/…
Continue reading →The freefincal Equity Mutual Fund Performance Screener (November 2022) 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 two courses:…
Continue reading →This edition of the fund performance report looks at ICICI Prudential Value Discovery Fund. One of the best-known value-oriented funds in the country with one of the best-known fund managers, Sankaran Naren. Naren was fund manager up to Feb 2011. He got back on the team in Jan 2021, perhaps to help the fund back…
Continue reading →Since there is no limit on the number of sectoral or thematic mutual funds an AMC can produce, they do just that! And 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? Let us find out. Note: These…
Continue reading →A reader asks, “I am 30 years of age. We are a family of 5 ( blessed with a kid two months back). I am the only earning member. My house is in Ahmedabad (native), and I work in Bangalore. My monthly expenses are about 50k currently. Expenses for the kid might increase after a…
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