As of Aug 31st 2022, 59.5% of the total equity AUM was in Nifty 50 stocks. Here are the details and possible implications. The total equity AUM held by 40 mutual fund AMCs is Rs. 21,91,563.5357 Crores. The break-up is given below. The tables in this article are sourced from ACE MF. AMC Equity (Cr.)…
Continue reading →A reader asks, “Is this a good time to Invest in NASDAQ 100 and S&P 500? As both indexes have fallen around 25% to date in 2022.” The answer depends on your motivation and your appreciation of underlying risks. From the point of view of Indian investors, the US stock market has been on an…
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 →A reader asks, “I noticed that Kotak Arbitrage Fund is holding about 5% of Kotak Liquid Fund. Can you explain why they are doing this?” Kotak is not alone. Many arbitrage funds buy units of their own debt funds. This is done in a bid to bolster returns. Even a few years back, arbitrage funds…
Continue reading →The pension fund regulatory and development authority (PFRDA) the NPS regulator has released a draft proposal on implementing Systematic Lump sum Withdrawal (SLW) in the national pension scheme. The draft is open for comments/feedback until the 19th of Oct. This is an explanation of the proposed rules. Existing rules: After the age of 60, an…
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 →I started an Rs. 500 SIP in Sundaram Midcap Fund (then known as Sundaram Select Midcap) for an extended family member’s higher education in Aug 2009. Here are some lessons on investment risk and reward from the investment. Kindly note that I do not count this investment as part of my net worth and have…
Continue reading →A common misconception among investors is that the National Pension Scheme (NPS) schemes are passively managed like an index fund. This is incorrect. In this article, we discuss the investment policy of NPS Equity (E) schemes as approved by the pension fund regulatory and development authority (PFRDA). The norms can be found on the public…
Continue reading →The freefincal Equity Mutual Fund Performance Screener (October 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 →Tata Nifty Midcap 150 Momentum 50 Index Fund is an open-ended scheme tracking NIFTY Midcap 150 Momentum 50 Index. The fund is currently in its NFO period (4th to 17th Oct 2022). In this article, we analyse the performance of the underlying index. The Nifty Midcap150 Momentum 50 Index tracks the performance of the top…
Continue reading →A reader asked, “If we compare the performance of actively managed mutual funds across categories, how many of them have outperformed the Nifty 50 consistently?” Readers may be aware that we publish a monthly equity mutual funds performance consistency screener where each category has its own relevant benchmark. Let us now determine how many funds…
Continue reading →Buying a term insurance policy is one of the first things to do in money management if you have dependents or if you wish to leave your networth to a person or organisation. Insurance purchase is a leap of faith resulting in a contract between the insurer and buyer based on trust. However, there is…
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 →On 30th Sep 2022, the RBI increased the rate at which it lends money to commercial banks (the repo rate) from 5.4 % to 5.9%. See RBI repo rate history from June 2000 to the present. A reader asks, “why did the govt. not increase PPF and SSY interest rates?” The REPO rate is at…
Continue reading →This edition of the fund performance report looks at the DSP Flexi Cap Fund (erstwhile DSP Equity Fund). Launched in April 1997, the fund has an AUM of 7,739 Crores. After the SEBI categorisation rules, it was first classified as a multi-cap fund in mid-2018 and then shifted to the flexicap category to align with…
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