A reader writes,” Sir, I read your 2021 personal finance audit, where it says, I have been investing for my son’s future since Dec 2009 (a month before he was born). Then it was an 18-year-old goal, and now it has become a 6-year-old goal. Last year I reduced the equity allocation from 67% to…
Continue reading →Each month, we publish a list of stocks with low volatility and momentum. 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 →A reader writes, “Dear Sir, I read two articles that you had rebalanced your long-term portfolios twice last year (April and Sep 2021). I was in two minds after reading this. Should I rebalance now and book some profits into fixed income or should I wait a bit more? I decided not to rebalance because…
Continue reading →We had recently discussed how to enter STCG and LTCG from equity shares and mutual funds in ITR2 or ITR3. We now follow this up with a guide to enter capital gains from the sale of property in ITR2 or ITR3. Do check out our earlier articles on tax filing: How to enter mutual fund…
Continue reading →A reader asks, “Can you please write an article on when an investor should capital gains tax after redeeming from mutual funds or shares? That is, which time of the financial year. Should I pay the tax immediately or can I pay in March of each financial year?” The short answer to this question is…
Continue reading →A few days ago Sensex and Nifty experienced their first negative yearly return. Many new equity mutual fund investors are worried and wonder what to do. The standard answer to this in social media is, “be patient and wait. This is how the stock market behaves. It will all work out in the end”. Sadly,…
Continue reading →A viewer on our YouTube channel asks, “I have a net taxable income of around 4.8L( excluding LTGC, after all the deductions) and LTGC( from Equity MF ) of 37k. So the problem I am facing is that whenever I am putting the LTGC amount in 112A then it is added back to my net…
Continue reading →These are the freefincal handpicked list of mutual funds for July-Sept 2022. New and old investors can use it according to their specific needs. The list is called “PlumbLine” and has been published Sep 2017 for beginners to accompany the freefincal robo advisory tool. Most important! Plumbline is a mix of my opinions + skin…
Continue reading →A reader asks, “Sir, I love travelling and would like to go abroad on holiday once in two years. How do I plan for this without affecting my other long-term investments? When we went this summer it was a disaster as I had to stop investing for my retirement for five months. I don’t want…
Continue reading →This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. Before we begin, investors need to appreciate the context of these investments. I started direct equity investing only after achieving a comfortable level of financial independence and ensuring my son’s future…
Continue reading →A reader asks, “I understood the importance of asset allocation/annual rebalancing exercise from your old article. I see the below text by one of the leading BAFs (see link below) – When investors manually move their money between equity and debt, they could be subjected to taxes on the capital gains made in the short…
Continue reading →Many readers are shocked to see the results of a retirement planning exercise. The target corpus required is too high relative to what they imagined and so is the required investment amount. This leads to sleepless nights and panic. “Is there any hope for me?” asks one such reader. If you are not shocked at…
Continue reading →Many investors incorrectly believe that a mutual fund SIP is a “strategy to reduce risk”. Unfortunately, this is not the case. A SIP is merely an automated way to buy mutual fund units on the same date of each month. If the markets move up, long term SIP returns move up. If the market moves…
Continue reading →Mutual fund NAV risk is measured using the standard deviation. This can be thought of as the average deviation of a monthly return from the average monthly return. Higher the value, the higher the risk. Unfortunately, this is not an intuitive number like the return. So this begs the question, is it possible to classify…
Continue reading →The cost inflation index for the financial year 2022-2023 was recently announced. We compile 41 years of cost inflation index data to understand the devastating consequences of inflation and why our singular focus should be on beating inflation for our long term goals. The cost inflation index (CII) is not a measure of true price…
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