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…

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,…

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…

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…

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…