Starting today, we will study the efficacy of a double moving average market timing model with different stock market indices. We have already established that the model reasonably works (see links below) across asset classes. Our primary goal in this updated study is to illustrate market-specific risks and the sequence of returns risk with market…
Continue reading →A reader writes, ” I am in a dilemma and need your advice. I am 3 years away from one of my financial goals. On analyzing my MF portfolio the peak value was in October 2021 and the markets have corrected since February 2022. If I systematically transfer the money now from the equity fund…
Continue reading →Use this annuity ladder calculator to find out how to beat inflation after retirement using multiple income streams. We all appreciate the importance of a secure income (pension) after retirement. However, inflation also has to be factored in. The primary requirement for fighting expenses increasing in retirement is a robust corpus. To accumulate this, we…
Continue reading →This is an index fund screener based on tracking error and return difference wrt benchmarks. The screener will help a user 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 the Sensex…
Continue reading →In this article, we shall explain what is income laddering or annuity laddering and how to use it for retirement planning. In preparation for this article, we had earlier published a series of introductory texts. We recommend that new readers go through these first. Part 1: What are the annuity rates of LIC Jeevan Akshay VII…
Continue reading →In this edition of the reader story, we meet Anand Vaidya who had earlier explained how he used RBI Retail Direct to buy govt. bonds and create an income source. In this detailed article, he shares his financial journey from growing up in a low-income household to financial independence. About the author: Anand studied E&C Engg, worked…
Continue reading →Yesterday we addressed the first part of a reader’s question: I need a pension: Should I buy an annuity or a govt bond? Today we will consider the second part: “how to buy a pension? Which option offers the best return?” As mentioned in the first part, a bond is a better choice for those…
Continue reading →A reader wants to know, “Sir, I am about to retire (at age 55) and am looking for a pension. I essentially see two choices: Either buy an annuity plan from an insurer or buy a bond from the RBI portal (thanks to your article) – How I used RBI Retail Direct to buy govt….
Continue reading →In this article, we discuss the results of a tactical entry and exit strategy from gilt mutual funds and find out if it is more rewarding. Readers unfamiliar with gilt funds may consult our previous work: (1) FAQ on gilt mutual funds: essentials investors should know. (2) Gilt mutual funds will not protect your money! Recognize…
Continue reading →A reader writes, “I work only for money and have not identified my passion yet. I am not sure if I can identify it. I would also blame my character as I seek change quite too often. If I plan to achieve FIRE (financial independence and early retirement) by the age of 45, I don’t…
Continue reading →The freefincal Equity Mutual Fund Performance Screener (May 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 →In this article, we explain how you can quickly and easily benchmark your equity mutual fund portfolio consisting of several mutual funds against an index fund (or ETF). Once you follow the steps below, you can check the performance of your portfolio against the index at any time. We shall be using the Freefincal MF…
Continue reading →At this point in time, what we know for sure in the Axis mutual front running case is minuscule compared to what we do not know. Social media is abuzz with all kinds of speculations/allegations about the suspended fund managers – what they did and how much wealth they amassed. Let us try to gather…
Continue reading →Several readers have asked us what their debt fund strategy should be in the wake of the interest rate hike by RBI. In this edition of FAQ, we discuss what debt mutual fund investors should do. Our coverage of the rate hike also includes: Explained: Why did RBI increase the REPO rate? How will it…
Continue reading →In a move that surprised everyone, the RBI hiked the repo rate from 4% to 4.4%. This means newer short-term bonds will have a higher interest rate. The market will expect longer-term bonds also to be more rewarding. The demand for all existing bonds will fall and so will the price. Since an investor would…
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