In this article, we evaluate the performance of HDFC Mid Cap Opportunities Fund. Launched in June 2007, the fund has the largest AUM in the mid cap category at Rs. 31,629 Crores. Kotak Emerging Equity is a distant second at almost half the AUM (Rs. 16,485 Crores). We will use three metrics to analyse performance…
Continue reading →A reader who prefers anonymity writes, “I am 50 and have just started thinking seriously about financial planning for retirement. From reading your articles, I see that you recommend keeping it simple – invest in Nifty 50/Next Nifty 50 index funds and a gilt fund”. “I can invest about Rs. 1.5 lakh per month. Is…
Continue reading →In this article, we discuss some frequently asked questions on index investing aka passive investing. First the basics. A passive fund is a mutual fund that tracks the stocks in a given index. The fund manager of a passive fund does not make any stock/bond selection on their own. There are two types of passive…
Continue reading →Here is a list of stocks with low volatility and momentum for December 2021 from the Nifty 100. You can also get the historical data from March 2019 to December 2021. We filter Nifty 100 for (1) positive 1-year return, (2) positive six-month return, (3) price > 200-day moving average, (4) 50% of daily positive…
Continue reading →Anyone interested in money management would have, at some point in time, heard the saying that gold is a hedge against inflation. Does the data support this adage? Let us find out. For an asset to be considered an inflation hedge, an investor must have a reasonable chance of earning a return higher than inflation…
Continue reading →A 24-year-old reader who wishes anonymity asks, “I am saving around 50k every month for long term (more than 10-15yrs). I equally invest 40k in (10k each) Parag Parikh flexi cap fund; Canara Robeco emerging equities; Union small cap fund; Axis midcap”. “I invest in (5k each) IDFC 10 year gilt fund and HDFC developed…
Continue reading →In this article, we evaluate the performance consistency of Canara Robeco Emerging Equities, a large and mid cap fund. Launched in March 2005, the fund currently has an AUM of Rs. 11,774 Crores. As one can see from the Market cap allocation history below, Canara Robeco Emerging Equities Fund has been a large and mid…
Continue reading →On Friday (Nov 26th 2021), the Sensex fell by 2.87%. One can easily speculate reasons for the fall and start wondering if we should stop investments or pull out money (we have started receiving such emails!). However, it would be far more productive to develop a simple market-independent strategy. Here is how one can do…
Continue reading →In this edition of the reader audit, 29-year-old Mr Yo (name withheld on request) explains in detail how he has structured his money management in a systematic manner and how he tracks his financial goals without considering returns. About this series: I am grateful to readers for sharing intimate details about their financial lives for the…
Continue reading →A reader asks, “I am a 27-year-old NRI with a current mutual fund portfolio of Rs. 12 lakhs. We want to buy a home. My father wants me to take out a loan immediately. I want to build my MF portfolio to 40 Lakhs within the next three years. Then, take out a home loan…
Continue reading →Hirak writes, “I am a 17-year-old, and I want to learn and start investing. Help me out”. It is wonderful to see young people serious about investing and money management. We are honoured when they ask us about it. We do not know the cash flow situation of Hirak. Does he earn part-time or full-time?…
Continue reading →This article compares my monthly retirement 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…
Continue reading →Sudipta Roy asks, “I recently read the article – Why I gave up my life-long dream of buying a house. My dream is to buy a house too, and I don’t wish to give up on it. However, I do agree with the author’s view that all major financial decisions should be made holistically”. “Thanks…
Continue reading →Aditya Tejas writes, “Thank you for all your work; I appreciate the time and effort you put into creating relevant, insightful and thought-provoking content. I’ve already gone through your flagship course. It helped me (re)think about my asset allocation, and I’m grateful for your insights”. “Also, I’ve taken notes on your views about “index investing”…
Continue reading →Here is a look inside RBI Retail Direct. This facility allows retail investors to open gilt security account with the RBI and purchase government securities (gilt bonds or gilts) in the primary and secondary market without a fee. We have already discussed in detail who should use RBI Retail Direct and who should not. Please…
Continue reading →