In a Q and A session held on our Youtube channel yesterday (linked below), we encountered two similar questions: Kohila asks, “we have two goals, retirement, our son’s education which is 8 years and 12 years away. Should we use the same mutual funds for both or separate funds?” Bala Gurunathan asks, ” I have…
Continue reading →In this article, let us consider an example of calculating the annualized return from a stock investment after accounting for corporate actions like dividends and stock splits. We shall consider Colgate-Palmolive the oldest stock in my portfolio. The calculator used in this illustration can also handle bonuses, buybacks and rights issues. It was first released…
Continue reading →A viewer on YouTube wants to know which equity fund should one use for an 8-9 year SIP. She/he had also listed three funds to choose from. Their names are not important here. This type of question is perhaps the most common among those invested or interested in mutual funds. Unfortunately, this question is wrong….
Continue reading →A young earner asks, “I’m 22 and started working in an IT company 1 year ago. I save around 50k per month and also have a saving of around 7 lakhs from joining bonus etc. I fall under the 30% tax bracket, and my EPF contribution is around Rs.4700 monthly. I have not started investing…
Continue reading →Mr X is a US-based NRI. In this episode of reader-story, Mr X explains his current investment strategy with a bit of history and reasons to finalize this strategy. It might help a fellow investor in the same position. The investment choices were heavily influenced by the websites mentioned in the references section at the…
Continue reading →I received this question from a reader who prefers anonymity. “Dear Pattu sir, I recently became a parent and started investing for my son’s college education expenses (UG). I am debating whether to include post-graduation (PG) costs into my goal. I did my MBA with an education loan. The fear of completing that loan made…
Continue reading →Aditya Birla Sun Life Nifty 50 Equal Weight Index Fund is an open-ended scheme tracking the Nifty 50 Equal-Weight TR Index. In this review, we analyse the performance of the underlying index by comparing it with NIfty 50 and Nifty Next 50 total return indices. What is an equal-weighted index? The NIfty, Sensex, Nifty 100,…
Continue reading →This article discusses why we purchased a second set of base health insurance and super top-up health insurance. Regular readers may be aware we hold a United India Health Insurance policy from 2006 and have so far made four claims with it. It has so far helped me at the time of need (two cashless…
Continue reading →Balaji asks, “Dear Pattu Sir, You have given proof over and over again that one should not expect any particular return from investing in mutual funds and that there are no guarantees, I have just started my mutual fund investment journey. May I know how much risk or loss I should expect? This will help…
Continue reading →This is my monthly retirement stock portfolio update compared with an equivalent investment in a Nifty index fund. 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 portfolio is in a good place….
Continue reading →This is a debt mutual fund screener for fund selection, fund portfolio tracking and learning. It also includes hybrid funds that invest in bonds. It will satisfy investors who wish to invest in money market funds, banking and PSU funds etc. The credit quality of the bonds in the portfolio and the bond maturity profile…
Continue reading →In this article, we discuss the benefits of portfolio rebalancing. Many investors find the topic difficult to understand and implement. So let us begin with a discussion of the basics. When we create a projection on Excel, we assume a 10% or 12% return from equity. On a spreadsheet, our money grows each year by…
Continue reading →In this article, we compare the returns of the Sensex Total Returns Index with the S&P 500 Total Returns Index in INR since the inception date of the Sensex, 1st April 1979. The analysis stems from a comment on our YouTube channel that said the S&P 500 would have easily beat the Sensex over the…
Continue reading →This is a passive 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 episode of reader-story, Mr G (anonymity on request) discusses his personal financial audit. Thanks to disciplined investing for more than a decade, he has seen his net worth double in the last financial year. It is inspiring to see such meticulous tracking of investments with a long term vision on the future corpus…
Continue reading →