In the second part of the FAQ on gilt mutual funds, we consider the correlation between equity and gilt movements. An analyst would calculate this using a correlation coefficient and create a matrix. This is not intuitive to the average investor. So we shall seek the answer to a simple, direct question: If equity MF…
Continue reading →Here is a simple formula to check your progress to financial freedom. It can tell you how long you need to be a salaried employee and shift the focus of portfolio review from returns to the corpus worth and, in the case context of retirement, how long would it last. It will work in any…
Continue reading →We answer a set of questions on gilt mutual funds asked by investors. Interest in gilt mutual funds has increased for two reasons: credit events in debt funds and a gradual reduction in PPF interest rate. We wanted to write an article on selecting gilt mutual funds but realised that before we get into the…
Continue reading →We shall be publishing an exclusive passive fund screener based on tracking error and return difference wrt benchmarks starting this month. 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…
Continue reading →This is my monthly retirement stock portfolio update compared with an equivalent investment in a Nifty index fund. Before we begin, it is important for investors 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…
Continue reading →We had pointed out on April 7th that since the market has lost momentum, now is a good time to rebalance our portfolios if there is a need for it. I have just rebalanced my retirement equity portfolio for the first time in nearly 13 years (video below). In response to this, a viewer on…
Continue reading →The TER (total expense ratio) of the Tata Nifty Index Fund shot up from 0.05% to 0.15% on 5th April 2021. From 16th April UTI Nifty Index fund will charge a TER of 0.18% instead of 0.1%. From 15th April 2021, HDFC Nifty and Sensex Index funds will cost twice as much – from 0.1%…
Continue reading →Over the past few days, several readers have asked, “Is this the right time to start buying gilt mutual funds?”. This is because of our repeated stress on gilt funds being a suitable choice or accompaniment to EPF/PPF for long-term goals. See: PPF vs Gilt mutual funds: Which has done better over 15 years? And Why I…
Continue reading →The interest in index investing is growing in India, but few understand what indexing is and why it works. In this article, SEBI registered fee-only advisor Swapnil Kendhe explains the basics of indexing and why it is effective. About the author: Swapnil is a SEBI Registered Investment Advisor and part of my fee-only financial planners’ list….
Continue reading →The freefincal Equity Mutual Fund Performance Screener (April 2021) 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 that have got a higher return than a benchmark at a lower risk. Inside, you get ~ 40% discounted links…
Continue reading →This is an updated demo of the freefincal robo advisory template. I walk you through the template’s capabilities and how you can create a complete start to finish financial plan with it. As of 29th June 2021, 567 investors and financial advisors are using the template. The template was recently featured in the Economic Times:…
Continue reading →In this article, we discuss a question posed by Suresh: “sir, the market has slowly started falling after budget 2021. Is it time to book some profits from mutual funds?” Even a casual observer would agree with Suresh. Let us first try to visualise this. The Sensex price movement in pink and the corresponding one-year…
Continue reading →I am sure that at some point while watching the news on TV or skimming through news articles, you might have come across headlines like these and wondered what they meant: “RBI raises repo rate, reverse repo rate by 25 bps”, “RBI cuts repo rate by 25 basis points” With the RBI’s rate-setting panel (the…
Continue reading →We received this email from a reader. “Dear pattu sir, I was shocked to see Value Research has rated ICICI Pru Nifty Next 50 Index Fund Direct Plan with their lowest rating of just one star! How is this possible? How can an index fund have a star rating and that too so low? Can…
Continue reading →Generally, debt products are expected to have lower volatility than equity mutual funds. However, many investors find that debt fund volatility is a lot higher than what they anticipated. This is because of incorrect expectations and a poor understanding of the factors that influence debt fund returns. In this article, we discuss a simple way…
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