M. Pattabiraman's Blog, page 113
October 29, 2022
Will the Indian stock market again witness 10 years of poor returns?
Two readers recently asked us similar questions. One asked, “Is it possible for the Indian stock market to again go through 10 years of poor returns?” The reference is to the ten years of a sideways market after the Harshad Mehta scandal broke. For details, see: (a) Sensex at 50,000 & lessons from the 42-year journey (b) Sensex...
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October 28, 2022
Tax harvesting: Should I book Rs. 1 Lakh profit each year to lower Equity LTCG Tax?
Three readers sent us similar requests over the past couple of weeks. One wanted to know if it is worth booking Rs. 1 lakh capital gains from equity or equity mutual funds each year to lower LTCG tax. Another wanted us to illustrate how to compute the necessary units for such an exercise. Yet another...
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October 27, 2022
What are the financial aspects to keep in mind before having a child?
A reader asks, “Sir, my boyfriend and I are about to get married. Both of us want to have children. Can you please write an article on how to prepare for parenthood financially?” Although I welcome and admire it, most people may dislike this line of thinking. For them, childbirth is a gift and should...
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Stock Portfolio Analysis: October 2022
This article compares my stock portfolio with an equivalent investment in a Nifty index fund and the Nifty 100 Low Volatility 30 TR index. We post this comparison each month. Before we begin, new readers need to appreciate the context of these investments. I started direct equity investing only after achieving a comfortable level of...
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October 26, 2022
Don’t forget these steps after buying a health insurance policy!
Here is a list of things to do after you buy a health insurance policy. These simple steps would aid premium payment, claim application and hospitalization. This post is a companion piece: Do not forget these steps after buying a term insurance policy! 1. Understand claim procedures Whether cashless or reimbursement, insurers must be immediately intimated...
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October 25, 2022
Can you review my debt mutual fund portfolio for a goal 14 years away?
A reader writes, “I am a happy beneficiary of robo template, FB group subscription and tactical buy sheets among hundreds of articles and video posts. Thank you. I have started saving for education expenses for my 2-year-old twins. In essence, a goal that is 14 years away”. “For the debt component, I had narrowed down...
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October 24, 2022
Momentum index fund: Will tactical entry/exit give better results?
A reader asks, “I recently read your review of Tata Nifty Midcap 150 Momentum 50 Index Fund. I wondered if tactical entry and exit with your double-moving average market timing model will provide better results than systematic investing with a momentum index fund. Can you please backtest this?” We can certainly backtest it, but India’s...
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October 23, 2022
Why not compare active mutual funds with index funds instead of benchmarks?
A reader asks, “One common trend I see in your analysis is that the active MFs are always considered against the benchmark indices and not index funds themselves. Why are active mutual fund returns compared with TRI (total return indices) and not index fund returns?” “Also, since index fund investment recommendation is limited only to...
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October 22, 2022
How much should I allocate to Small Cap Mutual Funds if I need money after 25 years?
In this article, we discuss a set of questions sent by a reader about a 25-year investment duration. Among these, he wishes to know how much should be allocated to small cap mutual funds. We address them in the order received. For a 25-year retirement goal, what will be your allocation percentage towards equity, gold...
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October 21, 2022
Gilt fund vs nationalized bank FD which has higher risk over 10 years?
A reader asks, “Which among the following two has higher credit risk? 1. Gilt fund (actively managed) or 2. FD in a nationalized bank? I need to choose one for a 10-year goal for the debt portion”. On the face of it, this might look like a trivial question to at least experienced investors. However,...
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