M. Pattabiraman's Blog, page 3

Why your base health policy and super top-up policy should have the same renewal date!

In response to our article –  How do I combine base and super top-up health insurance policies? – Two readers sent us identical stories on what our base policy and super top-up policy should have the same renewal date. Case 1:  Shared by Mr. Srinivasan Sundarajan. The person had a base (10L) and a super...

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From Debt to ₹1 Crore Liquid Net Worth: My Journey of Financial Awareness

In this edition of the reader story, “I am Tamil Selvan (name changed), 38 years old, working in the Gulf region for the last 16 years. I come from a simple farming family in Tamil Nadu. My father had taken on significant debt due to farming, and when I started earning in 2009 with a...

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Index fund tracking error screener Aug 2025

This index fund screener is based on tracking error and returns difference wrt benchmarks (also known as tracking difference). It will help users evaluate how efficiently an index fund has tracked its underlying benchmark. It will also help them understand how tracking a midcap index or the Nifty 100 or 500 differs from tracking the...

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Unrealistic aspirations will make us poor even if we earn in Lakhs!

With each passing day, Indians consume more and more than previous generations. Their aspirations, dreams and wants are often higher than their salaries. Whenever I am invited to speak to a group of employees on the basics of investing, I hear stories of excessive debt. There is a growing mismatch between income and aspirations. People...

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Investing via Gift City: basic considerations

Last Updated on August 16, 2025 at 11:44 am We will soon be inundated with offers to invest in Gift City (Gujarat International Financial-Tec City) for affluent Indian residents and NRIs. I have been spending a little time reading up on the feature, and these are my initial impressions. I will share my other learnings...

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Passive income is a crucial part of your retirement plan

Including one or more passive income sources in our retirement plan is crucial. It enhances our income, minimizes the risk of investments in the capital market, and helps us stay active and nimble. Passive income refers to any income source that requires minimal maintenance of the actual product or service. The costs of keeping the...

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What’s a Reasonable Amount to Spend for a Wedding?

Last Updated on August 14, 2025 at 9:28 am About a year ago, I was asked in a panel discussion, “How much should a couple spend on their wedding?” This caught me by surprise as I had never thought about this before (even when I often looked down upon wedding extravagance). I had a couple...

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An index with a portfolio turnover higher than active funds!

The common perception is that the index funds have minimal portfolio churn and a lower turnover ratio.  But what if the index that they are mimicking itself churns its components by more than 65% every time?  By their construction, the index funds tracking such an index also need to do the same, leading to high...

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What is a bank overdraft account and when to use it

An overdraft account is a credit service a bank provides that allows the account holder to withdraw more funds than they have, such as writing an Rs. One lakh cheque from an account with no balance. This article will explore when it’s appropriate to use an overdraft account. They can be established with fixed deposits...

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ETF tracking error screener Aug 2025

This ETF screener is based on tracking errors and differences (ETF return minus index return). It will help users evaluate how efficiently an ETF has tracked its underlying benchmark. The tracking error is the ETF’s standard deviation minus the index’s monthly return differences. The lower the tracking error, the more efficient the ETF is in...

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