M. Pattabiraman's Blog, page 60

Index fund tracking error screener Mar 2024

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

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What should I do to get a pension of Rs one lakh a month pension?

A 35-year-old reader asks: “I would like to get Rs. one lakh a month pension when I retire. How should I invest to achieve this?” A pension after retirement is a necessary component of a post-retirement investment portfolio. However, it is not sufficient. Nothing beats the comfort and security of a guaranteed pension payout each...

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What you need to know about small cap mutual fund stress tests

In this article, we explain in simple terms what a mutual fund stress test is and what investors need to appreciate while investing in mutual funds, especially small cap mutual funds. If you have not seen the movie Margin Call, I strongly suggest you do so after reading this article. You could appreciate the situation...

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Since past performance doesn’t dictate future returns, why not buy MF NFOs?

Ask in any personal finance forum, “Can I invest in XYZ NFO?” there would be an immediate refrain, “Never buy NFOs!”. Context is often the first casualty in such a forum, and this response is no different. All mutual funds carry a past performance disclaimer – past returns do not indicate future returns. Then why...

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At what percentage of net worth can I stop contributing to my emergency fund?

A reader asks, “At what percentage of networth can I stop contributing to Emergency Funds and include it in my debt allocation for goals? For example – I use a liquid fund and an arbitrage fund for emergency funds. And I use a gilt fund as debt allocation for my retirement goal. When can I...

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Explained: co-pay clause in health insurance policies

This article explains how the co-payment (co-pay) clause works for health insurance policies. It originates from an email exchange with a reader about base policy co-pay limits and super top-up applicability. This article would not have been possible but for the expert guidance of  Ajay Pruthi, a fee-only SEBI registered investment advisor. He can be...

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ETF tracking error screener Mar 2024

Last Updated on March 12, 2024 at 6:31 am This ETF screener is based on tracking errors and tracking differences (ETF return minus index return). The screener will help users evaluate how efficiently an ETF has tracked its underlying benchmark. Update: 76 ETFs are now covered. The tracking error is the ETF’s standard deviation minus...

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Financial Lessons Learned During and After a PhD

In this edition of the reader story, Sanjoy shares the financial lessons he learned during and after earning his PhD. About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers. Some of the previous editions are linked at the bottom of this article. You can...

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What is this equity risk reduction strategy you keep talking about?

A reader says, “You keep talking about asset allocation and reducing risk in equity, but I cannot find any source on your site that explains. I request you to write a detailed article on this”. Let us first consider the usual advice peddled around by “experts”. For a long term goal, invest about 60% in...

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How should I invest if my post-retirement income exceeds expenses?

A freefincal robo advisory user shared an interesting situation with us. Both the husband and wife were senior citizens with at least 27 years in retirement to plan for. The robo-advisory tool allows users to input three different sources of post-retirement income, each growing at a different pace. This couple had an income source almost...

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