M. Pattabiraman's Blog, page 77

Is it okay to postpone investments until my home loan is closed?

A reader says, “I have an ongoing home loan. The EMI is about 25% of my take-home pay. I cannot be at peace because of this home loan and wish to pre-pay the loan as soon as possible. Am I  right?” It turns out that that reader had sold all existing stocks and mutual fund...

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Nifty vs Nifty Next 50 vs Nifty Midcap 150 vs Nifty Smallcap 250

We compare the rolling returns of Nifty 50, Nifty Next 50, Nifty Midcap 150 and Nifty Smallcap 250. Returns for a financial instrument that fluctuates can be calculated in two ways: Point-to-point returns: The effective annual compounded growth rate (CAGR) is calculated between two dates. You can calculate CAGR for your mutual fund and compare...

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Handpicked List of Mutual Funds Oct-Dec 2023 (PlumbLine)

These are the freefincal handpicked list of mutual funds for Oct-Dec 2023. New and old investors can use it according to their specific needs. The list is called “PlumbLine” and has been published since Sep 2017 for beginners to accompany the freefincal robo advisory tool. Most important! Plumbline is a mix of my opinions +...

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Three common myths about mutual funds among newbies

This article aimed at new mutual fund investors discusses three common myths about mutual funds. Experienced investors may find this information quite basic, but please consider sharing this post with someone who may benefit from it. The three myths are: “I want my money back!” Nope! A mutual fund is not a bank FD to...

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Health insurer said hospitalization was unnecessary, but paid after Ombudsman complaint!

This article is based on a real-life experience of my client, Rajesh.  He had a 21-month-old health insurance policy from an Insurer for the Sum Insured of ₹ 10 lakhs with good comprehensive features. About the author: Shashi Singh is a fee-only SEBI-registered investment advisor. He can be contacted via his website finmyn.com. Shashi is part...

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How can I plan for retirement if my salary is low?

A reader says, “My income is quite low. Is there any hope for me? How do I go about creating a retirement corpus?” The rules of personal finance are the same regardless of income and net worth. Those earning less feel like they will never have the experiences or wealth of those who earn more....

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Stock Portfolio Analysis: Sep 2023

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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How to track the progress of our financial goals?

In this article, we explain how to track the progress of our financial goals. We use the freefincal robo advisory tool for this purpose as many readers and users are interested in knowing how. The robo tool, as many readers would know, is a financial planning tool. It automates the systematic risk management process and...

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Will my gains reduce if I invest more in my small cap mutual fund?

A reader asks, “I initially invested 1.5 lakh rupees in a Smallcap mutual fund category two years ago and haven’t added any more funds since. I’m contemplating whether to resume investing in my existing fund or consider a new smallcap fund”. “I’m interested in understanding the advantages and disadvantages of both options. It’s worth noting...

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At 48 why are you holding over 60% equity for retirement?

A reader recently asked  — in response to the article, Why are you recommending index funds but not investing in them yourself? — “What is the equity exposure of your retirement portfolio?”. I said, “It is currently about 62%.” He said, “is that not too much equity at your age (48, well, almost 49)?” There...

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