M. Pattabiraman's Blog, page 79

ETF tracking error screener Sep 2023

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 index monthly return differences. The lower the tracking error,...

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Is 20% exposure to equity MFs enough for retirement?

A reader asks, “Can I manage with not more than 20% equity mutual funds in my retirement portfolio as I fear the equity market?” Equity or equity mutual funds are certainly not necessary for retirement planning. See, for example: How I achieved financial independence without mutual funds or stocks or How to invest without using mutual...

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Outperformer or underperformer – which should I use for rebalancing?

A reader wants to know which mutual fund he should use for rebalancing – outperformers or underperformers in a portfolio—a discussion. The primary objective of portfolio rebalancing is risk reduction. We remove some funds from an asset class performing well and shift it to another asset class. Typically this is done from equity to fixed...

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Can a fee-only advisor help you get better portfolio returns?

We recently asked clients of SEBI registered fee-only advisors on our curated list and fee-only India to fill out a feedback form.  Articles related to this survey:  A fee-only Advisor’s Letter to his clients and Client Survey: The most important factor in choosing a fee-only advisor. One of the questions was: “What were your expectations...

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Equity Mutual Fund Screener Sep 2023: Shortlist consistent performers

The latest freefincal Equity Mutual Fund Performance Screener 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 with a higher return than a benchmark at a lower risk. Inside, you get discounted links to our robo advisory tool...

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Is tracking difference better than tracking error to evaluate passive funds?

A viewer on the freefincal YouTube channel asks, “Is tracking difference better than tracking error to evaluate passive funds?” What is a tracking difference? This is the fund return minus the benchmark total return over a period. This will typically be a small negative number as the fund return will always (well, typically!) be lower...

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How to handle the risk of running out of money in retirement

Last Updated on September 6, 2023 at 8:57 am Longevity risk is the risk of outliving our money in retirement. Take the case of an individual who retires at age 55 and expects to live until 85. At age 55, he has a corpus worth 30 times his annual expenses. If his real return (post-tax...

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Quick tips to consider before buying a house

Here are a few money managment tips to consider before buying a house. These involve servicing the home loan and investments and are unrelated to the property purchase. Don’t be in a hurry! Buying property is often an emotional decision and even more frequently driven by a fear of missing out. These can result in...

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Stocks with low volatility and momentum for Sep 2023

We publish a list of stocks with low volatility and momentum each month. We provide data for BSE 500 and BSE 100 stocks.  There are now three different screener files available. (1) Stocks with low volatility and momentum from the BSE 100 large cap universe are available as a separate file (2) Stocks with low...

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Why can’t I include my residential property as part of my net worth?

A reader asks, “Can we include our own living property/house in total net worth? I had some discussions with friends about a particular case – where the total net worth will be significantly higher than the required retirement corpus if the living house/property is included”. “It’s an independent house in Chennai (NOT a flat!) And...

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