I have written about momentum investing before. I compared the performance of S&P BSE Momentum Index TRI with Nifty 50, Nifty Next 50 and Nifty Midcap 150 indices in an earlier post (Does momentum investing work in India?). The findings were in favour of S&P BSE Momentum Index, which outperformed all 3 indices by a wide margin at only slightly higher … [Read more...] about Nifty 200 Momentum 30 Index: Review & Performance Comparison
Interest rates have been going down for over 18 months now. If you have taken a home loan, your bank would have passed some of this benefit to you in the form of lower interest rates. Usually, the banks are reluctant to pass on the lower interest to the borrowers. However, regulations allow borrowers to move to a different benchmark (base rate to MCLR to Repo rate linked … [Read more...] about The Bank offers to reduce Home Loan Interest Rate for a fee. How to figure out if the offer is good?
There is always a flavour of the season in investments. Sometimes, it is large cap stocks. Sometimes, it is small cap stocks. It can be gold. Or Banking or Pharma stocks. Bitcoins. Or international mutual funds (in 2020). Recent outperformance always attracts attention and investor money. To figure out, you just need to look at how quickly the size of the best performing … [Read more...] about In investing, Nothing works all the time
LIC has launched a new immediate annuity plan LIC Jeevan Akshay VII (Plan 857). Moreover, the immediate annuity variants of LIC Jeevan Shanti (Plan 850) have been withdrawn. Thus, LIC Jeevan Shanti becomes a pure deferred annuity product. In this post, let us find out about LIC Jeevan Akshay VII in detail. While I have covered the basics of an annuity plan in another … [Read more...] about LIC Jeevan Akshay VII (857): Review: New Immediate Plan from LIC
Risk and Reward go hand in hand. Higher the risk, greater the reward. So, if you are looking for higher returns, you just need to load up on risk. At least, that’s what the Capital Asset Pricing model (CAPM) used to calculate expected stock returns tells us. However, the experience has been completely different in various markets. Low volatility stocks have … [Read more...] about Does Low Volatility Investing beat Nifty and Sensex?
If you are a value investor, your investment philosophy must be to buy beaten-down stocks that are trading below their value. However, not everyone thinks alike. There is another school of thought that does not bother about struggling stocks. Quite the reverse in fact. Welcome to the world of Momentum investing. The motto: Buy High and Sell Higher. The practitioners of … [Read more...] about Does Momentum Investing work in India?
Gold has done very well over the past couple of years. If you want to invest in gold, there are many ways to take exposure. You can buy physical gold or gold jewellery. You can in gold ETFs, gold mutual funds and Sovereign Gold Bonds. Investing in Sovereign Gold Bonds (SGB) has certain limitations but SGBs are my preferred way to invest in Gold. Do note this is not a … [Read more...] about Planning to buy Sovereign Gold Bonds in the Secondary market? Keep this in mind
The Balanced advantage or Dynamic Asset Allocation funds have found favour among a section of investors. These funds are hybrid funds and have been marketed as a low volatility alternative to pure equity funds. The narrative is that you earn equity-like returns at low volatility. It is no small promise. What are Balanced Advantage or Dynamic Asset Allocation … [Read more...] about ICICI Balanced Advantage Fund: Has the fund provided reasonable returns with low volatility?
Mis-selling is not uncommon during the sale of financial products. Many of us buy investment products with a false impression of the product. While salespersons/advisors are the culprits, we, the investors must share the blame too. We rely too much on the illustrations and pamphlets shared and do not care to look beyond those fancy documents. Advisors/salespersons, on their … [Read more...] about SBI Life Smart Elite: How do you mis-sell the plan?
Do you believe in working with an asset allocation approach in your portfolio? Do you rebalance your portfolio at regular intervals? Is there a merit in dividing our portfolio in assets with low correlation? In this post, let us construct a multi-asset portfolio combining domestic equity, international equity, and gold and see if delivers superior performance compared … [Read more...] about Adding Gold and International Equity to the Portfolio: Does it enhance Portfolio Performance?