LIC has launched a new deferred annuity plan, LIC New Jeevan Shanti (Plan 858). This replaces their existing deferred annuity plan, LIC Jeevan Shanti (Plan 850). A brief background. LIC Jeevan Shanti had started as both immediate and deferred annuity plan in 2018. Its immediate annuity variant was withdrawn in August 2020 with the launch of LIC Jeevan Akshay VII. Now, … [Read more...] about LIC New Jeevan Shanti (Plan 858): A New Deferred Annuity plan from LIC: Review
In an earlier post, we discussed factor-investing and compared the performance of various factor indices (Value, Momentum, Quality, Low Volatility, and Alpha). The performance of some of the factors especially, Quality, Low Volatility, and Momentum was impressive, both on risk and return front. What if we combine two factors? Or what if we pick those stocks that … [Read more...] about Nifty Alpha Low Volatility 30: Review and Performance Comparison
How risky is your mutual fund scheme? How do you answer the above question? If you ask an investor, the answer will vary depending on, among other things, investor risk profile, investor mood, market sentiment and market outlook. If you ask a mutual fund house, an underappreciation of risk in the investment is guaranteed. As an investor, what should you do? What … [Read more...] about SEBI Mutual Fund Risk Ratings: Is Risk-o-Meter useful?
In some of the earlier posts, I have written about momentum and low volatility investing. In this post, I compare the performance of various factor-based indices. What is Factor Investing? This blog post from S&P gives an interesting analogy. Consider Factors as nutrients and food items as stock returns. Now, different food items (pulses, milk, bread, vegetables, … [Read more...] about Nifty Factor Indices (Value, Momentum, Quality, Low Volatility, Alpha): Performance Comparison
In Budget 2018, Long term capital gains tax on equity mutual funds was introduced. Prior to the change, the LTCG on sale of equity mutual funds was exempt from tax. This change brought an interesting taxation arbitrage. Taxation of maturity proceeds from Unit Linked Insurance Plans (ULIPs), offered by insurance companies, was left untouched and the maturity amount from ULIPs … [Read more...] about Tax-Free ULIPs vs. Mutual Funds with LTCG tax: Which is better?
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?