Want to construct your portfolio completely with index funds? Or want to construct the “Best portfolio” using index funds or ETFs? How would you do that? Good that there are many options available in the passive investing space. There are cap-based indices (Nifty 50, Nifty Next 50, Nifty Midcap 150 etc) and there are factor indices (Momentum, Low Volatility, Quality, … [Read more...] about How to build the “Best Portfolio” using index funds and ETFs?
We have seen that adding international (foreign) equity to the portfolio adds value. Why? A simple explanation is that such foreign stocks won’t be affected by ups and downs of the Indian economy or Indian stocks. After all, you wouldn’t expect Amazon stock price to fall sharply if the RBI raises repo rates in India or there is a negative surprise on Indian GDP numbers. … [Read more...] about Which is the Best International Equity Mutual Fund in India?
Is Nifty Next 50 index a large cap or a midcap index? Going by SEBI classification where top 100 stocks by market capitalization are considered large cap stocks, Nifty Next 50 is a large cap index. However, I believe its performance shares greater similarity with the midcap index (Nifty Midcap 150) than with the large cap index (Nifty 50). Nifty Next 50: Large cap or Mid … [Read more...] about Nifty Next 50 index: Large cap or Midcap fund?
Always good to receive positive feedback from regular readers. Such feedback makes all the writing effort worthwhile. One such reader, Kshitij, wrote an encouraging email from Ludhiana along with an interesting query,” If you can throw some light on NIFTY 50 NV20 index. Surprisingly, its beaten most of the other Large Cap Benchmarks in last 3 yrs. Thought it might be an … [Read more...] about Nifty 50 Value 20 (NV20) Index: Review: Should you invest?
HDFC Mutual Fund has launched HDFC Nifty 50 Equal Weight Index Fund. The fund is currently under NFO stage and will soon be available for ongoing subscriptions. Should you invest in HDFC Nifty 50 Equal Weight Index fund? The HDFC fund is a passive fund tracking Nifty 50 Equal Weight Index (Nifty 50 EW). There are a few in the Nifty 50 equal weight index funds in the … [Read more...] about HDFC Nifty 50 Equal Weight Index Fund: Review: Should you invest?
How do you build a portfolio for retirement and other long-term goals? It is a multi-step process. Decide the Asset Allocation for your long-term portfolio.Decide the sub-allocation within the asset class and choose specific investmentsReview and rebalance regularly #1 The first step is deciding Asset Allocation The right asset allocation for you will depend both on … [Read more...] about How to build a Long Term Portfolio?
You just received your annual bonus. You also run a home loan. You have 2 options. Use the bonus (or any lump sum) amount to repay the loan. OR Invest the amount and potentially earn better returns than the home loan interest rate. What should you do with your bonus money? Like everything in personal finance, there is no black and white answer to this … [Read more...] about Got surplus? Would you Prepay or Invest? What does the data tell us?
Exchanged Traded Funds (ETFs) and index funds are low-cost ways to build a diversified equity portfolio. Both are passive investments. Both try to replicate (and not beat) the performance of a benchmark index. For instance, both Nifty 50 ETF and Nifty 50 index fund will try to replicate the performance of an index fund. This is achieved by holding the constituents in the … [Read more...] about ETFs vs. Index Funds: Which is better?
Ever seen a lion eating grass? No, right? No lion eats grass. Similarly, there are no equity funds that are NOT volatile (risky). All equity investments are volatile. That is the nature of equity investments. Just like a lion cannot stop being a carnivore, the equity investments will not stop being volatile. You can tame a lion but still cannot make it eat grass. … [Read more...] about Finding a Safe Equity Fund is same as Finding a Lion that eats grass
There is Low Volatility ETF and a FoF (that invests in the ETF) And there is a UTI momentum index fund now. I have a favourable view on both the indices. An investor asked: Which is better? Low Volatility ETF or Momentum Index fund? Should we invest in both? Easy question. Difficult answer. This post is likely to leave you disappointed if you are looking for an … [Read more...] about Low Volatility ETF or Momentum Index Fund: Which one to choose?