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?
Mutual funds
SBI Life Smart Elite: How do you mis-sell the plan?
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?
Adding Gold and International Equity to the Portfolio: Does it enhance Portfolio Performance?
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?
Franklin Debt MF: Vodafone Idea Payment (Segregated Portfolio): How will it be taxed in your hands?
There was a happy surprise for investors in Franklin Ultra Short Bond Fund recently. In January 2020, the AMC had side-pocketed its investments in Vodafone Idea bonds. In June 2020, Vodafone Idea made interest payment on these bonds and you would have received some payment. On July 10, 2020, the 8.25% Vodafone Idea Ltd. bond matured, and Franklin schemes received the … [Read more...] about Franklin Debt MF: Vodafone Idea Payment (Segregated Portfolio): How will it be taxed in your hands?
Bharat Bond ETFs: Second Tranche opens July 14: Should you invest?
A new fund offer (NFO) of Bharat Bond ETFs will be open for subscription from July 14, 2020 until July 17, 2020. The first series of Bharat Bond ETFs was launched in December 2019. I had written about the first tranche in detail here. The product structure remains the same. The new series of Bharat Bond ETFs are target maturity bond ETFs i.e. the Bharat Bond ETF will mature, … [Read more...] about Bharat Bond ETFs: Second Tranche opens July 14: Should you invest?
Bank FD rates have gone down sharply. What should you do?
You must learn to live with it. And I concede FD rates have gone down sharply. I copy the current FD rates from the SBI website. A common refrain is, “Fixed Deposits are giving nothing. I want to invest in debt mutual funds to get a better return”. Why? Because when we compare past 1-year returns of a debt mutual fund with the current 1-year Fixed deposit rates, … [Read more...] about Bank FD rates have gone down sharply. What should you do?
Using Moving Averages get more out of Equity markets
Over the past few weeks, we have been testing investment ideas and testing the performance against the simple Buy-and-hold index funds. In some of my previous posts, I have Compared the performance of Nifty Next 50 against Nifty 50.Compared the performance of Nifty 50 Equal Weight vs Nifty 50 vs Nifty 50 over the last 20 years.Considered the data for the past 20 years to … [Read more...] about Using Moving Averages get more out of Equity markets
6 years on: Performance Comparison between Direct and Regular Mutual Funds
It has been over 6 years since the direct plans of the mutual fund schemes were launched in January 2013. It is a good time to compare the performance between the direct and regular plans of the MF schemes. To recap, each MF scheme has a direct and regular plan variant. The portfolio and the fund manager are the same in both the variants. The difference is in the payment of … [Read more...] about 6 years on: Performance Comparison between Direct and Regular Mutual Funds
Nifty 50 Equal Weight Index: How has it performed compared to Nifty 50?
Over the past few weeks, we have tested investment ideas and compared the performance against the bellwether indices such a Nifty 50. In some of my previous posts, I have Compared the performance of Nifty Next 50 against Nifty 50.Considered the data for the past 20 years to see if the Price-Earnings (PE) multiple tells us anything about the prospective returns. It does or … [Read more...] about Nifty 50 Equal Weight Index: How has it performed compared to Nifty 50?
How Mutual Fund Sidepockets are taxed?
I have written about side-pocketing of debt mutual fund in a previous post. We discussed the pros and cons. One topic we didn’t discuss in that post was the taxation of proceeds from side pockets or segregated portfolios. In this post, we take a stepwise approach to understand how proceeds from MF side pockets or segregated portfolios are taxed. If you were an investor in … [Read more...] about How Mutual Fund Sidepockets are taxed?
