Motilal Oswal AMC has launched a debt ETF (Motilal Oswal 5-year G-sec ETF) to track the performance of Nifty 5-year Benchmark G-Sec Index. Should you invest in this ETF? Before we get to the “Yes” or “No” answer, let’s first look at the Nifty 5-year benchmark, the pros and cons of this ETF, and look at the benchmark performance for the past 15 years. What is Nifty … [Read more...] about Motilal Oswal 5-year G-Sec ETF: Should you invest?
Which is the best date for SIP in mutual funds? I get this question often from my investors. My two usual reactions are: What is your lucky date?Toss a coin. It doesn’t matter. Last week, an investor asked me, “Have you done any analysis for this?” I hadn’t. I thought of giving this a shot. Data and Assumptions I have used Nifty TRI data from January … [Read more...] about Which is the best date for SIP in mutual funds?
You want to invest in equity markets for the long term. You are given a choice of 3 strategies. Invest every month by way of SIPsInvest only when the market hits 52-week highs.Invest only when the market hits 52-week lows. Which approach do you think will give the best results? Intuitively, investing on 52-week lows look like the winner. Because, well, you are … [Read more...] about Performance Comparison: Investing on 52-week Highs vs. Investing on 52-week Lows
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 UTI Nifty 200 Momentum 30 Index Fund: Review & Performance Comparison
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
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?