If you are not fond of actively managed funds, an investment in a Nifty 50 index fund provides you exposure to a diversified equity portfolio. However, Nifty 50 consists of stocks from different sectors (banking, pharma, energy, commodities, IT, consumer goods, automobiles etc). Here is the sectoral breakup of Nifty 50 (as on December 31,2020). Can we better the … [Read more...] about Nifty 50 vs. Portfolio of Banking + Pharma + IT stocks: Which is better?
SBI Life has launched a new traditional life insurance plan, SBI Life Smart Future Choices plan. In this post, let’s find about this plan in detail. We shall also see if you should invest in such a product. SBI Life Smart Future Choices: Salient Features Non-linked, Participating Life Insurance PlanIt is Not a ULIP. It is a traditional life insurance plan.2 variants: … [Read more...] about Review: SBI Life Smart Future Choices: Should you invest?
My mother, like many housewives, invests exclusively in gold. No bank FDs. No mutual funds. Nothing. Just gold. Why? Gold is easy to buy and sell. It is easy to store. It is easy to hide from husbands. Lack of comfort with any other asset. Huge conviction (that gold price goes up). Super discipline (due to the conviction and since there is no other option). While I … [Read more...] about 50% Equity + 50% Gold: How does this portfolio perform?
What is the best asset allocation for your long-term portfolio? 40:60 equity:debt or 50:50 or 60:40 or 70:30 or any other allocation? You will get the answer to this question only in hindsight. The best allocation for the next 20 years (2020-2040) will be known only after 2040 ends. You can run backtests and see what has worked the best in the past. While this gives you … [Read more...] about What is the Best Asset Allocation for your portfolio? 50:50 or 60:40 or 70:30?
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
The interest rates have been going down over the last year. If you are an investor who relies on interest income to meet expenses, this is not a happy scenario. In this post, I will demonstrate how you can smartly use annuity plans to increase your income without risk even in this low-interest rate regime. This is more applicable to retirement portfolios. Before we move … [Read more...] about How Retirees can generate high income without taking much risk?
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
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?