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?
While index funds are gaining acceptance among informed Indian investors, it is always interesting to test out certain rule-based investment strategies and how those strategies have fared against simple portfolios. Rule-based strategies can eliminate human biases, or so I hope. In this post, we compare the performance of the following 4 portfolios over the last 18 … [Read more...] about Nifty + Liquid Fund Momentum Portfolio: How it fares against a 50:50 (Debt: Equity) portfolio?
The car manufacturers have been badly hit by the lockdown, most reporting zero sales in the month of April. The cashflows of their potential customers are also possibly stretched and uncertain. There have been salary cuts and layoffs. Not good. But there is a positive too. The desire to avoid public transport can increase demand for two-wheelers and cars. As the … [Read more...] about Step-up Loan, Balloon Repayment: Interesting Car loan schemes from banks
You cannot go wrong with mutual fund SIPs. Can you? Just start a SIP and forget about it. Good returns are guaranteed. Anecdotes are fine. What does the data tell us? Does SIP guarantee good returns? I consider 3-year, 5-year, and 7-year SIP returns on Nifty 50 TRI for the last 20 years. I have considered a large-cap index (Nifty 50 TRI). A holistic exercise … [Read more...] about Does Mutual Fund SIP guarantee good returns?
Nifty Next 50 index funds have gotten popular over the last few years. As expected, the index caught the fancy of investors on the back of strong performance from 2014 until 2017. However, not many investors benefited from this because there were not many index fund options to invest in this index. Not that the funds would have attracted money because the AUM chases the … [Read more...] about Nifty 50 vs Nifty Next 50: Performance Comparison
Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched in May 2017 to provide a long-term income option for senior citizens in the country. This assumes importance in the wake of the low-interest rate scenario we find ourselves in. Fixed deposits are getting renewed at lower rates. This poses problems to those senior citizens who rely on interest income to meet regular … [Read more...] about All you need to know about Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Even since Franklin AMC wound up its 6 schemes, the credit risk funds have been facing very heavy redemption pressures. I copy the Assets under Management for Credit Risk funds for various dates. December 31, 2019: Rs. 62,704 crores March 31, 2020: Rs 55,380 crores April 23, 2020: Rs. 48,576 crores (the day Franklin wound up its 6 schemes) April 30, 2020: … [Read more...] about AMCs transferring bonds from Credit Risk Funds to Hybrid Funds: Not good
Many investors are worried about their debt fund investments. You cannot fault investors. Their hard-earned money is at stake. Moreover, when some of the AMC CEOs are busy peddling their credit risk funds despite the Franklin mess, it is not easy to trust the industry. Your confidence is likely to suffer. How do you build you fixed income portfolio without debt mutual … [Read more...] about Using ULIPs to build our Fixed Income Portfolio: A Smart Strategy?
Is this a good time to invest? Are the markets too cheap or expensive? Let’s look at historical data to get a perspective. In this post, let’s look at Nifty PE levels and see if this provides some information about prospective/future Nifty returns. I have considered Standalone P/E of Nifty 50 as reported on the NSE website. You can download the complete data from this … [Read more...] about What does Nifty PE indicate about future returns?
Many of us invest in aggressive hybrid funds (balanced funds) to earn good returns with lower volatility. We believe that the equity portion will provide the upside and the debt portion will cushion the downside. Over the long term, this may result in better absolute returns than even a pure equity fund (or at least better risk-adjusted returns). Has your hybrid fund … [Read more...] about Has your Balanced Fund (Hybrid) delivered value?