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?
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?
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?
A sharp fall in equity markets over the past couple of months have brought back the importance of asset allocation in focus. The market fall was broad-based. It didn’t really matter which fund or stock you invested in. Almost everything fell. What mattered was how much of your money was in equities. Portfolio 1: 80% of your portfolio in the best-performing equity … [Read more...] about What is the Right Asset Allocation for your portfolio?
The last few weeks have been terrible for equity investors. And we don’t know if it will get worse. The market correction has been savage. And nothing has been spared. The best of blue chips have been battered. So have mid and small caps. Global equities have been trashed too. It is not just the quantum of correction but also the pace of it, that has most investors … [Read more...] about Market Crash: How could we have reduced the pain?
With markets at an all time high, retail investors are rushing towards equity markets/mutual funds with their hard earned money. Hence, we thought it apt to discuss some of the common pitfalls investors should avoid while selecting mutual funds. Pitfall 1- Lower NAV is better Fund A has an NAV of Rs. 45 while Fund B has an NAV of Rs. 225. Assuming all the other parameters … [Read more...] about Five mistakes to avoid while investing in mutual funds
Ever tried to choose a mutual fund scheme to invest in? There are over 30 asset management companies, each offering variety of mutual fund schemes to choose from. For the larger AMCs, the number of schemes offered can run into a number in excess of 100. Additionally, there are equity fund schemes, debt schemes, hybrid funds, gold funds, fixed maturity plans, fund of funds etc. … [Read more...] about How to select an equity mutual fund?