The Reserve Bank of India has released the calendar for the Sovereign Gold Bond Scheme, 2021-2022 for the second half of FY2021-2022. The Bonds will be available for subscription in 4 tranches from October 2021 to March 2022. This is a departure from RBI's earlier stance of one bond issue each month. Over the next 6 months, there will be only 4 issues of Sovereign gold … [Read more...] about Sovereign Gold Bonds 2021-2022: Should you invest?
Ever seen a lion eating grass? No, right? No lion eats grass. Similarly, there are no equity funds that are NOT volatile (risky). All equity investments are volatile. That is the nature of equity investments. Just like a lion cannot stop being a carnivore, the equity investments will not stop being volatile. You can tame a lion but still cannot make it eat grass. … [Read more...] about Finding a Safe Equity Fund is same as Finding a Lion that eats grass
Sensex is above 50K. Nifty is almost 15K. In isolation, these numbers may mean nothing. However, the current levels are almost double the 52-week lows formed during the last year. A massive wealth creation over the past year. It does not happen very often that you double your money in just one year, that too by investing in bellwether indices such as Nifty and … [Read more...] about Sensex at 50,000: How to invest?
A simple way is to invest in risk-free assets (Government bonds, PPF, EPF, bank fixed deposits). You will never see losses. However, by shunning risk completely, you might have to compromise a bit on the long-term returns. And if you consider risky assets (gold or equities) for higher returns, you must prepare yourself for portfolio losses too. At the same time, avoiding … [Read more...] about How to reduce losses in your Portfolio?
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?
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?
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?
A sharp fall in equity markets over the past couple of months (February and March 2020) has 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 … [Read more...] about What is the Right Asset Allocation for your portfolio?