How to Choose a Mutual Fund

We’ve all heard it — don’t choose a mutual fund just based on past performance or star rating. Then, how does one go about choosing a good fund? That is the question I want to answer today. While I am not expert at picking a good mutual fund, I did have my share of bad pickings and hence have had some wisdom knocked into me. So here are some tips on how to choose a good mutual fund based on my experience.    Disclaimer: Information provided in this blog is to help educate you. I am not suggesting that is … Continue reading “How to Choose a Mutual Fund”

Are Index Funds Better Than Active Funds?

In the US, index investing is all the rage. John Bogle who started the first index fund, contends that an index fund beats almost all actively managed mutual funds (after accounting for fees) in the long run. But does it work in India? That was the experiment I set out to conduct in early 2012.   Disclaimer: Any mutual fund names discussed here are purely for the study of the experiment and not a recommendation. I may or may not have owned, or still own these funds at the time of writing this post.   What got me started? When I … Continue reading “Are Index Funds Better Than Active Funds?”

The Gilt Experiment

 You’ve probably heard about the inverse relationship between bond prices and interest rates. When interest rates rise, bond prices fall and vice-versa. How can we use this information to make some money without a lot of volatility? Read along about my experiment with interest rate cycles.   Disclaimer: I would not advice anyone to take risks like I am about to explain in this post. It is supposed to be more of a study rather than any recommendation or advice. Any mutual fund names discussed here are purely for the study of the experiment and not a recommendation.   The Entrance It … Continue reading “The Gilt Experiment”

My Asset Allocation

I have discussed the 70:30 asset allocation in my previous 2 posts. However, I did not really follow the rule, not because it did not work for me, but for the simple reason that I wanted to learn market cycles and take risk while doing my investments. I would not suggest anyone play with investments like I did (unless you know what your are doing) and risk losing money. Instead follow the boring simple rule of 70:30 and it works. This is more of a case study of my investing style.   Disclaimer: The asset allocations discussed in this post worked … Continue reading “My Asset Allocation”

The 70:30 Asset Allocation

In my previous post, I talked about about allocating 70% to equity and 30% to fixed income and just keep that ratio irrespective of which stage you are in your life. But does it really work? Lets work out some examples to see how it might work under various conditions.   Pre-retirement While you are still not retired, you have income coming in and you are investing. It does not matter what markets are doing, your job is to just invest in such a way that you maintain the 70:30 split.   The way it would work is that every month … Continue reading “The 70:30 Asset Allocation”