Do You Need International Exposure

India is a growth story. As a developing nation, we obsess over growth rates. While most analysts hope for a sustained 8% growth rate from India, our government has sometimes vowed to take India into double digit growth. I am not really sure if that is even possible. Nonetheless, every time the growth rate falls just below 7%, media and analysts make a huge deal about it worrying why the rate is so low. A developing nation is expected to have a high growth rate and so do a lot of investors. So, should one invest in international funds which … Continue reading “Do You Need International Exposure”

Year In Review – 2018 Net Worth

The final chapter in the Year in Review series, is reviewing my net worth. At the end of every year, in addition to reviewing my returns and expenses, I also take stock of my net worth. It is an exercise not to check how much I am worth, but more to get an understanding of my asset allocation, and see if it is converging towards my planned allocation. Lets take a look at the constituents of my net worth first. There, all the usual suspects such as equity, fixed income and real estate. In addition, I have been tracking PF … Continue reading “Year In Review – 2018 Net Worth”

Invest Across Market-caps for Better Returns

If you want better returns for your investments, choose to invest across market caps. Generally, choosing 2-3 good multi-cap funds is sufficient for most investors. However, if you want to be a bit more aggressive with your investments, add some small-cap and mid-cap funds. But how much? That is the question I will try to answer in today’s post.   Disclaimer: Information provided in this blog is to help educate you. I am not suggesting that is the right way to do it. Any names mentioned within the post are used only as examples, and should not be considered as … Continue reading “Invest Across Market-caps for Better Returns”

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”

Make Money Work For You

In my earlier post on How to Retire Early in Five Steps, I briefly touched upon asset allocation in step #3. In this post, I go into a bit more detail into how one should go about asset allocation for early retirement. Before understanding asset allocation, you need to understand asset classes. If you have not read my post on asset classes, head on over to that post.   Disclaimer: The asset allocations discussed here are only a suggestion, it may or may not work for you because your needs and requirements may be different from mine. Please work with your … Continue reading “Make Money Work For You”