Posts in category "financial-planning"


  • Tactical Asset Allocation vs Fixed Allocation

    If you have been reading my blog for some time you probably already know that my asset allocation changes based on market conditions. I have my own set of rules using which I decide whether to be equity heavy or debt heavy. Of course there is no secret sauce involved you can do the same with data available on the internet. My question however is whether it is worth doing tactical allocation or is it just better to follow a fixed asset allocation plan. That is what I set out to find and here are my findings.

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  • Sensex Touched 60,000. What Should I Do Now?

    I never imagined that BSE Sensex (Bombay Stock Exchange Sensitive Index) would touch 60,000 so soon! Especially given the uncertainty due to COVID-19 pandemic. It took just 8 months to go from 50,000 to 60,000. Which is a 20% gain in that short duration. We have all heard of stock markets giving great returns, but this one is special because it is happening at a time when economic situation isn’t that great and we are still fighting a virus without cure. Oh well. Markets will do what they do best – surprise everyone. So what should an investor do in such a situation? My response may not give the answers you are looking for, but that doesn’t stop me from writing now will it?

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  • Be Smart Or Not Be Stupid?

    It is amazing how many people focus on being smart than avoiding stupidity. One could be the smartest person in town, but if they keeping making silly mistakes, eventually the mistakes pile up enough to waste a smart decision. This is even more true in investing. I am one of those people trying to be smart instead of avoiding mistakes. This reminds me of an article I read a long time ago about the findings of a scientist and statistician Simon Ramo.

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  • Improving Returns On Investment

    A few days ago I wrote a post on how to start on a simple investment plan. The reason I wrote that post is to help you get started because it is easier to start on a simple plan. The more complex a plan, the more we procrastinate. But what if you have already started on your investment journey and want to improve the returns? Continuing from where we left off with the simple investment plan, here are some things you can do to improve returns.

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  • A Simple Investment Plan

    It has been 10 years since I first started investing. When I look back at how I invested back in the day, it looks so simple. No complicated planning or exotic products. I always believe in starting with something simple. Whether it be investments, work, hobbies, nutrition, exercise, you name it. There are several advantages of this approach.

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  • Market Euphoria And Relevant Trends

    The number of new fund offers (NFO) in the recent past is giving me the jitters. Have you seen how many NFOs were offered? And investors are just lapping them up clean. And let us not even talk about the IPOs. I am not here to make predictions, but the market seems to be reaching euphoric phase. And you know what that means to the stock market once the excitement subsides.

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  • How Much To Invest To Accumulate 5 Crore By The Age Of 45

    I read an interesting article where someone wanted to know how much they need to invest to accumulate Rs. 5 crores by the age of 45. It would be interesting to see how I would answer that question. I was also wondering if there are enough tools on my blog to be able to answer such questions.

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  • Fixing My XIRR Calculations

    For the longest time I was debating whether to consider dividend reinvestment as a transaction in my XIRR calculations or not. Until now I never used dividend reinvestment in my XIRR. The reason was simple. If I did not sell and buy something (dividend reinvestment), then why should it be a transaction? But finally after some thought and a nudge from Value Research I decided to fix it.

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  • Exit Load In Mutual Funds

    If you have been investing in mutual funds for any amount of time, you most likely know about exit load. Some mutual funds, typically the equity kind will charge the investors some fees if they exit the fund (redeem investments), before a certain time period. This is done to discourage investors from prematurely exiting the fund.

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  • Living Without Any Insurance!

    Yes. That is true. I don't have any kind of insurance for my family, that includes my parents. That is a huge risk that no one in the right mind should take. I would never suggest anyone do it. I would not do it either if this panned out a little differently. Let me explain.

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