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. Stock market has been reaching new highs every other day since the crash of March 2020. And the general public is excited to join in on the fun. But … Continue reading “Market Euphoria And Relevant Trends”

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. Before we begin, here is some more information — Age of the person: 32 Planned retirement age: 45 Current investments: Rs. 18 lakhs Home loan: Rs. 20 lakhs paying EMI of Rs. 25,000 Net take home salary: Rs. 1,10,000 Unfortunately we don’t have … Continue reading “How Much To Invest To Accumulate 5 Crore By The Age Of 45”

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. Why do I have dividend reinvestment? In the past I invested in liquid and ultra-short term mutual funds that used to offer dividends. This was a while ago around 2011 to 2015 … Continue reading “Fixing My XIRR Calculations”

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. You see, investment in equity is a long journey. You cannot invest today and expect stellar returns in a year. Of course this does not deter some people from having crazy expectations. It takes a long time to build wealth. There will be lots … Continue reading “Exit Load In Mutual Funds”

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. Well, before I explain my situation, I want to inform you that I have written a couple of articles on insurance in the past. If you have missed them, do check out my posts on health insurance and life insurance. The short of it is … Continue reading “Living Without Any Insurance!”

Trimming Expenses

In my last post I mentioned that I was confident of my approach to early retirement. In addition I wrote about a couple who have been retired for 30 years by just following the 4% rule. One of the learning from that post is that there could be a huge drop in market that may hit my investments badly. In that case my investments may not keep up with my expenses. For example if there is a prolonged market slump. And I need a plan. The plan starts with cutting down my expenses temporarily so that my investments can catch … Continue reading “Trimming Expenses”

How and When I Decided To Retire

A friend and reader of my blog asked me this question — I don’t know if you covered this in the blog, but could you write about how you arrived at a number for net worth where you felt comfortable retiring. I have written about my retirement journey which is scattered across many posts. So I thought I should consolidate and revisit the topic for the benefit of new readers. The way I decided I was able to retire was when I knew that my corpus (investments) has reached 25 times my annual expenses + some buffer. That basically is … Continue reading “How and When I Decided To Retire”

News – A Helpful Guide To The Investor?

It is extremely funny to read stock market news. These days there is almost no useful news at all when it comes to investing. Makes me wonder why I still follow financial and business news. I will take up the case with a few articles that all arrived in my news feed on the same day plus some. Does specific data from the past help? Lets take this article titled “Investor wealth rises 9 times over past 10 years in Motilal Oswal Nasdaq ETF“. Alright some fund gave a return of 24% annualized for the past 10 years. How is … Continue reading “News – A Helpful Guide To The Investor?”

Why Save When You Cannot Enjoy?

Some one asked “I don’t have money before a job so cannot spend and have fun. After finding a job I have money, but I am saving for a future. So again I cannot spend. What is meaning of money? Spend it or save it or what to do?”. That got me thinking. I gave them the reply and thought I should expand a bit on my blog so it might help others. I understand the desire to spend after you get your first job. Obviously you don’t have to start saving the minute you have a job. May be … Continue reading “Why Save When You Cannot Enjoy?”

Franklin Debt Funds Payment Is Here

Finally after almost one year since the Franklin debacle, there is some good news. I received 50% of my investment in Franklin Ultra Short Term fund. That is a sizable chunk of money. I am sure I have never seen as much in my bank account — ever. While it is a sigh of relief, I never so much as doubted that there will be problem in repayment. My only worry was how long it would take for Franklin to repay given the court cases. For once this case moved faster than typical court case duration in India. Anyway I … Continue reading “Franklin Debt Funds Payment Is Here”