Year In Review – 2018 Returns

Update on July 15, 2019: I made a mistake in how I calculated my returns and as a result, my returns for 2018 was actually 2.17% and not 4.13% as indicated in this post. Except for that one mistake, rest of the post is accurate to my knowledge as of today :). So I still did not beat all the indices really. At the end of every year, I take stock of my investments, expenses and net worth to keep a tab on how I am performing with respect to my goals. This is also the time to rejig things … Continue reading “Year In Review – 2018 Returns”

Year In Review – 2018

A happy new year to you! The year 2018 has been exceptionally exciting for me. The last such eventful year has been 2002 when I took a flight for the first time in my life to a country half way around the globe, to pursue my Master’s degree. Back in 2002, there were a lot of new things that I have never experienced before — the culture shock, self reliance, clean roads, every shop, house and office having air condition, tons of cars and almost no people on roads, huge university campus, and much much more. Every day was like … Continue reading “Year In Review – 2018”

Health Insurance

Like life insurance, everyone needs a health insurance too. It is especially important to start one when you are young, so you can lock into lower premiums. However unlike life insurance, health insurance is useful both pre and post retirement. If you have not yet retired, the risk of not having a health insurance is that, in case of an emergency, your investments and savings will take a hit and will delay your retirement. If you are already retired, your corpus will take a substantial hit and will reduce your income stream. There are a lot of factors to consider … Continue reading “Health Insurance”

Life Insurance

Everybody needs a life insurance to protect their loved ones from financial hardships in the event that your time on the planet has unexpectedly come to an end. So I wanted to write a post about life insurance. The recommendations made in this post are for people who are planning early retirement. For others, it may not work. You requirements of life insurance will be different pre and post retirement.   Pre-retirement Life Insurance At any point in life before retirement, the amount of life insurance you need is the corpus that you would need at the time to support all … Continue reading “Life Insurance”

How to Choose a Financial Planner

If planning your finances in minute detail and researching investments that fit your goals and risk appetite is not your cup of tea, then it is better to hire a financial planner who will do the work for you. But how does one find a good adviser? What attributes make up a good financial planner? Here are some tips to help you get started.   Finding a Financial Planner The best way to find a planner is referrals from friends, colleagues or family. The financial planner should have been handling their finances, and they should be happy and satisfied with … Continue reading “How to Choose a Financial Planner”

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”

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”