Year In Review – 2019 Returns

It is that time of the year again when I do a review of my investments, expenses, net worth and also plan for the upcoming year. This year is special because I also have to do my 10 year planning as this is the start of a new decade. Anyway, enough banter, on to the good stuff. As usual, this will be a series and this is the first of them which covers my returns in 2019. Portfolio vs Index I got returns of 9.25% last year. When compared to some well known indices, my portfolio performed better than most, … Continue reading “Year In Review – 2019 Returns”

Investment Analysis App

For the past few months I have been working on a web app that would let me slice and dice my investment data so I can do some analysis and answer interesting questions about my investment. I am finally (mostly) done with the app and published it recently. If you are interested in trying it out, see the bottom of the post for details. In this post, I will go over my investment strategies and how they played out using the data from the app. Disclaimer: You might see me mention some of the funds that I had invested in … Continue reading “Investment Analysis App”

My Early Investment Journey

While I am sitting comfortably today, writing about my journey to early retirement, the initial days of my investment years were not without their share of issues. Let me explain in a bit more detail. When I first started out, I had planned to do a SIP of a certain amount every month and planned on increasing it every year. The increase in SIP I planned at that time was to match up with the inflation rate. The thought process was that if I was just average at work then my salary increments will match up with the inflation for … Continue reading “My Early Investment Journey”

How Much Should I Invest?

While having a conversation with one of my friends, it occurred to me that the current calculators are not sufficient to figure out how much to invest per month while increasing the SIP every year to meet your retirement goal. Lets say, you have an age in mind at which point you want to retire. And you want to know how much you should invest every month of every year until you reach your goal. Throw in a twist, which is that you want to increase your investment every year by some fixed percent. There is no calculator on this … Continue reading “How Much Should I Invest?”

Debt Funds vs Fixed Deposits

If you ask someone whether Fixed Deposits are better or Debt funds are better, more likely than not, you will hear a biased answer towards either of them. Some swear by FDs and their safety, while others say debt funds always give better returns than FDs. Lets bust some myths and try to get an understanding of how these two types of investments work. Before going any further, if you are eligible for Senior Citizen Saving Scheme (SCSS), then I would say that is the best fixed asset option for you, if your investment is less than Rs. 15 lakhs. … Continue reading “Debt Funds vs Fixed Deposits”

The Peer-to-Peer Lending Experiment

It is 3 years to this day, when I first decided to get my feet wet with a new type of investment — peer-to-peer lending. While peer-to-peer lending is nothing new in countries such as the US at that time, it was relatively new in India. After reading about the lending platform called LenDenClub, I decided to give it a try to see if I could get some good returns. How it Started Peer-to-peer lending is a high risk and high return asset class which is certainly not for everyone. Don’t go down this path unless you understand the risk. … Continue reading “The Peer-to-Peer Lending Experiment”

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 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”

How Long Will My Money Last?

How long will your money last? The oft given cliched answer is — it depends. It is true if you want someone to answer for you. But if you put some effort, you will be able to answer the question yourself. The only problem is that you should be able to make some good estimates of your expenses, inflation and investment return long into the future.   This is a continuation of my earlier post — How Much Do you Need to Retire. If you haven’t read it, I urge you to head over there first. So by now you … Continue reading “How Long Will My Money Last?”

How Much Do You Need To Retire?

I have touched upon this point briefly in step 5 of How to Retire Early in 5 Steps, but I thought I should expand a bit on that. Most people suggest the 4% rule, which basically states that if your expenses can be met by withdrawing 4% of your corpus, then that should be the corpus size. For example, if you need Rs. 50,000 per month to meet all your expenses comfortably in your retirement, then your corpus needs to be Rs. 50,000 * 12 / 4% = Rs. 1.5 crores. But does it really work?   For the skeptics, … Continue reading “How Much Do You Need To Retire?”