Dynamic Systematic Investment Plan

Everybody knows SIP are good.The rationale for SIP investing is not  based on any mathematical model but  psychology of consistency.It just to  average the cost of investment using disciplined periodic investment. The underlying idea is that its hard to time the market if not impossible. Various methods have been devised to predict market direction but … Read more

Peer to Peer Lending(P2P) Investing Strategy based on Kelly Criterian

Peer to Peer lending is a mechanism where  people can invest or borrow money from other people through an online platform. These companies provide a market place for loans  like Amazon and Flipkart provide for buyers and sellers. It has been very successful in US and UK.Basic Features of P2P lending are: Unsecured Lending  for … Read more

Systematic Investment Plan Stress Testing

We all know the  benefits of doing Systematic Investment Plan(SIP) .It helps to average our buying cost and negate some of the impact of volatility.Many website allow you to calculate return if you do SIP based on average mutual fund performance. The million dollar  question is how would a SIP performance look like in a … Read more

Replicating a Mutual Fund Portfolio

Mr X want to invest 1,000,000 INR  in equity Mutual Fund. We will assume he is making a lumpsum investment .He wants to stay diversified so he picks these 3 mutual funds: Kotak Select Focus(60%) Reliance Large Cap Fund(20%) Reliance Small Cap Fund(20%) What does the combine portfolio of all three mutual fund look like: … Read more

Mutual Fund and ETF Investment Strategy

Equity Investment through Mutual Fund is growing at a very fast pace and so has been the number of Asset Management Companies in the market.Mutual Fund Companies charge a fees called expense ratio for managing the funds. ETF on the other hand track the broad market Index.The fees for ETF are lower (.05%-.2%) compared to … Read more

Hidden Costs of Investment Products

Iphone is popular,so is Versace ,Chanel and BMW. We only pay premium for products were we perceive  higher value.It can be in the form of quality,features and so on.Some people argue that these brands are overpriced because certain similar products cost far less. The argument is quite subjective because for someone the prestige of owning … Read more