Randomwalk One major detractor for mutual fund is fees.Lets say somebody has been very disciplined in investing in mutual Funds for years .He made decent money and now his portfolio value is 50 Lakh INR.What would happen if the market does not move for the next 5 years. average Expense ratio = 1.5% Portfolio Value = … Read more
The answer is .It depends!! Real ESTATE vs SIP is a question of CAGR vs XIRR .In real estate you put lumpsum ,so even at lower annual rate you make more money .In SIP you put in multiple periods so though higher rate but lower money lets say you want to buy a 1 Crore … Read more
Its much debated battle and people on both sides of the argument have their own rationales and logic.Real Estate being an illiquid asset makes it difficult to compare in a transparent and a fair way. I will try to do backtesting of real estate performance vis a vis stock market. Real Estate data I got … Read more
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 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
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
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
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
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
