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In our blog of 31-Oct-17, we referred to the fact that our equity portfolios (we call them risky portfolios) benchmarked against either the BSE SENSEX or the BSE Small Cap index had been significantly underperforming. In the same blog we had talked about the exuberance in the small cap space and our skepticism thereon. The Small […]

In the 31-Oct-18 portfolio report to clients, we had mentioned that Aroha will be introducing a fixed fee (from the next financial year ie 2019-20) in addition to the usual performance based fee all clients are subject to presently. We did give a brief explanation for the introduction of the fixed fee – nevertheless, we

The time value of money is an Investment 1.0 topic. It is a fundamental attribute that capital today is more valuable than the same notional amount of capital anytime into the future. In other words capital of the future will need to be discounted at a specified rate to today’s value. This fundamental attribute however

Aroha’s Investment Adviser License is coming up for renewal and in this regard, we recently submitted our application for renewal. Anguished with the unfair situation Corporate Fee Only Registered Investment Advisers (RIAs) find ourselves in, we wrote a separate letter to SEBI. The letter is posted here for the benefit of our customers Date: 26-Sep-2018

A few days ago a good friend of mine forwarded me the product brochure of a Structured Product. The product was marketed with the following justification : Back testing of the product performance has shown that:    (i) There is a 81.02% probability that the absolute returns of the product will be 60% and above.    (ii) There is

The Union Government in its wisdom, introduced a Long Term Capital Gain (LTCG) tax on equity shares in its budget for the financial year 2018-19. My attempt in this blog is to elaborate on how should investors respond to the introduction of this tax. The words in the detailed text regarding the tax rate in

Simple interest is one in which the interest is paid out at regular intervals. In compound interest, the interest is not paid out at regular intervals, but instead added to the principal and the subsequent period interest is then charged on the modified larger principal. In other words there is interest charged upon the unpaid

It is the time of the year to take stock of how things have panned out in the financial year gone by. Clients have a choice of three benchmarks to choose. The first benchmark being a low risk benchmark such as the SBI one year FD rate/CPI rate of inflation +2%, the second being the

SEBI has invited comments to its recently published “Consultation Paper on Amendments to SEBI (Investment Adviser) Regulations 2013”. It is not clear whether the contents of this consultation paper released on the 2nd January 2018 is over and above the contents of the two earlier consultation papers put out on the same subject in October

A number of clients have written in asking for our comments on the “Bail In” clause mentioned in clause 52 of the Financial Resolution and Deposit Insurance Bill (2017) tabled before the Joint Parliamentary Committee in August this year. The “Bail In” clause gives power to a body called the “Resolution Corporation”” appointed through the powers of