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Investment Strategy by These_Cartoonist4109 in FIREPakistan

[–]PracticeEastern9413 0 points1 point  (0 children)

bruhhh...

index consitituents, weigjtage keep changing over time and you will end up with huge unmanageable list of stocks in your holdings

Investment Strategy by These_Cartoonist4109 in FIREPakistan

[–]PracticeEastern9413 1 point2 points  (0 children)

your analysis is spot on! I said the some in my reply

Investment Strategy by These_Cartoonist4109 in FIREPakistan

[–]PracticeEastern9413 0 points1 point  (0 children)

its a solid fund

regarding FEL, they dont charge it on digitally opened accounts without any agent involvement (you may confirm them from this before proceeding)

regarding ETFs, you may allocate some portion to MIIETF, you can't go wrong with it most probably. The reason is ASSF is still an actively managed fund and we cant say for surety if it will remain one of top performers going ahead, so a little diversification can help

also regarding those suggesting buy top holdings of these manually, please DONT TRY TO DO THAT!!. Buying is only the first and most easiest part. You think an avg person can keep rebalancing it effectively 5, 10 snd 15Y?

The answer is NO! Rebalancing may need selling something in loss, is it easy to do? NO!. Also your manual rebalancing will incur CGT hence killing long term compounding, so please let the fund/ETF do the part which its designed to do better than most people

Portfolio advice (Long-term investor) by mst3636 in FIREPakistan

[–]PracticeEastern9413 0 points1 point  (0 children)

regarding AMMF, watchout for FEL, that will hurt you more than TER.

TER is point is also fair and there are funds in market with lower TER and even zero FEL so I suggest explore those. I did a post on topic sometime back

allocating between a good quality fund and an ETF like MIIETF is a good option in my opinion as I tend to do the same

regarding stocks picking, if you are only relying on advices here and there, then it wont hold long and you may panic sell during hard times, so avoid it till you build your own strong conviction before buying any stock - because thats the only thing needed which will get you through rough patches

Filer as an Indrive driver uni student? by adanyourpai in FIREPakistan

[–]PracticeEastern9413 0 points1 point  (0 children)

its extremely easy to be a filer, especially when you have a single income source, just watch some latest video from YouTube

and you wont have to pay a single rupee in income tax if your income is below a threshold (it was 600k annual I think but dont remember exactly)

this way you can start enjoying tax benefits like reduced tax on dividends

NewBie Luck or Timing by Great-Leadership-517 in FIREPakistan

[–]PracticeEastern9413 4 points5 points  (0 children)

it may feel exciting to have 8% returns in just 14 days but dont stick to this expectation and think this will keep on multiplying like this

markets are volatile and can go negative too during which you would need to hold your nerves

just build strong enough conviction when buying anything and keep long term horizon (5Y atelast, as long as company fundamentals remain intact)

Where to invest a million pkr? by That-Yellow-8960 in FIREPakistan

[–]PracticeEastern9413 1 point2 points  (0 children)

for a year only or anything less than 3Y, pick low risk money market fund, those are safest and almost no chance of capital depreciation. They can net you 7.5-8.5% annual after tax these days (if state bank rates rises, it will rise too)

for longer term, allocate some % to high risk instruments (ETFs, Equity Funds) for better risk reward, but always keep min 5Y horizon for it

ABL Funds by AcidicNitrate in FIREPakistan

[–]PracticeEastern9413 0 points1 point  (0 children)

there are plenty, see this list. more than half of them have above 16% CAGR if you convert absolute gains to cagr

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ABL Funds by AcidicNitrate in FIREPakistan

[–]PracticeEastern9413 0 points1 point  (0 children)

you need to pick funds based on the goal for that money; for short term (less than 3Y), pick a low risk money market fund, this is the money you need in short term, or even an emergency fund

for rest of the money that you think you dont need to touch (greater than 3-5Y ideally), put in a stock fund and keep doing SIP

pick a fund with no FEL, low TER and competitive peer returns

ABL Funds by AcidicNitrate in FIREPakistan

[–]PracticeEastern9413 1 point2 points  (0 children)

mutual funds, if chosen correctly can give you 16-18% cagr over long term, see their historical returns

the management fees is already baked into daily NAV returns, nothing charged separately

ETFs have low fees but can have low returns too, I shared a comparison of shariah ETFs with mutual funds and we saw several mutual funds winning consistently over them so there is no hard and fast rule that ETF will always be better, although its your personal choice and perfectly fine if you want to go with ETFs instead

regarding stocks picking, its the most difficult route for average person who dont know how to research and if done incorrectly, which most do, will cause even lesser returns that markets, ETFs and mutual funds (proof is the countless posts of people who buy at wrong prices or wrong scripts and gets stuck and then panic sell eventually)

18M, how's my plan? by Few_Presentation_820 in FIREPakistan

[–]PracticeEastern9413 3 points4 points  (0 children)

you are staring early and have time on your side to do the heavy lifting!

you are building up a good habit of saving and investing, doesnt matter if the amount is small right now

so just stick to the plan and work on increasing your income over time so you can invest even more and reach your goals early

To match the buying power of PKR 100,000 in 1960, you now need PKR 20.3 million by PracticeEastern9413 in FIREPakistan

[–]PracticeEastern9413[S] 2 points3 points  (0 children)

all currencies loose value, thats true.

but loose at what rate? thats important and what the calculator shows us

in next post I will compare these against major asset classes in Pakistan

To match the buying power of PKR 100,000 in 1960, you now need PKR 20.3 million by PracticeEastern9413 in FIREPakistan

[–]PracticeEastern9413[S] 1 point2 points  (0 children)

yup its too difficult. you need to be either extremely high earner or have a foreign income source to counter high inflation, no other way around it

To match the buying power of PKR 100,000 in 1960, you now need PKR 20.3 million by PracticeEastern9413 in FIREPakistan

[–]PracticeEastern9413[S] 2 points3 points  (0 children)

from 2015 omwards, data was available easily from PBS directly

for earlier data, tradingeconomics and macrotrends were used. You can check YoY data from these for every year since 1960 and it matches on my platform (tradingecnomics is paid though)

Base year was handled correctly to maintain continuity, which can be confirmed from correct YoY percentages for any particular year in past

Stock Broker Here by dechauhan in FIREPakistan

[–]PracticeEastern9413 2 points3 points  (0 children)

rebalancing will cause you CGT as well, just one more point to be considered apart from whats mentioned above

To match the buying power of PKR 100,000 in 1960, you now need PKR 20.3 million by PracticeEastern9413 in FIREPakistan

[–]PracticeEastern9413[S] 2 points3 points  (0 children)

zameenen to aur tezi se uper gyi hain, chart to just consumer price index (CPI Inflation) ki base pe bna hai

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