[ad_1] Recently, someone on X referenced a trailing 5,7,10Y SIP returns comparison of direct plan large cap funds vs the Nifty 100 TRI and concluded that most active funds beat the index. They also noted that using SIP returns avoids the bias introduced by trailing returns.I responded that using a 5Y or 10Y SIP is still a trailing return, since SIP returns depend on a specific sequence of returns, and that I would try a rolling SIP analysis. See: How the fate of your mutual fund SIPs is decided by “timing luck”Regular readers may know that we have used rolling…
Author: user
[ad_1] Image source: Getty Images As an older Fool, I love generating passive income. One of my main goals is delivering unearned income for my family. But like work itself, producing passive income is no pushover. In my working and investing life, I’ve encountered these five problems with building passive income: 1. Time and effort Like everything worthwhile, making and managing money is not easy. It takes time and effort, often with significant upfront work. Also, making better financial decisions means understanding the pitfalls and rewards of money management, which can be boring. 2. Continuous upkeep Once a plan is…
[ad_1] Image source: Getty Images Eyes were on Nvidia (NASDAQ: NVDA) stock last week. The artificial intelligence chipmaker reported earnings. I can’t recall many other third quarters that have been this hotly anticipated. With comparisons to the heady days of the Dotcom Bubble doing the rounds in almost every newspaper, the latest results of the American company was the bellwether to end all bellwethers. Before getting into the nitty and gritty of those results, it’s worth remembering the size of Nvidia now. The firm is the world’s largest company. Its $4.5trn market cap dwarfs the entire stock exchange of certain…
[ad_1] Image source: Getty Images With the Autumn Budget due tomorrow (26 November), markets are trying to assess what might happen to the fortunes of UK companies. That has already been happening for months. I expect some companies may see a notable impact on their share price when the Budget is announced. Here are three of them. J D Wetherspoon Pub operator J D Wetherspoon (LSE: JDW) is well-known for its cheap beer and spirits prices. Read many of its financial reports though, and it becomes clear that the company reckons those prices could be even lower were not for…
[ad_1] Image source: Rolls-Royce plc One of the most stunning turnarounds among blue-chip UK shares in the past decade is what we have seen at Rolls-Royce (LSE: RR). The Rolls-Royce share price today stands 858% above five years ago. It had already been flying for several years by the start of 2025. But that momentum has continued, with the share price up by three quarters so far this year. Over a few weeks since the end of October though, the Rolls-Royce share price has tumbled 12%. Could that just be a blip? Or might it signal that the glory days…
[ad_1] Image source: Getty Images The FTSE 100 and FTSE 250 have risen sharply in 2025, reducing the yields offered by income stocks. Yet the UK market’s strong dividend culture still makes it a great place to shop for passive income shares. Take the following high-yield dividend stocks: Stock/investment trustDividend yield for 2026Legal & General9.2%Greencoat UK Wind10.9%Primary Health Properties7.6%Rio Tinto5.9%Chelverton UK Dividend Trust (LSE:SDV)9.8% The average dividend yield among these dividend shares is a whopping 8.7% for 2026. It means that a £20,000 investment — say in a Stocks and Shares ISA — invested equally among them would provide a…
[ad_1] Markets move up and down — that’s a fact. Emotional reactions to those movements, however, are optional. But even the most analytical, financially literate clients are not immune to anxiety, fear, or regret. When emotions take hold, investors tend to lose perspective. They start zeroing in on recent losses, alarming headlines, or isolated data points rather than the big-picture goal or why they started initially investing. To appease clients, financial advisors often respond with more information like additional charts, statistics, and explanations. Yet when a client is emotionally activated, more detail fuels the fire, further pushing the client toward…
[ad_1] Image source: Getty Images The FTSE 100 has slipped around 1% over the last month. This is a disappointing result, given that November is historically a strong month for stock markets. On the plus side, the FTSE’s mild drop means the index remains packed with excellent bargains today. The low prices of many quality stocks may in fact spur a possible buying spree in December, also a traditionally robust month for equities. Take the following UK blue-chip shares: Babcock International (LSE:BAB), Associated British Foods (LSE:ABF), and Scottish Mortgage Investment Trust (LSE:SMT). Each has seen its share price slump over…
[ad_1] Image source: Getty Images 2025 has been a spectacular year for the Lloyds Banking Group (LSE:LLOY) share price. So spectacular, in fact, that I think it’s in danger of crashing back down to earth. At 87.4p per share, Lloyds shares are up 59% since 1 January. It’s a stunning rise that I feel fails to reflect the enormous challenges facing UK banks in the short term and beyond. But what could cause the FTSE 100 bank to correct sharply? Here are three threats I think could rock the lender in 2026. 1. Falling interest rates The Bank of England…
[ad_1] Image source: Getty Images Is the year 2025 the ground floor to a Stocks and Shares ISA golden age? One reason to think so is the impact of artificial intelligence on the economy and world as a whole. One recent report predicted yearly economic GDP growth of up to 5.4%. That’s more than double some of the strongest years last century. Developed countries grow at less than 1% a year these days. The rapid adoption of this technology could lead to challenges, especially regarding fewer jobs being needed. But it may lead to stock market returns higher than we…