Musing #58: Mutual Fund (SIP) Portfolio Overlap Analyser



Being from a finance background, I made it a point to invest in SIPs early on. Over the years, while the investment amount has increased steadily, the number of funds being invested in has remained more or less constant. Hence, I need not emphasis how important it is to know where exactly the money is going.

Too often, the choice of a fund is made simply on returns and diversification is achieved by selecting a different fund class. However, it provides no indication of the extent of value creation. I prefer to keep an eye out on what's happening with my portfolio and it is not only when selecting a new fund but also for keeping tabs on what's going on with the existing investments.


My search for websites/files providing this information yielded a few options that were quite limited in nature, dispensing basic overlap information between two or three funds. Unable to find the requisite information, I decided to go on my own and create an Excel workbook that provides overlap analysis for up to six funds. The other target I had set for myself was to do so without the use of VBA, so the only permission required is to access the external data source - moneycontrol.com.

The workbook is structured in to distinct sheets for input and detailed analysis. The 'Input' sheet is pretty straightforward and is essentially a two-step process requiring the funds and investment amount to be entered along with the selection of the fund that would form the basis of checking the overlap. It would be a good idea to read through the notes prior to using the workbook. The sheet has some safeguards built in to alert the user about inconsistent inputs, like missing investment values/funds and failure to refresh the 'base fund' selection. At the same time, it is robust enough to still function immaculately when any of the selected funds are deleted.


Note that although the sheet includes funds with equity holdings from various classes, some of them do not have their holdings listed on moneycontrol.com which may cause an error illustrated above. As such, there is nothing that can be done about it. Also, to state the obvious, the default funds selected in the sheet are for illustration and are not suggestive.


The 'Analysis' sheet provides the primary analysis of the portfolio. Besides listing the fund class and the equity holdings of each fund, it provides the percentage overlap of the base fund with all the other funds in the portfolio, both, in terms of the number of stocks and the value invested. The charts in turn provide 'Top 10' visualisations for individual stocks as well as the different sectors.


The 'Detail' sheet provides the tabular information that form the basis of the analysis and lists all the values as against only the Top 10 in the charts.


The 'MFx' sheets list the holdings of each fund, as retrieved from moneycontrol.com and is subsequently used for the overlap calculations.


Finally, the 'List' sheet is a list of the funds retrieved from moneycontrol.com and covers the various equity fund classes. It is easy to add any new funds to the list in the specified format and the information can be scraped en masse from the MoneyControl site.

As is often the case, I have created something to primarily fulfil my needs but with the intention of sharing it with other netizens. Consequently, I am open to any suggestions for improvement which you may leave in the comments section.

Link: Download from Google Drive

Sundry #8: Around the year in 80 posts

The first anniversary of this website is still a week away and this happens to be the 81st post, but it was too good an opportunity to pass in terms of word play. I am pretty sure that Jules Verne has stopped turning in his grave a long time back. I would have pretty much liked to hit the 3-figure mark in the first year but writing on this blog ends up taking the back seat ever so often, even as ideas continue to flow. I am afraid that even matching this number might be a tall task in the second year, though I hope to make up in quality for what might lack in quantity.

The numeric labelling of each post gives the complete picture in terms of how the posts are divided across the various categories, but here is a visualization of the same. Apparently, I am more of a critic and a philosopher.

 

I have already lamented the fact that I don't write as often as I can and the distribution of the posts over the year indicates how inconsistent I can be in putting my thoughts down. It is pretty much a function of free time.


Lastly, it is time for me to revisit the Word Cloud. Last time it was generated from the RSS feed which limited the extent of posts considered. However, this time I have gone the extra mile in extracting all the text and hence it should provide a better representation. Apparently, I need to be less possessive.


P.S. Around the sun in infinite ways?

Review #28: Private Internet Access (PIA) VPN


Hello 2017! The first full weekend of 2017 gives me an opportunity to put my thoughts to words once again. Considering that security and privacy were a highlight in 2016, I thought it best to start 2017 with a review of my current VPN service provider.

I have been subscribed to VPN services for over half a decade and have been constantly switching service providers every year without fail. The primary reason has always been the immense loss of speed I have been subjected to when using OpenVPN, especially when using servers at a great distance from my country (India). The other "not too unsubstantial" reason is the pricing which is always in USD and comes at a significant cost when your local currency happens to be INR. However, things have improved on both these fronts over the years. Server choices have improved over time and there are great discounts on offer during Black Friday. This means that I am now able to connect to more servers at a cost lower than what I paid 5 years ago.

While my trend of switching providers continues with my current choice, this is the first time I have returned to a service that I have used previously. PIA has always been a popular choice but my experience first time around was not great. The speeds were not that great and there were no local servers available. However, the speed test on their site came back with impressive numbers and the Black Friday offer of $29.95 for a year's subscription seemed too good to pass. The default data encryption offered on all clients is AES-128 in CBC mode, though it can be stepped up to AES-256 if security is more of a priority over speed. Since I value speed a lot more when using the VPN, I have till now stuck with AES-128. But as you will see, the results of my tests have now made me change my mind. PIA is also known to not keep any logs and has a good track record as far as privacy is concerned.

For my testing, I focussed on speeds alone since I have taken the security for granted on the basis of the claims and feedback linked to in the previous paragraph. The testing procedure went as follows:
  1. I used the speedtest.net website or app with the same server (based on geographical proximity to my direct connection) for the speed tests
  2. I used the official PIA apps wherever possible. However, at the time of this writing, the PIA app failed to connect to any servers on iOS 10.2 and hence I used the OpenVPN Connect app as an alternative.
  3. I made it a point to select all the countries listed by PIA when using the official apps. In case of multiple servers in a country (US, UK, Canada), I selected the one which seemed geographically closer. For the router test, I used the configurations already stored on it since switching servers is more time consuming.
The point of running it across multiple devices was not to compare them, but to observe the consistency of the performance, especially as I ran the test on each platform at different times and on different servers, but on the same 10 Mbps fixed line network. As you can very well see, the performance is anything but consistent. It gives an idea of the variabilty in speed that one can expect when using a server. Also, the high pings make it incapable of being used in a time sensitive setting. True to expectations, it is the locally situated server that comes close to providing a good experience, though the French server seems to be a good alternative. On the other end of the spectrum, the server in New Zealand is of no utility at all.


Next, I decided to run the tests on a faster 4G LTE cellular network that usually hangs around the 20 Mbps mark. The higher speed compared to my fixed line was bound to provide greater fidelity in the data. It ended up rejigging the speed order once again but is another indication of the inconsistency and limited server choices available if speed is the main criteria.


By default, all the PIA clients and configuration files are set to operate with AES-128 data encryption in CBC Mode. Apparently, the stronger encryption sacrifices speed for better security. However, this time, contrary to expectations as well as suggestions made by PIA, it was the stronger encryption that yielded better speed results throughout.


I have been using the Asus AC68U router for well over a year and it is simply faultless with the AsusWRT Merlin firmware. PIA also has a dedicated guide for it which makes it a breeze to set it up. The setup is for AES-128 in CBC mode and while there doesn't seem to be a separate guide for setting the router up with AES-256 in CBC Mode, it wasn't too difficult. Based on the settings mentioned on their site, I was able to get the stronger encryption working by changing the 'Encryption cipher' value to 'AES-256-CBC', adding the 4096-bit Root CA and including the following in 'Custom Configuration' from the .opvn file.

persist-key
persist-tun
auth sha256
comp-lzo
verb 1
reneg-sec 0
disable-occ
However, router hardware is more limited and running OpenVPN on it is taxing to say the least, especially at higher encryption levels. At the same time, it is essential as it allows dumber devices like Smart TVs and Chromecasts to bypass geographical restrictions and keeps the device count in check. I also have L2TP configurations saved for the same locations in case OpenVPN proves a bridge too far. The results yet again indicate that the strongest encryption mode is also the fastest. This comes at a higher processing cost for the router but it is nothing that will choke it up.


To sum it up, the performance with PIA is literally a mixed bag. If privacy is the driving factor, then using the closest geographical server 24x7 seems to be a good bet as the speed difference is not too significant, though the latency is higher by a factor of 10. Bypassing geographical restrictions for browsing shouldn't be much of a problem as France, Germany, Finland, Sweden offer good speeds. Video streaming from US is not much of an option, though it is possible to stream just fine from UK. On a 10 Mbps line, it is just about possible to watch HD streams with infrequent buffering. But PIA servers are already blocked across geographies as far as Netflix and Amazon are concerned. iPlayer still seems to work but tends to throw out errors every now and then.

On the positive side, it is easy to setup, works well on all the platforms that I use (Linux included) and the speed is good. I have interacted with their customer service and they are well informed while also being quick to reply. However, for me the biggest draw is the value for money. Since I am paying in USD as a foreign currency and don’t use VPN unless I am on a public network or connecting to unknown websites/IP addresses, spending anything above $30 would certainly be an overkill. My recommendation for PIA goes out only on the basis of price as I believe only more expensive VPNs will be capable of providing the speeds and options that one may need on a regular basis.

Musing #22: F1 2016 (prior to season finale) in graphs

My opinion of Formula 1's 2016 season remains pretty much the same 9 months later and has in fact been reinforced by the on-track action. 2016 has again been a two-horse race or rather "two jockeys on one horse" race as the other "horse" in the race has miserably failed to prance. Even as the driver's title stands on a cliffhanger, the inevitably of it falling in Mercedes' hands is not enticing to say the least. The title fight going to the last race does not justify the largely boring on-track action throughout the season. Races like Brazil don’t happen too often and even then Pirelli’s rubbish wet weather tyres nearly managed to spoil the show. Having grown up in awe of Senna’s and Schumacher’s driving prowess and personalities, I think Verstappen’s drive has given me a reason to get behind someone since the vacuum left behind by Schumacher. Few great personalities have arisen in F1 since then and I have filled the void by devoting greater allegiance to Rossi as MotoGP has become the motorsport to beat.

Coming back to F1, this time I have decided to present the 2016 season in graphs based on public available statistics from f1.com and f1fanatic.co.uk, both of which are great resources for any F1 fan. The statistics can be said to mostly favour Rosberg because all things considered, he has been the consistent one. Keeping Hamilton’s engine gremlins aside, he still qualified outside the front row on few instances, something that Rosberg hasn’t done all season. Also, the fluffing of the starts can’t be put down to the car alone, so Hamilton must take his fair share of the blame even as his race pace has been better on most occasions. Having said so, even Rosberg has been untouchable once he’s in the race lead, so one can draw one’s own conclusions. Perhaps, having a new champion might be a welcome change going in to a new F1 era in 2017. I have always been on the “more power, mechanical grip and less downforce” camp, so the 2017 rules are not far reaching as far as I am concerned. But I guess anything will do to disrupt the status quo.

While all the other websites will judiciously update the stats following this Sunday's race, I am going to let this one be as it stands to put forth the perspective going in to the season finale, irrespective of who wins it all.

Qualification: (Click on the images for an enlarged view)



Race: (Click on the images for an enlarged view)