Benchmark tracking certainty of funds

In the decision of which funds to invest in, an important parameter is how well the fund can track the benchmark index. It is to be expected that the variance of how well a specific fund can track an index...

UK Premium Bonds, 'Expected' Return

In the United Kingdom investors can invest in a class of bonds known as premium bonds. Premium bonds do not have a fixed coupon rate, but yield is instead distributed via a lottery. The prizes distributed as of May 2022...

House prices and interest rates

Over the past 25 years the house prices have appreciated by a factor of ~3.5. But what drivers have been the primary for this price appreciation, and can this continue going forward? The primary drivers for appreciation of house prices...

Overlap between Danish investment funds

Given the selection of Danish investment funds from Sparindex and Danske Invest, it can be difficult to see how different the funds are. As a measure of similarity, one can calculate the overlap between two funds. The overlap between fund...

Model for the price of Danish investment funds

In Denmark, all ETFs are taxed yearly by unrealized returns. On the other hand, some Danish investment funds are taxed by realized gain, if they fulfill some criteria of paid out dividends. The dividend paid out will be: earned dividends...

Brokerage vs. opportunity cost

Many brokers (at least in Denmark), have a pricing model of \(q\%\) of the trading amount or a minimum of \(p\) euro. Given a fixed amount to invest every month, we might think it is best to accumulate the cash...

Investing an SU loan

During education it is possible to take an SU loan (Danish student loan). If one takes an SU loan solely for investing, what can one then expect after the loan has been repaid? This will be investigated in the following...

Index and ongoing charges for Nordnet's monthly savings and SKAT's positive list

Remember to check the web-scraped information yourself to make sure it is correct. Given lists such as SKAT’s positive list and Nordnet’s monthly savings, it can be hard to get an overview of costs and which indices the different ETFs...

Estimate of CAGR after tax and ongoing charges

Given an idea of how much one’s strategy returns per year on average, it can be useful to estimate what this corresponds to after tax and ongoing charges (ÅOP). This estimate differs between mark-to-market taxation and taxation on realisation. Derivation...

ASK vs. taxation on realisation

The equity savings account (ASK) has a low tax rate of 17%, but is taxed mark-to-market. In principle, taxation on realisation with share tax of 27%/42% could give a higher return over a long period due to compound interest. Here...

Upper limit for tax optimisation

For a portfolio taxed on realisation, the portfolio value after \(y\) years is given by: \[D_{y}\left(k,\left\{ a_{i}\right\} \right)=k\cdot\prod_{i=1}^{y}\left(1+a_{i}\right)-s_{p,q,g,y}\left(k\cdot\prod_{i=1}^{y}\left(1+a_{i}\right)-k,\left\{ r_{i}\right\} \right)\] \(k\) is the starting capital, \(\left\{ a_{i}\right\}\) is a set of yearly returns and \(y\) is the number of years....

Danish investment funds vs. ETFs: taxation

Some Danish investment funds are taxed on realisation, provided they meet certain criteria regarding the payout of dividends. This comparison of investment funds taxed on realisation and ETFs uses prices from Saxo. For the investment fund, an ongoing charge (ÅOP)...