Leveraging (like derivatives) is neither good nor bad. Huge wealth has been created by leveraging (Reliance, Tata, Uday Kotak (net worth Rs. 30 lakhs to market cap Rs. 26,000 crores in 25 years) – and also ALL bankruptcies have been caused by bad management of debt. There are many advantages of gearing or borrowing: a. […]
Ask any person what is their biggest asset? Well it sets them thinking….and then the facts… Most people do not know what is their biggest asset. They then say – it is ‘ my house’ , ‘my equity portfolio’, my car, etc. However then I lead them to the next question: Have you borrowed for […]
Many things in life are better achieved slowly if you want the gain to be permanent! Does this remind you of another boring task – the process of losing weight? If so, welcome! Investing and money management is a lot like eating. So is losing debt like dieting? maybe…maybe not. Is getting out of debt […]
http://www.subramoney.com/book-written-by-me/ What is a repo transaction? Every MBA student knows the word ‘Repo’ – however if you drill down and ask for its full form or what it means…you are in trouble! So here is what an MBA student (Finance major) can say when confronted with the question – What is a repo transaction? RE […]
It is customary for people to give sane advice- if you have a kid, the kid should have a PPF account. This advice makes very little sense. First of all most of the people I meet today invest far, far more in a year than the max possible amount of Rs. 70,000 in a PPF […]
Banks lending in rural India is a great thing to have happened. Most people who borrow are genuine -but there are some politically supported borrowers too. The main reason why a person in India (or in any part of the world too!) repays the loan is ‘because it is the right thing to do’. This […]
It is so funny to see politicians and some fund managers say India’s interest rates are very high in real terms (if inflation is 3% and interest rates are 10% reeal rate of interest is 7%). So interest rates should come down. Also if the $ is now at 52 or 53 to a rupee, […]