The most maligned person in the financial service space is the distributor. It is he/ she who provides the last link between the financial product manufacturers and the end investor. Let us describe the typical distributor: He earns about Rs. 2-3 lakhs a year (a decent MBA would not EVEN consider looking at such a […]
For the past one year Mutual funds are falling over themselves to please the bankers. However it is not having a great impact on the net sales. For many mutual funds, the ‘net sales’ figure by the big banks is NEGATIVE figure. When you talk to a banker however they are not so negative, and […]
Sometime back I decided to write about something which I have been advocating for years. How will you like it if I can postpone your tax payment from the year 2014 to 2034? You will love it right? First of all it means your money compounds for 30 more years, and you are paying with […]
Risk in mutual fund investing comes from: a) not knowing what you are buying b) not understanding standard deviation of the instrument c) not understanding that the past performance is completely useless for knowing what will happen in the future. Let us take just one ‘type’ of fund: The Gilt Fund. All asset management companies […]
What are the options that a person has when he/ she chooses to invest in a debt instrument? Well the choices are: 1. Bank fixed deposits: requires very little explanation. 2. Company fixed deposits not a big range of companies available, but a good option. 3. Company Bonds: Right from Tata to Sriram and […]
i have said this, and so has the industry…. timing the market sounds sexy but it is not possible to achieve… now here is some American RECENT evidence…read on http://www.usatoday.com/story/money/personalfinance/2013/03/09/funds-investing-beats-timing/1968323/
Many people choose the fund in which to invest by looking at the rankings / ratings. I have always held the view that ratings are backward looking and so it does not serve as serious tools for choosing a fund in which to invest. It took some long conversations with some serious knowledgeable investors to […]