When Interest rates go down, bond prices go up. Almost all MBA students will tell you this. However many of them will be parrotting this without understanding what this means. Let us see what actually happens. When Interest rates go up, ASSET prices go down. This is the originally correct statement. Why and how does […]
When you think of accumulating a large amount of money we trouble ourselves into believing that it takes a lot of money to create money. Well it is not so. It is simpler. In fact much simpler than that. But those are the exact three words that can help you retire with Rs 40 a […]
How I wish I had the data – core, raw, authenticated, available for free – on Indian investors that my blogging friends in US have about American investors. I am sure it will NOT happen and we will have to live with our own pathetic data and assumptions. If the regulator (sitting with about Rs. […]
Remember the Slumdog Millionaire movie? Well, they picked up a kid from the slums and made a movie based on the book by the same name. The kid from a slum was scrubbed, cleaned and fitted into a world of ‘clean bodies and unclean souls’. So far fine. Now this kid went from slum to […]
Bucket theory of portfolio management….i hope you have heard it. Instead of saying what it is, let me describe a case study – and you will understand it better! Mr. A is a retired person (retired means does not do any activity to earn money, and he is fully dependent on his portfolio for his […]
I am perhaps one of those rare people who say ‘An investor is personally responsible for Ruining his portfolio’. Of course there are people who help him on the way, but primarily he and he alone is responsible. A financial planner makes some assumptions about client behavior. Let us see some of the impossibly irrational […]
This is one of my most popular write ups..which appeared in Money-Control sometime in 2006. It is about how much life insurance does a person need. Of course like the ad says…we all have ‘Kam insurance lene ki bimari’ so read on… “Does my family really need Rs. 4 crore on my death?” When I […]