You may have been told by the electronic media how SIP (rupee cost averaging or dollar cost averaging) has failed its investors in the past 3 years. If you have seen such programs / read such articles, you may have panicked, right? Well do not panic. Here is a list of reasons why a SIP […]
It is customary for people to say “I do not take any risk in equity markets” all my money is in PPF. Let us look at what are the risks involved in investing in PPF. First of all most of the people I meet today invest far, far more in a year than the max […]
There are too many reasons why “investors” lose money in equities. Here I am trying to enumerate some of them. Keep visiting this post because as I get more points I will add them here rather than create a new post. 1. Confusing between trading and investing: Traders and investors both make money if done […]
SIP creates wealth in the long run, however it gives no immediate gratification. Equity trading (what the common man thinks is investing) gives immediate gratification and does not create wealth for the client. The broker wants him to trade so that broker’s wealth goes up. So what is the solution? Sell SIP in equities as […]
Yesterday I saw, and I hope you saw that WB is not a fund manager. However almost all his thoughts on investing are worth reading and re-reading. Let us look at something very simple. WB says choose simplicity over complexity. Keep it simple. Do what is easy and simple – leave the complicated things to […]
Delayed gratification is so boring! Particularly when it comes to finances, constantly pinching pennies and saving all your extra cash is pretty darn boring when you get right down to it. Which is why so few people do it well. There are too many fun things to spend money on.Yet, unrestrained spending (especially the kind […]
If you are a student of financial planning you should know the following. Just find out how many of these statements are true and how many are false….. Financial planning is perhaps difficult for a client to do it himself because of the personal bias that might set in. Procrastination is the enemy of compounding. […]