Parroting ‘time spent in the market is better than timing the market’ is done by many journalists especially in the financial sector. However it does not giving the following advise: “It is your money. So if you are nervous about the market move into cash” When there are dark clouds, when you are feeling sad, […]
While doing a risk review of a portfolio, I stumbled on a portfolio with 55 mutual fund schemes and 52 direct equity investments. When the investor asked me what was the risk, I said there was ‘concentration’ risk. I also told him he was running the risk of ‘over-diversification’ . He asked me to speak […]
In one of those financial planning classes somebody asked me this question. It is quite an easy question to answer, but a difficult answer to understand. For different people it means different things. If you wish to own a Mercedes having a spare Rs. 80 lakhs to buy and Rs. 50,000 per month to spend […]
Sounds very funny does it not? Why would anybody choose to be poor? Or unhappy? Or fail? Well if you read Hindu philosophy in detail you realise the following lessons are taught to you through stories: You are a function of what you chose to be. If you are happy you make the choices to […]
I was recently at a conference for students – and was addressing about ‘ABC of Money’. ABC of Money is a program which is meant to introduce you to Goal setting, Quantifying Goals, Mathematics of Investing, Compounding, Annuity, Risk Profiling, Mutual Funds, Life Insurance, Retirement Planning and Record Keeping. It is a comprehensive program and […]
The power of compounding – inflation is negative compounding! Over a long period of time all things get expensive. Remember the first time your mom sent you alone to buy bread? What was the price of bread? Re.1? Rs. 4? – well today it is Rs. 20. That is inflation. I remember my Dad topping […]
When it’s time for you to retire, will you be able to afford it? Every person you see working beyond the age of 59 is worried about his or her retirement. Almost all the research conducted on the subject over the last few years shows that most individuals are unable to demonstrate financial readiness for […]