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4 questions which investors rarely ask before investing
If you observe these instances, the underlying motivation to invest is primarily because of FOMO (fear of missing out) or saving taxes or chasing returns through the influence of social media. Investors however fail to pause and rarely think about questions which actually matter. Considering the behavioral tendencies, check out the infographic above on the […]
Jun 231 min read
The ancient tale of greed and fear – Issac Newton & the South Sea Bubble
Issac Newton was well known for his significant contributions to physics, maths and astronomy. However, when it came to the stock markets, even someone as brilliant a scientist as him succumbed to the herd behavior and lost a fortune. Throughout the 1710s, Newton owned shares in the South Sea Company. The bubble associated with this […]
Nov 26, 20241 min read
How should investors respond to a falling market now?
Until a few months back when the markets were relentlessly scaling new peaks, no one had the slightest clue when the party will get over. The tide has turned now, although not sure, if it has turned for good. There are multiple factors attributed to this downward spiral which include the uncertainty due to the […]
Nov 6, 20242 min read
How a recent SEBI study on IPOS depict quick profit mindset among retail investors?
Greed, temptation, herd actions, FOMO, overconfidence, going overboard on taking risk, impatience, are all the common behavioral traits one can witness in investors amidst a bull run. Topping up the excitement is the IPO frenzy. When the going is good, companies capitalise on the opportunity to flock the markets & raise capital at desired high […]
Oct 6, 20242 min read
What is an irregular PPF account & how new rules will affect from October 2024
New PPF guidelines will come into effect from October 1, 2024. The primary objective of the new rules is to target the accounts which have been opened in violation of the scheme guidelines. These are classified as irregular accounts which could be if an investor has: How will the new rules affect the irregular accounts: […]
Sep 10, 20242 min read
Why PPF vs ELSS is a stupid comparison
If a cyclist and a motorist run a race, who do you think will win? The answer is a no brainer. One is a human powered mode of transport and the other is a machine. Although both are vehicles, is the comparison about who is the fastest, rational? Likewise, in investing, it is an unfortunate […]
Jul 2, 20243 min read
Insurers cannot promote ULIPS as a pure investment product
Mis-selling has been the bane of life insurance sector. Instead of protection cover, the emphasis has always been more on investment returns while promoting life cover products. In the past year, insurance companies and agents have started talking about terms associated with mutual funds while launching ULIPS – net asset value, index funds, etc. ULIPs […]
Jun 21, 20242 min read
How did the different indices fare on election result day?
Based on the eventful election result day this week, I have compiled the performance data of different indices. Here are some interesting insights.
Jun 7, 20241 min read
Are you asking the right questions in personal finance?
Jim Walis rightly stated: If you are asking the wrong question, it doesn’t matter how good the answer is, you aren’t going to get where you want to go. In the context of personal finance, questions which focus more on the product rather than the solution have a myopic approach. This stems from the fact […]
Mar 31, 20241 min read
Does the ‘buy & hold forever’ strategy hold good in the stock markets?
You must have come across the popular Warren Buffet quote – ‘My favourite time frame for holding a stock is forever.’ Well, after looking at the table above, you may not completely agree with his investing ideology. As per data compiled by Livemint, the above image shows the change in Sensex (30 stocks) composition over […]
Jan 30, 20242 min read
Importance of asset allocation in a portfolio
This table was published recently by Mint. Different investment options have been ranked in order of their return performance – from the highest to the lowest for each calendar year in the 10-year period – 2013 to 2023. They broadly fall under the following 4 asset classes – Fixed Income (Debt), Equity, Gold and Real […]
Jan 16, 20241 min read
Post office interest rates – January-March 2024
Post office interest rates are market linked and are revised every quarter depending upon the movement of long & short term market rates in general. The above interest rates are applicable for the fourth quarter (Jan-March 2024) of financial year 2023-24. With RBI keeping interest rates unchanged in the last monetary policy, there has been […]
Jan 8, 20241 min read
How have the worst equity funds performed over the last decade?
A picture says it all. The power of investing in a business through equity. When invested in equity through mutual funds, you get the benefit of diversification. Some businesses will do great, some good, some decent, some poorly, some worst. But equity is the best asset class likely to beat inflation over the long run. […]
Oct 10, 20231 min read
How to use income ladder strategy in fixed deposits?
In 2021, Mr. A invested Rs.6 lakh in a 5 year fixed deposit, earning around 5.5 per cent p.a. After bottoming out, interest rates in general started rising since last year. Now, 1 year FD rates yield around 7 per cent p.a. Mr. A is in a fix. If he breaks the FD, he will […]
Aug 23, 20232 min read
RBI Floating Rate Bonds – Reset in interest rates (July-December 2023)
The half-yearly interest reset of RBI Floating rate bonds has happened in July. From July 1 till December 31st 2023, the interest rates on these bonds have been revised to 8.05 per cent p.a. RBI floating rate bonds are offered by the government with sovereign guarantee. The bonds are repayable after 7 years. They offer […]
Jul 14, 20231 min read
Should you book profits in the stock markets now?
With markets making new highs & topping headlines recently, it is tempting to get swayed by the market noise. Timing the market never works unless you get lucky. But you cannot get lucky every time by accurately predicting the peaks and troughs. Neither does it matter when you are in for the long haul. Should […]
Jul 10, 20231 min read
A brief on Mahila Samman Savings Certificate 2023 – should you invest?
The Union Budget 2023 had announced a new small savings scheme exclusively for women. This was to encourage women investors to save. While it was earlier available only at post offices, it has recently been made available for subscription in all banks for enhanced reach to women. The scheme allows deposits under the name of […]
Jul 6, 20232 min read
Post Office Interest Rates – July-September 2023
Post office interest rates are market linked and are revised every quarter depending upon the movement of long & short term market rates in general. The above interest rates are applicable for the second quarter (July-September 2023) of financial year 2023-24. With the general rise in interest rates over the last 4 quarters, post office […]
Jul 3, 20231 min read
Is your mutual fund distributor working in your financial interest?
While there are many fintech platforms coming up which offer direct plans, there are a large portion of investors who mostly purchase mutual funds from distributors. The distributor gets compensated in the form of commissions. Nothing wrong in it though. The problem arises when the distributor recommends funds which align with his own interest rather […]
Jun 21, 20232 min read
Are debt funds still attractive for investors sans the indexation and LTCG benefit?
With a view to remove the tax disparity between debt mutual funds and other fixed income instruments like FDs, the government has finally approved the amendments in the Finance Bill 2023. Till now, debt mutual funds held for 3 years or more enjoyed the indexation benefit on purchase cost and long-term capital gain taxation at […]
Mar 26, 20233 min read
How many Mutual Funds should you have in your Portfolio?
If you are preparing Khichdi for 2 people or 25 people, what is the difference? The difference is of quantity, you need more of the ingredients in preparing khichdi for 25 people. But do they change? If we add different ingredients which are not necessarily required, will it enhance the taste? NO. Similarly, if your […]
Mar 23, 20232 min read
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