MICRO Blog

Sit back and do nothing rather than follow the herd on investment decisions. Avoid FOMO (fear of missing out). What works for your social circle may not work for you. Your financial situation is unique and so is your story. Stay clear of financial & investment biases, challenge them. Your emotions towards your money may not let you think straight & clear. Know the purpose of your money. Eventually you will spend it. Set realistic financial goals & then invest. Invest regularl

As a financial adviser, I always reiterate that how much income you earn does not matter. How well you manage that money and put it to work to grow for you is what is important in the long run. That is why your personal Net worth is an important indicator of your financial well-being. Simply […]

Recently, a retiree approached me for investment consultation. The first thing she casually asked is if some money should be gifted to her 23-year old son out of the retirement benefits received. Her son had recently started his career in an IT company. This is not a standalone case. It is natural for parents to […]

Most people equate financial freedom with retirement. People set milestones – ‘I want to accumulate an X amount by age 40 and then retire’. But financial freedom is not retirement from work. It is a mirage unless you have truly figured out what you really want to do in life till your time on earth […]

A recent conversation with a Client made me realise that many are not aware of PPF rules. Read on further: Client: Want to invest Rs.1.5 lakh each in my twin children’s PPF accounts with me & my wife as guardians for each child. Me: Let me clarify that the maximum combined contribution that you can […]

We receive various gifts in cash or kind from family, friends and relatives on different occasions. It is better to know the tax impact on the same. Section 56 of the Income Tax Act deals with the taxability on gifts and the gift is classified under the head ‘ Income from other sources’.

I reflected on my past experiences to scout for an answer to the above question. From nearly a decade’s experience in the financial planning profession, I could identify a pattern of the common pain points of clients, the financial mistakes being made, spending habits and their general behavioural approach towards money. 98 per cent of […]

SEBI has directed all mutual fund houses to either get investors, both new and existing, to nominate or specify in a given format that they don’t want to nominate. From August 1 2022 onwards, any new investor planning to invest in mutual funds shall have the choice to provide nomination or to opt out of nomination […]

Candid money conversations with women clients made me realise that financial needs of women are no different from men. Women need adequate life & health insurance just like men. They also need to plan for their personal aspirations and retirement as men. What they do not need is women oriented insurance/pension policies, personalised savings A/c […]

I have observed people bragging about making money in troubled companies like Jet airways, Yes bank, etc., and which actually had nothing to do with their stock picking skills. When you enter a beaten down stock at the right time and then doubled your money within 3 months, you got just plain lucky. You will […]

Prepay home loan or invest? I was asked this query recently in webinars. With interest rates tapering off, I have seen discussions on financial forums on smart leverage. “Why prepay home loan now? It is so cheap. Instead, invest in options which give you more than 7% p.a. Have a business mindset. You can invest in […]

My 7.5 years old daughter recently asked me out of curiosity about the exact nature of my job. I explained in simple terms “I help people manage their money and how they should save for the future. If they use it all up now, they can be in trouble later”. She quickly blurted out her […]

Keeping up with the Joneses simply means relative comparison with social circle for the confirmation of one’s economic and social status. It happens to everyone at some point of time. Although the grass looks greener on the other side, sometimes it is fake! Being rich and looking rich are 2 different things:)

This is the best and classic analogy that can be thought of for Investing!

Many a times, quick money made in the bull markets can also vanish at supersonic speed. On the other hand, gripped by fear and panic, investors translate their notional losses into actual losses in a bear market when they should be doing the opposite – buying solid companies at attractive prices!

Equity Linked Savings Scheme (ELSS) is one of the preferred options for investors to avail tax benefit under 80C. However, there are a few common mistakes which investors should avoid while investing in ELSS. 1. Do not invest in new ELSS every year: I have observed clients having at least 3-4 ELSS funds in their […]

Despite SEBI regulations coming into effect from 2013, the line between selling products for commissions and dispensing genuine financial advice is still a whole lot blurry. Look at the nomenclature used in the world of personal finance. There is an agent who sells insurance – traditional policies in the garb of child plans/retirement plans, a […]

To develop a healthy relationship with money, women need to have all the 3 – financial independence, financial security and financial empowerment. Check out this infographic which kind of sums up all the three aspects. Happy Woman’s Day to all the Super Women out there!

Opportunity lost for waiting to enter or exit the stock markets can be huge! As stock markets continue to hit new highs, investors are confused whether to book profits or whether to continue SIPs or commit additional SIPs. When markets peak or have a free fall, it is natural for investors to have a myopic […]

If your parents think paying health insurance premiums is a waste of money! An average Rs.5 lakh hospital bill for a senior citizen equals the premium for approx. 10 years. Even if there are 2 hospital visits over a decade, it is worth having health insurance. This is the point that can be put forth […]

The role of a financial advisor is not just to guide/coach a client in taking the right financial decisions. More importantly, it is about guiding him/her to avoid the wrong ones. The power of doing nothing at times is so powerful. In the context of investing, this is crucial to understand for successful long term […]