Investments
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Should you invest in a mutual fund NFO?
- October 30, 2021
- Category: Investments
No CommentsSince the stock markets are doing well, it is not just IPOs (Initial Public Offer) that are flooding the markets. Mutual fund houses are launching new fund offers (NFOs) as well to capture investor’s attention. NFOs are nothing but new schemes launched by mutual fund companies to expand their business. During the NFO subscription period, an investor can buy the mutual fund units at a fixed rate of Rs.10. After the NFP window closes, the fund units are available for subscription as open-ended funds. The question is should you consider putting in money in an NFO? Are they risky? Let […]
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Should you consider NFOs of index funds based on just cheap cost?
- August 30, 2021
- Category: Investments
Index funds are fast gaining popularity in India. These funds track a stock market index like the NSE Nifty 50, BSE Sensex, etc. For e.g., a nifty 50 index fund will have all the stocks of Nifty 50 and in the same proportion. Thus, if the market moves up by 10 per cent, the index fund value also goes up in the same proportion and vice versa. The investors hence do not have to worry about the performance of the fund manager and whether the fund will underperform or outperform the market. Since the fund manager doesn’t take any active […]
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Sovereign Gold Bond Scheme: Is it suitable for You?
- May 20, 2021
- Category: Gold, Investments
Continuing with its issuance of sovereign gold bond (SGB) scheme, the RBI opened the window for next tranche of subscription from 17 -21 May 2021. These will allow investors to invest in gold in digital form with certificate issued against grams of gold. For individual investors, the minimum investment is equivalent to the price of 1 gram of gold and maximum investment is equal to the value of 4 kg of gold. A holding certificate is issued in the name of an investor upon successful purchase of the gold bond. You can also find the detailed schedule of subsequent issues […]
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The most important factor for the Compounding Magic to work
- April 26, 2021
- Category: Financial Planning, Investments
In all my years of experience in the financial advisory profession, I can surely tell that the science behind getting wealthy is very elementary. There is no secret to getting wealthy. Getting wealthy is not just confined to people who are earning high incomes or doing business or investing in properties or taking bets in stock markets, commodities, foreign currency, etc. Earning big money is a skill, but managing that money well is even a bigger skill. Even an individual with average income can become wealthy. Let me show you how and prove with numbers: A common Analogy to Compounding […]
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Follow the Golden Rule of Investing – Diversification
- February 11, 2021
- Category: Investments
Imagine a farmer growing only one crop a year, say wheat. This implies that his agricultural income is dependant on only one crop. Now suppose if something wheat-related went wrong like inconducive weather, or pest nuisance or unfavourable wheat market. The farmer is in real trouble. Overreliance on just one crop exposed him to a lot of risk. Had he diversified his crop-base to some millets, some rice plantations, etc, his income would have been protected to an extent. In the world of investments, portfolio diversification is similar to farming. It helps to effectively protect the downside in investments. Let […]
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Should you invest in IPOs?
- January 14, 2021
- Category: Investments
Remember the 2004-2006 period, where not just DIYers but also amateurs, first-timers made money in the stock market IPOs. Well, those signs of temptation and overconfidence have not faded since. IPOs have been commonly perceived as get-quick rich options by retail investors. Even last year post the March crash, as the stock markets soared, a lot of IPOs fared well. Retail investors need to stay cautious though. Let us understand certain hard facts about an IPO first. An IPO is an opportunity for a company to raise capital from the stock markets. Investment bankers help the company promoters in this […]
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Invest in International Markets for the Right Reasons
- December 14, 2020
- Category: Investments
Heard of the famous FAANG stocks? The acronym stands for the famous 5 companies – Facebook, Apple, Amazon, Netflix and Google. With technology driving the global growth, more so amidst Covid times, every investor wants to have a piece of them in their portfolio. The FAANG stocks have outperformed the broader S&P 500 index for this year. But should you invest in them, or for that matter in the global markets to chase high returns? Before you jump the gun, you should know that international equity markets are as risky or even more compared to our Indian markets. Firstly, every […]
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Should you invest in Mutual Fund Child Care Plans?
- November 11, 2020
- Category: Investments
Today, parents are bombarded with many investment options to plan for their children’s future. In insurance, you will find specific child insurance schemes. They are similar to traditional insurance policies which provide life cover and time frame for maturity. In banking, you will find savings account options for kids. Likewise, there are also dedicated mutual fund schemes to plan for a child’s future. They aren’t difficult to identify as the scheme is likely to have the term – child or children or young – in the name itself. Do these dedicated solution-oriented mutual fund schemes fulfil the important objective of […]
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Declutter your Portfolio in this Lockdown
- July 14, 2020
- Category: Financial Planning, Investments
These trying times have taught us to slow down and self-reflect on many things in our life. It has signalled to act on certain tasks which we may have procrastinated for a really long time. Like for e.g., people are taking some time out to declutter their homes. It is actually very therapeutic. It is like decluttering our minds because we then have to focus on lesser things. Less is more! This virtue can be extended to our financial life. This lockdown presents an opportunity to declutter your investment portfolio. Why cleansing is necessary? In my professional life spanning over […]
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Understanding Stock Market Risk
- May 14, 2020
- Category: Investments
When a crisis occurs and something as enduring as the current Pandemic, stock markets can be really cruel. The scale and speed of the fall could be severely harsh wiping off even 10-year average returns in a brief period. It is natural to feel anxiety, confusion and fear about our investments. I am sure there would be many investors who have vowed never to invest in the stock markets again. There would be majority who have sold in this falling market. But there has been crisis earlier and it’s the same story which unfolds every time. While the triggers are […]