Investments
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Should you invest in IPOs?
- January 14, 2021
- Category: Investments
No CommentsRemember 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 […]
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Corona Virus, Yes Bank debacle, Economic Slowdown. Here is how to deal with negative news as an Investor.
- March 13, 2020
- Category: Financial Planning, Investments
Nowadays, almost every 9 out of 10 messages on WhatsApp you will read would be related to Corona Virus. There are also videos where the self-proclaimed experts would talk about home remedies and preventive measures to deal with it. Further, you will see debates on media channels about how Corona Virus is adversely affecting the global economy including India. Then we have the Yes Bank fiasco which has shaken every common man’s trust in depositing money with banks. The power of social media amplifying bad news is unprecedented. Everyone you know is sharing the same message on different groups. A […]
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How Technology can help You grow your Wealth?
- February 13, 2020
- Category: Financial Planning, Investments
Mobile apps in our smartphones have become a ubiquitous part of our everyday lives. They are fast and convenient. Apps are just a swipe away – Amazon for shopping, Ola/Uber for travel, Zomato for food orders, etc. However, this high dependence on mobile apps is also enticing us to spend more. Add to that, the discount offers and cash back deals are too hard to resist. We aimlessly spend gobs of time scouting for attractive deals and buy that extra jacket or footwear just because there is an attractive discount offer. As automation induces human behaviour to spend money, at […]
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NPS Withdrawal made Tax Free, Should You Invest Now?
- December 16, 2018
- Category: Investments, Tax Planning
Click to Enlarge One of the biggest pain points that investors find in the National Pension Scheme (NPS) is the taxation part. Of the 60 per cent corpus that could be withdrawn lump sum at age 60, about 40 per cent is tax free and 20 per cent is taxable under the present rules. Now, in a recent development, the government has exempted even the 20 per cent from tax taking the tax exemption limit from 40 per cent to 60 per cent. This means that the money invested in the scheme (up to a limit) is exempt from tax, [...] -
Are Debt Mutual Funds Risk Free?
- November 15, 2018
- Category: Investments
Click to Enlarge Many investors have a general perception that while equity and equity mutual funds are volatile, debt mutual funds are risk free. They also see debt funds as an alternative to fixed deposits which can yield higher returns than the latter. The primary reason behind this misconception is that investors fail to understand how a debt fund works. Debt funds are risky for sure and unlike equity, the former is much more difficult for the retail investors to understand. Not just investors, even mutual fund agents may not correctly understand all the risks related to debt funds. Let [...] -
The Common Investor Dilemma – should I exit NOW as the markets turn?
- October 15, 2018
- Category: Investments
Click to Enlarge Rising crude oil prices, weak rupee, political uncertainty ahead of state and central elections, etc., all have spoilt the stock market party. But is there anything new in this? Markets have gone down earlier because of such macro-economic and geo-political factors. Yet, panic, anxiety, confusion – any emotion related to fear is common amongst investors. They always face the common dilemma of whether to sell or not. This indecisiveness amongst investors stems from the fact that they have not addressed the most fundamental question before investing - the ‘WHY’ question. The ‘WHY’ defines the purpose behind anything [...]