A mind trick for yourself!
A neuroscientist explains the trick you must play to manage your money well
AUM in Cr 33.76
A neuroscientist explains the trick you must play to manage your money well
It is scary to see your life’s investment shave half its value in a free fall in stock prices. Indian stock market investors saw such an episode starting January 2008.
Some investors may be wondering how long with this volatility continue or for how long will the market fall. It is not possible to predict what the stock market will do in the near term, but historical data shows that, corrections or even bear markets do not last for very long.
As we look towards 2025, India on its journey to becoming a $5 trillion economy, will now make an economic tryst with destiny – momentum, scale, sophistication. And one of the most important parts of this economic trysts will a multi-fold increase in financial assets from domestic investors, a journey towards financial freedom.
In the first part of this article, we discussed that when you reach your early 40s, you are actually approaching the mid-point of your career after working for around 20 years. We also discussed how this stage of your life is important both from a career and financial planning perspective.
When you reach your early 40s, you are approaching the mid-point of your career. You already worked for about twenty years, assuming you began your career in your early 20s and you have about 20 years to reach your retirement age.
When you ask “Am I doing ok?”, you are looking for validation for what you are doing, and a course correction if you are not. I can think of at least five ticks that you need in your money box’s financial checklist to say, “Yes, you’re doing ok!”
Sometimes it feels we are not doing enough. We had decided to begin that SIP, activate the PPF, invest in that equity share, and increase those tax savings.
Middle class Indian fathers used to be distant, authoritarian and usually dictatorial. They ran the extended household with an iron fist keeping a tight hold on expenses.
ELSS Mutual Funds or Equity Linked Saving Schemes offer you a simple way to get tax benefits under Section 80C of The Income Tax Act 1961, while aiming to make the most of the potential of the equity market investing. Therefore, if the question how to save tax is bothering you, you can have a look at investing in ELSS tax saving mutual funds!
By investing your tax-saving money in mutual funds through SIPs, you not only save the tax outgo but also build wealth.
Many of us are guilty of obsessing about our children. Parents beam in that halo of martyrdom that places children first, and make it their life’s mission to “leave behind” something worthwhile for the child. Time to wave the bright red flag.
Power of compounding is essentially making your money work for you. Think about a daily wage laborer – if he works for 300 days, he will get more money than if he works for 100 days.
The BSE Sensex seems to like it when Modi Sarkar wins elections. Look how it rose and then fell as Karnataka elections changed colour from saffron to a muddled something
Last week a friend called in panic. Their child had secured admission in a prestigious university, but they were unable to raise the funds needed to complete the admission process.
Financial advisors may ask investors to have modest return expectations from equities, at 12 to 15 per cent. But the secret desire of most retail investors is to unearth multi-bagger stocks that can mint millions.
Imagine you have got an annual bonus of Rs 8 Lakhs and decided to invest the entire sum into equity mutual funds. However, looking at the current market level which is almost at an all-time high, you may feel unsure to invest the entire bonus amount in one go.
How do you strike a balance between today and tomorrow? This is the ultimate personal finance question that each of us need to answer.
Though investors place a lot of importance on 'good schemes,' most of them have no idea what makes a good scheme.
Every investor, whether conservative or aggressive, wants to see wealth to grow. A conservative investor would probably stick to bank fixed deposits, postal small savings, insurance policies, public provident fund (PPF), bonds etc
Mutual funds trump most other investment options when it comes to liquidity, whose importance can't be overstated
the assets should be broadly classified into three boxes: assets that will be needed for immediate and routine use, assets that will be used later and when needed, and assets that will be bequeathed to heirs or given away.
It appears that fund managers don’t pass up the chance to wax eloquent about the virtues of closed-end funds.
Planning for your child's future starts with first listing the various goals, like higher education and wedding. Once you have established the goals, you have to estimate the goal amounts.
The ongoing fall in the stock market should be seen as a healthy phenomenon rather than as a cause for concern
Soumendra Nath Lahiri, CIO, L&T Mutual Fund doesn't take his eyes off the ball
Equity Savings Fund is a relatively new category of mutual fund schemes. Equity Savings Funds were launched in late 2014 and 2015, primarily in response to the change in debt fund taxation introduced by in NDA Government’s 2014 Budget.
For most Indians, the biggest financial decision of their life tends to be that of buying a house. Nothing else has as much potential to affect your financial well being, for better or for worse.
Capital appreciation and income are two primary investment goals. Mutual funds provide multitude of investment solutions for both these objectives for different risk profiles.
Investors spend a massive amount of time trying to make all the right moves. The collective effort dedicated to picking good stocks, managers, exchange-traded funds, and so on, is immense. There are countless books, magazines, newsletters, podcasts, blogs, television programs, and more dedicated to helping investors make the best possible decisions when it comes to selecting and managing investments.
Global markets have reacted sharply to the rise in US bond yields. MARK MATTHEWS, head of research for Asia, Julius Baer Group tells Puneet Wadhwa that right now it is premature to say global markets are entering into a bear phase.
Finance Minister Arun Jaitley, in his Union Budget speech, re-introduced LTCG tax on stocks. Investors will have to pay 10 per cent tax on profit exceeding Rs 1 lakh made from the sale of shares or equity mutual fund schemes held for over one year.
What compound interest gives, inflation takes away. Put it another way- inflation is effectively the reverse of compound interest, it's like decompound interest.
Investors can save up to Rs 46,350 in taxes per year by investing up to Rs 1.5 Lakhs in eligible schemes under Section 80C of the Income Tax Act 1961. There are broadly two types of tax savings schemes – risk free or low risk schemes and market linked schemes.
Mutual funds remain a low-cost, value-for-money product for the common man and the foundation has been laid for rapid growth in the years to come
When it comes to investments made for the purpose of tax savings under Section 80C of Income Tax Act, Public Provident Fund (PPF), Life Insurance premiums and Equity Linked Savings Schemes (ELSS) are among the most popular choices, especially for young investors. However, as far as wealth creation is concerned, there is simply no comparison between ELSS and the rest of the 80C investment options.
A few months ago, I had written an article on replacing bank fixed deposits (FDs) with fund investments.
Fund managers are tested not only during market volatility but in bull runs too. Some are coping by refusing fresh inflows. Here are some more of their strategies
Neelesh Surana, Chief Investment Officer-Equities, Mirae Asset AMC, on the distinctive investment strategies that apply to picking stocks in the mid-cap and small-cap segments.
2016 was a bumper year for Initial Public Offerings (IPOs) in India. Indian companies raised Rs 26,500 Crores by listing themselves on stock exchanges in 2016, the highest since the heydays of 2007.
Mutual funds are ideal investment options for retail investors to help them in meeting a variety of financial goals. While completely ignoring mutual funds is the biggest mistake which a vast majority of retail investors make, investors who are aware of and invest in mutual funds also make a number of mistakes which prevents them from getting the optimal results.
Here's a brief look at how Indian mutual funds have reacted to the recent IPO craze
So the Economics (non) Nobel has gone to Richard Thaler, who once chided his fellow economists for forgetting that 'people were human'
Some people think that, only people who have substantial family wealth to fall back on are able to take early retirements. While inheriting family wealth certainly has advantages, it is not a pre-requisite for attaining financial independence early in life.
Mutual fund Equity Linked Savings Schemes are among the best investment options for tax savings under Section 80C of Income Tax Act. These schemes enjoy triple tax benefits.
Traditionally, most investors invest without any planning. When you get a bonus or inherited wealth, you would invest somewhere with the goal of just ‘saving’.
The lure of sectors which are doing better than the markets is strong, but leads you away from the path of diversification
Neelesh Surana, fund manager, Mirae Asset Emerging Bluechip Fund talks about the category-topping fund and current valuations.
When I wrote about a comfortable retirement, a few readers mailed to ask about what happens when retirement is not really secured.
Interests rate are clearly on the way down. The State Bank of India has lowered the interest rate on savings bank accounts to 3.5 per cent. Fixed deposit rates are yet in the region of 5.75 to 6.25 percent for most people but are surely headed lower.
The Indian stock market made its all-time high a few days back, with the Nifty scaling the 10,000 points mark. The market has been rallying from the beginning of this year and breaching the 10,000 level on the Nifty was seen as an important technical breakthrough for the market.
We get a large number of queries from our readers asking us whether the mutual funds they have selected for their portfolios are the “best” funds. Good fund selection definitely makes a difference to your investment returns and therefore investors should try to select the top performing funds.
Most investors dedicate a fair amount of time and energy into drawing up a doable plan when saving for retirement. Rightly so. But if you think saving for retirement is an ordeal, you have not given adequate thought to the post retirement scenario.
We believe that every financial decision in our life should be based on some goal. The goal can be building a retirement nest egg, saving for your children’s college education or wedding, saving for a down-payment for property purchase, protecting your family from financial distress due to unforeseen risks, protecting your family from health risks, protecting your home or business from fire or other hazards etc, but unless you have an objective, you will not be able to make the right decision.
A common accusation many readers make about this column is that while it encourages investing in equity, it does not carry specific recommendations about where to invest and how much. That kind of specific investment advice is quite dangerous, though it makes life easier for the investor.
Risk and Returns are the two most important aspects of investing. We invest our money because we expect some returns.
Equity markets are trading just shy away from their all-time highs and the debate on whether markets are currently overvalued or not and if it is the right time to invest.
The fall in purchasing power is the reason that we worry about meeting our expenses when we retire.
Getting the right amount for retirement is a tough nut to crack. Targeting too much compromises on lifestyle today, and having too little is not something we want to think about.
The experts cite historical returns of gold versus equity, but return is not the most important factor for people investing in gold.
In one of his budget speeches, the Finance Minister, Arun Jaitley said that an important objective of his Budget was to step in the direction of making India a “pensioned society from a pension less society”.
Don't wait to get everything in order before you start investing. Do not let your money lie idle in the bank.
Financial independence is the most important retirement goal. With retired lives getting longer and costlier (particularly healthcare), you should start planning for retirement early in your working careers, if you want a stress free and comfortable retired life.
Why should you invest? The answer is very simple: to create wealth. And why would you want to create wealth? Well, to fund various financial goals you may have in your life like an expensive TV, foreign holiday, retirement, and so on.
When I was speaking to a group of women about investing, the inevitable question about gold came up. They seemed quite hesitant to ask about the place of gold in a household's financial planning decisions, since accumulation of the yellow metal is not considered `modern'.
A popular misconception is that ELSS of mutual funds are not suitable investment options for senior citizens and retired persons.
Union Budget 2017 has proposed to cap the maximum loss that can be derived from a house property and set off against other sources of income. This loss could be in the nature of interest paid on a home loan being more than the rental value from the house.
Investors should increase their allocation to financial assets as Budget proposals signal a continuation of policies that bode well for these assets.
If we distribute our wealth across different kinds of assets, the risks with each would then be minimised. There is simply no asset that is risk-free.
Good tax management can go a long way toward enhancing your return. But the decision needs to be made in conjunction with your overall portfolio and not in an ad-hoc fashion.
You don't need to get ultra-frugal to save money. The general impression is that to pump up one's savings people have to forgo all the fun stuff. Not at all. You just have to play it smart.
Even careful, dedicated savers don’t always have a strategy in place as far as their retirement planning goes. Many times, people just put money aside and hope it will work out.
People don't become wealthy by accident. You have to be determined to do the right things to create wealth. Since it starts with mindsets, we suggest that you nix these three common, yet costly, habits.
The move to demonetise old Rs500 and Rs1,000 currency notes, among other things, will certainly ensure that idle cash gets into bank accounts. Now that it is in a bank account why leave it idle?
Debt Funds are becoming an increasingly widespread rival to the hallowed FD. Here are their pros and cons vis-à-vis bank deposits.
Compared to other allowable investments, ELSS funds are uniquely advantageous. There are two reasons for this.
Compounding produces such unintuitive results that perhaps only a few mathematical geniuses can be expected to have a real feel for it.
Already at an all-time low, the interest rates on the PPF and other government deposits will keep dropping. Is it time to forget about these schemes?
The young, educated, healthy well-off and non-smokers get better term covers than older, less educated, low-earning and smokers.
Most people are fairly unanimous on the fact that from all investment opportunities, stocks offer the most potential for growth.
Starting to invest early for your goals is critical, as any delay in investing can negatively impact your cash flows in a big way.
India’s equity fund managers have done quite a job since the Lehman crisis period. Investors who’d entered at the pre-crisis peak in January of 2008, when the 30-share Sensex touched a high of 21,000, have managed decent returns.
Nothing but the best will do is the motto when it comes to our expectations from others. And if we have written the cheque, we feel entitled to the best that is out there. Most of our troubles as investors begin with this simplistic benchmark that we have in our head.
Because of the many distractions around us, we think we can catch up with our health and wealth goals in the future.
The basics numbers of saving, investment and life expectancy have changed and we all need to save more for old age.
The real value of SIPs lies in its tendency to encourage investors to continue investing through thick and thin and thereby, generate better returns from equity.
The cases for a house you live in, vs real estate bought as an investment is very different
Equity rather than bank deposits offers real protection to income in retirement. This calls for a change of mindset
If there is one myth that fund distributors love to propagate, it is that a fund with a low net asset value (NAV) is cheaper.
Be as proactive in your saving as in your spending. No, we are not talking about the recurring deposits or savings accounts
For mutual fund investors, dividends have always been a source of great confusion, misconceptions and suboptimal investment decisions.
In the long run, equity investments do not turn out to be as risky and volatile as generally expected.
If you have the stomach for a long-term equity investment, forget about the tax savings and invest in an equity fund
Returning middle-class NRIs, especially the ones who have worked in the Middle East, are an anxious lot where their finances are concerned.
Wealth is not the money one ac-cumulates, it is the money one has put to work.
Many investors start with searching for the best fund to invest in, they should instead focus on choosing the right fund
There is no denying that Unit Linked Insurance Plans, popularly known as ULIPs, are now much better products than what they were before 2010.
When considering investment opportunities, the first challenge that almost every investor faces is a plethora of options.
If there is one financial product which practically everyone must have, then that's term insurance.
Comparing one to the other is not completely fair, given the fact that both are completely different products and target different needs in a portfolio. While PPF is a great investment for every single investor, so is equity.
To an ordinary investor with modest means, building a corpus of Rs 1 crore takes time. Insurance is the hedge that he can offer his family, even as long-term wealth building is in progress.
Having a separate portfolio for each financial goal gives you the best chance of fulfilling them. Here's how you can build such portfolios.
For what is supposed to be a simple (and simplifying) idea, there are way too many misconceptions about the SIP (Systematic Investment Plan) way of investing.
The worrying couple nudging the 40s is one of the most common types that I meet when I speak to investors. Most of them are very successful professionally.
In the long run, equity is the only asset class that manages to beat inflation and earn positive returns
Savers sometimes think of ELSS funds and ULIPs as alternatives. This is a mistake
ELSS funds are an advantageous way to use the Rs 1.5 lakh limit for tax saving investments under Section 80C.
If mutual funds help investors to diversify across a basket of stocks, SIPs help him diversify over time.
These financial tenets shall never change or become irrelevant. Follow them if you want to protect your finances against uncertainty.
The best way of investing a lump sum in equity funds is through an STP. But how long should an STP run?
Compounding investment earnings can turn your small investments into a whopping sum after a period of time.
Dividends and NAVs--two basics numbers of investing--are widely misunderstood by investors
The most commonly asked question when someone comes to know that I work in the area of investments is: Where should I be investing my money now?
Most of us want to reduce the tax outgo on our salary as much as possible. For this purpose, the investment limit of Rs 1.5 lakh a year, allowed as deduction from your income under Section 80C of the Income Tax Act, can play a large role.
Since debt component and arbitrage portions contain equity risk, first-time or retired investors can feel safe.
In the last five years, the Insurance Regulatory and Development Authority of India (Irdai) has taken a number of steps to curb the menace of mis-selling.
It’s imperative for working professionals and businesspersons to appoint a professional financial adviser to manage their wealth
Funds' star ratings can be misleading. Here are five don’ts to consider when checking out the 5-star rated funds.
Financial products that are designed specifically for your children’s future are not what they are cracked up to be.
The key consideration is to figure how the decision to buy the second house will impact their financial lives.
It takes less effort, less time, less experience and less specialised knowledge to get good returns from equity mutual funds than it does from directly trading in equities
In What is a core holding, we explained why sector funds must never be core holdings.
To invest long-term money meant for retirement in simple interest bearing instruments, is to choose to walk that distance because the aircraft is scary
A balanced fund like BSL 95, with a 30% debt component, delivered a handsome CAGR of over 22% over the last 20 years, comfortably beating Nifty
In retirement planning, there is a critical problem to solve. Retirement planners call this problem the adequacy of corpus.
In a country where event managers are paid for organising weddings and nutritionists are paid for making diet plans, financial advisors struggle to make a case for earning a fee