Author Archive

To make money you need luck and skill

Tough head line that I chose to just tell you stories of how people DO NOT MAKE much money. Case 1: A 40 year old wakes up and decides to do a SIP of Rs. 40,000 per month. Then suddenly he remembers he cannot..and tells his wife..why do YOU not do a SIP. She knows […]

India’s Future is very B…..

The word B can stand for Bright or Bleak. Let us look at the optimistic side (Bright) side first….   Rs. 5000 crores a month is flowing into the Mutual fund industry – predominantly non debt Inflation is at 3% giving real returns (pre tax) even in savings account Unemployment is not raising its ugly […]

Sell used car at a premium? Used house at a discount?

Not very long ago..in the 1990s people would buy an amby and fiat…second hand..at a price at which the ORIGINAL owner had bought. It means you bought an amby for 38000 used it for 8 years and then sold it off at 38,000Rs. Many people would say “I will not sell it at below cost”. […]

Mutual funds – what is scary

The biggest beneficiary of the MF boom of course is Cox and Kings. Most fund houses are wining and dining in some part of the world, perhaps far removed from India. Foreign trips are a given, and an Indian trip is thrown in too. When you talk to a fund house, they tell you that […]

Stupidity, Foolishness or what…

People lose money because of greed, stupidity, overconfidence….or what? I saw a couple who had ‘invested’ Rs. 22 lakhs in a fixed deposit with a company. On probing I found that he had retired from government service and she had retired from a private sector job. He had a pension and she had a provident […]

Needs of a portfolio

It is very difficult to meet some over enthusiastic investor (increasingly in my life, doctors) who have a very long list of what a portfolio requires. They start by saying market cap, style, diversification, direct equity, fixed deposits…and really my head goes for a toss. So in very simple language what would I think are […]

Creating stories and market capitalisation!

See the market capitalisation of Hdfc Ltd, Hdfc bank, Icici bank, Icici Prudential life, SBI, Kotak bank, and Axis bank. Just taken these as examples to say what I wish to say further. Hdfc Ltd is a simple home mortgage company with good margins. Make no mistake the fund borrowing pricing and the lending pricing […]