This is how I started a speech to kids… But what is an investment, shorn of all its jargon? It is a sum of money that you outlay hoping to get a higher amount back. This can take two forms: 1. Investment like a lender 2. Investment like an owner 1. Investment like a lender […]
If you invested Rs. 1,00,000 in a bank fixed deposit which pays 8% p.a. before taxes, you will get Rs. 8,000 as interest and assume you pay 30% tax you will be left with Rs. 5600 at the end of the year. Assume further this amount is re-invested and earns 8% p.a. ….and the same […]
Investments are simple. However you either know it or do not know it. Let me tell you what worries me when I talk to young investment professional. Just finished one such interaction…of future fund managers..my advice: If you do not know how the ‘Value’ is going to be ‘Discovered’ you cannot be a Value Investor. […]
The biggest cheating in the Financial Services business is done by the Government of India. No I am not talking about Income tax. I am talking about LIC. The government runs LIC and to help LIC it created a section 80C. Most people have got addicted to this section and to this product. So people […]
One committee has just announced a few steps to reduce mis-selling..I have not read the full report, but was amused by one statement: The illegal practice of rebating should be punished harshly. Rebating: In this context it means as an agent selling life insurance / mutual fund i pass back a part of the commission […]
Assuming you have a wife who ….does the cooking, cleaning, banking, looking after your parents, your kids, etc. She chases the carpenter, plumber, security guy, pays the bills (online, fine), does the PR, calls your friends on their birthdays and anniversaries, …. She reads up on investments, pays the premia, pushes you for your annual […]
It is amazing to see a person paranoid about risk in one field does not worry at all about risks in other aspects. Just narrating risks… one person handling IT security for a bank has entered into 2 really bad RE deals stuck without OC one doctor who smokes 20 cigarettes a day one very […]