This is a true conversation which happened to a friend RM: Hello Sir Am I speaking to Mr. M C ? MC: Yes RM: Sir I am your RM from M….brokerage firm MC: Yes RM: Sir I see you have some Gold in your portfolio…Gold is not going to do well…s..blah…blah…blah… MC: Please see properly […]
To be invested in equities I normally look for the following characteristics in an individual. Will enumerate them here, but when I make such a statement, I mean really heavily in equities – like say 85% on a portfolio BELOW Rs. 5 crores. Beyond Rs. 5 crores, frankly ratios do not matter. I know a […]
Most of us suffer from a big bias called Mental Accounting. We think we can do complex calculations in our head, keep track of expenses, compare it with the past happenings – but hey this is not true. So break up your expenses into the following BOXES. A. Absolute essentials: Food, basic clothing, shelter, electricity, […]
Life Insurance – mis-selling and cures Despite insurance companies swearing about their customer friendly and anti-fraud approach, the complaints of insurance miss-selling are on a rise, why this contradiction? Saying we are customer friendly and being customer friendly are really 2 different things. If a customer really understood risk and bought only risk products […]
Funnily if you go from thinking about your own wealth to world well being you may have guilt pangs. Take my portfolio. The companies which have made money for me in the long run have not REALLY done anything useful for the world. Let me list: Coromandel International (Chemical fertilisers, now making neem fertilizer too), […]
Even though debt funds are the biggest contributors to the mutual fund corpus in India, there is surprisingly not much literature on debt funds. Let me start by clearing some misconceptions about debt funds: 1. Debt mutual funds are EXACTLY like bonds: Debt funds and bonds are very different. If you can lock in […]
I know a few HNI investors. One thing common to all HNI investors is that they do not like to be classified as a “HNI”. This is good for the adviser too, because no 2 HNIs are alike. Some HNIs are well assured of themselves, satisfied with how their life is going and understand their […]