Many people ask a simple question : “I am a retired person, I want returns of about 10% on my corpus, but I do not want to take ANY risk whatsoever”. In a country where the most successful banks pay about 8% p.a. to a senior citizen, why do you think you DESERVE to get […]
Dear Smart People, I know you read my tag saying ‘We make Smart People Richer’. Sure I do. A person who has read all my 5983 posts, understood them, and implemented them surely has saved/ earned more to justify all the effort. So here is the disclaimer. Every finance professional (oops, ok, any professional) whom […]
When people learn about diversification, mostly they do not understand that there is a difference between asset diversification, and fund diversification. Frankly in my head even asset allocation is not necessary for a young investor in the accumulation phase. If you believe that Equity will give the best returns over say a 50 year period, […]
You keep hearing that the SIP investments have gone nowhere in the last 5 years. Our lovely press also scares you into saying “the sip of the last 5 years has yielded less than PPF”. True. This, however, is the best news for people who are accumulating investments on a SIP basis. For longer periods […]
I have not written much about the Financial Technologies problem, and about its founder Jignesh Shah. I always felt that the investors who invested in such schemes should have understood that they were taking risk. When SBI was giving 8% p.a. interest, nobody, repeat nobody can give 12% assured, RISK FREE returns. However, most of […]
Sir we are offering you an exclusive all expenses paid trip for 2 to Goa. We will pick you up from your house, and drop you back. You fly in a small private aircraft, landing at Goa on a Saturday evening, 4pm. Yes, you can get your kids along. Of Course, Sir, you can get […]
When we were in college mostly valuation of a company meant calculating the surplus over and above the ‘normal’ return on assets. Of course, I am simplifying a lot, but we could NEVER, ever assume that interest costs would be zero. Never, repeat. So when interest rates are high companies with a lot of assets […]