While doing a risk review of a portfolio, I stumbled on a portfolio with 55 mutual fund schemes and 52 direct equity investments. When the investor asked me what was the risk, I said there was ‘concentration’ risk. I also told him he was running the risk of ‘over-diversification’ . He asked me to speak […]
this article appeared in Moneycontrol some time back, but (not surprisingly) not too many people appreciated it. Frankly this is one of the best lessons Independent Financial Advisors can teach their investors. THERE are some word pairs that go hand in hand. When you say one you cant help but think of the other – […]
One very important media advise is “If the fund has been a poor performer for X quarters, sell it off“. This looks so stunningly correct an advise that few people will be able to shrug it off. Take for example in the current down turn of the Indian equity markets the performance of ‘balanced’ funds. […]
In one of those financial planning classes somebody asked me this question. It is quite an easy question to answer, but a difficult answer to understand. For different people it means different things. If you wish to own a Mercedes having a spare Rs. 80 lakhs to buy and Rs. 50,000 per month to spend […]
Now that entry loads have been abolished the media will want to don the role of an investment advisor. Not that it is bad for the media, it is disastarous for the investor. This column will try to demolish some of the media perpetuated myths. Today let us look at the top most media myth. […]
this is an edited version of an article that appeared in the Wealth column of moneycontrol You might find it difficult to believe that the best channel to watch for learning about investments is not ET Tv, Utvi.com, Cnbc, Zee business, Sun tv but Animal Planet. Read on..you will know why! Considering that investor behavior […]
Why we do things and why we do not do things is largely a function of our habits. We do not do things we like – we may have liked it the first time around, but now we do it because it is a habit. Most Americans do not contribute to a 401(k) plan because […]