It is customary for people to give sane advice- if you have a kid, the kid should have a PPF account. This advice makes very little sense. First of all most of the people I meet today invest far, far more in a year than the max possible amount of Rs. 70,000 in a PPF […]
Most retail investors assess performance of their mutual funds by looking at one number – returns. What most investors ignore is the risk that your fund manager took to get you that return. That is to say “how many sleepless nights did your fund manager give you for getting those returns”. Thus bigger fund performance […]
The Indian financial press loves talking about mis-selling but nothing about mis-buying. Most people who buy financial products do not understand what they are buying. However, this is not a one-sided affair. Luckily (or unluckily) most of the clients do not know what they are buying. You will admit that is a fantastic combination. Let […]
There are no clear answer to this question which is in the top of mind question for anybody who looks at any kind of insurance (life or general). However, we can see why we buy life insurance: We buy life insurance to replace income lost due to the death of the breadwinner. The amount of […]
There are too many reasons why “investors” lose money in equities. Here I am trying to enumerate some of them. Keep visiting this post because as I get more points I will add them here rather than create a new post. 1. Confusing between trading and investing: Traders and investors both make money if done […]
It is customary for industry bodies to time and again talk about “irresponsible” selling or mis-selling by “unethical” agents (by what ever name called). Let us look at what exactly constitutes mis-selling. Mis-selling as understood by the common man means “selling a product which is inappropriate for the client”. However let us look at the […]
“There are two kinds of investors, be they large or small: those who don’t know where the market is headed, and those who don’t know that they don’t know. Then again, there is a third type of investor – the investment professional, who indeed knows that he or she doesn’t know, but whose livelihood depends […]