Either people do not understand or do not want to apply common sense….so some investment myths continue. Let me list some of the emails that I have received recently…. 1. ‘What ever you say about Gold, NO OTHER ASSET CLASS has given the kind of return that gold has given in the last 40 […]
When I say retired people I mean people who do not have any earned income. That means they are dependent on: pension interest and dividends children Well these people have some really tough decisions to make: 1. Where to stay? : I have stayed all my life in Mumbai, now I have a house in […]
End of the road for gold? No, surely not. However it is time to be cautious for sure. What are the risks in gold? Or is it that there are no risks at all, as some readers would like to believe? Well let us look at some of the risks: 1. It is not an […]
The average return on equity investments (without reinvestment of dividends) is about 18% over the past 31 years. Does it mean that every year you got 19%? The answer is no. Such ‘zero standard deviation return’ is possible only in CERTAIN debt instruments. In equity investments there have been years of +242% as well […]
Mostly people look for capital gains. Not sure why …maybe it is the media effect or friends effect.. Sadly not enough data is available in India about the returns – even company websites do not have the details. For e.g. I cannot know how my shares have fared if I bought Wipro in 1980 for […]
If a company declares a dividend and the customer does not claim it what happens? Well it gets transferred to the Central Government. What happens in case of a mutual fund where the investor has died and the family does not know about it. Well, er, the fund keeps it. Well technically I may be […]
Not sure whether I started the trend…but a few days ago I asked this question. In fact I am not even convinced that I should have dematted my dad’s Tisco, Telco, Coromandel fertilisers, Colgate, …etc. but that is done. Clearly I did it because I saw it was way to easy to demateralise shares of […]