About 12 years ago she came to me for investing her money. She is a well educated woman, has a smart daughter – and there is no man in her life. She is divorced, her father died about 7 years ago and she does not have a son. I am saying all this because when […]
I have been receiving queries about investing in fixed income securities. Not sure whether it is an indication that Indians are pulling out of equity markets (read the article on Bloomberg about this) or banks are giving real poor interest rates. So let me run a series of questions. 1. Should I invest in a […]
Let us get it right, the real rich do not borrow. Never ever for personal expenses, buying assets or personal INVESTING. Borrowing and investing is a very foolish thing to do for most people. Will a Mukesh Ambani or a Kumar Birla take a personal loan to buy shares? Tough to answer this question? No. […]
Sometime back I decided to write about something which I have been advocating for years. How will you like it if I can postpone your tax payment from the year 2014 to 2034? You will love it right? First of all it means your money compounds for 30 more years, and you are paying with […]
Risk in mutual fund investing comes from: a) not knowing what you are buying b) not understanding standard deviation of the instrument c) not understanding that the past performance is completely useless for knowing what will happen in the future. Let us take just one ‘type’ of fund: The Gilt Fund. All asset management companies […]
What are the options that a person has when he/ she chooses to invest in a debt instrument? Well the choices are: 1. Bank fixed deposits: requires very little explanation. 2. Company fixed deposits not a big range of companies available, but a good option. 3. Company Bonds: Right from Tata to Sriram and […]
Thanks to Rich Dad Poor Dad (then bankrupt Dad too!) many people know what are assets and what are liabilities…I am making ONE more distinction…. Assets: are those assets which increase your REAL NETWORTH (NW) Assets: that increase your nominal NETWORTH Assets: that are essential for your living and usage Assets (liabilities!): that are not […]