There is no research in India done on topics like why people borrow, or how people invest…but here is an attempt at guessing…. 1. People borrow to buy assets : buying a car, a motorcycle, a house…..etc. requires sums of money that a person may not have, so borrowing becomes a must. 2. To pay [...]
The government keeps talking about Inflation Indexed bonds – we are not clear when it will come. We have no clue as to how it will be structured in India. However this is how it should work if they do a cut and paste from the US – TIPS is the US product. Principally this [...]
Money laundering in India is not a very difficult thing….it could be complicated yes, but not difficult. Also there are many things that you can do with the cash. You could buy tiles for your house, furniture, eat in expensive restaurants, hire a car, air travel…..but beyond an X amount of money that you need [...]
I have referred to the low p/e of psu companies many times in my past posts. For many people who do not have any exposure to the government’s way of working, this may sound surprising. Let me also clarify that calling the government a rogue does not mean I am saying that the private sector [...]
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. [...]
The kind of personal financial help that you get from professionals leaves a lot to be desired. This is true in US and UK. In India of course you only have sales people – and caveat emptor prevails. You need to know what you are buying. However in countries which are far more law minded [...]