Inflation story continued………
Psychological Impact of inflation is quite harsh on the investors and savers. Economic theory says when inflation is high, people will tend to spend more – because there is no incentive to save. This is true to a very limited extent. Most people get so scared that they start saving more and reducing [...]
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 financial planners and personal portfolio managers are questioning their basic assumption of asset allocation. In the year 2008 asset allocation failed. This of course is their conclusion based on a set of data. Data is accurate but the conclusion seems to be a little flawed.
In the years from 2002 to 2007 (when Mr. Risk [...]
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 – eg. [...]
The power of compounding – inflation is negative compounding!
Over a long period of time all things get expensive. Remember the first time your mom sent you alone to buy bread?
What was the price of bread? Re.1? Rs. 4? – well today it is Rs. 20. That is inflation. I remember my Dad topping up [...]
How many of you have grudged your friends who say “My father had bought a flat in Santacruz for Rs. 200,000 in 1977, now it is worth Rs. 20,000,000” – surely you felt pangs of jealousy did you not?
Did you think…if I had this I could have retired instead of suffering this boss? You bet!
Did [...]
Many people have been asking me this question. I thought I will wear the hat of an investment advisor in US and look at the world markets and see what to do. So here it is. Not too useful I am sure, but here it is:
1. All Central Banks are printing notes – so inflation [...]
My parents always managed to make ends meet, even though my mother was a stay-at-home mom and my father worked in a factory! Neither my sibling nor I did things like ‘tuitions’ and these kind of income supplementing stuff. Of course unlike many people of my father’s generation he did not have to support his [...]
How safe are government securities? Is this a question bothering you? Welcome. Many people have asked
me this question, and I have struggled to explain the answer.
Central Government securities are 100% safe. These are what are called ‘Soverign Paper’ and is guaranteed
by Pratibha Patil – the Government of India! Interest rate payments, principal, payments on the [...]
This article appeared in moneycontrol.com long back (cicrca 2006)…but it is still relevant, so here it is….
Immaterial of whether you are in your 20’s or in your 50’s and you are looking at an investment you should know some of the basics of investing, so here it is.
By and large at some stage you must [...]