launching a Guaranteed Equity Bond…

So at last I am entering the business of Fund Management…… and here is my New Product launch: It is a 4% Guaranteed Equity Bond – and will be launched on 1st April 2014. Fund Managers: H S Mehta and K M Parekh Disclaimer: any resemblance to anybody from the past market scams is purely […]

Conversations with investment aspirants….

‘Hello Subra sir where is the market headed’ Me: I do not know. Inv Aspirant: Come on sir, you have been so long in the markets you will surely know. Me: to know where the market (I am assuming you mean Sensex, which is a derivative of the top 30 stocks in the Indian stock […]

Equity Markets give good average returns!

There are so many people today masquerading as financial planners, financial trainers, financial experts on media…I was amused when I heard the statement ‘Equity markets give good average returns’. If you ask me this is brilliant but useless advice! Why? Because to understand equity markets you need to understand Arithmetic Mean, Geometric Mean, Standard Deviation, […]

Brilliant but useless advice:

When appearing on television or when at a party where you do not want to be impolite what is the best advice to give? Let me first define best advice: if you hear it in 2000, 2010 or 2020 it should sound correct the regulator should not find it offensive it should not talk about […]

How much money do you need to Retire?

In every financial planning class I need to do a post lunch session. To keep them awake I ask them to do a simple exercise – calculating how much money they require for retirement. Unless they are at least 37-38 years of age, they have no clue as to how much they need for retirement. […]

How NPS can be dangerous

Too many people in the media are obsessed about fund management costs. This is not a bad thing – after all this is the ONLY thing to which we retail investors have access, right. Fund managers on the other hand (ok the 3-4 fund managers who I have spoken with and who have over the […]

Why do the Rich get Richer…?

You hear often ‘The Rich are getting Richer….’ have you wondered why? The main reasons: a. The power of compounding b. Income far, far greater than expenditure c. Understanding the Wealth Virtuous Cycle d. Ability to take risk e. Deep wealth buckets ensuring no asset class is ever reduced to zero In the real world […]