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Supporting children financially for their educational and associated needs till they start earning and become independent is a major task for all responsible parents. Assessing the future requirement and planning for it in advance will certainly make it easier. The current inflationary trends suggest that the corpus needed is significant. Any successful investment leading to… Read more: Invest for Children-In the Name of Children

There is overwhelming guidance and advice from many sources on what to do in the world of investment. But it mostly tends to be confusing. At times it becomes important to understand “What Not to Do” rather than “What to Do” as the filtered options might be more beneficial. Moreover, the list of Do’s is… Read more: The Negative List of Investing

Cryptocurrency has been a buzzword in the financial markets for quite some time now. The world took time to understand the new blockchain technology on which Bitcoin, the first cryptocurrency was based. Since 2008 there has been a rapid growth and presently there are more than 2000 different cryptocurrencies in the global market. The interest… Read more: Cryptocurrency-Yes or No!!

Exchange Traded Funds (ETFs) are becoming very popular with each passing day. The first ETF in India was launched in 2001 and presently there are more than 100 ETFs listed on the exchanges. Warren Buffet reportedly wants his trust (after his passing away) to invest 90% in ETFs linked to the S&P 500 and only… Read more: Exchange Traded Funds (ETFs)

The second Covid wave has engulfed some major parts of the country and there is a general feeling of despair. The initial wave highlighted some significant investment lessons which we discussed in “Financial Lessons from the COVID Crisis”. Maybe it is time when we can reverse apply many of these lessons to preserve ourselves and… Read more: Covid Management using Investment Philosophy

We all want to create wealth and there is nothing wrong with the desire. However, many of us want it to happen quickly which may be a cause of concern. The fact is that wealth creation in a planned manner can be very boring. The temptation to indulge in attempts to make fast money through… Read more: Wealth Creation Can Be Boring

Subscribing to Provident Fund has been a very easy and popular method to accumulate savings for retirement and long-term financial objectives. The tax benefits on returns from such savings is a big incentive. But this has changed with the budget announcement to tax income from savings over ₹ 2.5 lakh in Provident Funds (₹ 5… Read more: Alternatives to Provident Fund

The last year has been characterized by significant volatility in the equity market and consistent fall in interest rates. High inflation rates have further compounded the challenge to any investor who wants to ensure both security and growth of investments. However, such safe havens are fast diminishing and the latest blow was the budget announcement… Read more: Avoiding Equity is Not an Option !

Markets have given a thumbs up to the Budget and the investors are again in some sort of dilemma. We have discussed this aspect earlier also in Greed/Fear and the Urge to Time the Market. Presently we are also closing towards end of the current Financial year. It therefore makes sense if we integrate our… Read more: Time to Roll Over Capital Gains

The eagerly awaited Budget 2021 has been presented in the Parliament and is likely to be passed soon. The most important element which we all watch out for in the budget are the Direct Tax implications. Budget 2021 had added interest because of the severe COVID impact which the Global and country’s economy continues to… Read more: Budget 2021- Direct Tax Implications

The whole purpose of savings and investments is to earn some returns. Returns are generally what we get back more than our saving or investment after the holding period. To evaluate the soundness of our saving/investment plan, it is important to be able to measure these returns in a form which can be compared with… Read more: Absolute, Annualized, Compounded, XIRR and Real Returns

Most of us have grown in an environment where money matters were generally not discussed in presence of children. We generally treat this subject as non-essential and leave kids to discover the related issues on their own. Parents consider it their duty to provide for all needs of their children. However, mostly children fail to… Read more: Financial Grooming of Children

Rupee Saved- is a Rupee Earned. Modern management places lot of emphasis on waste management to improve cost effectiveness and profitability. There is a huge scope of applying similar philosophy in personal financial management as well. Overtime we get used to the routine expenses in our life and till such time we can afford them,… Read more: Personal Financial Waste Management

All concerns and actions on financial matters are with some purpose and objective in mind. If one plans things well, then sooner or later there will be a stage in life when financial issues will become less relevant. But by then a lot would have changed in every individual’s life. There are aspects of personal… Read more: Six Intangible Investments for Life

Some or the other part of the world has always been facing crisis in some form or other. There have been events in the past which have affected the whole world at the same time. COVID Crisis is however unique to have affected almost every human being in some form or the other. Strikingly it… Read more: Financial Lessons from The COVID Crisis

Health and Wealth have a lot of things in common. To reap benefits from any of these you must take care of them. Our body has a biological clock which generally repeats every 24 hours. We also have different life stages from our birth till end.  Similarly, we have a financial clock which keeps repeating,… Read more: Understand Your Financial Clock and Wealth Cycle

As I write this, both NIFTY and SENSEX are close to an all-time high. Whenever the financial market is high, there are only three directions for its subsequent movement. First, it can go higher from present levels.  Second, it might remain at current levels and stabilize.  Or third, it might go to lower levels. Many… Read more: Markets are High- Should you Book Profits?

One question that keeps returning to the mind very often is- “How am I doing on my Financial Front ?”. We then total up all that we have in the form of cash balance, investments, property etc. and try to derive a sense of comfort. But mostly there remains a lingering doubt as to whether or… Read more: What is the Worth of your Net Worth

The two most dominant drivers in the market of investments are the generally inseparable emotions of Greed and Fear. Despite best efforts, it is difficult to prevent these emotions from influencing our decision making. Greed and Fear propel every investors urge to time the market. But  like all other emotions, it would be difficult to… Read more: Greed/Fear and The Urge to Time the Market

A farmer sows seeds and nourishes the fields over time to ensure that the seed grows into the desired crop. After harvest he sets aside some of the grains seed purposes, and uses/sells the balance. If he does not retain some grain as seeds, he would have to buy from the market to sow in… Read more: Pay Yourself First – Save Before You Spend !

We all need money to take care of our current and future requirements. At times the propellant is our sole desire to earn/grow a lot of money losing focus on what for do we need it at the first place. This causes us to risk the money which we probably required for some non-negotiable urgent… Read more: Which Money Should be Deployed Where ?

All readers would be very familiar with the term Mutual Funds, and most of us have also invested our savings in various Mutual Fund Schemes. During interaction with many of my friends I got a feeling that most of them had a very vague understanding of how Mutual Funds work. Understanding Mutual Funds is important… Read more: Why Mutual Funds are better than Savings/Deposits !!

We all need money for our routine expenses and keep it  in part as cash, and balance in savings account. Over time the money in excess of monthly requirements accumulates, and we generally tend to put that money in some fixed deposits. There are also some one-time cash flows on account of arrears or increments… Read more: The Good and Bad of Savings, Deposits and Govt Schemes

In the article “ Understanding Debt-And how it is different from Equity” we had discussed the basic elements of Debt. We use Debt investments for safety of capital and steady income, and Equity for growth.  We had also discussed in “Asset Diversification-The Key to Balancing Risk & Return” the importance of having adequate proportion of… Read more: The Maze of Debt Options

We keep hearing and reading about the terms Debt & Equity in all financial conversations. Most of us assume a meaning of our own understanding and end up in mixing the two categories of investment. While interacting with several friends I realized that this lack of clarity causes doubts while choosing from diverse options. This… Read more: Understanding Debt Investment

We all own several items of utility and leisure of different brands. Many similar items tends to meet the same basic need, however, their costs differ on account of several reasons. One of them being the Brand of the item. When we are Brand Conscious, we assume that our other concerns like quality and reliability… Read more: Is Brand Consciousness, Hurting You Financially?

We have been discussing various aspects related to Home loan in our other articles. After deciding to buy a house, you will have to work out the funding requirement. You then have to carry out a survey to ascertain the appropriate lender. Someone who will provide the requisite amount of loan, at the desired rate,… Read more: Mis-selling of Home Loan- How to Choose the Right Lender !!

“Compound Interest is the 8th wonder of the world. He who understands it, earns it; he who doesn’t, pays it “- said Albert Einstein.  We all would have at some stage in our schools learnt the basic math of calculating Simple and Compound Interest. Albert Einstein has defined the power of compounding as the Eighth Wonder. To… Read more: The Power of compounding- Is it working for you !

In another discussion we have talked about issues related to Risk and the characteristics of various assets classes. When we talk of risk bearing investments, it means that there is scope of erosion in the invested capital. And this is what dissuades most of us from investing in such asset classes. The irony however is… Read more: Asset Diversification- The key to balancing Risk and Return.

We know the importance of timely Tax Planning, and factoring tax efficiency while making investment choices. The whole gambit of taxation is quite huge as it covers the entire scope of income and taxation. Some of the elements are very common, esp. to the salaried class. These should be at the back of our mind… Read more: Tips for Tax Planning

The Financial Year 2019-20 is long over, and under normal circumstances most of us would also have completed the filing of Income Tax return by now. However, on account of COVID situation, the last date of filing returns for FY 2019-20 is now 31st Dec 2020. The last date for making deduction related contributions/expenses was… Read more: Income Tax Return- We Reap what we Sow

Tax is an evil which we all wish we could do away with. But the universal fact is that the more you earn, greater is the pain of income tax that you have to bear. The motivation to save tax is highest for those in the higher tax slabs. There is therefore no need to… Read more: Tax Planning and Tax Efficiency

To be insured is an important and vital requirement to manage financial risks. And therefore, all of us might be insured to some extent in some or the other way. It is essential to be able to measure the amount of our insurance needs, so that we can be correctly insured. Categories of Plans It… Read more: Life Insurance : Are You Under/Over Insured

Buying a house is a major decision which most of us take at some or the other time in life. We have discussed various issues pertaining to owning real property in “Buying Real Estate- Will it be your asset or liability”. After factoring all aspects, if one wants to go in for a house, then… Read more: Taking Home Loan- How much, and till When ?

Property is a very important and widely held asset class. It occupies our planning horizons and capital in a significant manner. House is the critical component of the triad of essential needs viz. Roti, Kapda and Makaan. For most of us, it is either the objective, or means to some objective. Investment in Real Estate… Read more: Buying Real Estate – Will it be Your Asset, or Liability

Retirement is a very certain, distinct and significant phase of life.  Sooner or later, we all need to retire. Despite the clear and present certainty of retirement, most of us relegate Retirement Planning to passive management. We do this assuming that there is not much to plan for retirement. We must not forget that retirement… Read more: Retirement Planning – How much is enough?

All of us need money, and most of us need it more and more. The underlying reason for the entire science of Economics is that resources are always scarce as compared to needs. At the micro level, the same applies to all of us albeit in differing proportions. At the basic level, even the poorest… Read more: Want to Create Wealth: How Much, and by When

Retirement is a reality for almost all of us, and it signifies a distinct phase of life. Looking at retirement from a financial perspective, some of the desirable requirements of retired life are : (a) No liabilities in the form of unpaid loans (b) Fulfillment of most of the major financial objectives like house, children’s… Read more: Commutation of Pension- Who Should Do, and Who Should Not !

Whenever, we talk of investments, the most common instruments which come to mind are Mutual Funds, Shares or Derivatives (Options and Futures). Despite all having the same underlying asset, ie Shares, all the three sub classes are unique in their characteristics. And therefore they demand different treatment. It is a great folly when we tend… Read more: Mutual Funds, Shares, and Derivatives- What is Common, and What is Different.

There are a couple of golden single word questions which are life’s best teachers. Some of these are What ? When ?, Why ?, Where ?, Who ? and How ?. Today we will discuss the “Why? and Where?” of Investments. We mostly do everything with a purpose and that is same with financial activities.… Read more: Understand Your “Why?” of Investment, Before Deciding on the “Where?”

The GOI has announced a new tax regime in the annual Budget, leaving the option to each tax payer to continue with the old regime if it suits her/him. Recently there has been some communication from ministries/departments to their respective employees to intimate their choice of option for the current FY. The salaried employees also… Read more: Old V/s New Tax Regime- Which One Suits You?

Inflation is a very commonly heard word and assumed to be understood well. However, not everyone factors that understanding into financial decision making, thereby overestimating returns or under estimating objectives. We further compound the effect of inflation when we fail to calibrate our lifestyle according to our affordability. What is Monetary Inflation? In simple words… Read more: Monetary & Lifestyle Inflation-The Killer Combo

We all have heard from our elders and been taught in our formative years that we shall live within our means.  That remains the guiding mantra, and in no way do I intend to motivate anyone to take credit. But even while living within our means, we can make safe and smart use of Credit… Read more: Are you using your Credit Card Smartly ?

In another discussion on “Are You Organized for Investing”, we talked about opening a Public Provident Fund (PPF) account. PPF is open to all citizens without any age limit, meaning that both adults and minors can open it. It makes great sense to open an account each for self, spouse and children. While one might… Read more: PPF-The Silent Growth Tool

In the prevailing scenario, all those invested in Equity Mutual Funds are deliberating on their future course of action. One is in a dilemma over continuation of Mutual Fund SIP and what to do with existing investments. The major decision options being as under: – (a) Stop Mutual Fund SIP and Redeem existing investment. (b)… Read more: Mutual Funds-Should You Redeem/Stay/Stop/ Continue SIP

While discussing financial issues we tend to use the two terms, Risk & Return mostly together. This is because we need to base all financial decisions on balancing Risk and Return. While we understand and measure return easily, we tend to presume the understanding of Risk without making much effort towards measuring it. Further we… Read more: Look Before You Leap- Are You measuring Risk before Investing ?

The National Pension System (NPS) is GOIs Defined Contribution Pension Scheme and all Indian Citizens (including service personnel) can subscribe to it. One can open NPS Tier 1 Account which carries significant tax benefits, and an additional Tier II account which has relatively no withdrawal restrictions, but does not provide any tax benefits. One needs… Read more: NPS-Additional Tax Saving With Customizable Returns

When one thinks of investing into Mutual Funds, he encounters a wide spectrum of choices. Equity Funds are an important element as part of the overall asset diversification. Each type of Equity Fund has a peculiar composition of its underlying assets and therefore it is important to pick the right type as per individual investment… Read more: 25 Types of Equity-Oriented Mutual Funds. Which One Suits You ?

For efficient functioning of any type, it is imperative that we create the necessary and suitable architecture for the purpose and organize ourselves for investing. We can compare the context to a house for living purposes with kitchen, bathrooms, dining, bedrooms etc along with appropriate fittings and furnishings, and offices for working purpose with conference… Read more: Are You Organized for Investing

The previous one yr gains from gold are over 40% and therefor quite impressive. This forces us to think if Gold is a good investment option. the historical returns from Gold over longer periods is much below returns from Equity. While personally I am not a big fan of Gold, it certainly forms part of… Read more: Gold- Is it a Good Investment Option !

Most of us would have availed loan for the purpose of buying House or Car or any other utility/service. Till such time we don’t have the money to repay it, we obviously keep paying the EMIs as per schedule. However there is a time when we might be having cash in hand to pay off… Read more: You have Idle Cash – Should You Pay off the Loan ?