Should We Invest only in the DSOPF/PPF?

During my interaction with serving Officers, I find many of them still put all their savings in the DSOP fund with 7.1% annualised returns. With inflation hovering around 7.5% (lifestyle inflation is much higher), we are getting a negative appreciation on our investments.  Moreover, any investment of more than Rs 5 lakh in DSOP from … Continue reading Should We Invest only in the DSOPF/PPF?

10 Commandments of Personal Finance

In every walk of our lives, we need commandments which we try to follow to achieve success. Our financial life is no different. By doing our best to follow these commandments, we are almost certain to have a good financial life and mental peace. Here are the 10 commandments which will help us achieve the … Continue reading 10 Commandments of Personal Finance

Are we Investing or Trading in the Stock Markets?

Recent data released by National Stock Exchange (NSE) has revealed that retail participation (Individual Investors like you and me) in the stock market in the non-derivative segment has been on the rise over the last five years and has reached a high figure of 45% in FY21 as compared to 33% during FY16.  And the … Continue reading Are we Investing or Trading in the Stock Markets?

Contribution towards Employees’/Voluntary Provident Fund/DSOPF

Union Budget announced on 1st February 2021  has proposed to levy income tax on interest earned by an individual on his/her contribution in excess of Rs 2.5 lakh in a financial year to all recognised provident funds(includes Employees’ Provident Fund/Voluntary Provident Fund/DSOPF).  It means any contribution of more than Rs 20,800/- per month to EPF/VPF/DSOPF … Continue reading Contribution towards Employees’/Voluntary Provident Fund/DSOPF

Financialisation of Savings

Did you know 95% of Indian households invest their hard-earned money in physical assets like real estate and gold, primarily because of the following reasons: These are tangible assets that we can feel and be happy about holding We invest with a long term view assuming these are safe investments and will provide decent compounding … Continue reading Financialisation of Savings

Important Money Lessons Learnt During The Year 2020

Finally, the year 2020, one of the most difficult years in the recent history of mankind when coronavirus brought our lives to a grinding halt, is behind us. It was a disaster in the form of a virus that struck mankind all over the world; people lost their lives, livelihood and struggled to cope up … Continue reading Important Money Lessons Learnt During The Year 2020

Investment Options For Retirement Corpus

There have been a large number of queries from the retiring officers as regards options available towards investment of retirement corpus. Although the investments are planned based on the risk profile, financial goals and the time available to achieve these goals, there is a common belief to park this money in ‘safe’ assets, primarily consisting … Continue reading Investment Options For Retirement Corpus

Why Do We Save and How Should We Invest?

In the last three months or so, ever since the lockdown has been enforced all across the world, the household savings rate has gone up substantially despite an increase in unemployment/loss of income. No outdoor eating /parties/movies, no shopping other than necessities, no travel are the main contributors. Why do we have to save money?  … Continue reading Why Do We Save and How Should We Invest?

Make Your Money Work For You!

You want to become rich! Make your money work for you 24×7, 365 days a year. Do we know how people become rich? They invest money in creating assets and poor people create liabilities.  So before we proceed, let’s understand in simple language what is an asset and a liability An asset is anything that puts money … Continue reading Make Your Money Work For You!