The other day while taking the webinar on personal financial management, one of the Officers asked me, Sir, “What is the biggest risk in the market today?” I thought for a second and replied, the biggest risk in the market today is exiting the market too soon. Stock markets all over the world have been … Continue reading Markets at all time High: What is the Biggest Risk?
The Nifty and the Sensex both made lifetime highs last month by touching 17932 and 60,303 respectively. These benchmark indices have given 131% and 118% returns respectively from their Mar/Apr 2020 lows. The market’s recovery has been very sharp and almost vertical, not giving many opportunities to enter. During such times, a better way to … Continue reading Stock Markets: All-Time High… How to Invest?
Debt mutual funds are ideal investment options for investors for short term investments. Their risks are much lower than equity or equity oriented funds, they have the potential to generate superior returns compared to traditional fixed income products and they enjoy a significant tax advantage over bank savings and Fixed Deposits. What are debt funds? Debt mutual … Continue reading Why Debt Mutual Funds Are Good For Short Term Investments?
This year RBI has been on a trajectory of tightening interest rates in an effort to control inflation. Repo rate has been raised three times. Repo rate hikes by the RBI raise bond yields, cause bond prices to fall and results in lower returns, especially for long term debt mutual funds. Surprisingly, RBI did not … Continue reading Investment Strategy: Debt Mutual Fund
I am sure we all must have received calls from our banking relationship managers trying to convince us to buy so and so financial product..may be its a mutual fund scheme or insurance investment product. When we go to our banks, they will try and push us to buy one of their financial product, whether … Continue reading Should You Take Financial Products/Advice From Banks?
Liquid Funds have been around for a long time. The first Liquid Fund, as per Value Research, was launched in 1997. Today, almost all mutual funds have a Liquid Fund. Liquid Funds have also come a long way in terms of the market risks that it can take. I have heard of instances of longer tenor … Continue reading Derisking Liquid Debt Fund
Over last year or year and half, every body is talking about investments in mutual fund, “Mutual Fund Sahi Hai”, we all must have seen this Ad. But this ad does not amplify whether we should invest in equity or debt mutual fund or combination of these two (Hybrid). Before we proceed further, it would be … Continue reading Why Should We Invest In Equity?
Recently I had the privilege to take a lecture on Personal Financial Management for young officers of Indian Army at EME School, Vadodara. It was indeed a great moment! So where was the need to start this campaign for the officers of Defence Forces? After spending more than three decades of my life in uniform … Continue reading Financial Literacy for Young Officers
NAV of Equity Mutual Funds nosedived during last few weeks as stock markets are in correction mode, more so in mid and small cap mutual funds. This sharp correction in stock markets, although not unusual, has rattled a lot of investors. Not only the equity market which saw correction, but the concerns surrounding one of … Continue reading Approach To Debt Mutual Funds
It depends what reasonable return you are expecting with what kind of risk and time horizon for investment. Following options may be explored: Safe with around 6.5% annual returns, then go for bank FD. However, returns are fully taxable( net returns = 4.55% with 30% income tax) Safe with 7.6% annual returns, go for PPF. … Continue reading Where Should I Invest My Savings To Earn From It?