For many of us, when we think about investments, the focus is mostly on returns. Not unfair. Everybody wants an adequate reward for the risk taken. However, when you think in terms of financial goals or financial planning, return is not the only part of the equation. Let’s look at the equation for compounding. A = P * (1+r)^n Where P is the amount invested, r is … [Read more...] about Financial Planning and Investing more
fee-only financial planner
You got Rs. 10 lacs with you. You know you would need the money or at least some portion of it within 3 years. Where would you invest that money? A Bank Fixed Deposit or a Debt Mutual Fund? Let's assume debt mutual funds have as low risk as FDs and FDs are as flexible as debt MFs. The only difference is in tax treatment. And that both return 8%. After 1 year, you … [Read more...] about Need money within 3 years: Bank FD or a Debt Mutual Fund?
I regularly write against mixing investments and insurance. I highlight issues in the cost structures of various investment and insurance combo products. Regular readers would know that I like mutual funds for investments. However, I must concede that the mutual fund companies do not really smell of roses. I have written about many issues with their intent and communication to … [Read more...] about Mutual Funds: The Expense Ratio Trick
HDFC Life Sanchay Plus is a Non-participating traditional life insurance plan. That means the payouts are guaranteed. There is no market risk or risk associated with varying annual bonuses. You know upfront what you are getting into. Moreover, it is a deferred payout plan i.e. maturity value is paid over a period of time. Let’s find out more about HDFC Life Sanchay Plus and … [Read more...] about Review: HDFC Life Sanchay Plus: The good and the bad
You start with a certain asset allocation mix. At regular intervals, you bring your portfolio to original asset allocation mix. Let’s say you have Rs 20 lacs to invest. You have two asset classes Equity and Debt. You invest Rs 10 lacs in Equity and Rs 10 lacs in Debt. Asset allocation of 50:50. During the next 1 year, Equity gives 20% returns while Debt gives 5% … [Read more...] about What is Portfolio Rebalancing? How it helps?
Investors have different levels of risk tolerance. Some don’t bat an eyelid even if their portfolio nosedives by 25-30% while others worry even if their portfolio is down just half a percent. The first set of investors is likely made up of experienced investors while the second category of investors has a low level of risk tolerance. How should such investors with low risk … [Read more...] about How to invest if you have a low risk appetite?
Mutual Fund Direct plans have been around for over 5 years now. Under direct plans of mutual fund schemes, you invest directly with the mutual fund house. There is no intermediary or distributor involved. Hence, you save on intermediary costs. This reflects in better returns as compared to regular plans of MF schemes. Under regular (or distributor) plans, you invest through a … [Read more...] about Performance Comparison: Direct plans vs. Regular plans of Mutual Funds
The awareness about direct mutual funds (or direct plans of mutual fund schemes) is increasing. And why not? You stand to earn higher returns for no additional risk. It is foolish to invest in regular plans if you are a do-it-yourself investor. You are compromising on returns for no hint of advice. Even for those who need assistance, it may be a good choice to work with a … [Read more...] about Best Mutual Fund Direct Plan Platforms in India (How to invest in Direct Mutual Funds online?)
Are you looking for a financial planner or financial adviser? Who would you go to? There is no dearth of choices. Let’s look at some of the common financial advisers/ planners/agents you may encounter: Mutual Funds Distributors (MFDs) or Independent Financial Advisors (IFA) Insurance Agents Bank branches/ relationship managers SEBI Registered Investment Advisers (SEBI … [Read more...] about What is better for you: A Fee-only Financial planner or a Fee-based planner?
I get many inquiries about financial planning or investment advisory services. During the follow-up discussion, a few prospects go cold once we start talking about the fees. I do not deny affordability can be an issue. A few perhaps feel that the advice (value) is not worth the price. I am quite finicky about who I onboard as a client. A few prospects are lost there too. Fair … [Read more...] about The Cost of a Poor Financial Product is much higher than the cost of Professional Investment Advice