Avoiding bad financial decisions is as important as making good ones, but what influences you to make such good or bad financial decisions? Your decisions are a reflection of your financial habits i.e. a reflection of who you are as an investor and as a person. In this post, we will look at 5 financial habits that you can affect your financial lives adversely. #1 Think more and … [Read more...] about 5 Financial Habits that can ruin your Financial Life
There are two pillars of personal finance. Wealth Accumulation and Wealth Preservation. Wealth accumulation is about taking steps to accumulate money for your financial goals. Wealth preservation ensures that your accumulated corpus does not take a significant hit in case of any unforeseen event and you stay on track. Personal Finance is Personal There is no one size fits … [Read more...] about Two Pillars of Personal Finance
In the year 2012, SEBI directed mutual funds/Asset Management companies (AMCs) to provide a separate plan to investors for direct investments in mutual fund schemes. In this post, we discuss what regular and direct plans are all about and the difference between the two types of plans. Finally, we assess the impact of different cost structures of the two types of plans on the … [Read more...] about Why you should invest in Direct Plans of Mutual Funds?
A new financial year has just begun. Towards the year end, most of us were running not just to meet our sales targets but our investment targets too. You made those tax saving investment decisions in a hurry. You did not understand the products completely but had no time or will to do a proper assessment. What could you do? You just did not have enough time. You resolved that … [Read more...] about Six Financial Planning Tips for the new Financial Year
Mr. Sharma was a smart man. He made sure that his family did not have to make any compromises even if something were to happen to him. He had bought a term insurance cover of Rs 1 crore. Additionally, over the years, he had built up an investment portfolio of Rs 70 lacs. Of his total investments (Rs 70 lacs), 70% was in equity mutual funds to provide for his children’s … [Read more...] about Pass your financial knowledge too, not just your investments
Every parent wants the best for his/her child. It is every parent’s wish that financial constraints do not come in way of his/her child’s education or career. Hence, when you are approached with a specific investment plan to provide for your child’s future education or wedding expenses, the product becomes too irresistible to ignore. The sales pitch is so strong that you start … [Read more...] about Unit linked child plans: Should you buy?
You must have come across advertisements inviting investments in corporate fixed deposits by many companies. The returns offered are quite high as compared to your regular bank fixed deposits. In fact, the mentioned yields are sometimes too attractive to ignore. So, should you invest in these corporate fixed deposits? In this article, we discuss various aspects that you must … [Read more...] about Corporate Fixed Deposits: Should you invest?
Gaurav works in the treasury department of a leading private bank. He believes that the interest rates are headed downwards and there will be huge gains in the bond portfolio of banks. He expects that these gains to reflect in the prices of banking stocks in the medium term but he is not sure which banking stock to invest in. He starts a systematic investment plan (SIP) to … [Read more...] about Should you invest in Sector Funds?
It is that time of the year again when you have to submit investment proofs to your employer to get tax benefits under section 80C. In this article, we discuss ULIP (Unit Linked Insurance Plans), insurance cum investment products that qualify for tax benefits under section 80C and whether you should go for ULIPs. We will discuss various cost elements, maturity and death … [Read more...] about ULIPs < Mutual Funds + Term insurance
With markets at an all time high, retail investors are rushing towards equity markets/mutual funds with their hard earned money. Hence, we thought it apt to discuss some of the common pitfalls investors should avoid while selecting mutual funds. Pitfall 1- Lower NAV is better Fund A has an NAV of Rs. 45 while Fund B has an NAV of Rs. 225. Assuming all the other parameters … [Read more...] about Five mistakes to avoid while investing in mutual funds