The Intelligent Investor and Market Fluctuations

At times, Mr. Market becomes so wild. Isn’t it? Its down by 5% in a single day, or sometimes by 8% or sometimes it touches lower circuit by going down 10% in just 15 minutes. Within a month, investors see their stock value going down by 50%. That 1 million (10,00,000) becomes 5,00,000 within just…

Home Loan vs Investment in India

The average price of a 1BHK (1 bedroom hall kitchen) house in Mumbai is approx ₹70 lakhs to ₹1 crore. The further you go towards Mumbai city (towards Colaba), the price keeps on increasing upto average ₹3-5 crore. On the other hand, a graduate/post graduate with around 3-5 years of experience (in late 20s) earns…

Your Parents Are Not Your Emergency Fund; Children Not Your Retirement Fund

We all want to live a life with no fear and worry about our finances – ‘A life full of financial freedom’. However, that looks like an impossible task for many. Our Indian culture has taught us that our parents would be our emergency fund incase of crises and children would become retirement fund. Right?…

Why Do Indians Prefer Fixed Deposit Over Mutual Funds?

Ever wondered why many Indians prefer Fixed Deposit over Mutual Funds? When they say “Mutual Fund Sahi hai” but immediately they also say Mutual Funds are subjected to market risks. Oh then it must be risky, is it? Let’s find out. Fixed deposit has many advantages such as guaranteed and stable returns. You know exact…

Not a Government Employee? You Can Still Get Pension

The craze for government jobs have always been high. This is not only because it provides job security but another important reason is that employees get pension after retirement. However, what about someone who is not a government employee? Can you still get pension? Lets see. As per the latest update, anyone who bags a…

Why You Should Avoid Credit Cards?

A friend of mine asked me why do I avoid credit cards? When credit cards comes with so many benefits such as convenient, easy to buy, easy to track, lot of discounts, reward points, cash for emergency needs, free money for up to 50 days (if you pay on time) and so on. Hence, the…

The Power of Compounding in Investing

Part 2 In the previous post we learned why we should consider investing, now lets discuss something about “The Power of Compounding”. There are two types of people in this world, those who understand the Power of Compounding in Investing and those who don’t. Almost everyone who invests money claims to understand the Power of…

Biggest Lottery Winners But Biggest Losers

Imagine you’ve won a lottery of Rs.100 Crore. What would you do with that money? Buy a big bungalow, beautiful car, world tour? If we look at the stats, more than 70% lottery winners go bankrupt within 10 years of winning the lottery. Probably the remaining 30% also go bankrupt but little later. Why? I’m…