Making a financial plan is like working out….
Although all of us know that working out is good for us and most of us need to work out, very few of us get around to doing it. One of the reasons is, the benefits of work out are realized in the “long term” while the “benefits” of not working out are realized immediately […]
It glitters but also fritters….
Indians have a tradition of buying gold, it is almost a borderline obsession. We import about 1 ton of gold every year!!!, and this is mostly for jewellery or to be stored. It has become a national problem as the wealth is stored away and is not being utilized to create more wealth. For instance […]
What’s real and what’s not…..
Many of us find it comforting to buy and hold assets that are tangible, like house, land, gold etc. These are called “real assets”. The other type of assets are stock certificates, bonds, money in a deposit product, Gold ETF’s, etc. These are called “financial assets”. Real assets Financial assets Tangible Not tangible Available only […]
Good guys don’t always win………………..
Assets under management (AUM) in the India’s mutual fund industry is INR 8,800 billion – 2014 KPMG report on mutual fund industry in India. AUM in the most liquid Index fund (Benchmark’s NIFTY BeES) is INR 6 billion, a paltry 0.07% of the AUM for mutual funds. NIFTY has returned 19% annually since 2001, which […]
Education pays, lets figure out paying for education…
It’s been established that better educated have a better financial future, greater job satisfaction, enjoy better life styles, and tend to be better parents. “Education pays” is an interesting report you may want to read. Cost of education has been escalating at a steady clip worldwide and in India these have been much higher pace […]
Let’s use XIRR to combat our mental blocks and optimism bias
I have been discussing with multiple people about their investment performance and realize a lot of us have tendency to block out data (esp of ones with unfavorable outcomes) or have an optimism bias of the returns we have generated in the market.
Only the cautious will enjoy “Achhe din”
Markets have had a run up of about 20% this year and there is a sense of bonhomie. Animal spirits have returned to the market. I don’t mean to be a spoil sport, but this is the time to exercise caution. Here is why: Current P/E for NIFTY is close to 21 and this year […]