Basic personal thumb rule Pick the funds based on the goals for which I am investing and take risks appropriately. The below thumb rules help you create an active mutual fund portfolio. < 5 years – Avoid if you can. (5-10% maximum in Large cap, if the goal is not top priority) 5-7 Years …
Now you sold your old flat and you are then told that there is a LTCG Tax (Long term capital gain tax) which you have to pay, which is 10% of the gains you made. This is heart breaking, isn’t it? Well, there is a nice legal way to work around this instead of paying…
Many a times when I have money to invest, I end up worrying if the markets are too high | interest rates too low to invest. This leads to the usual “Analysis paralysis” state where I do nothing but sit with the money in the bank account. Two ways to go about this, one is…
First, it is important to understand that retirees invest in Annuity products to increase their human capital. The Insurance providers are providing so many new options these days around Annuity Products, it is impossible to discuss all options! Secondly, annuities have the unique advantage of having generally no upper limit of investment. So theoretically, if…
We all hate losses in investments, all of us know it and feel it. But do you know that the sadness from losses is far powerful and emotional than the happiness you get from profits 🙂 Because of this, Loss Aversion is such a powerful emotion which we humans love to avoid. This is the…
The way retirement planning works is pretty simple. Identify needs and goals, identify the mix of asset class that satisfies the goal, execute the plan and review the plan frequently. But the key is to balance Equity Percentage in Portfolio so that risks are not too high or too low. Equity is one financial instrument that…
We already saw in the article here, how our financial super power (“Patience”) affects the investment. Now let us look at another big financial trick which if applied rightly along with “Patience”, would reap you great rewards. This trick is called “Step up investments”. “Step-up investments” – what does this mean? Every year most employees…
Sovereign Gold Bond (SGB) is a nice way to invest in gold for long term over physical gold. Remember physical gold has wear and tear over a long period of time, but not SGB! Firstly, it is possible to invest in a minors name. And a family can invest upto 4Kg per member. The lock-in…
Come new year, large portion of the emails/phone calls we get are from banks/financial institutions. They will have a common theme of “Saving taxes” for you at the last minute. And this is when maximum mis-selling of financial products happen as well. You enter into a ULIP which sucks money out of you (please read…
Many articles around Compounding being the 8th wonder of the world and it is true. I personally feel that Compounding is an after effect of something more powerful – the financial super power called “Patience”. Magic happens when someone is patient to let the money do the compounding by automating the investment. In short the…
