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…
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…
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…
Firstly, it’s scary to look at the universe of all available mutual funds and then select the best funds for your goals. There are about 44 mutual fund houses offering more than 2500 schemes for us to invest our money. Is there a “sensible default” way to invest your money in equity mutual funds? Before…
While making investments, there are two factors which affect our decisions with respect to taking risks. It is important to understand our Willingness vs Ability to take risk. Ability to take risk – This measure tells us how much of risk can be taken by us while making an investment decision. Willingness to take risk –…
I generally plan for goals which are further than 7 years from now. I am clear on the instruments I can invest – namely Mutual funds, Gold bond funds, Stocks, FD and RD – I generally use a combination of these tools to arrive at an investment plan. With these constraints how do I invest…
Creating a kit for the family in case of any eventualities to oneself, is very important. I call it the financial tool kit.
