In the last couple of years, there has been a lot said and done with respect to categorization of mutual funds. The regulator has attempted to put some structure in place for fund houses and managers through the categorization guidelines, in order to help investors make informed choices.
That said, it can still be quite confusing for the lay investor to understand these categories. Thankfully, there is something else that is universally understood. Cricket! And within it, IPL!
Fans know every team’s strengths and weaknesses while having his or her favourite teams to root for. So, if equity mutual fund categories were IPL 2020 teams, who would they be?
Read our latest article, published on Moneycontrol.
Building a good diversified portfolio is a journey, not a one-time action. It is not a straight-line process either, and many a times, involves taking a step or two back as well, while the overall direction is forward.
As planners, this is something we do periodically, in order to exit assets, which we feel are not well-poised for the future and move to investments which are more aligned towards the goals and expectations. While one would think that conversations for making such changes in portfolios would be easy, many a times, they are not.
Here are a few pointers for you to ponder on, so that your portfolio review exercise ends up cutting your weeds and nurturing your flowers.
Read our latest article, published on Moneycontrol, to help you build a portfolio that resembles a bunch of roses and not a bush of thorns.
The last few months have seen market volatility at never-seen-before levels. We saw the sharpest drop ever, with nearly a 30-35% drop in key indices less than a month. Yet, before one could even say “bear”, the fastest-ever recovery also followed in the next 3 months, with most indices recovering smartly from their March bottoms, to be close to their pre-COVID highs.
For customers, emotional reactions are completely understandable. On one hand, there is loss-aversion at work, and on the other, there is the fear of missing out, or FOMO.
So, coming back to the question, how does one handle such situations? Is there a way to navigate markets, especially when they go through such roller-coaster rides?
Read our latest article, published on Moneycontrol, to help you wade through this emotional jungle and take the right decisions.
Have you ever had conflicting emotions regarding the same issue? It seems to happen quite often to me when I look at the ways in which senior citizens handle their money. At times I feel, I wish I could be as well planned and involved with my own finances. At other times I roll my eyes and make myself a promise never to end up like them when I grow older. I guess its only natural that there are somethings which you envy and some which you absolutely detest and don’t want to emulate ever.
This my attempt to list down 3 things I would love to work on with the older generation as an inspiration and 3 things I would want to do differently than them for sure.
Pl read our latest article, published on Moneycontrol
For most people, the last few months has been a never-before experience. Whether it is about finding out how secure is your financial position in this crisis, or about understanding what is really important for you versus isn’t, or about looking for new opportunities in an otherwise generally hopeless time, it has been a period of discovery.
For me, this period has reiterated a few money lessons which I have learnt and personally tried to follow over the last few years. If anything, this crisis has confirmed to me that the path towards financial, in fact, overall well-being lies along successfully practicing these lessons.
Read about them in our latest article, published on Moneycontrol.
I have interacted with many women who at some point in their career want to stop and take stock of where they are headed. These are not decisions that people take overnight, they are thoughts which stay seeded in your mind and take lot of time to grow enough to make you take action. The reasons for the same may be varied, and so will the journey, but there is always merit in reading how someone else’s journey unfolded. It may make your ride a little smoother and disappointments lesser.
A few years back I went through a similar dilemma. Having done something similar a few years back, I think that if my journey could help some get solace or pave the way for realistic expectations, this is a story which is worth telling. On hindsight, these are my learnings.
Please read our latest article, published on Moneycontrol.
A few months back, I met a friend of mine who was down from the US on a holiday. This is someone who had done quite well for himself over the last nearly 20 years in the US, and has built a fairly large investment portfolio. As part of it, he has also successfully built a real estate portfolio over the years in the US. Discussions veered towards that, and he said something that made me sit up.
His words were “I love Leverage”.
The use of the word “Leverage” instead of “Debt” somehow made all the difference for me to look at it in a new light. Yes, loans are bad, and one should be debt-free in one’s pursuit of financial well-being. That said, I have since also realized that Debt is not as one-dimensional as one thinks it is.
Coming back to the original question, let’s look at Debt differently and build some simple rules around it, which can be generally followed, towards one’s financial well-being.
Read our latest article below, published on Moneycontrol.
Financial planning has different connotations to different people. To us who have been interacting and partnering with people in their pursuit of financial well-being, it means living a fulfilling now while planning to sustain the same lifestyle throughout your life.
In our numerous interactions with people, we have noticed many kinds. A few are balanced in their need to live a good life today as well as save for the future. Some are very involved in the now, and live an indulgent life-style with no worries of tomorrow. While some are constantly worrying about the future, so much so that they compromise on even little things which bring them great joy. We are going to discuss this last category since we have noticed some common traits which distinguish them and strongly believe a different approach can significantly change their lives.
Read on more in our latest article below, published on Moneycontrol.
Over the last 3 months, for many, salaries have been truncated, jobs have been lost and the health and lives of near and dear ones have been threatened. And for most, this is a first-time experience.
In support, the salaried middle-income person has also been given some breaks, importantly, an initially three, now extended to six months “moratorium” on their loans through banks/NBFCs. These include all kinds of loans, including credit card debt.
The terms of the moratorium are simple – it only defers your EMI, doesn’t waive it. There is no interest waiver. Non-payment (ie. deferral) does not impact your credit score.
Hence, it is advisable to pay your EMIs, and not take the moratorium, unless there are dire circumstances, because of which you are unable to pay. And if you do, pay back the deferred EMIs as soon as possible, to minimize the long-term impact.
But why so? The reason is simple. Taking a 6-month moratorium on a home loan that has 15 years left adds another 18 EMIs! And this is because of the effect of compounding over long periods of time.
Our latest article, published on Moneycontrol, explains exactly why. Click on the below link to read on.
As the impact of the COVID-19 crisis takes a further hold on the economy, its impact is beginning to be felt on its foot soldiers as well. Over the last few weeks, more and more news about planned salary cuts have been percolating, and over the last few days, the dam seems to have broken, with large job cuts also being announced.
This is likely to be wide-spread, and in the last few days, we ourselves have seen cases of 25% salary cuts, work without pay for the next 6 months, and finally, job-losses.
How to handle such a crisis is something someone impacted would be struggling to grapple with. And in case you are not hit by it as yet, count yourself as lucky and prepare for an eventuality like this. The below 10 steps should hopefully help you plan for it and address much of the impact.
Please read our latest article, published on Moneycontrol.