Never invest in an asset for which you don’t understand the maximum risk.The curse of a bull market is that everyone is drawn into the awe of rapidly rising prices due to the fear of missing out (FOMO). The emotion of greed plays on the mind that looks for reasons to justify it. And thus, the sacred relationship between risk and return is completely overlooked. While returns draw all the attention, risk sounds boring and…
10 evils you must defeat for a peaceful financial future1. Procrastination: Many people get sucked up in analysis paralysis and never start investing. Understand, deliberate, and plan well but ACT FAST.2. Shortsightedness: Investing like you are buying a lottery and expecting quick gains is a sure-shot way of burning your money. Be patient.3. Herd mentality: Doing what everyone else is doing and relying on the wisdom of the crowd could be very dangerous for your…
Until a few years ago, I used to buy products & services entirely based on the cost. Especially where the value proposition wasn’t very apparent.With time I realized, how much more expensive & detrimental the products & services were to me for which I paid a lower price.The cheaper things sooner or later started showing awful results which made me realize why they were priced cheaply, to begin with.I started wondering why we focus on price…
My friend was having hair loss problems. One of his other friends suggested an ayurvedic oil to apply regularly.But it didn’t help.An Instagram influencer suggested a serum on alternate days.That didn’t help.A store manager recommended their brand’s new oil & shampoo that is the solution to all the hair loss problems.That also didn’t help.Exhausted by all the options, he decided to speak to a doctor.Soon after the doctor’s consultation, the prescription started showing results.Why? Because doctor recommended- What…
Imagine you have invested 50% of your money in the Nifty Index Fund portfolio. And another 50% in a mutual fund portfolio with an average of 50% debt allocation and 50% in equity allocation. Which part of your investment would have generated higher returns in the last 10 years? You would say obviously the first portfolio which has 100% equity allocation because equity performed far better than debt in the last 10 years.What if I tell…
Should mutual fund portfolio returns be compared with Fixed Deposits? One of the biggest mistakes many investors end up making is comparing mutual fund returns with FDs for a period of less than 5 years.Data like the Nifty50 Index generated a 15% CAGR in the last 10 years seems quite appealing to many people. However, this data hides an important fact that Nifty50 did not generate 15% returns every year. There have been years when…
Thanks to the rapid decline in interest rates and rising inflation resulting in negative real rates over the past two years, many investors have been forced to search for higher-yielding fixed-income products. The demand for higher yields has resulted in the birth of many platforms offering fixed-income products in the form of securitized products, revenue-based financing, loans to companies and individuals (p2p), and other higher-yielding bonds & debentures. The more options, the better it is in terms of…
Our Co-Founder Sumit Duseja’s views on financial influencers have been quoted in the article by The Ken. Finfluencers have done a marvellous job of creating awareness about various aspects of finances in our country where financial literacy is very poor.However, the motive to educate has spilt over to the motive to earn hefty fees/commissions and ride the popularity bandwagon to gain more followers by promoting products like stocks, cryptos, IPOs, etc. which may or may…