Power of Compounding: How Does it Multiply Our Investments Over Time?
The power of compounding is as synonymous with human life as are the three laws of motion. The best part is, its effectiveness can be explained using mathematics. It is a theory which is a “must-follow” for everyone.
Present Value Concept: How To Use It In Evaluating Investments?
What is the present value concept? Suppose a person invested Rs.1.0 crore in a real estate property. It will be a good investment if he gets back his invested amount, with some surplus (see this example). A simple example. Suppose, the investment (Rs.1.0 Crore) was made today. If the person gets back Rs.1.2 Crore after […]
A Philosophy of Investment Portfolio Building: Converting Savings Into Wealth
Savings + Investment Portfolio + Philosophy = Wealth Accumulation A high-rise building stands on a strong foundation. If wealth is like a high-rise building, then what is its foundation? There are three constituents: (a) savings, (b) investment portfolio, and (c) knowledge of the philosophy of wealth building. It is a common belief that high income […]
Alpha and Beta of Investment Portfolio: What is its utility?
When it comes to the use of jargon, probably the world of equity investment will be among its heavy users. Two commonly used words of this field are Alpha and Beta. The term beta is in use for a long time. But the trend of alpha is more recent. What are alpha and beta? Alpha […]
15 Stock Investing Tips For Beginners
Here are carefully curated pointers for beginners. These are stock investing tips that I’ve built over time based on my learning and realizations. Knowledge of these tips and their implementation has made me an improved investor. But more than that, they have widened my view on investments as a whole. How I use these tips? I’ve made […]
Where to invest money in India? 100+ Investment Alternatives
Where to invest money in India? There are more than 100 investment alternatives available in India. Here in this blog post, I have compiled it all in one place. I’ve challenged myself to indicate 100+ ways of investing money. There can be a plethora of ways to invest money. But unfortunately, we know only a […]
Which Are The Best Ways To Invest Money? The Approach of a Beginner
I was surprised to note how incomplete is the information available around us about the ways to invest money. Most write-ups point us only to investment options and say nothing more about them. People interested in knowing about the ways to invest money need more information. For example, stocks are an investment option. But how to invest in stocks? Readers would […]
Why Practicing Goal Based Investing is Essential For Small Investors?
Investments cannot be effective until done with a purpose. Hence, experts always advise goal based investing. But let me ask a simple question. Why we generally invest money? Because it is the right thing to do. Many people buy and sell investments without any specific purpose or goal in mind. For them, practicing investment is […]
The Concept of Time Value of Money. How it helps us to manage the cash flows wisely?
There is a concept of finance that says that there is a ‘time value of money.’ It is one of those concepts which works as a foundation of all money management. But before we can understand the time value of money, we must know who should care about it. Theoretically speaking, everyone is affected by this concept. But […]
Shares or Mutual Funds? Which is a Better Investment Vehicle For Common People?
Investors, especially beginners, often ponder whether shares or mutual funds will be a better investment vehicle? This question actually carries more weight than it sounds. To really answer this question completely, one will need to write a whole book. But for me, the challenge is to wrap this topic within this blog post. Hence I’ll […]
How to Build Ten Crores By Investing Money – A Systematic Approach
The question, how to build ten crores by investment is vague. It only talks about the end goal. But how to reach there? That is what we will answer in this article. Also Read: How to become rich. Before we can answer the question, we will have to ask a few more questions to remove the vagueness. The […]
How To Become Rich: The Process [Roadmap]
If we will see it from a positive perspective, the desire to become rich is not only about the abundance of money. It is more about giving oneself the ability to live a life of choice. So for me, becoming richer each day is an ongoing process. It is not an end goal. I believe that no […]