How to start building an investment portfolio from scratch? This looks like a logical question for beginners, right? But even experienced investors can take clues from here. People who have not built their investment portfolio till date, how they can go about it? These are people who are busy doing 9-6 job. They do not…
One of the best investment tips for beginners in India is to follow investments consistently and with purpose. Consistently, why? Because irregular investments eventually gets spent. Purpose, why? Because goalless investments also gets spent. What is the purpose of investment? Wealth creation over time. But if the investment gets liquidated and spent, the purpose is not met. Hence for…
How to create wealth from nothing? The stress is on the word “nothing”. Why? Because if one knows how to create wealth from “nothing”, doing the same with “help of something” will be easier, right? But there is a point about wealth creation that needs understanding at the outset. What is it? Wealth creation is…
Generally, how we evaluate performance of mutual funds? By looking at their historical returns. Suppose there are two mutual funds A & B. The returns generated by these mutual funds in last 1 year has been as below: Most likely, in which mutual fund you will invest your money? Probably “A”, right? Now lets add…
GDP is measured in India by estimating GVA of “Individual sectors“. Before we proceed into further details, lets first know few basics about the following: GDP. GVA. Individual Sectors. What is GDP? Gross Domestic Product. GDP is a measure of “total value of goods and services” produced in a country. What means by total value of…
We often come across stock metrics like Face Value, Book Value, Intrinsic Value and Market Value. What does these terms mean? How important it is for us to know the difference between them? A basic question that arise here is, does these definitions help us to pick better stocks? So you can see, these terms…
These days we often hear the phrase called “taking a haircut”. What does it mean, and how it effects a common man? In simple language, taking a haircut means “agreeing to settle a deal for a loss”. Why banks would agree to accept a loss making deal? To understand this, one must first understand what…
Recently I read a document published by Income Tax Department on Presumptive Taxation. I found this document very useful. It deals with how freelancers, self-employed people like bloggers can pay income tax. Hence, I thought to write a blog on presumptive taxation specially highlighting section 44ADA. Earlier, the section 44ADA under presumptive taxation was not there. …
Is there really any available alternative to savings account in India? India has really evolved over the past 2-3 decades in terms of utilising investment options. Earlier people used to know only fixed deposits, NSC, KVP, Endowment plans etc as their investment vehicles. But now people do invest in stocks, mutual funds, real estate, gold…
The business model of airports across the world is quite unique. Airports in itself is a hugely capital intensive investment. Both in terms of CAPEX and Operating costs, airports demand huge cash flows. Airport Authority of India (AAI) design, develops, controls and manages 126 nos airports in India. The breakup of these 126 nos airports are…
Why Government cannot print currency notes and give to needy? After all, printing currency notes is in control of RBI and GOI. It needs no other approvals. Why it cannot be done this way? India’s population is 132 Crore. Out of this, at least 18 Crore are “poor”. Who are poor people? According to world…
Though I am not an expert to find a flaw in the banking system, something stunning has come to my notice. Why do I call it stunning? (I mean it in a negative way). I was surprised but was “not” happy to observe something like this. What do I mean by “something like this”? I…
