The objective of this article is to highlight the use, effectiveness, and limitation of a Bad Bank. For the shareholders of banking stocks, especially government banks, it is interesting to know why the concept of Bad bank was introduced in India. If this Bank will function well, it has the potential to wash out the…
The objective of this blog post is to highlight the requirement of the 12 steps of financial planning in Your 20s. There are three stages to financial planning shown in this post. It starts with taking the basic first steps. Then the person should graduate to the savings mode and finally to the investment mode….
The purpose of this article is to highlight the necessity of keeping the investment portfolio well diversified. We’ll see in this blog post how investment diversification is not only about buying different types of assets, it is more about keeping a balanced portfolio. For quick answers on the diversification strategy, check the FAQs Introduction What…
The purpose of this blog post is to bring forth the best investment options available in India for young adults. Beginners can read this report to familiarize themselves with multiple investment vehicles available in India. The report will also highlight the thought process necessary to pick suitable investments for building wealth in long term. For…
The purpose of this blog is to explain the basics of RBI’s CBDC. It is an RBI-issued alternative form of Indian currency. Presently, the Indian Rupee is available in two forms, physical cash and digital money in bank accounts. CBDC will also be a digitized and more cryptographed form of digital money. It will be…
The purpose of this blog is to emphasize the necessity of leading a loan-free life. There are moments in life when availing home loan becomes unavoidable. But, is it good to repay the home loan early? In this article, we will read why prepayment of loans cannot be ignored. For quick answers, read the FAQs….
A Zero depreciation car insurance cover is a type of policy that will cover the entire cost of replacing the parts of an accident vehicle. Generally, even in a comprehensive cover, the insurance company does not remit the full cost of replacement. But in a zero depreciation cover, the full amount is payable. Why I’m…
Debt mutual funds are investment instruments that cater to the need for risk-averse investing. These mutual funds primarily include only those securities in their portfolio that yield fixed returns. Moreover, unlike equity funds, the safety of the invested capital is ensured in debt funds. The securities included in the debt fund’s portfolio consist of treasury…
How do you calculate the CAGR for a portfolio? When I first saw this query, I thought, why someone asked this question? Frankly, I misjudged the depth of it. Hence, for a few days, I kept it unanswered. But something told me that there is more to this question than what’s visible. Why? If you…
We will learn about the importance of time in the market versus timing the market using index investing. The same theory will apply to a portfolio of stocks, a basket of fundamentally strong stocks. It only reiterates the significance of staying invested for a very long term, with examples. What does it mean by timing…
Estimate risk profile before starting to invest. It is essential to figure out the right investment strategy for an individual. A person who is risk averse shall not end up buying a high-risk investment. Similarly, a person with a high-risk profile will find debt-based plans unsatisfying. Practically speaking, the majority of individuals fall between the…
Managing and handling money is not as simple as earning, spending, and saving. There are a few universal principles of money management that must also be followed. Each individual is unique, hence one’s way of handling money may not work for the other. This is where the universal principles become handly. Everyone can follow the…
