Why I got interested in the concept of Net Asset Value (NAV)? Because it helped me to see my portfolio-building from the eyes of a mutual fund manager. Generally, I build my savings under several heads (like saving#1, saving#2 etc). Overtime, savings keeps accumulating under each head. When it becomes sufficiently large, I use a…
In India we have an investment option called “Post Office Monthly Income Scheme (MIS)”. Among other investment options, PO-MIS can also be considered suitable for investment by retired people. But PO-MIS is not limited for retired people alone. Anyone with age above 18 years can open a PO-MIS account. An account can be open even…
Retirement planning is important. Why? Because this is what is going to give us financial independence after we’ve retired from our jobs/work. The planning will ensure the availability of the required funds when it’s time to retire. In India, the majority of service-class retired people depend on annuities to take care of their cash flow…
“What is the need of money management; after all we earn money only to spend it one day”. I was trying to be ironic. But I’m also sure that many will not find my statement ‘wrong‘. Read more about paycheck to paycheck lifestyle. Most of us actually earn money only to support our expenses of…
Like long-term investing is a strategy to invest money, ‘rupee cost averaging’ is also an investment strategy to invest money by taking lesser risks. It enables people to eliminate the need to time the market. In rupee cost averaging the investor does not utilize all the funds to buy an asset at a single moment…
Long term investment is not an investment option in itself. It is a strategy which we can follow to practice investment. Let’s understand it using an analogy. One can improve ones physical health by jogging or by practicing yoga, right? Both these exercise has the same goal – of making the person fitter. Jogging and…
In Union Budget presented in Feb’2020, a new tax regime has been proposed. The income tax slabs has been altered. Compared to 2019 the new tax rates are lower. But the lower tax rates will not necessarily reduce the tax liability for everyone. Who will benefit? Some will benefit from the new lower tax rates….
There is an interesting report of World Bank on consumer spending habits of developing nations. It also gives detailed numbers on where do people spend money in India. A report like this gives a nice visualisation of how Indians (and other population across the globe) spend their money. Though the report is dated 2010 but…
Why do we pay taxes? The tax paid by us becomes a receipt (income) for the government of India. They use the receipts to fund essential expenses like defence, police, judiciary, public health, infrastructure etc. But you will be surprised to note that almost one quarter (23.31%) of the total government expense is spent on…
This blog on day trading is neither a guide nor a reference of any kind. It is just an experience sharing article on how I practice intraday trading on personal capacity. Generally I love to buy stocks of fundamentally strong companies with intentions of holding them forever. So why I practice day trading? It will…
What is Emergency Fund? It is a saving which is built to take care of unforeseen happenings of life. Hence such a saving, which caters only to unforeseen events, is categorised as emergency fund. It is that heap of cash which is used for managing unplanned urgencies like death, hospitalisation, car break-down, house repairs, penalty,…
When we buy/sell stocks, this trade happens in a financial market. People trading in forex, derivatives, commodities etc do so in a financial market. Even our banks, insurance companies, mutual funds, pension trusts etc are a participant of financial market. In simple term, we can say that a “financial market” is a phrase used to…
