Aren’t safe investments enough to meet financial goals?

One must keep in mind that the regular expenses as well as the cost for various financial goals rise over a period. If the inflation is at 6% per year, the cost of a goal doubles over approximately 12 years. However, if the inflation is at 7%, the doubling happens roughly in ten years. Now…

2 Reasons Why Bank Fixed Deposits Alone Won’t Make You Rich

There is no doubt that bank fixed deposits (FDs) are considered safe in that you will most likely get your money back. But did you know that bank FDs can negatively affect your savings over the long term? #1: FDs give returns below inflation The average inflation rate in India for 2012-2014 was 9.76%. Most FDs only…

Numbers vs feelings

Recently, I interacted with a group of investors at an event. Almost all of them had made a substantial amount of investments, mostly of the tax saving kind. More than half had investments in equity funds of one kind or another. However, an interaction with one investor stuck me as particularly interesting. In about an…

Learn About an Emergency Fund and Why You Need One

The Essential Piece of Any Financial Plan That Everyone Needs An emergency fund is an account that’s earmarked for spending on urgent, unplanned situations only. It’s intended to be used only for worst-case-scenarios. Emergency funds are normally held in savings accounts or money market accounts, though they can also be held in checking accounts. It’s important that…

“Better than RD” Mutual Funds

Recurring deposits have been the flavor for millennials because of the convenient automatic withdrawal from the savings account to RD. RDs are just another form of FDs with monthly deposit to the account in place of a one time investment. However, you continue to lose money as compared to the ‘Better than RD’ products that…

Type of Planning

Your life has multiple aspects – your family, your work, your social life, your hobbies, and so on. Money touches all of these aspects. For this reason, financial planning is not a simple task. It has to be all-encompassing to be an effective plan. Moreover, you need to consider not just your present, but also…

Start Your Retirement Planning with Mutual Funds for a Better Future

Retirement planning is not as simple as one might think. Talk about slow economy growth, inflation, lack of investment intelligence, and the likes. The sooner you plan for retirement, the better. Ideally, an individual should start planning for retirement the moment he/she becomes an income earner. Why? The sooner you invest, the higher are the…

What’s the Crux of a Mutual Fund’s Offer Document?

Mutual fund investments are subject to market risk. Please read the offer document carefully before investing The statement is being used as a troll or a jargon without even knowing the importance of the mutual fund’s offer document. That’s just absurd because an offer document is quintessential for an Investor in Mutual Funds. Do We…

Understand a Systematic Investment Plan i.e. a SIP

“I don’t have enough money to invest. I think I should save up for a few months so that I have enough money to invest” People often wrongly believe that they have to collect a large amount of sum to begin investing but that’s not the case. That’s where a Systematic Investment Plan, often referred…

Which is better ELSS or ULIP..?

Functionally, there is nothing common between Equity Linked Savings Schemes (ELSSs) and Unit Linked Insurance Plans (ULIPs). It’s a basic rule of saving to not mix up insurance and investments. ELSSs and ULIPs are two different products that serve different purposes. While ULIP is a mix of life insurance and investment offered by life insurance…