Can I generate higher returns compared to traditional investment products without any risk? This was the query posed to me by one of the clients. The answer is definitely YES. At this stage, it is advisable to switch to Short Term Debt Mutual Funds. Now you must be wondering why? I will answer it in this post with proper justification. Before I proceed, It is important to know the impact of interest rate movement on the performance of Long term debt funds and Short Term Debt Mutual Funds. I explained it in detail in my post, why you should buy long term debt funds? The conclusion was that ... Read More
Gold Investment – 10 Reasons Why Gold Prices Double in 2 Years
Gold Investment is not so common in India. Now you must be wondering we Indians hoard so much gold then why i am saying so. That is correct that we buy too much gold but not as a Gold investment. Mostly it is jewellery or gold coins at occasions like Akshaya Tritiya or Dhanteras. According to World Gold Council, Indians have approx 20,000 tonne of Gold. Another 557 tonne is held by the RBI. As per my understanding, out of 20k tonne, the only fraction of it would have been bought for an investment purpose i.e. Gold Investment. Purpose of Gold Purchase There can be two types of Gold Purchase ... Read More
Investment in 2016 – 5 Factors that will decide the Returns
Investment in 2016 is the most trending query in personal finance space. It is a million dollar question. There is no better way to start the year with factors that will influence returns in 2016. The year 2015 was a roller coaster ride for investors. It began on a good note but ended on a bitter note. Overall, investors lost the money except traditional investors who invested in fixed income or small savings scheme. In my post, Equity Investor - 5 Biggest Mistakes I should have avoided i discussed my mistakes. As i mentioned that going forward, i will change my investment strategy. I will ... Read More
Debt Mutual Funds – 7 Hidden Risks
Till few years back i was quite bullish on Debt Mutual Funds. The Great Crash of Debt Mutual Funds in July 2013 shattered my faith in Debt Mutual Funds. The most impacted funds were Liquid Mutual Funds that are considered to be safest among all. Liquid funds invest in money market instruments. The lower maturity period makes them best investment option for short term. I regained my faith in Debt Mutual Funds and invested in Long Term Debt Mutual Funds. The last one year is also not good, especially for long-term/gilt debt mutual funds. We will discuss this later in detail. The 1 month return ... Read More
7 Short Term Threats to Stock Market
The Indian Stock Market has corrected sharply from its peak. Market experts are suggesting to start buying in the stock market from long term perspective. The reason is that it will never happen that you will buy at a bottom and sell at the peak. It is always advisable to buy in a staggered manner and similarly sell in a staggered manner to book profits. I have already identified some stocks which are available at good valuation and initiated a purchase by adopting the philosophy of value investing. In short, Buy More when Price is Low and vice versa. I will share in my future post how i ... Read More
5 Benefits of Gold Monetization Scheme
Recently GOI released the draft of Gold Monetization Scheme. The general public can share their views on draft Gold Monetization Scheme on or before 2nd June, 2015. As usual my financial planner friends passed their verdict on the Gold Monetization Scheme even before it is launched. In fact, some of them also suggested whether to invest in this scheme or not. Whereas other passed judgement whether the scheme will be a success or a failure. My dear friends forgot that Govt has only released the draft of Gold Monetization Scheme. Based on the inputs from the general public, banks and all other ... Read More