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
PAN or Permanent Account Number – Where it is Mandatory to Quote
PAN or Permanent Account Number is the unique code that identifies an Indian National. PAN is a 10 digit unique alpha-numeric code issued under Income Tax Act 1961. It is a misconception that if i am not paying income tax then i don't need PAN. Just to clarify that Permanent Account Number or PAN is mandatory for specified transactions. It is mandatory for each and every individual, company, Minor, NRI, the taxpayer, non-taxpayer, senior citizen etc to obtain and quote PAN for these transactions. There are only three exceptions to this rule i.e. the central government, the state government and ... Read More
Investment Options – 7 High Risk Options Retail Investors Should Avoid
As a retail investor, we have ample Investment Options. It's a no-brainer that high risk means high return. Unfortunately, it also means that you can also lose your capital. While writing this post, I was in a dilemma to decide the title of the post. The confusion was whether i should keep a title High Return Investment options or High Risk Investment options. The phrase high return investment options capture more eyeballs but i decided against it. My personal investment philosophy is that capital protection comes first. In short, without losing capital or money, how to maximize returns? This ... Read More
Tax Savings – Check the diff between Pre and Post Tax Return
Tax Savings is a magical word in India. It is easy to sell a financial product with a tag of "Tax Savings". Sometimes i fail to understand whether we invest to save tax or save tax by investing. I think it is former. It will not be an extrapolation to state that we are over obsessed to save tax. Here i am not suggesting that we should not save income tax. The pain point is when we select products for tax savings without financial calculations. In other words, most of the times we compromise on returns to save tax. Because of this reason, the traditional insurance plans like Money Back / ... Read More
Financial Investments – 11 Most Important Points to Consider
"Financial Investments are not a child's play" i read it in a book of a very famous investment guru. The term "investment guru" is loosely used in the personal finance space. We have investment gurus of the stock market, real estate, mutual funds, commodities etc. In past as a common investor, i used to get confused whom to follow and who should be ignored. I could not find reliable 360-degree information on financial investments. In India, all the people around us are also investment gurus. Normally an investor decides on Financial Investments based on the feedback from their relatives, ... Read More
Value Investing – Best Alternative to SIP
Value Investing is the most commonly used word in personal finance space. If anyone tell you about Value Investing, then you think this person is quite a knowledgeable :). In layman terms, Value Investing is nothing but BUY at LOW Value and SELL at HIGH Value. At every critical level of the market, experts suggest it's time for Value Investing. I heard this when the market was at 8500, at 8000 and recently near 7500. Whenever an investor invest, he invested with an assumption that it is the lowest point. In short, the market will not go down further. Unfortunately, it is not TRUE. As i always ... Read More