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
Threshold Rebalancing – Hegde your RISK
Threshold Rebalancing is one of the most effective techniques to hedge risk. In layman terms, it is portfolio rebalancing. The key reason retail investors don't make money in India is that they don't rebalance the portfolio. There are two ways to rebalance the portfolio i.e. calendar rebalancing and threshold rebalancing. The concept of calendar rebalancing is similar to value investing. On the other hand, threshold rebalancing is linked to deviation from fixed target. Let me share a simple example. For simplicity purpose, i assume that my asset allocation is divided only between Equity and ... Read More
Asset Allocation – What to do now?
Asset Allocation is the biggest headache for any investor. The financial planners suggest a model asset allocation. There is a famous saying that one size does not fit all. The concept of model asset allocation is vague and farce. It does not take into account all the factors that influence investment risk. A bad mix of asset allocation may destroy your wealth at a faster rate. An asset allocation mix of the investors of the same age and income level can be entirely different. In past, i have observed extreme portfolio allocations. The risk-free investors are heavily invested in traditional ... Read More
How To Destroy Your Wealth?
Wealth is an abundance of valuable Assets, Possessions or Money. To become rich, you have to build a wealth at a rate higher than the rate of depletion. The risk reward of building a wealth is equally balanced. Higher the probability of wealth creation more is the risk of losing it. As an investor, you have to adopt the method to build a wealth in which risk reward is more favorable for investors. For example, currently any investment in Real Estate is not favorable to build a Wealth. Investors who bought property in 2013 or 2014 are in loss. The loss will increase manifold if we consider the ... 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
All about Gold Loan
Gold Loan always reminded me of a Village Money Lender "Sukhi Lala" in the Indian Classic "Mother India". The entire story of a movie revolve around desperate attempt by a "Dacoit" son to get back 2 Gold Bangles (Sone Ke Kangan) of his mother, mortgaged with Sukhi Lala. From Personal Finance perspective, a classic movie was made on a broad concept of Gold Loan :) Gold Loan is contrary to Indian belief that Gold is another form of Goddess Lakshmi. I have written many posts related to Gold & deep routed love of Indians for Gold. Gold Loan has caught the fancy of Indians who need money at ... Read More