In November 2013, we made a case for investing in the 20-year tax free bonds of Housing and Urban Development Corporation ("HUDCO") which paid a tax free interest of 9.01% to retail investors. Just to recap, our reasons for recommending the same included the following: Tax-free rate of 9.01% was much better than the after-tax … Continue reading How we earned 16.50% p.a. in a fixed income investment
Important information you may have overlooked about your mutual fund
The idea behind a mutual fund is to provide convenience to retail investors, who do not have the time or inclination to analyse individual companies to invest in. So a mutual fund, a specialist in this field, does it for them. However, the growth of the mutual fund industry in India with 40 companies operating … Continue reading Important information you may have overlooked about your mutual fund
Why you should think beyond fixed deposits
This is a story of two friends – Katrina and Deepika. Both of them got married in the year 1980. Katrina comes from a conservative family whose members mostly "invest" their hard-earned money in a bank fixed deposit. The reason was simple – fixed deposits are “safe”. There is no fluctuation and you consistently earn interest … Continue reading Why you should think beyond fixed deposits
Why ULIPs should not be used for investment needs
Whenever we are asked to analyse anyone's investment in ULIPs, we are reminded of how poorly they have fared. Here is what we had to say trying to explain why these might not be suitable for investment purposes: Why we would not recommend ULIPs for investment purposes Although there are many reasons for not investing … Continue reading Why ULIPs should not be used for investment needs
Thoughts on management of volatility in a portfolio
We recently received a query from one of our clients regarding management of volatility in a portfolio. Many are of the opinion that timing the market by way of constantly switching between equity and debt depending on market fluctuations may be the best way to counter volatility. We are reproducing below our reply capturing our thoughts … Continue reading Thoughts on management of volatility in a portfolio
Are Life Insurance Policies Good Investments?
Insurance policies are often marketed as a vehicle for investing money for your child's future or your retirement. But do they make for as sound an investment as they are made out to be? Lets find out...
Our article in HT Money – A death blow to debt funds?
Dear subscribers, we are happy to share a news about which we are super excited!! Our article on debt funds has been published in Chandigarh and Ludhiana edition of HT Money today. Please feel free to tell us ways in which we can improve the same. Note: Please note that name of one of the … Continue reading Our article in HT Money – A death blow to debt funds?
A death blow to debt mutual funds?
While the public at large seems to be confused about what to make of the budget, investors in debt mutual funds would surely give it a thumbs-down. This is because of a seemingly “slight” change in the tax treatment of debt funds proposed in the budget. Existing tax regime for debt mutual funds Debt mutual … Continue reading A death blow to debt mutual funds?
When it may be better to dispose your real estate
Thomas Jefferson once said, "It takes time to persuade men to do even what is for their own good." If you (like we used to) think that people are very receptive to ideas which would benefit them, think again. We are often confronted with people who think that an investment of Rs. 100 which yields … Continue reading When it may be better to dispose your real estate
Avoid financial catastrophes – Know the differences between Investing and Speculation
Speculating in the financial markets is a matter of choice. But undoubtedly, speculating without knowing it, is a likely recipe for financial disaster. Read on to understand whether you are 'actually' investing. Anyone who participates in the financial markets is invariably advised to 'invest' rather than 'speculate' for long term success. But do we really … Continue reading Avoid financial catastrophes – Know the differences between Investing and Speculation