Asset Allocation: 5 Things You Should Know

The general saying – “Don’t put all eggs in one basket” – in itself explains the concept of asset allocation. Asset allocation is the process of deciding how to divide your investment across several asset categories like stocks, bonds/fixed deposits real estate, gold and cash. The general goal is to minimize volatility while maximizing return. The process involves dividing your investment among asset categories that do not all...

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Dos and Don’ts of Financial Planning

Good money habits are the key to financial independence. When you deal with money, you would not want to take any chances. You might do everything right with your money. Yet, you run out of luck when the financial need arrives. These basic dos and don’ts of financial planning could set you on the path to financial success. Do’s Identify Your Goals:  Successful financial planning is dependent on the financial goals you set. It is necessary...

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10 Essentials to Stay Wealthy in 2017

Come New Year and its celebration time. It’s generally a happy time spent with near and dear ones. In the same spirit, it’s good to take stock of one’s financial well-being as well and chart a set of resolutions that could help you stay wealthy in the year 2017. Here’s a list of ten resolutions which could help you with this: Resolution 1: Go digital. With online banking, wallets and UPI seeing a significant penetration and surge, a large...

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The Magic of Compounding

Napoleon Hill author of best seller ‘Think and Grow Rich’ is often credited as saying that ‘Make your money work so hard for you; so that you do not have to work for it.’ Various books have been written on the art and science of making money based on more or less the same principle. Mathematically speaking ‘Make money work for you’ is called as compounding or simply compound interest. Albert Einstein was amazed by the power of compounding and...

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Why Buying a Home Scores Over Investing in Stocks...

I am no fan of real estate, and certainly won't advise investing in property to earn rent. However, I strongly believe that one should own a debt-free house in which one will live in. Most of us have read about how Rakesh Jhunjhunwala sold his Crisil shares in 2005 for Rs 27 crore to buy a flat at Malabar Hill in Mumbai. Had he remained invested, his shares would be worth Rs 600 crore in 2015. The flat, on the other hand, was only worth Rs 65 crore....

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Eight Tips on How Not to Invest

Despite loads of information available, investors often jump into the stock market without much of an idea on what lies ahead. Here are a few tips on how not to invest. 1.       Not Knowing Why to Invest: Is it for capital protection, capital appreciation, returns, risk diversification, hedging or pure safety? 2.       Avoid DIY Investing: Investing requires...

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Warren Buffett’s 4-Point Strategy to Beat the Stock Market

Warren Buffett’s 4-Point Strategy to Beat the Stock Market Over the past couple of years, the market has been rather unpredictable. For example, who would have thought oil prices would collapse like they did, or that the market would plunge by nearly 10% during the first six weeks of 2016 only to make it all back and then some? The point is that nobody knows what’s next for the market. The S&P 500 index could plunge 20% this year,...

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Warren Buffett’s Best Investing Advice in 10 Quotes

One great way to learn the basics of investing is by studying the greatest buy-and-hold investor of all time, Warren Buffett. Here are 10 of the Oracle of Omaha’s famous quotes that could translate into investing success for you and might prevent you from making mistakes. 1. “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching...

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6 Things Millennials Should Do Now That Will Pay Off Big Later On

Getting started as a saver and investor can be a tricky balancing act. You have bills to pay, student loans to settle, and a career to jump start. You have to create a cash cushion for emergencies at the same time that you are being urged to salt away money for a far-off retirement date. Here’s some smart advice on how set your priorities. Adapted from “101 Ways to Build Wealth,” by Daniel Bortz, Kara Brandeisky, Paul J. Lim, and Taylor Tepper,...

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