Key Takeaways You have a choice between low cost (direct mutual funds & ETFs), mid cost (traditional mutual funds) and high cost (insurance or endowment products) investments to get access to managed solutions. Based on the numbers, you would be significantly better off choosing the low cost options. You pay high commissions for traditional mutual […]
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Key Takeaways Automated passive investment management strategies such as dollar cost averaging, periodic rebalancing and glide path can go a long way in mitigating the impact of market volatility on your portfolio. Glide path helps reduce volatility of your exit by reducing the exposure to higher risk assets such as stocks over time and increasing
Glide path: Get to your goals smoothly Read More »
Key Takeaways To get back on track to achieve your goals, you need to look at the urgency of the goal, flexibility of your budget, prioritisation amongst the various goals and your ability to align your financial plans to realise them. See if you can reduce the goal amount or postpone the goal for a
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Key Takeaways Mutual funds and ETFs are both collections of a basket of underlying assets (usually stocks and bonds) which enables multiple investors to pool their funds and invest in the underlying assets. Mutual funds are actively managed and as a result have higher expense ratios. ETFs are passively managed and end up being cheaper.
Mutual Funds VS ETFs: The debate rages on Read More »
There is a popular saying in finance: There are only two types of people in this world. Those that earn interest and those that pay interest. Which category do you fall under? Depending on which side of the coin you are on, compound interest can either elevate your life and goals to the next level
Compound interest: Make this powerful force your friend Read More »
How much of my assets should I invest? As financial advisors, this is one of the most common questions we receive. Our response: instead think of how much of your assets you should not be investing and keeping aside as emergency funds. You can and should go ahead and invest everything in excess of this.
Investment to Total Assets ratio: A floor to your investment strategy Read More »
Did you know that you can be taxed on your mutual funds investments under capital gains taxes? These taxes can significantly impact your returns. Fret not, like every problem, this too has a solution. But before we explore strategies to minimise them, it is important to understand what capital gains mean. What are capital gains?
Impact of capital gains taxes on your mutual fund investments Read More »
There are two key decision points when it comes to your investments. When to invest and where to invest? The question of when to invest is a hard one to answer, unless you are a fortune teller. There are arguments to support the theory that instead of trying to time the market, just keep investing
Modern portfolio theory: How to achieve optimal diversification Read More »
“Everything is so expensive now. When I was younger, a chocolate bar would cost only a few paise”. We have all heard our parents or grandparents say this at some point. How does a chocolate bar that cost a few paise 40 years ago cost Rs 10 today? The answer is simple – inflation. What
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The common retail investor is getting more and more price sensitive while selecting their investments. This is definitely a good thing, given the background of extremely high charges packaged into traditional financial products. However, this frenzy to reduce charges needs to be approached with caution. By focusing only on cutting down the cost of investment
Importance of Expense Ratio while selecting Investments Read More »