The internet is full of investing advice to grow wealth or budget better.  Most of this advice comes from financial advisors (who earn commissions from the corpus you generate), financial influencers (who prey on your vulnerability to earn lakhs from brands), and your neighbourhood insurance advisor (who is desperately upselling to pay their own EMIs)….

I was recently asked, What are the key factors in building wealth? A discussion. 1. Luck/Chance: Let get rid of this first. Yes luck or chance plays a huge role in building wealth. Being born in a financially stable (but not wealthy) family is important. If the family is swimming in debt, then we will begin our…

This is how you can plan for your child’s education and marriage in 12 steps. 1. When to start planning. The moment the pregnancy is confirmed! 2. What do you do first? Evaluate your insurance cover and buy more if required. 3. How to evaluate insurance coverage?  Let us consider a couple with a two-year-old…

You may have seen that mutual fund annualised returns are computed using a method known as XIRR (extended internal rate of return). We explain what this means using a simple example. When you make a single investment (lump sum for want of a better word) in a mutual fund or stock, the return (after a…

Many readers ask us from time to time how to increase their equity exposure for long term financial goals. Their current portfolios are debt-heavy and largely ill-liquid. This is a serious problem many investors face, particularly those who started earning early in their 20s. In my case, I started earning and investing for retirement only…

I believe securing our family and wealth with multiple safeguards is essential. To do this, we must ask, “What could upset our plans or harm our family?”. While I was setting my affairs in order, I often used to ask, “What is the worst that can happen to us from a financial standpoint?” This always…

In a previous article, we highlighted the common mistake made by many while claiming capital gain exemption under Section 54 and Section 54F – Claiming Capital Gains Exemption? Watch Out for This Common Slip. In this article, we shall deep-dive into how much one should invest to claim capital gain tax exemption under Section 54 of…

“We recently received this question: My father (retired and getting a pension) would like to invest some amount in my son’s name yearly. He expects 1) to invest for his grandson’s future and 2) to get income tax benefits. Could you share some views on where & how we could proceed?” “Based on research, I…

This is an update on my mutual fund investing journey, which began on 19th June 2008. In the last three decades, I have gone from being a spendthrift to being in debt to financial independence. New community members can refer to these articles for an account. The Financial Arrow of Time and My Journey: Driven by the…

Compare MFs, Indices, Stocks, Gold, etc., with this simple plotting tool. It can be used to compare two data sets with dates and values. The tool is now part of our freefincal investor circle. Rolling return (lump sum and SIP) calculators and multiple mutual fund analysis tools are already part of the investor circle (full…

With each passing day, Indians consume more and more than previous generations. Their aspirations, dreams and wants are often higher than their salaries. Whenever I am invited to speak to a group of employees on the basics of investing, I hear stories of excessive debt. There is a growing mismatch between income and aspirations. People…

Including one or more passive income sources in our retirement plan is crucial. It enhances our income, minimizes the risk of investments in the capital market, and helps us stay active and nimble. Passive income refers to any income source that requires minimal maintenance of the actual product or service. The costs of keeping the…

About a year ago, I was asked in a panel discussion, “How much should a couple spend on their wedding?” This caught me by surprise as I had never thought about this before (even when I often looked down upon wedding extravagance). I had a couple of seconds to decide between saying a bland, “It…

An overdraft account is a credit service a bank provides that allows the account holder to withdraw more funds than they have, such as writing an Rs. One lakh cheque from an account with no balance. This article will explore when it’s appropriate to use an overdraft account. They can be established with fixed deposits…

A reader suggested we write an article about combining base and super top-up health insurance policies — a discussion. First, let us point out some helpful resources for those looking to understand more about health insurance and how to buy one: Select the right health insurance policy with these free resources FAQ: Super Top up…