Gold is riskier than Stocks!

A few weeks back, an article in a mutual fund distributor’s blog caught my attention. The article listed the price of 10 gms of gold from 1925.

The author wanted us to observe the huge increase in gold price from 1925 (Rs. 18.75) to today Rs. 29,190 (average price of FY 2013-14). It was therefore concluded that investment in gold can never go wrong and the price was always bound to increase! To access such articles search for “gold price India 1925” read more

Inflation in India: Some Real Numbers

My wife hates personal finance! If I want her out of the room, all I need to do is to utter words/phrases like, freefincal, goal-based investing, CAGR, retirement planning (most effective!), just about anything that is not metallic, shiny and yellow in colour!

Therefore, you can imagine my surprise when she handed me a diary and said, “write a post on inflation with this”!

It was a diary of monthly accounts maintained by my parents from Jan. 1995 (to Jan. 2006 when we took over after my late fathers illness). We have records before that as well, all the way down to the 1950s maintained by my grandfather. Will try and dig those up someday. read more

LIC online term insurance: Review of Human Behaviour!

 LIC has finally launched an online term insurance product: LIC’s e-term. Obviously, this has created a lot of buzz among agents and the general public – that is the ones not worried about getting nothing back in return!

Here is what, in my unimportant opinion, this news tells us about human behaviour. Did you come here thinking this is a review of LIC’s e-term plan? Sorry, only ghosts and nominees can review term life insurance products! read more

Regular plan vs. Direct plan Mutual Funds: The story so far

Here is a comparison of direct plan and regular plan mutual fund investments made since Jan. 2013, when direct plans came into force.

Direct plan mutual funds are those sold by the AMC direct to the investor without a distributor. Therefore, these plans do not account for the trail commission paid to the distributor from the investors holdings (so your account in a mf web portals is not really free!). Thus the NAV of a direct plan mutual fund is higher than that of a regular plan. The difference keeps increasing with time. read more

Interview with Dr. Uma Shashikant

In a classroom, the power of simplicity and clarity is valued above all else by students.  Unfortunately, many academics unknowingly abandon these virtues as they latch on to jargon, secondary details and an obsession to ‘cover’ a syllabus.

A teacher is recognised as ‘good’ and their contributions remembered fondly, if they demystify the subject.  This is possible only if the teacher has a deep understanding of fundamentals. read more