Did you know that when you invest in the national pension scheme (NPS), you are actually investing in mutual funds? The NAV would be as volatile as any old equity or debt mutual fund and returns are not guaranteed. I was surprised that many thought the NPS investing is different from mutual fund investing. Hence…
Continue reading →Do we have what it takes to be a successful long-term investor? Join me in evaluating our behaviour with respect to some time-tested notions. 1. Long-term implies minimal short-term maintenance! Long-term really means long-term! What is going to happen in the markets tomorrow, one week later one month later etc. do not matter as long the…
Continue reading →I usually love December. The Chennai Summer is busy recharging its batteries and therefore not in full force. The Carnatic music season seems to begin earlier each year, thanks to some prudent marketing. The semester is over, and for me, goal-based investing month starts! Dec 2015 was unique because of the Chennai floods! Most of…
Continue reading →A discussion on how the term spread, which is the difference between the 10-year & 3-month government bond yield, can be considered as a macroeconomic indicator A macroeconomic indicator is one which gives an indication about the current state and future trend in the economy. Macroeconomic indicators can be used to change the asset allocation in…
Continue reading →This cyber Monday (30th Nov. 2015) or if you prefer, Buy Nothing Day (Nov. 27th 2015 or Black Friday) resolve to say NO to packaged financial products. There is no need for a pension plan or a child’s education mutual fund or a child’s gift fund (like the one from Axis where one has to invest…
Continue reading →November turned out to be one long month for Chennaites and most people in Tamil Nadu due to incessant rain. We were not affected by the rains much, but my desktop (technically my sons) and my laptop broke down in the space of 5 days. We had already spent too much money in handling minor…
Continue reading →How much can I expect from equity as an asset class for long-term goals?. This is a question one often hears from first-time investors, especially those who are migrating from the comfort of fixed deposits or real estate. Unfortunately, answers from experienced equity investors are steeped in hindsight bias. They often extrapolate their own good…
Continue reading →Over the last 2+ years or so, and especially over the last year, I have gained the reputation of being a IFA-hater due to my promotion of direct mutual fund plans, DIY investing, conflict of interest, SEBI regulations and fee-only financial planning. I have been part of heated debates on direct plans and fee-only advisory…
Continue reading →The RBI has cut interest rates thrice this year. On the one hand, this has made those who are using equity to accumulate wealth happy, as it could mean the start of a bull market driven by growth and not hope. On the other hand, this development has worried senior citizens who are used to…
Continue reading →Here is how the revised pension will be calculated as per the seventh pay commission pay matrix. This is applicable for all civilian pensioners who retire before 01-01-2016. After the seventh pay commission comes into being, as an interim measure, the revised pension will initially be equal to 2.57 times the pension fixed at the time of…
Continue reading →Here is a seventh pay commission calculator based on the pay commission report which allows you to determine your new salary based on the pay matrix. Do share this sheet with your colleagues or friends who work for central or state governments. For pensioners: Seventh Pay Commission Revised Pension Calculation The six pay commission introduced…
Continue reading →Here are some must-know facts about accident insurance policies in India that a buyer should be aware of. An accident insurance policy is one that provides 100% of sum insured in case of accidental death, 100% -50% of sum insured in case of permanent total disablement (eg. loss of both limbs, both eyes, both feet)*…
Continue reading →A few years back, I took my entire M. Sc class to lunch. Don’t remember why. They probably coerced me into it! As someone who never eats outside, I was clueless about pricing and was trying to get a rough estimate as they wanted to go to a high-end place (relative to the campus cafeteria!)….
Continue reading →Visu is a Tamil writer, actor, director and producer well known for his “family-oriented” movies and plays. He also became popular on the small screen when he began hosting a debate on social issues. Recently he was felicitated by the ‘Humour club’, a Chennai-based organisation that promotes healthy humour and humorists. I got to see…
Continue reading →The most important input while planning for a financial goal is the current cost of the future expenditure. When the goal is several years away, the current cost is a crude estimate. For retirement, we can assume present lifestyle barring child’s education expenses and liabilities. For a Ferrari, we can enter the current cost. For a…
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