The beauty of fixed income in a volatile equity market

This is a guest post by Aditya Veera. Aditya has studied and worked in finance, but this is the first article on investment he has written. Hopefully it is not the last. He holds an MSc from the London School of Economics and has an evangelical fervour for low-fee, passive investments! You can find his other posts at


Dear readers, when Mr. Pattu asked me to write a guest post, I puzzled over the topic. I wanted it to be something that summarized a good investment strategy without boring readers who dislike technical discussions. While money management is a universal need, the subject itself is not universally appealing. Happily, that is not an impediment to successful investing. The steps involved in good investing are simple, even if we can endlessly debate why they work and whether they will continue to work. I will discuss fixed income and break down its use to simple steps and objectives. For those who like reading just the key points, I have inserted cues in bold to highlight their importance. read more

Planning For Intermediate-Term Financial Goals

PPFAS Long Term Value Fund is advertised with a tagline: Only for “truly” long term investors!  The funds scheme document states, “Investors should note that this scheme is suitable for investors who have an investment horizon of minimum 5 years”.

Unfortunately,this can give investors the wrong notion that ‘long term’ implies duration of 5 years and that a diversified equity fund like PPFAS LTVF is suitable for a goal 5 years away. read more

Weekend Roundup IV

Personal Finance


  • Would you like your child to watch something way better Chhota Bheem? Try this:

This weeks calculator:

Unbelievable Science Fact:

  • Did you know that there are more stars in our universe than specks of sand on Earth?! This means that the chances of extra-terrestrial life are extremely high!


I am moving the blog from to (via hostgator). This will allow me much more control over content and ads. I know very little about this. So I have made a transfer request to hostgator. I think the transfer should occur over the weekend.  The site maybe down for a little while.  Thanks to Basavaraj (CFP and blogger at Basunivesh) for guidance in this matter. read more

Updated Fixed Deposit Calculators

Here are updated versions of three fixed deposit calculators.

  • FD calculator for investment tenure in months and years (tax to paid each FY and advance tax liability)
    • minor bug fixed
    FD calculator for investment tenure in days (tax to paid each FY and advance tax liability)
    • macro button added to stop and start calculations for easy use
    FD calculator for investment made in spouses name or minor childs name (tax to paid each FY and advance tax liability)
    • minor bugs fixed

    If you hold fixed deposits, I request you to compare the (pre-tax) maturity value given by these calculators with the value given by the bank. There may be situations where there is a discrepancy. I will post a couple of calculators next week which will help us understand and circumvent this discrepancy.

    You feedback is very important for making the calculators more efficient and usable. Do consider sharing these calculators with your friends and family. read more

New Pension Scheme and Me

Just so you know, I am currently being investigated by the income tax department for discrepancies in my tax returns a couple of years ago! When I got the letter to  appear before an IT official a few months back, I was too sick to do so and had to request a postponement.

Me and my cousin (a competent CA) spent quite a bit of time wondering why I was being investigated. We didn’t come up with anything and everything seemed correct. My cousin represented me a month ago in the hearing and found that according to their (incorrect) records the TDS amount deducted from my income was twice of what I had declared in my return. This meant that I had paid taxes for only half my income and hence a red flag was raised by the system! read more