Equity Investing – getting the basics in place

Out of all asset classes, Equities (stocks) are unfortunately the most misunderstood. My mom thinks it’s gambling, my friends think it’s something which lets you make money without working hard and unfortunately many of them who did try their hand at equities lost money and have vowed never to get back into this again. The … Continue reading Equity Investing – getting the basics in place

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Gold Returns – my futile attempt at predicting the future !!

In the earlier article (Gold Returns – Making sense of history), I had discussed on the historical returns from Gold for Indian investors. Now the most important question is what should investors expect from Gold going forward. First and foremost, let me start with an honest submission. It is next to impossible to exactly predict … Continue reading Gold Returns – my futile attempt at predicting the future !!

Gold Returns – Making sense of history

Out of all the asset classes, Gold is the most difficult one to understand. This is primarily because Gold doesn't provide an underlying cash flow like the other asset classes ( Dividends in Equity, Interest payment in FD and Fixed Income, Rent in Real estate). Hence valuing gold is extremely difficult. However Gold for several … Continue reading Gold Returns – Making sense of history

Debt Mutual Funds – What returns to expect ??

We had earlier explored Fixed Deposits in detail and found to our dismay that F.Ds are a bad way to save our hard earned money as generally post the taxation impact, the returns do not even cover up for inflation. So let's look at our next asset class - Fixed Income (which we will be … Continue reading Debt Mutual Funds – What returns to expect ??

SIP in Equities – don’t forget this ignored component !!

SIP is the new "in" thing.. In recent times there have been several ads and articles focusing on the benefits of SIP (systematic investing plan) in equities (via equity mutual funds). Systematic investment plan or SIP as it is commonly referred to, is a disciplined investing process where you keep allocating a predetermined amount every … Continue reading SIP in Equities – don’t forget this ignored component !!

Fixed Deposits – What you see is not what you get !!

In order to set our return expectations let us first list down the common options available for investing: Fixed Deposits Fixed Income Gold Real Estate Equity Let me also start with an honest disclaimer - it is impossible to exactly foresee what returns the above asset classes will generate over the next 10 years. But … Continue reading Fixed Deposits – What you see is not what you get !!

Mind your Inflation

How do I know if I am setting the bar too high or low with respect to my expectation on future returns? First let’s address the question of the lower bar. What should be the bare minimum returns, I should generate over the long run. In order to address this question, let’s take a step … Continue reading Mind your Inflation