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3 Common Behavioural Biases we all have

3 Common Behavioural Biases we all have

Behavioural biases are irrational beliefs or behaviours that can unconsciously influence our decision-making process. They are generally considered to be split into two subtypes – emotional biases and cognitive biases. Emotional biases involve taking action based on our feelings rather than concrete facts, or letting our emotions affect our judgment. Cognitive biases are errors in our thinking…

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3 checks to ensure good financial health

3 checks to ensure good financial health

Sometimes just having cash in hand makes you think that it’s enough and your financial health is strong. However, looking at the larger picture is also important. This includes looking at both your #savings and your #debt. Here are three quick checks for you to know if you are financially healthy or not. Contingency moneyThis is the cash you may require without prior warning. While some of your…

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Fiscal Deficit

Fiscal Deficit is the difference between the total revenue and total expenditure of the government. It is usually represented in percentage terms and an indication of the total borrowings needed by the government. While calculating the total revenue, borrowings are not included.

The gross fiscal deficit(GFD) is the excess of total expenditure including loans net of recovery over revenue receipts…

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India becomes a new Destination for Global Manufacturing companies with the Reduction of Corporate Tax rate

India becomes a new Destination for Global Manufacturing companies with the Reduction of Corporate Tax rate

The Government has brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain amendments in the Income-tax Act 1961 and the Finance (No. 2) Act 2019

  Reduction in Corporate tax rates is a historic and great move that will go a long way in making India a manufacturing hub on the global manufacturing map. This will certainly attract more capital, technology and improve India’s…

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What is 'Investing'

What is ‘Investing’

Investing is the act of committing money or capital to an endeavor (a business, project, real estate, mutual fund etc.) with the expectation of obtaining an additional income or profit. Investing also can include the amount of time you put into the study of a prospective company, especially since time is money.

BREAKING DOWN ‘Investing’

The income that results from investing can come in many…

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Rule of 72 in Personal Finance

Rule of 72 in Personal Finance

In personal finance, if you divide the number 72 by the rate of interest, you get to know the number of years it will take for you to double the money..

Eg: if the rate of interest is 9%, simply divide the number 72 by 9% and the answer is 8. Thus it will take 8 years to double your money if you invest at 9% p.a. rate of interest.

INTEREST:

We can use this rule in reverse to know the rate of…

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How much#LifeInsurance cover should one have?

The one crucial factor that many people either miss or find difficult to arrive at is the #LifeInsurance coverage one needs to have.

And the answer is very simple…..It is the sum total of #FutureFinancialObligations which constitute #Children’sEducation, their future #MarriageExpenses, #Retirement (#LivingExpenses of the spouse till her #LifeExpectancy from the day of buying a policy), Total…

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The basic nuts and bolts of BITCOIN

If you are one of those who are looking to understand a little bit more about what goes into the techniques of bitcoins, here is a look at some of the jargon

It is scary when your friends and acquaintances think 10 times before investing in mutual funds but are willing to bet on bitcoins in a split second. Most of who are jumping on the bitcoin bandwagon right now may not know the nuances of…

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Where are you in India’s wealth distribution?

Credit Suisse’s latest annual Global Wealth Report says India is home to 245,000 dollar millionaires. The country has a share of 0.7% of the global top 1% by wealth, who collectively own half the world’s total wealth. In India, 340,000 adults are part of this elite group. There are 1,820 adult Indians who have wealth over $50 million, and, at the very apex, 760 have more than $100 million.

The…

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SIP TOP UP

The secret to achieving a BIG GOAL is in breaking it up in smaller goals which can easily be achieved by taking one step at a time. Similarly, you can also achieve a BIG FINANCIAL GOAL by investing a small amount every month through SIPs. You can also periodically increase your monthly investments through SIP Top-Up. This can create an opportunity for you to build more wealth and achieve your…

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Real Rate Of Return - Understanding Personal Finance

Real Rate Of Return – Understanding Personal Finance

What is a ‘Real Rate Of Return’

A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects. This method expresses the nominal rate of return in real terms, which keeps the purchasing power of a given level of capital constant over time. Adjusting the nominal return to compensate for factors…

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Benefits of Investing through #MutualFunds

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AVOID this when you Invest into Equities - Don’t get fooled by price

AVOID this when you Invest into Equities – Don’t get fooled by price

Author:  Seth Klarman —  One of the world’s most astute investors

Source: http://www.morningstar.inDon’t get fooled by price. The latest trade of a security creates a dangerous illusion that its market price approximates its true value. This mirage is especially dangerous during periods of market exuberance. The concept of “private market value” as an anchor to the proper valuation of a…

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AVOID this when you Invest into Equities

AVOID this when you Invest into Equities

Author:  Seth Klarman —  One of the world’s most astute investors

Source: http://www.morningstar.inDon’t focus predominantly on return, focus on risk first. The real pain occurs on the downside. When your portfolio is down by 50% you stare into an abyss and wonder if you are going to lose it all. Focus on multiple scenarios. What can go wrong? How much can you lose? Always be prepared for the…

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Why should I start investing through SIP ? How does it help me in Wealth Creation?

SIP is your car going towards your destination of wealth creation..

When it starts it is slow, in first or second gear, gradually increasing the speed to fourth and fifth gears.. Hence COMPOUNDING is your accelerator. It will work once the car or your SIP investment is in momentum

Sometimes the car slows down because you need to apply brakes in order to avoid potholes and bumpers. The same with…

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All about #RERA : #Real Estate Regulatory Act - What's in for me ?

All about #RERA : #Real Estate Regulatory Act – What’s in for me ?

RERA a most debated real estate regulatory bill is about to notified by the government. Full form of RERA is Real Estate Regulatory Authority. A prime objective of RERA is to address grievances of customer and to bring transparency and accountability in the real estate sector. The RERA Act shall be implemented in 15 states from 1st May 2017. So, if you are planning to invest in real estate or…

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Niti Ayog to merge 15-year vision document and 7-year medium-term strategy paper In order to accelerate economic growth, Niti Ayog has decided to merge its 15-year vision document with the 7-year medium-term strategy paper.