Comfort or Financial Freedom – What’s your choice

Caucasian man clinging to floating piggy bank

If I were to ask someone why do you want to invest? The most obvious answer would be to earn returns. That’s true. But if I were to recommend to invest in equity funds to do so, then people would just say “It’s risky, I want to invest in something which gives me guaranteed returns.” The reason we look for guaranteed returns is because we want to avoid pain or discomfort. The question is what you are investing for Comfort or Financial freedom?    Continue reading “Comfort or Financial Freedom – What’s your choice”

Investing in equities – Risk or a Reward

risky investments

Last week we discussed what risk is and the ways and means to manage those risks. A person in life primarily has three types of goals viz. short term goals, medium term goals and long term goals. And if a person intends to accomplish his long term goals; loss of purchasing power is his biggest risk. The best tool to combat this risk are “Equities”. When I often advise people to invest in equities for their long term goals; their sudden reaction is “Equities are risky investments and they do not give returns”. Today let’s understand the myths and realities about equity investing. Continue reading “Investing in equities – Risk or a Reward”

Have you managed your risk

Managed Risk

Whether it is investing, driving or walking down the street everyone exposes themselves to risk. At the outset, let us first understand what is risk in investing? We often hear people saying that you should not invest in XYZ, it is risky. To most of us, risk in investment is when market value goes down below the amount so invested. For instance, if Rs.1 Lac invested becomes Rs.98000, we presume it to be a risky investment. Continue reading “Have you managed your risk”

Is it the right time to invest in Equities ???

Word equity under magnifying glass

In earlier articles, we have been writing about which asset class to invest in current scenario and have covered real estate and fixed income market. In this series, we would discuss about equity market. Equity market is the true reflection on growth of economy and with the current state of economy which is in recession; markets are not performing from last 5 years.
It touched all time high of 21000 sensex in January 2008 and since then it’s been 5 years that markets have not been able to cross that level. Continue reading “Is it the right time to invest in Equities ???”