Tag: investments

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”

Politics or Investments: It About the Right Choice

Hispanic girl playing chess

Election season is on and political war at its peak. Political parties are trying to woo voters in their own way. We are really confused – whether to choose Congress or BJP or AAP and then there are regional parties as well. Whatever be the outcome, we want a government which can take decisions that work well in the interest of our country. Politics have a lot do with investments as one wrong decision can have a huge impact on our financial well-being.

Here we will try to understand how investments strategies are related to politics. These are our personal views on political parties.

Continue reading “Politics or Investments: It About the Right Choice”

Things to know about Fixed Income Investments

Fixed Interest Rate Lure

Last week we discussed on investment in real estate and explained why investment in real estate at this juncture is quite risky. Just to recollect the discussion we said that real estate have surpassed its affordability factor and rental yields are at all-time low. With this asset class giving huge returns in last 10 years, it looks difficult that next 10 years would be as rosy as they have been in the past. Continue reading “Things to know about Fixed Income Investments”

Ladder Strategy in Fixed Income Investments

Several ladders in a desert

Investment is a science just like any other activity and there are certain rules which we must follow for its effective management. But unfortunately due to lack of financial education in our academic curriculum we were never taught this science and hence we land up doing things we are comfortable with. Even fixed deposit which is by far one of the most favorite products of Indian investors, we make lot of mistakes which can prove to be fatal in long term.

For example, when most of the people go to bank for getting an FD done, they look at the different rates of FD available and then invest in a FD which offers maximum rate of interest. Continue reading “Ladder Strategy in Fixed Income Investments”