Wednesday, February 14, 2024

Cognitive Biases you face as an Investor

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Investors are today bombarded with information left, right and centre.


This overflow of information is at an unprecedented level today due to how easily information can be disseminated these days.


Point to consider here is that information does not necessarily imply that it is true, a lie is easier to spread but the truth is sustainable.


Information and knowledge are not the same, the former may be right or wrong but the latter is mostly right.


Humans are more glued to their screens than ever and therefore it is easier than before to accumulate views, in the process of gathering such views we often overlook the simple yet very important point that such views are more general in nature than personal.


There is a very good reason why they say the Person in ‘Personal Finance’ is more important than the Finance.

Wednesday, January 24, 2024

Healthy Financial Resolutions to adopt this year

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The New Year is here and with that is the arrival of several New Year resolutions which usually revolve around health and personal growth, maybe it’s time we add healthy financial practices to the list too.

 

The world is becoming even more geo-politically volatile which has in turn resulted in rising living costs, job uncertainty and the ever increasing need to have a safety net.

 

Let’s look at some healthy and safety practices you should ideally adhere to from this year onwards.

Thursday, December 28, 2023

How to create Wealth via Equity Investing

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Equity investing as a term evokes mixed emotions, mostly sliding on the side of greed and misinformation.


This can be further ascertained by the contribution of retail investors to the equity markets that is still in single digits.


A major roadblock to a scenario of higher retail participation more than anything is simple misinformation, far too many folks are either consumed by fear or are in it for the wrong reasons.


Imagine getting upset at the officials for arranging a football game at a football stadium when you were all decked up to watch a game of cricket , sounds silly doesn’t it?


In a similar vein volatility in equity investing should not deter you, rather one should embrace it like a feature of it, in a manner similar to a drinks break in a game of cricket.


Audience cheering from the outside does not win a game, the participants do and so the only way to have any possibility of winning is by participating in the game.

Wednesday, October 25, 2023

Why you should increase your SIPs annually

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A Systematic Investment Plan (SIP) is a popular and affordable method via which you can invest in mutual funds.


Minor but periodic addition to your mutual fund portfolio can leave you in awe without much effort from your side.


This approach is also a worthy option in case you wish to commence your SIP journey small and gradually increase your amount.


Any increase in salary should be accompanied with an increase in your SIP.

Wednesday, September 06, 2023

Should you be worried about Equity Markets breaching new heights

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Whenever the equity markets hit a new high, it brings along with it a unique set of challenges for investors.


Often many of these challenges are self-inflicted and easily avoidable, humans are anything but simple though.


Investors tend to grapple with fearing a market crash to pondering over an exit with the intent to re-enter the markets at an imaginary low.


Such scenarios have their origin in the belief that making money in the market means buying low and selling high, a very easy method to spot a trader in the garb of an investor.


If you are a long term investor but at the same time if your opinion and beliefs can be swayed easily by market movements then maybe you are not one but how does one wake up someone pretending to be asleep but not asleep?


Equity Investing is simple but not easy, the inability to discern between the two and the urge to reinvent the wheel often leads one in a soup.

Tuesday, August 01, 2023

Reasons for Financial Stress and how to manage it

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Most, if not all of us must have been under financial stress at some point in our lives.


As much as financial stress may seem like an insurmountable task, the devil is in the details.


It is how you manage and control what you can and how you react to things that are beyond your control that plays a deciding hand in elevating or alleviating your financial stress levels.

Saturday, June 24, 2023

Why Financial Education is important

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Life is not linear and finances are no different, stability is one thing we try to pursue and achieve in all aspects of our life including money management.


Money management is about managing what you can manage and trying to minimize the losses arising from something that is beyond your control.


This could be anything from recession to a bank collapse to something personal like a job loss, business failure, health crisis, etc.


As much as the aforementioned crises could be attributed to being out of control, working on having your savings and investments well sorted to minimizing losses arising out of such crisis is still within our control.

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