One of my friends is working in an engineering company at senior management level. 60% of his personal investment portfolio consists of his employer company shares. When, I ask him why he is buying so many shares of his employer’s company. He always gives me details of performance and future plans of his company. When …
Continue reading ‘Availability Bias in Investing : How it affects your Financial Decisions?’ »
With the sharp fall in the markets in last few days, once again stock markets are talk of the town. Investors are discussing the reasons for fall and trying to find answers of two questions. First, what was the exact cause of this sharp fall in the stock market? And second is how much will …
Continue reading ‘Falling Equity Markets : What should you do?’ »
1 Most of you have been reading my articles for quite a long time. I have written a lot on how you can organize your financial life. Now this time I want to tell you what you should not do. Successful Financial life can be achieved by avoiding mistakes and adopting a disciplined approach towards …
Continue reading ‘5 Money Actions that can create disaster in your Financial Life.’ »
In may last article on Asset Allocation, I had discussed how Asset Allocation and Rebalancing of portfolio is done at periodic frequency.Now in this article I have given a back testing of the same for a period of 31/12/2006 to 31/12/2014. Let us see below, how Asset allocation and rebalancing actually works and help investors …
Continue reading ‘Strategic Asset Allocation & Rebalancing: Back bone of your Portfolio-Part-2.’ »
In my earlier article on Risk profiling I had explained about what is Risk Profiling and how to do it? Now this article is an Effort to explain what is Asset Allocation and how it helps you. Asset Allocation is the process of dividing your investments among different assets classes , such as Equity, bonds, real estate, commodities and …
Continue reading ‘Asset Allocation: Backbone of your Portfolio.’ »
Avoid mistakes and have a great financial life: As a financial planner I meet many investors and try to understand what they are trying to do. I have realized one thing very clearly that investors don’t have sufficient knowledge of personal finance and in an effort to generate maximum returns they keep trying new things …
Continue reading ‘Doing no Mistakes is Equivalent to doing Great Job in Personal Finance.’ »
In my last article I had explained what is a stock Index ? How it is constructed ? and Why it goes Up or Down?, the objective of writing that article was to explain construction and functioning of stock indices and also to explain that over a long run, stock indices can grow to any …
Continue reading ‘When should you invest in Equity or withdraw from Equity, considering PE Ratio?’ »
In last few months, I have been hearing investors saying that markets are at peak so it cannot go up now, actually investors are not able to understand “what is a stock Index?” how it is constructed and how it moves up or down? I will try to explain you these basic aspects of stock …
Continue reading ‘What is a Stock Index?, How it is constructed? & Why It moves up or down?’ »
In my last article on What is Equity? and Why stock prices move up and down? I had discussed in detail about Why equity is an important asset class? and why share prices move up and down over long term and short term? Now the other question that investors have about equity is whether they …
Continue reading ‘Direct Equity Shares or Equity Mutual Funds-What is better for you?’ »
Before you start reading this article I would insist you to make sure that you read this entire article thoroughly. Because this article can help you to change your investing behavior and this can have a major positive impact on your financial life. During 10 years of my career as a financial planner, …
Continue reading ‘What is Equity? Why Share Prices move up & down?’ »