Personal finances and investments, like any other field of human activity, are also marred by a number of myths. Though the situation is gradually changing with greater investor education and better availability of information and resources, many of the myths still persist. This article is an attempt to address a few common investment myths that prevail among the Indian investors.
Investment Myths can Harm Your Personal Finances
Myth: Life insurance is good investment
Fact: Life insurance is an insurance scheme, and not an investment scheme.
This is one of the biggest investment myths that exists in the minds of Indian investors. Over...
Well, it’s that time of the year again! When you start things with a clean slate, and resolve to make a new beginning. A lot of us make resolutions for the upcoming year. Most of them are forgotten in the first week, and by the time January is...
What are the qualities that distinguish a successful investor from a not-so-successful investor? Is it education? Do you really need to be a high-flying graduate from the ivy-league management colleges to become a successful investor? Well, in that...
Now that we have understood the concepts behind the processes of savings and investments, it would be pertinent to discuss the major points of difference between the two. As we discussed in my previous article, investment and saving often used as synonyms,...
In one of my previous posts (QIP), we had seen the fundamentals of capital structure of a company. Companies need capital to run their businesses and there are essentially two ways of getting the cash – Debt and Equity. At any point of time, a...
During my under-graduation, One of my professors once held a plastic cup in his hand and asked all of us “What do you think is the value of this cup?”
After hearing most of our valuation estimates which ranged between Rs. 5 and Rs. 50, he...
In my previous articles, I had discussed about the basics of mutual funds and the precautions you should exercise while investing in mutual funds. In this article, I would explain to you about the various types of mutual funds that are available in...
There are broadly two ways companies can raise cash from the capital markets:
1. Debt – Taking a loan from the market. Companies intending to raise cash through this route could borrow money from banks/ financial institutions/ high networth individuals/...
One of the biggest roadblocks in mutual fund investment in particular (and investments in general) is a very basic one: getting started in the first place. Most persons, especially new investors, keep putting off the investment on one excuse or another....
A mutual fund is one of the most potent investment options. It provides a viable investment avenue for the entire range on investors, from the discerning millionaire to the humblest of the investors. Though this tool of investment conevenience has been...
If you fail to plan, you plan to fail.
Read the above adage carefully. This is a very important bit of truth for any aspect of life. It is more so for your finances. If you fail to plan your finances properly, it is only a matter of time before you...
As a person moves towards the twilight years of life, one of the greatest concerns is keeping up with the financial needs of the life after retirement. Existing data shows that in India, only 4% of the persons over 60 years of age get a regular pension...
