The financial independence mindset

There are many people who make lot of money and can be potentially financially independent in future, but they don’t. Conversely, there are many people who may not be making much money but can potentially be closer to financial independence in few years. They may or may not get there. But they can at least be on that path. What differentiates the both? Arguably it is the starting point – the mindset – the financial independence mindset.

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Mistakes to avoid in tax saving investments

What are some mistakes to avoid while choosing tax saving investments? There are plethora of tax saving options available (Most of the tax saving options in India are under Section 80C). However, very few people bother to understand how these investments works and what suits them.  This leads to people getting drawn towards investments which […]

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Does easy access to loans make things affordable to you?

Getting loans has never been easier. More and more banks, NBFCs and fintech startups are making it easier to access loans. Some promising loans with just click of few buttons. You can fulfill most of your needs via a loan, even if you are short on cash.

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Concentration risk while investing

Concentration risk is the risk which an investor faces while investing in only few assets and not diversifying enough. It can be concentration in a single asset class (e.g. – all equities or real estate) or single or few investments within one asset class (e.g. – buying just 2 stocks for entire portfolio!). If everything goes well, this concentration can be very good for you. But it requires things going wonderfully well for that asset class and your specific investments. But, as you think of placing concentrated bets … are you aware of the risk? What if the asset class/ investment you have been bullish upon, doesn’t do well? Here are some ways the concentration risk while investing can play out.

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5 reasons why people invest in insurance

Don’t mix insurance and investments – most financial advisers, who don’t have any conflict of interest will suggest that.  You end up doing injustice to insurance as well as investments in that case! Yet insurance continues to be a popular investment. What are the reasons why people “invest” in insurance products?

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Common mis-selling in financial products

Mis-selling in financial products – There is nothing new or uncommon in this. Yet we often fail to realize this – or realize it after it is too late! It is not uncommon to hear stories where people bought product because a friendly uncle or friend or bank’s relationship manager (RM) or investment adviser suggested. […]

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Time value of money

A $100 is a $100 is a $100. No brainier? Theoretically yes. But practically – life is more complicated. One of the reasons is the concept of time value of money! Time value of money – is an interesting relationship between money and time! It is visible everywhere.  Money is usually worth more today than […]

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When buying life insurance doesn’t make sense?

Getting a term life insurance is one of the initial steps towards planning your financial life well. And rightly so. A good insurance cover can help manage financial risk that your family can potentially face in case of a breadwinner’s death. In case of death of the insured person, the family is paid a certain amount (sum insured) by the insurer. In return, the person buying the insurance policy has to pay a certain fee to the insurer – called premium.

Counter intuitive it may seem, but life insurance is not sacrosanct. It is not always necessary to have a life insurance cover. Here are few situations, where buying a life insurance  policy may not make sense.

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Debt funds as an alternative to fixed deposits?

Debt funds are in news again. This time thanks to DHFL (You can read in more detail here). NAV (Net Asset Value) of several debt funds have plummeted in a single day. This raises a question – Are debt funds really safe? They are often pitched as an alternative to fixed deposits – with a […]

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Whole life insurance – Does it make sense?

Term life insurance is something that every individual, who has dependents, should consider taking. However, there are many questions that one needs an answer to before buying a term life insurance. One of them is – till what age should the insurance cover be taken? A variation of this problem is – should one take whole life insurance?

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