How can you start investing?

How can you start investing? – This is a question which several wannabe investors have. These may often be wannabe serious investors, or just someone who heard of investing and wants to get started (and different types of people in between!). It might just be indicative of the general inertia while investing.

So – how does one start?

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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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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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Investment risk is everywhere

Investment risk and returns are often correlated. You might have heard this umpteen times. Higher the returns on offer, higher the risk. Some investments are riskier than others. Some investments are risk-free (or considered risk free – nothing may be completely risk free).

However, in pursuit of returns, we often overlook the risk. Little bit more awareness about risk can help set expectations right!

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Capital gains tax: What is it and how to calculate it?

Note – This post is written in context of real estate in Australia. Image Source: Pixabay There are many taxes that we must pay, and capital gains is just one that is levied in certain situations. Capital Gains Tax (CGT) is levied on the resulting difference between the amount you have paid for an asset […]

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Where are the stock markets headed for?

Where are the stock markets headed for? We all can make calculated guesses based upon our own understanding and observations. Some of us will probably be right. But nobody knows for sure where the stock markets are headed for.

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Some common misconceptions about investing

A right approach towards investments can be your starting point towards your financial goals. While your investment mix may not always be perfect (who has!?) it is good to understand different investments, how they work and how they can help you achieve you financial goals. Before that, it is important to dispel some common misconceptions about investing, and hopefully base investing decision based upon understanding  of how that investment works rather than hearsay!

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Are your investments really profitable?

We all want our investments to be profitable and deliver good returns. But how do we evaluate profits on investment? Is it a simple selling price minus cost price of the investment? Or is it not simple as it sounds? Is there a sure way to know if your investments are really profitable?

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