What is Opportunity Cost and How it Can Help you Take Better Investment Decisions
Investing is all about parking money in a financial product or economic vehicle in the hope of making more money than what was invested. Investors usually factor in many criteria—like returns or holding period or riskiness—to make that decision. What if there were some hidden…
How Free Investment Advice can Ruin you
When you pay for something, you are naturally cautious about what you are buying. However, when it comes to something offered for free, there is a risk of throwing all caution to the wind. Free investment advice may be one such area. Recently, the Securities…
Is Bharat Bond ETF a Good Investment Bet? Here is What you Need to Know
Recessionary undercurrents and uneasy markets are pushing investors towards more secure, liquid investment options. The launch of the Bharat Bond Exchange Traded Fund (ETF) offers one such fixed income investment option, a first-of-its-kind in the Indian market. The New Fund Offer (NFO) of the Bharat…
From Auto to BFSI, Four Sectors under Stress: Invest or Avoid in 2020?
2019 was an eventful year for the markets for good and bad reasons. While the Sensex and the Nifty touched new highs, we saw some Non-Banking Financial Companies (NBFCs) struggling to stay afloat and some banks wading through cash crunches. With India’s Gross Domestic Product…
MCLR or External Benchmarks: Which is Better for Loans
As part of a structural change to make banking more robust and transparent, the Reserve Bank of India (RBI) has directed banks to adopt an external benchmarking mechanism starting 1st October 2019. Amid the new regulations, all banks will now finalize interest rates on floating…
Investing in a Company’s Stock? Here’s Why You Need to Study its Parent First
Rithika had invested Rs 1 lakh in the shares of a telecom major. After seeming to do well for about a year, the share price started plummeting alarmingly. Within no time, Rithika’s investment value dropped to Rs 60,000. She could not understand why the stock…
Are You a Risk Seeking Investor? Here’s How to Find Out
Ask any investor what is her main fear while investing and her response will point towards the fear of losing money. In other words, investors fear the risk of investment, which is the likelihood of not getting returns on the principal amount invested, or even…
Why You Need an Indemnity Insurance
A health insurance plan must be selected after understanding one’s needs and risks. For some, it may be about the final premium outflow while for others it may be getting coverage for a certain high risk disease that may run in the family. Rising costs…
How to Build a Balanced Investment Portfolio Based on your Risk Appetite
If you have ever sat down with a financial planner, or even read any of the numerous investment articles that the internet is peppered with, you will be bombarded by an avalanche of so-called investment rules of thumb. You have the ‘100 minus your age’…
Lessons From the Coffee Day Financial Meltdown: What an Investor Should Watch Out For
After the tragic demise of coffee king VG Siddhartha (VGS), a line in his last letter came to light wherein he admitted to “failing as an entrepreneur.” The irony was not lost on India Inc. His success as an entrepreneur is what made Café Coffee Day…