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{ Category Archives } Investments

Return of capital vs Return on capital

As investors our focus should primarily be on return of capital ( can we get our money back)  but we tend to focus more in return on capital (what is the % we will get !) Tell someone to put his entire wealth in equities and they would shudder in horror, what happens if the […]

How will the markets move?

The inspiration for this note from Swanand Kelkars article in Mint :How will the markets fare? This is the most asked question by investors to advisors, truth be told, this is also the most hated question as  the correct answer is ‘ we don’t know’,  but this is seldom the answer. The market expert will […]

Advisors real job

Being a financial advisor is a fascinating profession, many new investors think that our job is to find the best investments and we think that our job is to get the asset allocation ( between various assets such as equity, debt, real estate etc) right. For investors who have been our clients for long the […]

What about the new XYZ fund & other questions.

The wisdom of life consists in the elimination of non-essentials. – Lin Yutang. Often, Im asked  what about this new equity fund which has come up. should i buy it? Somehow the idea seems to be that the new funds like new cars are better or are cheaper. While it may be true that the […]

“festival” sale

The festival season is upon us, online or offline where ever we go, we will be bombarded with ads that goes something like ” This Diwali light your home with 40 door fridge”.God knows how we can light up our house with a fridge or tv except when one is opened and other is on […]

The Hare and Tortoise !

We all have heard the ‘ Hare and Tortoise’ story in school. Many of will immediately recall the moral ‘slow and steady wins the race’. We also must have thought this is not a real story but a fable to teach us the importance of doing something right and doing it all the time. Some […]

Behaviour vs Strategy

Most investors and financial experts focus on strategy. Financial media too focuses on strategy interviewing experts and asking what strategy they use etc.  Investors see all these and think that there is some secret strategy to make money and if we master that it would be great. Instead if we focus on our own behaviour […]

Investing during low interest rates

Indian savers have always preferred safety over returns but that is fast changing due to low interest rates. What they miss out is the inflation aspect, for the first time after many years we actually have a positive real interest rate. No one but Warren Buffett explains this beautifully : ”If you (a) forgo 10 […]

The complete man made incomplete

Financial mistakes are made by us all at some point or another. Many of the mistakes can be corrected ( bad investment choices, ignoring inflation and taxes, etc)  or if not at least the loss of money can be made up over time and the lesson learnt for future but some money mistakes lead to […]

Three type of investors

Investors are of many types. I list broadly the three types in the hope that you can see if you are one of them : I-want-the-best-investment-only-type : This investor has the need to own the best investment that there is, if equities did well over last three years he wants to be in equities and […]