Every text book on Personal Finance tells you that as you grow older, you should reduce your investments in Equities and increase your exposure to Fixed Income products. The assumption is that your income from your job, business or profession will decline. You will need regular income from your savings to sustain yourself. Also your...Read More

Frugality is a virtue. I come across many friends and clients who have built significant amounts of wealth with the help of this virtue. Frugal people usually defer gratification better than most. They are cautious with money. But this virtue comes with a bane. Most frugal people are so careful with money that they tend...Read More

Most small and medium size businesses in India are heavily dependent on Capital especially if they are in the manufacturing or trading space. In the last few years, many of these businesses have begun to bear additional costs of compliance with GST. When a business enjoys scale, costs of maintaining mandatory compliance related to industry’s...Read More

Startup Investing has emerged as an Investment option for many young Indian Investors. We are seeing the emergence of Venture Clubs and Angel Clubs in all major metros. These clubs pool together monies from many investors and invest in suitable startups. Investors can invest as little as 2.5 lakhs (sometimes lower) in each startup. These...Read More

Many times, I come across Corporate Employees complain that Businessmen are better off because they probably cheat on their taxes, whereas they have no leeway. After all, they receive their compensation after taxes have been deducted. This is to a certain extent true in India where we see poor tax compliance by businesses who claim...Read More

Indian Financial Space, today has a plethora of products such as Direct Equity, Mutual Funds, Portfolio Management Services (PMS), Alternative Investment Funds (AIFs), Fixed Deposits, Equity Derivatives (F&O), Commodity Derivatives, Interest Rate Derivatives, Currency Derivatives. Direct Equity is specifically designed for Insiders such as Promoters, Strategic Investors, ESOP holders and large sophisticated Investors such as...Read More

Banks pay Investors 6-7% on Fixed Deposits. Banks use the same funds to give loans to Corporates at 8-10%. These Corporates use the money to earn well above 8-10% on the borrowed funds. In such a scenario, it makes more sense for FD investors to invest directly in these same Corporates as owners, which earn...Read More

Many wealthy investors prefer Fixed Deposits over other Investments. They provide a sense of security and guarantee that few other asset classes can. For many, they become like a habit that is difficult to give up. Tax eats into returns  Fixed Deposits because of the way, they are taxed are not great vehicles to take...Read More

Many Investors prefer to Invest in Direct Stocks. They believe this strategy can be a useful tool to generate long term wealth. There are some inherent risks in this path. I want to highlight some of those in this article. Inherently Individual stocks tend to be volatile. Historically Individual stocks have been more volatile than...Read More