Educational Content – Fincode Advisory Services Pvt. Ltd.

After years of interacting with investors, we have noted certain traits that set successful investors apart. Successful investing requires a strong process that will eliminate psychological biases and adopt a more analytical approach. Our articles and videos aim to spread awareness about how investors can avoid such psychological traps. If you want us to cover more such topics, feel free to write to us at info@finocde.in.

5 Common Mistakes Investors Make

Why Real Estate makes a poor Investment Choice

Single Largest Wealth Destroyer in India

5 Mistakes Investors Make when Investing in Direct Equity

FOMO Investing: Path to Wealth Destruction

How Bad Financial Advisors Harass Investors

March 23, 2022

Mutual Funds versus PMS

PMS stands for Portfolio Management Services. In PMS, a separate demat account in the name of the investor is opened with a Power of Attorney in favour of the Fund Manager. The securities bought by the Fund Manager are deposited in this demat account. Minimum investment in a PMS is 50 lakh rupees. PMSs are...

August 18, 2023

Can Fixed Deposits become an addiction?

We are creatures of habit. This applies to our investment habits as well. I see many investors investing in Bank Fixed Deposits out of sheer habit. Once having adopted the habit, they tend to follow it religiously. They maintain long lists of FDs, religiously maintained on excel. They update these lists with details such as...

August 18, 2023

Linear thinking about Money

Throughout our adult life, we face financial choices and outcomes. We receive salary, pay rent, pay EMIs, pay for other regular expenses. Most of these outcomes are pre-determined and certain. This causes us to prefer money-related outcomes which are certain. This leads many to preferring the predictability of Fixed Deposits. My advice to investors is...

August 22, 2023

If you invest in Direct Stocks, you should read this.

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...

August 22, 2023

If you Invest in Fixed Deposits, you should read this.

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...

August 22, 2023

Fixed Deposits – Flow of money

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...

August 22, 2023

Each Product in the Indian Financial Space has been designed for a Specific Audience

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...

August 22, 2023

Black Money drives Conspicuous Consumption but leads to Poor Savings and No Wealth Creation

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...

August 22, 2023

Startup Investing: a fad best avoided by ordinary Investors

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...

August 22, 2023

If you are running a SME or MSME in India, you should read this.

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...

August 22, 2023

Correlation between Frugality and Risk Aversion

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...

August 22, 2023

Asset Allocation for Wealthy Senior Citizens

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...