Readandinvest

Advertisements have become such an integral part of our life. They are literally omnipresent, be it print or tv or radio or social networking sites.While the pros and cons of such ads may be an altogether different topic, one of the recent trends is the recurring theme of investing in mutual funds..'The mutual fund sahi hai' tagline is repeated like a mantra..So is that assumption correct?..Is mutual fund the best solution to all problems?..The answer is yes & no..While it is overly ambitious to expect fulfillment of all of life's financial problems' with mutual fund investment, they do provide an excellent platform to route investments & achieve one's financial goals.But just like any other financial investment instrument, jumping into the mutual fund bandwagon without understanding the basics of how it works, the risk factors involved may result in disappointment for an uninformed investor.So the key for every investor is to be clear about his/her financia...

Budget 2020 has created quite a ripple as far as income tax is concerned.Some are happy..many seem indifferent and most of the people seem upset that the new lower tax slabs comes with riders i.e) Most of the exemptions including standard deduction, Deductions allowed under 80C regimen were taken out..The result is supposed to be a simpler tax system..While the impact as well as advantages needs to be studied on case by case basis, nobody is denying the fact that the new tax slabs has given a knockout blow to the tax saving investment instruments such as ELSS.Experts are worried that the younger generation,will have no incentive to invest as it may not impact their tax payment. While it is true that the new tax structure offers no direct deduction benefits for investing in tax saving instruments like elss, ppf etc, the fundamental question is whether we should link our investment goals with tax savings & make tax saving a primary objective.The simple answer is 'NO'. A serio...

Ever heard of the 70:30 Rule? It is considered one of the basic personal financial rules to follow.Put simply, this rule states that 30% of monthly income should be saved & invested, while the 70% can be used for expenses. While it may sound bit daunting at first, it is possible when we follow a consistent & focussed monthly budgeting & investment plan.Following this rule religiously can even help us to achieve our life's financial targets like retirement, fund for children's education early. However there are some who break this cardinal rule by actually saving and investing more. An investoholic/ Addictive investor may even try to save up to 50% of monthly income which is great!..The underlying principle here is that when you aim really high level of savings (say, 50%), you end up breaching the initial savings target of 30% of monthly income.This will lead to a positive cycle set in motion resulting in higher savings and early achievement of investment targets.A h...

As the awareness about the importance of financial planning rises, so does the number of sources providing latest information, updates and advice on investment options & financial planning.While many of them are genuine, it is best to remember that the basic rules of financial planning are sometimes the only thing that an investor may need in this era of information overload.While complicated investment products may look alluring at first glance, they may end up not serving the purpose of their existence. So what should an investor do: it's pretty simple- keep it simple! Start with the basics: Insure your life to the optimal level (coverage should be atleast 10 times your annual income), have decent health insurance coverage, clear your debts & try to become debt free, live within your means, Build an emergency fund(should cover atleast four months of recurring monthly expenses), save and invest atleast 20 percent of monthly income, start goal based diversified investments ...

One of the key issues any investor who has just begun his Investment journey faces is the risks arising due to market downturn.The equity/stock market will always be a rollercoaster ride.The ups and downs in the share value will naturally impact any direct stock Investment as well as mutual fund Investments.So what can an investor do to mitigate this risk and protect his overall Investment value.The best course of action is to diversify his Investments across various Investment avenues such as equity, debt market, gold etc...For a newbie investor who is just starting his Investment journey, equity Mutual funds can fulfill the need for equity component of his Investment portfolio while EPF/PPF/VPF, bank FD's, liquid mutual funds, corporate fixed deposits can fulfill the debt component.Some investors even prefer including investments in gold to provide an extra degree of diversification to their investments.So the key is to spread out the Investment risks and protect oneself against...

For the past few months, sensex has been going through its ups and downs(mostly downs!) resulting in erosion of investors wealth.The economic growth indicators are showing signs of a slowdown and in some cases ,steep drop in growth rate or even negative growth.The best example will be automotive sector.Most of the mutual fund investors are seeing that their holdings are losing value or showing negative returns.So what should an investor do now? Should he exit all his equity investments?.. Should he redeem all his mutual fund units?.. Should he stop/pause his investments?..A simple answer to all these questions will be 'No'.Every growing economy goes through growth & recession phases.No economy can keep on growing on full steam without a break.What happens to a car engine if it runs in full speed without a break.It results in a breakdown or overheating eventually!.. Similar is a country's economy.The bottom line is having trust in a country's potential & economic...