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RISK is a four letter word and been fancied these days. Everyone knows about risk and every firm is accompanied bloghas best process, best standards, best people till the time an incident or big impact is not been made.

The recent example of fine imposed by the US authorities on various Investment banks like BNP PARIBAS SA, BANK OF AMERICA, RBS, HSBC, STAN CHARTED, ING, J.P. MORGAN are some of the examples of the above. Corporate are heavily investing in the compliance and in the risk management department but they forget to invest on the employees.

Risk management has become a key function in almost every large company, but all too frequently it makes an organization so risk-averse that initiative and innovation become paralyzed.  View full article »

  • You can control how much money you put behind the idea.blog
  • You can control which markets you trade in.
  • You can control how much you are willing to risk per trade barring any gap downs, or halt situations that might impact you negatively.
  • You can control what type of stocks you buy, big caps, only small caps, only over INR 100, only under INR 20, etc…
  • You can control what type of set ups you buy.
  • You can control when you get in or out, barring a halt.  View full article »

How MF GLOBAL Failed

Not many people know about the convictions behind how MF global failed. This is how the destruction process works @ Wall Street and MF Global bankruptcy was one of the example of it.

They were very bad in Europe; leveraged 33:1 so there is no space of error when the firm is leveraged like that.

The three lessons that are can be shared from MF Global’s death:

  • Accounting loopholes have to be closed and oversight improved.
  • Non-bank financial firms should have a lead regulator.
  •  Rule-writers should consider “non-systemic” firms as well as “too big    to fail” banks.

But there is a contrast view to it:

More regulation, more rules, Dodd Frank/EMIR/FATCA  and to no purpose at all.

A banker wants to bet his firm on the direction of sovereign debt. If successful, we call him Soros and pat in him on the back. And if not, the firm is closed down. Regulations were pointless, because no rule book can reign in human ingenuity. View full article »

As the Year end approaches people start inquiring about the tax saving plans and want to invest their money now to save blogtax.  I have been approached by many of my friends and colleagues, they want to do everything now SIP, ELSS, Insurance?

Can you do financial planning in adhoc mode? For me it’s a big no. People end up buying either the most misssold ULIPS or may be some insurance plan.

The Term Financial planning is mis-directed, mis-guided and mis-selling lead to many such situations. I always encourage SIP between my fellow mates, whosoever asks me to invest the savings.

Systematic Investment Plan is an approach to investing within View full article »

It’s simple really. Just change the time horizon so it suits your stance.blog

I’ve seen this play out over everyone’s favorite yellow metal the past few years. Gold is down almost 40% since it peaked in 2011. But it’s still up almost 350% since 2000. Although since 1980, on an inflation-adjusted basis, it’s basically flat. However, since the early-1970s it’s up over 7% per year (or about 3.4% after inflation).

See what I did there? There’s ammunition for both sides of the gold trade to use to their advantage. View full article »

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