#Fact: Insurance is not an investment: A good insurance policy is gold when it comes to risk protection.
It’s the time of the financial year when the deceleration done by the employee need to be submitted under section 80 C .This is also the time when maximum ULIP policies are sold, mis-sold and resold . Let’s explore the reasons
Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms of their structure and functioning. As is the case with mutual funds, investors in ULIPs is allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.
Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance component. Continue reading “Investment, Mutual Funds, ULIPS – The season of 80 C”
There are several types on Investors in the market making investments in one or more categories of assets with the objective of making a profit. To name a few Individual investors, Angel investors, Sweat equity investor, Venture capitalist funds, Investment Trusts, Mutual funds, Hedge funds and Sovereign wealth funds.. here are some of the views how investment defined by them.
Warren buffet: A good business that can be purchased for less than the discounted value of its future earnings. Continue reading “Types on Investors in the Market”
As the Year end approaches people start inquiring about the tax saving plans and want to invest their money now to save tax. 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 Continue reading “Systematic Investment Plan: SIP”
The risk/return trade-off could easily be called the “ability-to-sleep-at-night test.” While some people can handle the equivalent of financial skydiving without batting an eye, others are terrified to climb the financial ladder without a secure harness. Deciding what amount of risk you can take while remaining comfortable with your investments is very important.
In the investing world, the dictionary definition of risk is the chance that an investment’s actual return will be different than expected. Technically, this is measured in statistics by standard deviation. Risk means you have the possibility of losing some or even all of our original investment. Continue reading “Higher the risk Higher the return”
Whenever a stock is bought it is the temptation and hope but not the fear. Many times the trade is made without much of analysis no matter what the stock did in the past it assumes a new life once an investor owns its, and he looks forward to a rosy future. But these simple expectations become complicated by what actually happens it is greed which raises new doubts, new concerns, and conflicts and we wait for more profits and this waiting turns a profitable trade in to losses. So a psychic dilemma with ego, id, and superego turn the situation in a state of constant battle.
Lesser profits are better than no profits or losses. Control greed and take rational decisions about exiting the stock. The execution is more important than reading or writing. Continue reading “Buying and selling in the Stock Market: When to sell and when to buy”