While retirement planning is often discussed, not many take it seriously. Since the post-retirement phase generally does not have regular cash flows, it is crucial for the investors that their financial plans consider all the eventualities. It is also essential that investors have enough investment corpus to maintain their lifestyle and take care of medical expenses post-retirement.
When planning for a child's marriage, one often tends to underestimate the amount required. It is said, "marriages are made in heaven but celebrated on Earth." It is the celebration of the formation of a new bond between two individuals and two families. Most parents wish to celebrate it lavishly, but it is equally important that one plans systematically towards such goals.
In the Ramayana; Kumbhakarna is described as having been cursed to sleep for 6 months at a time. If only we investors had the same ability. If we had fallen asleep at the end of February 2020 and then woken up at the end of August 2020, it would appear that nothing much had happened. After all the Nifty 50 closed at 11201 at the end of February 2020 and at the end of August 2020 it was only marginally changed at 11387.
When it comes to investments, one would like to understand how their investments grew, and at what pace, over different time periods. There are many metrics that can be used to calculate the rate of return on investments, but the most common one amongst them is CAGR.
Make volatility help you create wealth
The long journey to major financial goals like buying a home, children’s higher education and retirement, is comparable to a long distance flight or a sea voyage. In Air travel you sometimes experience uncomfortable air pockets and choppy seas in case of sea travel. Of course, we don’t interrupt or abandon those journeys because turbulence is a part and parcel of them.
This is a regular question that I get asked at meetings with investors and mutual fund distributors. It is even more common today as markets have moved up to a record high and valuations have pushed significantly higher. This question presupposes that I have the skills to discern the risks in the market. Blessed as I am with a worrying & skeptical nature, I see risks all the time. But, the problem with risk is that the biggest and market disrupting risks are those that I cannot see. Worse they are the unknown unknowns.
In common parlance, a Non-Resident Indian (NRI) is an Indian citizen who is staying abroad for employment, business purpose, or currently living in a foreign land. Like the resident individuals, NRIs are also eligible to invest in mutual funds in India subject to compliance with the FEMA (Foreign Exchange Management Act) provisions.
As we all know, there are various types of mutual fund schemes catering to different investment needs. And having a right mix of mutual funds may aid in building a corpus over a period of time. Likewise, while investing in value funds it would lead to diversification in investment style and unlock the potential of wealth creation over medium to long run.
Value Investing is dead was the oft repeated conclusion of investors who were being fed by commentaries of the investing community in early 2020. The conclusion was backed by not only short term performance data of 1 to 3 years performance but even looking at performance data of longer period of 10 years of value as style as compared to growth.
A father's role in his children's lives cannot be quantified, but it can only be expressed in emotions. A father makes several sacrifices for his children and family but seldom expects anything back. Beneath everyone’s success is a strong foundation of the dreams and aspirations of a father who believes in only taking care of his family and many times not even expressing their feelings and emotions to the family.
