Behavioural finance is a branch of behavioural economics, which proposes that various psychological biases influence the behaviour of people towards their financial and investment decisions. People tend to behave differently to even similar news and events, and thus, behavioural investing takes into cognizance the influence of biases in the investment decisions.
OWhen chalking out a prudent financial roadmap, one may have several goals. It is always desirable to divide such financial goals into short-term and long-term. Long-term goals may include retirement planning, children's education, marriage, etc. Short-term goals may consist of maintaining an emergency fund, house renovation in the next six months, family vacation, vehicle purchase, etc. While equities are considered for long-term financial purposes, choosing the right investment option for short-term financial goals may be tricky for some investors.
The 2020 edition of the Indian Premier League (IPL) is happening by around six months’ delay due to pandemic. However, a delayed event is better against a cancelled event for the cricket fans across the country, who keenly wait for the Indian Premier League (IPL) every year. Apart from the entertainment it aims to provide, the cricketing event provides several investment lessons for the investors to follow.
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.
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.
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.
Independence Day opens up a flood of emotions in every Indian. While the Indian freedom struggle teaches patriotism, grit and sacrifice, you can also learn valuable investment lessons. Following are some valuable lessons that we Indians can learn from the country's freedom struggle and its leaders.
"Swaraj is my birth right, and I shall have it."
Not all asset classes have been winners consistently in the investing world since different asset classes may react differently to macroeconomic events. As such, asset classes like equities, debt, gold, real estate etc., tend to perform in their respective economic cycles.
While equities may perform better during periods of high economic growth, debt may perform better during periods of decreasing interest rate scenario. Similarly, gold may be a better performer when asset classes like equity and debt seem volatile and uncertain, as gold is considered a safer investment option.
Income Tax laws in India provide several tax benefits and incentives to the taxpayers. Tax deduction under Section 80C of the Income Tax Act, 1961 is one of the most commonly used tax benefits. The section provides a deduction of up to Rs. 1.50 lakh to the taxpayers from their taxable income for making certain eligible payments and investment options.
It is often said that investing is an art. One often thinks that the job of prudent financial planning is over by making regular savings. However, it is easier said than done since it is not only about saving but also saving and investing money in the right pockets. Markets today provide a wide range of investment options to investors across different asset classes. Still, one tends to go overweight in a single asset class, thereby creating a skewed investment portfolio.
