Keep Write

It is a widely-acknowledged practice to invest in a mutual fund that has yielded good returns in the past believing it will do well in future as well. Even financial advisors are prone to stick to this past performance benchmark while recommending mutual funds. Why everyone seems to be obsessed with the past mutual fund returns despite the disclaimer in the offer document of every fund saying clearly, ‘Past performance is no guarantee of future results?’ Studies abound showing that many mutual funds with good past returns have yielded poor results in the future. There is no close correlation between high performing mutual funds in one period with high performing funds in the subsequent periods. Regardless of this fact, investors harp on past mutual fund returns while investing in the fund. Old habits die hard is what we can say. However, we must caution you against this practice. The approach to judge a mutual fund on its past returns is fraught with danger. Here we list the...

Life is mainly a substance of expectation. Do we really live or are we forever in the expectation of living? It is said that “Expectation is the mother of all frustration”. What you are expecting in a financial planning report and what your financial planner offers in his report should match. If it is not matching, then it may lead to frustration. To have a long lasting relationship with your financial planner, what you expect from the financial planning report is more important. Let us discuss that in detail here. You can clarify your expectation and start having an acceptable expectation. 1) Current status: This section deals with the current financial status of the individual and his family. The information what you have given in the financial planning questionnaire / factfinder will be re-arranged in a tabular column for easy reference. This will contain the details like income, expenses, structured liabilities with EMI, unstructured liabilities, list of fixed assets and ...

I got an opportunity to watch a video of world chess champion Mr. Vishwanathan Anand playing a game against Boris Gelfand, the Israli chess champion. A particular aspect I noticed in both these champions is the amount of patience they apply with each move. Both of them didn’t rush to make a move upon their turn. More than talent, I feel the amount of patience they apply is the key for success here. Does the same theory apply in stock market investments as well. Do I need to wait patiently in the stock market? Can I make quick money with selling or buying stocks quite often? Read ahead to understand the answers and the amazing discovery in stock market investing that will make you wealthy. The Surprising Fact about Selling Stocks: I am selling the stocks when the market goes down and save myself from a heavy the loss. What is wrong with this? Say for example, You sell a particular stock just because the market crashed. Later you feel sorry for seeing the same stock going up a...

Whenever the words ‘recession’, ‘market downfall’, ‘global economic crisis’ come in picture, I think about Mr.Rudy Giuliani, the mayor of New York, when the twin towers were hit on sep 11th, 2001. He was put under a situation where he was blamed for unpreparedness, death toll increasing everywhere and people all around the globe looking at him with different emotions. The way he handled the crisis amidst political, global pressure and his personal issue of fighting against prostate cancer, it is just amazing. Because of market euphoria, investors start thinking, “this time it is different. The things will be very rosy hereafter”. Don’t think like that. There could be recessions or market crashes anytime. Are you and your investments, well prepared for it? How can you cultivate similar emotional strength as of Giuliani’s while facing the recession and market declines? Read on to learn more. Why does the market crash? No one had any clue about a terrorist attack on twin tower and ...

Humans have a natural tendency to follow the crowd, but when it comes to stock market investing, following the crowd can often result in losses. Why replicate the mediocrity of the masses when you can clone the success of the World’s Greatest Investor? The investment secrets of warren buffet have got unveiled here. 1) Look at quality businesses; not just the stocks Warren Buffett said, “When I buy a stock, I think of it in terms of buying a whole company, just as if I were buying a store down the street.” Most investors don't analyse the businesses they invest in. They simply follow the symbols or brands of successful corporate houses. If you are buying a shop, you will analyse about the products dealt by the shop, overall sales, consistency of sales, competition for the shop, competition strength of the shop, how the shop will manage the change in customer trends and so on. We need to apply a similar logic before choosing a stock. Don’t think that you are only buying a fe...

It’s a fact of life that, if you don’t follow this simple and very obvious money management code, you will never ever become rich. Don’t let the negligence to follow this, keep you from becoming rich. To become profitable and stay profitable, the bigger organizations always look at cost cutting methods. They cut a part from the salaries, reduce expenses on travel, in serious situations, go to an extend of laying off some employees. They do this to increase the net worth of the company year after year. Likewise, to become rich and stay as rich, you need to increase your personal net worth year after year. Cutting on your unnecessary spending is the most important aspect of increasing your personal net worth and saving for a rainy day and keeping away from the fire. How come a cut on spending save you from disasters? How can one determine what to buy or what not to spend on? What happens when we buy more? Read on. The biggest threat to your savings: I have a credit card, just ...

Do you remember what you did before buying your first bike? Made a research on various brands, looked at the trend of each brand & the product on how they worked and chose the best one you liked, right? Even though, your bike helps you to travel places, no matter what, the resale value will be lesser than the buying price. Isn’t it? You are investing your time and energy in an object which you will not get any money in return few years down the lane. Think about the amount of time and effort you need to spend on something which is going to bring in more returns. Enough knowledge and informed decision making will help you to become a great investor. Go ahead and read to know how you can become an expert in stock market investing. Look before you leap: Foremost among all, have a goal set in. For example, ‘I am 25 now and want to earn ‘X’ amount when I am 45, it is going to be ‘Y’ amount when I am 58 or 60 while retiring’. Focus on choosing the fundamental investment models which...