Assets are of two types. Buildings, land, paintings, gold etc. are physical assets. You can feel and touch them. Shares, debentures, mutual funds, fixed deposits, and bank accounts are all financial assets. Asset allocation is the ratio in which you invest in the assets mentioned above. Why asset allocation? The above graph compares the
Every individual dreams of owning a house one day. For many, this is the ultimate goal. It is an investment of a lifetime. Some want to leave a legacy behind, an estate for their kin. A person buys a house either for own consumption, that is, to live in and utilize the house or
What are life goals? I want to travel around the world! My dream is to have a big house by the sea! I want kids! I want to help the homeless! My aim is to have a comfortable retirement! What are financial goals? I want to go on an international vacation costing ₹ 2
“Mutual funds are subject to market risk. Please read the offer document carefully before investing” We hear these lines spoken very fast after every mutual fund advertisement. Why are these lines necessary? Are only mutual funds risky? What about other investments? How much risk should I take? Every investment comes with an associated risk.
Asha, a physiotherapist by profession, attends to clients every day. She follows a pay-per-session based payment structure and earns on average Rs. 60,000 per month. Though she does not have a fixed salary per month, she has regular clients and good connections guaranteeing stable income. She lives alone in Pune in a rented house.
“Don’t work for the money, let the money work for you…” Robert Kiyosaki Elders of the family are in the habit of gifting their nieces, nephews and grandchildren with money. Parents usually buy gifts and toys with this money and spend the remaining themselves. This cycle has been going on for generations and will