Risk & Investing - What The PNB Saga Taught Me

It is sad to note that the Punjab National Bank has suffered extensive loss on account of absence of adequate surveillance systems, allowing two employees, incur the back a loss that the other 9,998 employees of the bank may not be able to overcome. (Assuming Punjab National Bank employees 10,000 people in all). While the episode is a sad reminder that in Public Sector banks, there seems to be a general apathy towards doing commerce, along with aspects relating to accountability, risk mitigation etc.. seems to be broken. Here, we are examining the learnings that we may have as investors from this episode. The valuable learnings for Investors in this predicament: Diversify your portfolio ade

Heads I WIN, Tails You LOSE!

One of the challenges in investing in Equity Mutual Funds is that the negatives impact us far more than the positives. If you had invested Rs 1 Lakh in equity markets a year ago and it is now worth about 1.25 Lakhs; while the profit of 25K makes you feel justified in making the investment, I don’t think the profit of 25K gives you great joy. On the contrary, if you had invested the same Rs 1 Lakh on 29th Jan and today that portfolio is showing a balance of Rs 0.90 Lakh as on date, i.e. a loss of Rs 0.10 Lakh on your investment. Granted that the investment was meant for a long term say 3-5 years, you would still feel extreme pain. This concept was coined by legendary psychologists Amos Tversk

It’s Valentine’s Day - Show your valentine that you truly love her

Somehow, from the films and television we have always watched seem to tell us that to love, means to give gifts. Whether it is to present a bouquet or to treat your partner to a party etc. these are all various ways in which we are taught to show love for our valentine. However, while these are good, I would say there are more thoughtful ways of saying I LOVE YOU to your valentine (especially if you are married). In this context, the ‘I love you’ would mean ‘I CARE FOR YOU’ In the personal financial space, a person can show his care for his loved ones by: Making sure that he is following a good financial plan and savings or investing habit to ensure that the long term financial needs of the

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