Invisible Gorilla is telling you how to invest, are you listening?

Let me tell you about the Invisible Gorilla Experiment, in the invisible Gorilla experiment, a bunch of 5-6 people are there in the room and a ball is being passed around them in any sequence or order. You are required to watch the video carefully and tell how many passes are being made amidst the participants. So while you are busy watching the passes that are happening among the participants, a gorilla walks in to the middle to the room and beats its chest and walks out of the room while the sharing of the ball is still in progress. (Check you tube for the Invisible Gorilla Experiment https://www.youtube.com/watch?v=vJG698U2Mvo ) After the event was done , the participants were asked if t

I told you so… These are the magic words that everyone would like to utter after the event has been

The year was 2007, economic experts painted a rosy picture for the coming years. However twelve months later the world witnessed arguably the biggest financial crisis in over half a century. Asked about the global meltdown, the same experts enumerated its causes : monetary expansion under Greenspan, loose regulation of mortgages, flawed rating processes.. etc. In hindsight the Global financial crisis seemed quite obvious. The hindsight biases is one of the biggest prevailing fallacies of all. We are all damn good at saying “I told you so”. In retrospect , everything seems clear and inevitable. When BJP got reelected in 2019, there were many people who said I told you so, people who credit t

Why FDs ( Falling Down Interest), when you have Medium Term Bond Funds

We are all well aware that the Bank deposit rates have been heading deep south over the past few months. Most Banks are offering 5- 5.50 % Interest on Fixed Deposits for a period from 1 to 3 years. For a tax payer at the highest slab, this works out to a post tax rate 3.50% per annul(considering 30% tax rate).These are difficult times and unprecedented due to the Covid pandemic, so Bank FD seems to be the safest recourse. The truth is also that the very low interest rate esp post tax hardly even covers inflation. Is there another option ? While we believe that bank FD is an important component in one’s portfolio ( purely from a safety standpoint) one may also look at the Medium Term Bond Fun

ZEN and fine art of investing..

You are in the middle of the jungle on your trekking trip and suddenly you find a wild elephant charge at you from the thick over growth about 30 meters ahead. Your Adrenalin kicks in.. your blood flow increases, your heart starts pumping extra blood to help you in your fight or flight decision. Any seasoned forest ranger will tell you that the only way to come back alive it to stand your ground and stare back at the charging elephant and show your resolve that you are not scared. Any indecision or fear that is evident in your body movement or posture will have the elephant pick you up and throw you like a toy. This is exactly the opposite of what your instinct is telling you. Your instinct

Looking beyond the Obvious : Infra Story

Earlier this week I was in conversation with a client when he asked a question that drove me to explore the choice of funds a little bit more. He said “Can you recommend a fund category which is currently not in your list of recommendations, which is not done well in the past say 5 years, but continued to hold promise over the next 10 years “. I love challenges, after deep introspection and analysis these are my findings. 1.Over the past 7 to 10 years INFRA funds have not done great, there are variety of reasons including the Govt’s own priority of setting the fiscal house in order like GST, Demon etc.. so infra was not the chosen priority. However that does not mean INFRA does not have any

This Janmastami, Let Lord Krishna inspire your investment management.

Lord Krishna is one of the most interesting characters of the Epic Mahabarata. His role and machinations in the various aspects of Mahabarata is well known. All his actions were intended to bring the good to prevail on this earth. In the final battle of Mahabarata at the Kurukshetra, when Arjuna faces all his kith and kin in the enemy camp and is confused and steps down from his chariot, lacking the conviction to fight. It is Lord Krishna who provides the advice, which is contained in the doctrine of Bhagavath Gita. While the advice given to Arjuna by Lord Krishna is the subject of the entire Bhagvad gita. My favourite among them is II कर्मण्येवाधिकारस्ते मा फलेषु कदाचन, मा कर्मफलहेतुर्भ

Choose an Arbitrage Fund, so that your returns are not Arbitrary

The next 18-24 months is going to be a challenging time for the global and domestic economies. No one alive has ever faced a situation of coming back from near stoppage back to full speed of economic growth and we have no idea of the problems that is likely to crop up along the way.. With Excess Liquidity due to liquidity push and the lack of economic activity, the interest rates have moved down pretty drastically. A 3 year FD with a nationalized bank is 5.50% per annum or thereabouts. Moreover if the investor is on a taxable slab as 30 % the post tax return is only 3.85%, which may be less than inflation itself. The situation resembles the devil on one side & deep sea on the other i.e

Financial Independence is not FREE!!!

Most people use the word Independence & freedom interchangeably. It is a fact that India gained its independence from the British Rule on 15th August 1947 and its people gained freedom from tyranny & Oppression. Of course India has gained its independence but what about us, have we gained our financial independence ? Financial independence is the status of having enough income to pay for one's reasonable living expenses for the rest of one's life without having to rely on formal employment. The core path to achieve financial independence focuses on maximizing one's savings rate through lower spending and/or higher income. Source : Wikipedia Answer these three questions to judge your fin

Be Athmanirbar, by investing in Global Funds

The last five years have seen tumultuous changes in the Indian Economic landscape, we have had series of economic events that have altered the face of the Indian economy but it has also come at a big cost of economic growth. All the events from demonetization, to GST implementation and the BIG bang changes in getting the bad debts weeded out of the system have come at high cost of a stifling economic era of low / no growth. Save for some services sectors which were entirely dependent on overseas markets, none of the industries can claim to be immune to the slow economic progress that India has made in the past five years. While Covid 19 is not of our making, nevertheless the ensuing lock d

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