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Gold is a dynamic asset class with several price determinants. These price movers might include central bank interest rates, global inflation, Treasury yields, US dollar movement, global conflicts, and so on. During times of uncertainty, investors all over the world often rush to the apparent safety of gold, as risk assets (such as equities) experience declines. …
From April 2020 to March 2023, Indian household financial savings totaled Rs. 86.2 lakh crore. Of this, 31.6 lakh crore went into fixed deposits with banks and other financial institutions, while 5.1 lakh crore went into mutual funds and equities, accounting for around 6% of the total movement. That is, just 6% has been invested in mutual funds …
Say you have a goal of purchasing a house in 5 years and another goal of your child’s higher education in 10 years. You would normally invest in a 5-year bank recurrent deposit (RD) and an exchange-traded fund (ETF) for the 1st goal. Likewise, you will invest in a 10-year RD and a different ETF …
This is one of my favourite write-ups on personal finance and my increases my curiosity to understand the current generation’s thoughts on costly leveraged purchases (sometimes myself as well!). First of all, let us try to understand what is a ‘Leveraged spending’. For retail consumers such as ourselves, ‘leveraged spending’ means using debt or borrowed …
‘Sequence of returns’ risk refers to the possibility of your portfolio experiencing negative returns later on in your working years and/or early in your retirement years. This risk arises from the order in which your investment returns take place. It is especially important in the five years before and five years following retirement, known as …
Bond funds can transfer corporate bonds to a separate account if the bonds they own fail to pay interest on schedule or are downgraded in credit. This separate account is known as the ‘side pocket’. We must exercise caution when an AMC sends a communication to the unit holders of one of its funds stating …
Despite increased knowledge of health insurance, many aspects of health plans remain poorly understood by policyholders. Let us try to understand the basic difference between the add-ons ‘top-up’, ‘super top-up’ and ‘Unlimited restoration’ in a health insurance policy. Firstly, a ‘top-up plan’ is an add-on coverage that supplements a health insurance policy. It provides additional …
When closing an FD for a sudden need or for any short-term requirements, there are a few economically viable solutions to consider. The alternatives should be designed to reduce borrowing costs and maximize the use of the FD, allowing you to obtain the lowest loan option if an emergency demands a short-term monetary commitment. In both …
We all are aware of Peter Lynch, the former manager of Fidelity Funds, and has been a prominent fund managers of his time, and his philosophies about stock investments are truly valid even now. In his books, Peter Lynch regularly looked into information regarding growth-oriented companies that capitalized on current market trends. When traditional criteria such …
A solid credit score is an important aspect of one’s credit history. A credit score is a figure that falls between 300 and 900. The score is better when it is closer to the upper end of this range. Credit score takes tremendous importance as it is one of the primary elements utilized by a …