To get anywhere, you need a plan and the same goes for your financial future. Unfortunately a financial plan appears, to most of us, like a visit to the dentist - something to postpone until you wake up screaming in the middle of the night. So we came up with a financial plan that's more like a visit to your favourite cafe. It involves forming simple habits and takes less than an hour to start implementing.
I visited Kolar couple of weeks ago. Once famous for its gold mines, it is now more famous for its golf course on top of the ground. Mining for gold at Kolar was stopped about a decade ago. But coming as my visit did amidst raging debate about India’s balance of payments and the role of gold, I decided to ‘dig deeper’.
People are constantly searching for the best ways to manage their finances. Though there are several academic studies on the subject, recommending right strategies for people, our discussion with people suggest that people successful at this have arrived at their own ‘Practical Financial Wisdom’ in managing their finances.
History tells us that equity investing is a long term venture. That money is made by people who held the course when times were bad. And times are looking bad right now. But as we all know the equity markets tend to recover from these bad times. Is it difficult to keep the faith when you see everyone around you panicking? Yes again.
On our facebook page, a friend of scripbox (Mr Pradeep Arora) asked us a question and got us thinking. "I like your humour and your concept in that order. I will take a test drive for sure. One thing i cannot figure out is that why cant you offer a comprehensive basket. I would have loved to see some equity oriented hybrid funds and debt funds also. Maybe they could have formed a different package. or maybe you could have given a age oriented allocation of the total corpus. One thing that i struggle with is to figure out how much should be allotted to which type of fund (I am 53 yrs)."
Debt Funds, with longer term duration, but predominantly investing in government bonds are down over 5% in the past couple of months. I have spoken with a few people who seem to have got into these funds with the assumption that their capital cannot depreciate if you invest in a government bond fund, and rather surprised to see a fall in value of the NAV over the past month.