Better Half

Recently i received a beautiful message on mobile, some times we got such awesome message from awesome people. I don’t remember who have sent but I would like share it with you….

However, our wives or should I say ‘better halves’ forgive us all the time for  transgressions committed by us. 

So here goes my piece…

One day out of the blue, it struck me while speaking about SIP, that SIP itself  is very similar to our wife. 

Let’s look at some similarities : 

1) An SIP is meant to be for the long term. Our relationship with our better halves is also perpetual. 

2) An SIP provides incredible support when markets are down because the equal investment buys more units. Similarly our wives are always with us when we are down, whatever may be the cause. 

3) Again when markets are on a high and as we feel very exuberant, our SIP quietly goes about doing its work. Similarly during our moments of glory, our wives allow us to enjoy our moment in the sun undisturbed as they quietly go about doing their work. 

4) SIP is always about regularity. It is always there with us month after month, year after year. Similarly our better half too is with us at every step of our life. 

5) Finally SIP, little by little, creates the greatest wealth for us over our life time. Likewise, towards the end of our life’s journey, the greatest wealth that we can talk about is our wife. 

Hence she is known as our better half. 

Hence saying that ‘SIP’ is best for us is no exaggeration.

Things to avoid while investing in Equity

I loved to read this message received on my whtaspp… Please Keep in mind these 20 things must avoid while investing in direct equity or equity mutual funds.

1) Don’t delay your investing
2) Don’t invest for short periods
3) Don’t be greedy when markets rock
4) Don’t be fearful when markets suck
5) Don’t check your returns too oftern
6) Don’t listen to tips
7) Don’t watch CNBC
8) Don’t follow the herd
9) Don’t get affected by past events
10) Don’t get affected by recent events
11) Don’t invest to save taxes
12) Don’t invest in a single asset class
13) Don’t invest without guidance
14) Don’t blame the markets
15) Don’t flirt with your investments
16) Don’t invest without ascertaining your goals
17) Don’t invest in too many schemes
18) Don’t invest without acquiring basic education
19) Don’t invest in FD for the long term 
20) Don’t invest in Equity for the short term

Source :

Mutual Funds Sahi Hai !!!

Stock market is a dangerous, risky place to invest but rewards are sometimes equally great.
Have a look at some companies where investors have lost a lot of money.
10,000 invested in Videocon Industries in 2012 is today Rs.610
10,000 invested in Religare Enterprise in 2007 is today Rs.554
10,000 invested in Lanco Infratech in 2006 is today Rs.91
10,000 invested in Reliance Communication in 2006 is today Rs.156
10,000 invested in Kingfisher airlines in 2007 is today Rs.0
The list is very long…
There are numerous examples that have destroyed investors wealth even after staying invested for many years.
So don’t get Carried away by a few success stories of Wealth Creation. It is not suitable for novice and amateur investors.
It’s better to leave the job to the experts and experienced money managers.
That’s why it is proclaimed
Mutual Funds Sahi Hai

An Interesting Data !!!

An interesting perspective, I received this on my WhatsApp last week….
US By 1999, 49% of Americans Owned Equities, this Percentage was just 3% in 1980. These  20 years was also the Time when Warren buffet, Paul Tudor Jones, George Soros were Created.
In 2017 only 3% Indian owns Equities..
In 1979, the BSE Index was 100
Today it is over 33,000
That is a return of over 17% per annum.
If we were to add back dividends received and assume that they were to be reinvested in the BSE-30 Index, then the return is nearly 20% per annum
Over the past 37 years, the Indian economy has grown by a real rate of GDP of 6.3% on average, 
Inflation, as measured by the CPI, has been in the 8% range
Add the two together and you get 6.3% + 8% = 14.3%
Let’s round that down to 14%
This is the approximate rate of growth of activity in the overall economy, taking into account the level of prices of various goods and services at that point in time. This is also called the nominal rate of growth in GDP.
So, the economy grew by 14% per annum for the past 37 years and the BSE-30 Index grew by 20% per annum. 
Now if, over the next 33 years, the Indian economy is to grow by, say, 6% per annum and inflation is to be, say, 5% per annum then the nominal rate of GDP for the next 33 years will be = 6% + 5% = 11%.
 If a 14% nominal rate of growth in the economy between 1980 and now resulted in a 20% average per annum growth in the Index over the past 37 years, then what should a 11% per annum growth in nominal GDP result in over the next 33 years – till the year 2050?
Sensex 4,076,470 doesn’t seem extraordinary now, does it?
“If the bull market journey is from Mumbai to Delhi, we have probably reached only Borivali” –
Rakesh Jhunjhunwala

Patience is key to success

In the 60’s in USA  scientists have performed a test. The test is famously known as “MARSHMALLOW RESEARCH”

What is this Marshmallow Research ??? let’s check out….

Marshmallow is an eatable food item. Today we all know marshmallow as a android version.

The scientists form a group of students aged 4 to 5 and told them that they can eat the marshmallow immediately or after twenty minutes. 

The student who will eat this marshmallow after twenty minutes will get another food item.

Many of the students ate  immediately. But some of them have patients the ate after twenty minutes.

After 20 /25 years the scientists found that those who ate the Marshmallow immediately  are living a very simple and common life.

But those who waited for twenty minutes or beyond, are doing well in their respective jobs and career.  They are at top position in their careers.

So what is the outcome..?? The outcome is that  to be successful in life you need to have some patience.

The same thing applies in your investments too. 

We as a Mutual Fund advisor always insist  to wait,  hold on and keep patience. 

It is already proven by the scientists that patience  is an important aspect to be  successful in investments or in also a human life.

So if you have patience you will be always in profits in mutual fund investment. Weather it’s  SIP or LUMP SUM INVESTMENTS.


30-30 Challange

Are you aware of 30-30 challenge? 

No, then it’s high time you know and start thinking seriously about it !!!

✔25 years – 55 years : 

✔55 years – 85 years :

You have 30 years to earn, save, invest and create retirement corpus to be used over the next 30 years assuming life expectancy to be 85 years. 

This is why your Retirement Planning should start with your first pay cheque. Have you started planning your retirement, what are you waiting for..???


To know more about Retirement Challenge, Just reply or call us….

Message from a Financial Planner

I am going through an experience where one of my far relative passed away couple of months back. The spouse and daughter is totally unaware of the financial assets of this person. I got into the act of helping them gather info for the last 10 days. The turmoil and tension they went through cannot be explained. More than 6 to 7 members are helping them to get this information.
The reason for all this is that, we do not educate our family in various financial matters. Writing a will- Is such an important part of your financial life. You spend a good 75 % of your life trying to gain in asset creation and it’s appreciation.
No thoughts on what it will happen to it, while you are gone.
Please keep all financial and estate papers in one place, let your spouse know about it, keep registered emails and passwords in place, lockers keys etc….
Let’s not the courts in India decide the fate of your life’s assets.
I heard another story where an employee in software, senior position, at 40 years, passed away. His wife is going to court for settlement for the last one and a half years. Is this a punishment for the surviving spouse???
Please contact us to know more about Estate Planning…
This is a also part of Financial Planning….

Difference between Stock SIP VS Mutual Fund SIP

Client : Hi Mr. Advisor, I want to know the difference between Stock SIP vs Mutual Fund SIP. 
Which one is better & why ? Can u explain both the concepts ?
Advisor : Yes sir surely. Why not
Well,  Stock SIP is averaging and mutual fund SIP is rupee cost averaging.
Albert Einstein very well said…
“Compound interest is the eighth wonder of the world”
we said…
“SIP is ninth wonder of the world”
Client : Oho… How !!! 
Advisor : Let assume, you want to buy 10  Kg. Apple every month…. 
Price of apple in January  – 20 per kg. Your expense is Rs.200, right?
Price of apple in February- 40 per kg. Your expense is Rs.400
The average per kg cost is 20 + 40 = 60 / 2 = 30 per kg.
This is average and your stock SIP is working on same principle.
Client : Then what is rupee cost averaging?
Advisor : Suppose your budget is to spend Rs. 200 per month on Apple. No matter what is the price.
Price of apple in Jan – 20 per kg, so you can buy 10 kg. (200/20)
Price of apple in Feb – 40 per kg. So you have 5 kg. (200/40)
Now tell me the average of per/kg apple. 
Client : Same 30 per kg
Advisor : No…
Number of kg you bought = 10 + 5 = 15 Kg
Total cost = 200 + 200 = 400 Rs.
Average cost = 400 /15 = 26.66
Now in the above example  as stock SIP, you bought of  apple is averaged at Rs. 30 per kg.  & as Mutual Fund SIP, your buying cost is averaged at Rs. 26. 66 per Kg. for the same apples.
This is Rupee cost averaging. Mutual fund SIP is working on this principle.
Client : Oh great!! So every time our cost per unit is less than its avg.  Now I fully understood rupee cost averaging. It’s awesome…

How to beat Inflation ?

Classic example of inflation when I bought MILK today morning….
Amul hikes milk price by 2 rupees per liter recently…
Rate in  March 2007 per liter after 2 rate hike in 2006…
Milk price of AMUL
Gold 19
Shakti 17
Taza 15
Today’s rate (March 2017)
Gold 52
Shakti 48
Taza 40
Milk price (INFLATION) increased annually between 10 to 11%
Your bank FD, Insurance investment, Gold and Real estate can’t beat this inflation  ( 5- 6 % tax free return of such investment)
Your return (5%)  – Inflation (10%) = 5% LOSS on your Investment
My Finology always reminds you that INFLATION is the biggest risk in the world.
Do you know the PROFIT or LOSS of company like AMUL?
The profit of this business is more than inflation (15-20%). You should buy this business via equity investment.
There are many good businesses (like banking, software, petroleum, pharma, hospital, auto, consumer  and many more) which beat inflation significantly.  For that you have to buy equities  so that you become a partner of that businesses.
But how do you find such good businesses?
It’s not your cup of tea but YES , It’s a job of Mutual Fund’s fund manager.
Conclusion of this example….
You must invest via mutual fund to beat inflation  ( 12-15% tax free return)

Money Lesson to Children from Dad

Recently I read awesome letter in social media from a dad to his 6 year old son when he asked for Money. I like to share it with you.


We regret to inform you at this time that we are unable to provide a loan in the amount requested of amount $20.00. After reviewing your account, we have find you have insufficient funds, and history of not doing chores.

Furthermore, over $80.00 has been spent on discretionary entertainment expenses since Christmas. This is an unsustainable amount of expenditure, and we cannot further compound the problem by financially assisting with occurring further debt at this point.

If you would like to refute this decision, you can contact our complaint department at XXX131415 (Mom’s Number). Our dispute manager at this number may be able to persuade us to reverse our decision.

Thank you for choosing DAD saving and loan, we appreciate the chance to serve your financial needs.


St. Louis, MO 63126