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RBI MONETARY POLICY UPDATE

Posted on 29 Oct 2015

RBI governor Raghuram rajan announced the fourth bi-monthly monetary policy for this fiscal year 2015-16 today. The main highlights are: 1. Reduction of the policy repo rate by 0.50 per cent from 7.25 per cent to 6.75 per cent with immediate effect Repo rate is the rate at which RBI lends money to banks. This will lead to lower interest rates on all loans by banks from today as banks have to reduce their own lending rates for their borrowers. Since the January 2016 target of 6 per cent inflatio...

5 SIMPLE STEPS FOR RETIREMENT PENSION

Posted on 22 Sep 2015

1. Make it a habit of saving at least 33% (1/3 rd ) of your net take home salary every month . Ensure that you stick to this with rock solid discipline and regularity 2. Take these 3 simple steps NOW - buy a family floater mediclaim policy (to cover any unforeseen hospitalization expenses for you and your family) buy a basic term insurance plan (only if you have dependants) AND keep 6 months living expenses in a liquid fund or bank FD. 3. Take this 4 th step NOW - invest all the remaining savin...

10 COMMON MISTAKES MADE BY INVESTORS

Posted on 22 Sep 2015

1. No Plan? Many investors take investment decisions without any long-term financial plan in mind. A long-term plan is based on life goals assets liabilities income and expenses. Example: goal to accumulate Rs 15 crores by retirement (age 63) goal to accumulate Rs 15 lacs for child s higher education by 2025 2. Short time frame. Many investors take investment decisions with a time horizon of few weeks or months . Investments particularly if you are buying equity stocks or equity funds need to b...

5 REASONS TO INVEST IN EQUITY STOCKS TODAY

Posted on 18 Sep 2015

1. The best way to beat inflation and become a MAHA CROREPATI! Investing in equity stocks and equity mutual funds through a staggered approach (Systematic Investment Plan) is the best way to beat inflation. In the long term (take 15 to 50 years time frame) the equity market indices (NSE nifty and BSE sensex) have given an long-term average 15% to16% p.a. annualized returns which is far better than the long-term average 6% to 7% inflation rate in India. Example: Amit age 23 years has just starte...

10 MISTAKES PEOPLE MAKE WITH CREDIT CARDS

Posted on 18 Sep 2015

1. Applying for a credit card Remember credit card is not free money . It is the most expensive loan ever Think carefully do you really need it. Instead use a debit card It is least expensive and it will keep you disciplined while spending money as you can only spend if you have money in your bank account. 2. Not bothering to check the monthly credit card statement The credit card monthly statement gives details of every transaction you have made. There are chances of error and extra charges in...

5 MISTAKES NOT TO MAKE WITH FRIENDS AND RELATIVES

Posted on 16 Sep 2015

1. Taking financial decisions with emotions Never mix emotions with finance. It is a dangerous cocktail. Establishing a financial relationship with your friends and /or relatives is risky as in case of default you not only lose your money but also a relationship. 2. Lending money First principle is to never ever lend money to any one . If at all you have to do so then be sure that you do not mix your emotions have a legally enforceable agreement with some security and collect the repayment post...

5 MISTAKES NOT TO MAKE WITH LOANS

Posted on 16 Sep 2015

1. Taking a loan to buy a car or any consumer durable (air conditioner washing machine mobile phones etc) Never take a loan to buy any product which depreciates in value (depreciation means losing value every day) You will get hit on 2 counts viz: you are paying a high rate of interest /EMI which will burden your finances every month and ALSO you are paying this EMI for something which is losing it s value every day. Example: A new car loses its value the day it goes out of the showroom. Instea...

11 STEPS TO FINANCIAL FREEDOM

Posted on 15 Sep 2015

1. Pray each day before you pay Emotional and spiritual balance will lead to financial freedom. Ask God to guide you and give you strength to follow these steps every day. 2. Make long-term financial goals If you don t know why you re doing this why you re making sacrifices why you re working so hard it s too easy to fail. But if you set goals they can help guide you even when things get tough. When you have to make decision your goals can help you stay focused on what s important. 3. Track eve...

KAUN BANEGA MAHA CRORE PATI…!!

Posted on 15 Sep 2015

1. Most of us have watched and remember that iconic gameshow on TV. In that program getting to the hot seat in front of the anchor was a matter of sheer luck. Then making money was a matter of knowledge and sheer hard work required to attain that level of knowledge. 2. Don t all of us want to become MAHA CRORE PATIS ? 3. Start investing TODAY in SIPs(systematic investment plans) of equity stocks and/or equity mutual funds. Indian equity market (BSE Sensex) has given an average annual return of ...

7 MISTAKES NOT TO MAKE IN VOLATILE MARKETS

Posted on 14 Sep 2015

Don t check the value of your long-term investments on a daily basis. Long-term means long-term (10 20 30 or even 50 years) not daily Don t stop your SIPs in equity stocks or funds Stopping SIPs when markets are going down would be the most foolish thing to do. In falling markets that you will get better value as the NAV will fall and your average cost price will come down if you continue SIP in falling markets. Falling markets are the best opportunity for the long-term investor (read: long-ter...

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