Have you ever wondered how items on given menu influence our choices? Many times I have been in a situation wherein I have entered a restaurant without any pre-decided choice and I end up choosing an item from menu even though it’s not of my choice. I am sure every one of us has been through such situation at least once.
Direct Plan and Regular Plan of Mutual Fund are most likely not a new term for people if you are not living under rocks from last few years.
Certainly, there are many articles pop-up when you do simple Google search. In simplistic words, when you buy funds under Regular Plan you have a distributor in-between you and AMC (Asset Management Company), who get a small portion (roughly about 0.30% to 0.80% on average) of your every investment from AMC on your behalf as part of the expense ratio. Wherein, when you go with Direct Plan then you are directly dealing with AMC so no such charge being paid hence their expense ratio is low compared to Regular Plan. But as Uncle Ben said in Spiderman, With great power comes great responsibility. By saving a small percentage on Direct Plan we loose helping hand too, as most of Financial Advisor act as a distributor to provide discounted advice services.
Abhimanyu is a very well known character from Mahabharat. Please read the detailed story about him on Wikipedia.
He is a classical example of how much partial knowledge can be destructive to an individual and society. Here is small brief about his partial knowledge about Chakravyuha. It is believed that while his mother was pregnant with him, Krishna told Abhimanyu’s mother the technique to enter in Chakravyuha and child Abhimanyu listened to it inside mother’s womb. But before Krishna would tell her the way to get out of Chakravyuha she fell asleep and hence Abhimanyu could not listen to it. During his teenage age he fought Kurukshetra war where he was made to penetrate Chkravyuha but as he did not know how to come out of it and as a result he was killed by Kaurava.
“Our favorite holding period is forever.” – Warren Buffett
Agile Software Development Process is a well-known methodology, and people from IT background might have a fair idea about it.
Agile methodology emphasis on many aspects which could be leveraged in our investment life cycle.