The Opportunity Cost

Opportunity Cost

Last weekend while I was attending a marriage ceremony of my cousin, I met with many cousins of mine whom I had not seen from quite a long.

As I am the eldest child of my family, and my parents are the eldest child from their respective families too, most of my cousins are younger to me. I had well-engaged discussion with few of them about their life and their future aspirations. But as I have this bad habit of discussing personal finance, after few minutes of discussion usually discussion gets drifted towards my favorite topic, that is The Personal Finance. As I did with my one of the cousin in my last post. 🙂 Read Full Article →


Is he an Advisor or a Distributor?

Personal Finance Doctor

Later part of the last week I was on vacation to attend a wedding of one of my cousin at Ahmedabad.

After one late night event, another cousin of mine (professionally a practicing doctor) gave me a ride to the place I was putting up, let’s name my cousin Amit. On road casually I changed the topic and drifted to Personal Finance related discussion and started discussing his future plans and kind of investments he is making to achieve them. After few fund names and discussing casual review of them I casually asked him how did you end up with such funds, and as I expected for most of them he just checked their returns on the internet and decided to invest in them because of their good returns irrespective of risk being involved and whether it’s within one’s risk capacity or not. He did try to approach few financial planners to help organize his finances but they could not establish a trustful environment with him and hence he decided to do investment planning on his own. But one thing my Doctor cousin forgot is the way he expects a sick person to visit a doctor instead of taking medicine on his own similarly when you are sick with investments you need to see a Personal Finance doctor, that is an Advisor. For him finding an Advisor itself was a challenge, forget about finding the best Advisor. Finding a good Advisor is as complex to him as finding a good doctor for any non-medical person. Read Full Article →


Investment Review Process Parameters

Review Process

We buy investments several times based on advice and/or analysis done by others, because of which the buying part becomes very easy but the real problem starts from there as we do not get to know when to get out of the investments, the selling part. I have already written an article on this earlier called “Are you Abhimanyu of our times?”. Please read my earlier article when you get a chance. So, instead of repeating my earlier topic this time I would like to define review process parameters for investments, specifically for Equity oriented Mutual Funds. Read Full Article →