Simple Things That Matter More...

Here are the simple things that matter more than what you think, in your wealth creation journey.

How much you save matters more than how much you earn.

How much you invest (from your savings) matter more than how much you save.

How long you invest matters more than how big you invest.

How you perform (behave / manage) with asset classes and markets matter more than how the asset classes and markets perform (behave).

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The Hidden Dangers of Unregulated and Private Chit Funds

Chit funds have long been a part of India’s informal financial ecosystem. Blending aspects of savings and borrowing, these schemes are often woven into the social fabric of small towns, urban neighbourhoods, and even office circles. On the surface, chit funds seem like a convenient, flexible, and even trustworthy way to manage finances. But beneath this familiarity lies a significant risk—especially when the chit fund is unregulated , privately managed, and operated outside the bounds of formal finance. Investors lured by the promise of higher returns may find themselves caught in a web of defaults, mismanagement, and financial ruin. This article outlines the key dangers of investing in such schemes and why cautious, informed decision-making is essential. Understanding How Chit Funds Work A chit fund is a type of rotating savings and credit association (ROSCA). A group of people contribute a fixed amount of money every month. At periodic intervals, one member receives the total...

Why an Agent (Commission) is Better than an Advisor (Fee) Sometimes... rather many a times!

It is well established that separation of 'Financial Advice' and 'Financial Product Sales' is a great idea to avoid conflict of interest. Mixing both, that means advice from a product seller, may not always be unbiased. Paying fees for advice only, (where adviser gets paid by the client only and won't earn any commission or remuneration for the products he /she recommends) indeed is a great idea logically. Sometimes (rather most of the times!) we humans don't behave logically. I see three types of people: Majority - reactive people, who need to be chased to do get them buy and renew their Insurance policies or start and keep the SIP going; Minority - people who get the financial plan and advice by paying fees and then get too busy with their work that it keeps them postponing the implementation of plan / advice for eternity; Rarity - proactive people who plan and implement meticulously. Financial Advisers add little value to the rare proactiv...

The Reasons for Present Indian Economic Slowdown

First, is this a slow down and what are the indicators and signs? 1. GDP has fallen sharply to 5% (against normal 7-8% and ambitious growth rate of 10%+) 2. Automobile sales have sharply dropped 3. Unemployment rate has increased 4. GST collections growth rate (@6.5%) is declining and in some months of de-growth (decline) is seen against expected 10% growth rate. 5. Private sector wages are not increasing 6. Lot of negative news about banking and financial companies 7. Bank credit growth low for long and slowing down below long-term average Ok, there are enough signs but what are the reasons? Actually these signs are reasons for one another; i.e., they are interdependent. Ironically all these bad things started because of good things. I mean the root cause of these bad things are actually the good things that were done few recent years ago. Good policies and actions by RBI and government that disrupted the "business as usual", sown the seeds of slow down...

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