Parking your Money in NIFTY Index gets better than Fixed Deposits in India.



Mutual Funds is a safe way to invest in the markets. If you are a non finance guy or one who does not have time to stalk the market on a daily basis, you may choose to participate in the market via Mutual Funds.

The products offerings by Mutual Funds looks like a buffet to me. What to take and what not to take. The fund managers are vying for your money by giving you various strategies to make money. I also agree to what they do. Every fund has the potential to make money for you provided you understand the philosophy.

But, if you are the one who is just glossing over the mutual funds schemes because you have become disenchanted with the lowest ebb that the Fixed Deposits Interest rates have reached in India, then, I have a simple idea for you. Look for Index Funds.

The beauty of Index Funds is that they do not follow any particular fund philosophy. They just follow the market indices. For example, if you take NIFTY 50 Index fund, then, you will see that the portfolio of the fund is a mere reflection of the NIFTY 50. You will find the stocks and their weightage mirroring the composition of the Index. Hence, they are called Index Funds.

The reasons why the Index Funds should be your favorite gateway to Mutual Funds are more than one.

1. Expense Ratio: The ration talks about the expenditure that you incur on giving your money to be managed by the fund managers. The most common expenses are the brokerage charges and the number of times that the portfolio is churned by the fund managers. When the fund managers buy and sell or trade in the stocks, there are charges attached to them. So, more often the portfolio is churned, higher will be the expense ratio. Index Funds do not have high expense ratio for the simple reason that the stocks are bought in the same ration and composition as they reflect in the Index. Say for example, if you are buying NIFTY 50 Index fund, then, it simply implies that you are buying the whole godammn index. So, minimum expense ratio.

2. The funds forming the index reflect the true picture of the market. The stocks so not remain the same all the time. They make entry and exit as per their role played in the overall games of the stock markets. Like Volume turnovers. So, if you are investing in the index fund, you are set to gain.

3. Quality Stocks: Those funds that make their entry into the Index are performers. That’s why they are there.

4. Volatility: They are the least volatile. This is the reason why I am asking you to look at them. They are as good as FDs. Only thing that you would need to remember is that they are stocks and not bonds. Stock is something that will move up and down. People will buy and sell them. So, they would follow the trends of demand and supply. If you give them enough time, they are bound to grow.

Investing in mutual funds is a safe and secure way to increase your prosperity.  Start with Index funds to gain confidence in investing.  Bonn investing!!


Learn to live by earning and investing in Relationships

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The ideas of earning and investing are equally good for teaching the life lessons:

Earn:  You need to earn the respect of others.

How do you do this?

To understand the term earning, let’s get into the theory which is understood from the money angle.  You earn when you work.  Your work defines you.  It creates your identity.  You can be best or worse.  It depends on your attitude and hard work.  If you want to be the best, then you need to work really hard at times and smarter at other times.  You earn your daily bread when you put definite hours of work every day, every month and every year.

The same goes with learning to earn the respect of others.  You need to show your work to others.  Your work in terms of relationships could be taking out time to spend with the family, going on bike with your kids, resting on Sundays at a children’s park while they play around.  You will earn the respect of your kids and your spouse.  You will also earn the respect of your children’s friends.  Your kid’s teachers will also appreciate your work towards your children.  Yes, it is work at times.  You have to work your way to create truly defining relationships.


Investing in relationships is as important as investing in good stocks and mutual fund schemes.  You need to be a consistent investor.  Invest daily in small quantities but invest regularly.   We invest in mutual fund schemes regularly and one day, we get bewildered by the huge corpus of wealth that we create.  But before the amazing returns arrive, there are many ups and downs.  Similarly, if you take your time out to invest daily 25-30 minutes of your time to spend with your family, that would be more than enough.  Now, these 25-30 minutes with them should be totally dedicated and devoted to them.  Quality time.  Take dinner with them.  Pray together in the morning or thank god together before going to bed at night.  Investing regularly not only will keep you in the heart of your family and friends but it will also nurture and deepen your relationships.  You will survive the tectonic movements and the stormy weather in your relationships with your boss and spouse.  You wouldn’t be required to give explanations for arriving home late occasionally.  You will be understood and your many responsibilities will be shared by the others because they do understand you and know that you are honest and sincere to them.

But, the reality bites.  Just like we want to earn superb returns on our investments, we expect the same to happen in our relationships.  Having spent a decade in a relationship with my wife and more than three decades with my parents, I am now realizing how different types of relationships move.  They all move at their own pace.

People are the real wealth.  They are your real assets.  Sean Covey in fact has one of his habits mentioned in his bestselling book, “The 7 Habits of Highly Effective Teens” named as “Relationships Bank Account”  People who want to get ahead in building wealth should invest in people.  The kind of people who you sit with, spend time with and share your months with are the real stocks of your life.  They may go down at times but they will rebound and turn into multibaggers only if you stay invested in them.  Mind it, the kind of people you are investing should have their fundamentals strong like the companies do.  Don’t try technical analysis.  Technical analysis basically looks at the trend and presumes that the past performance will predict the future.  No, it neither happens with the stocks nor with the relationships.  Believe in Value investing and don’t trade.  If you stay this way, you are bound to be wealthy my friend.

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Financially Literate

On 26th of September, I got an oppurtunity to give a talk on “Financial Literacy”.  In fact, it was not simply a talk but a well planned speech/lecture accompanied by a power point presentation.  The reason why I am saying it was talk is that I did not take the usual stereotype lecture format to deliver it.  I ensured that it was a casual and interactive session which it really turned out to be.

download-1I was stunned by the kind of questions that were raised post talk.  I was asked questions like ” Why stock prices fluctuate?, How to open a FD ?  What is the current interest rate on FD?, Why is JIO providing services for free.  You may be presuming the audience to be well mature or atleast grown-up.  No, they were simple school kids of 8th, 9th and 10th std.  This shows that the generation of tomorrow is very smart and they are learning things very fast.  I was glad to see this.  I hope I can deliver better stuff next time.

Earn, Save & Invest

“Earn as much as you can,

Save as much as you can,

Invest as much as You can”

-John Wesley

Money speaks to everyone.  It speaks to you, it speaks to me.  It is one of the integral part of our lives.  We can live without water but not without money.  Money will buy you water.

I started this blog after a long thought process.  Firstly, I am delighted by this amazing technology called internet.  It goes everywhere.  Right into our homes, on our mobiles, laptops transcending boundaries of state, country and geographies. 

Money is a universal theme and relates to all living people on this earth.  No matter where you are, what your currency is, you talk about it all the time.  Rich talk about it, Poor talk about it.  I am lucky to be in the field that connects everyone.  I want to give you and share with you the knowledge and the experience which I have gained over a period of time using or misusing money.  This will not make you rich right away but if you are able to cultivate some good habits on savings and investments front, I bet you will rake in moolahs!   

There are no short-cuts to making money but there are smart moves you can make to earn well and live a better lifestyle.  The purpose of this blog is to make you understand your money in a holistic manner.  We all work very hard to earn our livelihoods.  The income that we generate is not sufficient to fulfill all our needs.  But, at least it should fulfill most of our meaningful needs. This is possible only when we will understand how money works.  What are the systems in place that it goes through.  Money never remains static in your bank account.  It exchanges hands.  Earn, Save and Invest is a triad born out of this philosophy.

The process starts with generating income.  You work on a job or run a business.  You make money as regular salary or gross revenues.  Then, you spend on your expenses and overheads.  What is left is your savings or profits.  These savings when deployed strategically for future income becomes an investment.  

If you are able to do good job with your savings and investments, earnings will follow.