September 2020 - Deeva Ventures Pvt Ltd

7 Things to do when your Mutual Funds are in Red

When investors seek higher returns, they invest in equity mutual funds. A higher return comes with a cost, in equity it is Volatility. Mutual funds are affected when the markets are volatile and this is why your mutual funds are going up & down.

Now many times when the market is volatile, such as now, investors panic and take decisions that may not be in their best interests. If you are an investor and wondering what to do with your investments in this situation, here are 7 things you can do instead.

Keep Calm
This is the absolute first step to successful investing.
The stock markets usually perform well over a long period. In the short term, volatility causes the price to go up and down.

While you can lose money in mutual funds due to short term market disturbances, if you look at the long term, instances of negative returns drastically reduce after 3-5 years of holding.

If you have a longer time horizon of say 7-10 years, you need not get disturbed by the news around and lose your calm. Don’t let the noise get to you.

Avoid Redeeming In Haste
Can you lose money in mutual funds in falling markets? Yes. But does this mean you should redeem your investments? No. Think twice before redeeming your money the moment you see the markets perform poorly.

Certain investors believe they can take their money out of a mutual fund when its value goes up and then invest again when the value starts going down. This sounds good in theory but usually does not turn out well.

What happens most of the time is that people take out their money from a mutual fund and wait for the right time. But more often than not, the timing isn’t perfect. What ends up happening is that people sell when the price falls.

And then, when they plan to invest again, they invest at a price higher than what they sold their mutual funds for. This hurts the long term wealth creation process.

So decisions like redemption should not be a factor of current market conditions. Investing in equity mutual funds via the SIP route is what comes to rescue in such cases since SIP frees you from market timing.

It also leverages rupee cost averaging to buy you more units when the markets are down.

Compare Performance With Other Funds in the Same Category
You may feel the mutual fund you have invested in is not performing very well. This may or may not be a time when the markets are doing well.

A good strategy at this point is to check your mutual fund’s performance with mutual funds in a similar category.

Also, mutual funds are long-term investment options. If you observe your mutual fund’s performance is only slightly poor when compared to the best-rated funds, switching might not be necessary.

Over a short period, various mutual funds perform in different ways. In the long run, the best mutual funds belonging to the same category usually give similar returns.

Compare Performance With Other Funds From Different Categories
Certain mutual fund categories are more volatile. This means, while they might offer great returns, they can also offer higher risk.

If you feel you are not up for the risk, you should look at the performance of mutual funds from other categories.

For example, small-cap mutual funds give very high returns. But they also have a higher risk. Relative to small-cap equity mutual funds, large-cap equity mutual funds have been less risky.

Also, you might want greater returns and be willing to take the risk. In that case, too, you should explore the best funds in the other category for investment.

Research the Sector
Another reason why your mutual funds are falling could be because your investments are sector focused. This point is relevant to you only if you have invested in a sector fund.

Sector funds invest only in a specific sector or industry.
Sector funds are considered the riskiest for a reason – they are even harder to predict when compared to other equity mutual funds.

So if you have invested in a sector fund and are losing money, pay attention to the health of that industry and its prospects.

If you think the industry has a good future, continue to remain invested. If on the other hand, you think the industry isn’t doing well, you should plan to redeem your money.

Diversify
This is perhaps the only way to counter your mutual fund loss at the moment. If your portfolio is exposed only to equity, then add some liquid/debt funds to the mix.

They will not only balance out your losses due to equity but will also allow you to raise money for short term goals. Also, diversify across asset classes.

Gold is considered as an excellent hedge against market volatility as gold prices usually go up when the markets are done. You can look at exposing about 5% of your portfolio to gold.

Can you lose money in mutual funds? The answer is YES. Should you have a knee-jerk reaction at seeing a red portfolio and make big decisions? Probably not. While the situation is uncomfortable, this too shall pass. Markets have bounced back before and this time also.

From temporary events like elections and geo-political tensions to recessions to pandemics, the economy has seen it all and thrived nevertheless. Investing is a long-term game and should be treated like one.

Stay calm, invest with a vision, keep yourself updated and you are good to go!

All about GOI 7.15% Floating Bonds

The government has announced the launch of the Floating Rate Savings Bonds, 2020 (Taxable) with an interest rate of 7.15 percent. The bonds are available for subscription from July 1, 2020.

As per the Reserve Bank of India (RBI) press release, the interest rate on these bonds will be reset every six months, the first reset being on January 01, 2021. There is no option to pay interest on a cumulative basis i.e. interest will be payable every six months instead of having an option to receive it at maturity.

These bonds have been launched in lieu of the earlier withdrawn 7.75% RBI bonds. The 7.75% RBI bonds offered a fixed interest rate for the tenure of the bonds.

Further, they also offered the option to receive the interest either in a cumulative (payable at maturity) and a non-cumulative basis (payable every six months).

Here is a look at the features of the newly launched floating rate bonds.

Who can invest in these bonds?
Individuals (including Joint Holdings) and Hindu Undivided Families (HUF) are eligible to invest in these bonds. NRIs cannot invest in these bonds.

How much can you invest?
There will be no maximum limit for investment in the bonds. The minimum investment starts from Rs 1,000 and in multiples of Rs 1,000, thereof.

What is the tenure of the bonds?
The bonds shall be repayable on the expiration of 7years from the date of the issue. Premature redemption shall be allowed for specified categories of senior citizens. This is similar to the earlier withdrawn 7.75% RBI Taxable Bonds.

How much is the interest and how will be payable?
The interest on the bonds is payable half-yearly on 1st January and 1st July every year. On 1st January 2021, interest shall be payable at 7.15%.

The interest rate for the next half-year (which is due on July 1, 2021) will reset every six months, the first reset being on January 1, 2021. There is no option to pay interest on a cumulative basis.

This would mean that once the interest on bonds is due, it will be credited to the investor’s bank account at the same time instead of payable at maturity.

How will the interest be taxed?
Interest received from these bonds will tax as per the income tax slab applicable to your income. Further, TDS will be applicable on the interest income.

How to invest in these bonds?
Investment in these bonds can be done online. Our representative will help you with the process.

Points to remember

• The bonds are not eligible for trading in the secondary market and cannot be used as collateral for loans from banks, financial institutions, NBFCs, etc.
• A sole holder or a sole surviving holder of a bond, being an individual, can make a nomination.
• The bonds shall not be transferable except transfer to a nominee(s)/legal heir in case of death of the holder of the bonds.

Sensex jumps 13000 – here are 5 mistakes to avoid

Cheering the Government’s move to unlock the economy, the stock markets rallying strongly, taking the Sensex up-to 39000. As an investor, here are five mistakes you should guard your portfolio against.

Don’t succumb to FOMO (Fear Of Missing Out)

You may have exited your equity investments and sat on the sidelines when things started heading down in March.

Now, with the stock markets have rallied 50% from the bottom, you could feel a strong urge to throw caution to the wind and push all your money back into equities all at once. However, this would be a mistake.

It’s highly unlikely that markets will continue its one-directional surge for very long. Once the euphoria settles, real data such as earnings growth and GDP numbers will come into focus and drive stock prices.

Going all in right now could mean that you’ll be staring at a heavy loss when the current rally retraces. Instead, it would be a lot wiser to stagger your way back in using weekly STP’s (Systematic Transfer Plans) over the next 3-4 months.

Beat the Action Bias!

If you were among those who saw their investments sink deep into the red when markets capitulated in March, you may be itching to take some sort of action with your portfolio, now that the notional loss is lower.

There’s absolutely no need to jump the gun and make rash decisions to exit your investments at this time. Remember, you got into equities for the long run – so remain invested through the ups and downs, and let the economic recovery play out properly over the next year or two.

Moving in and out of your investments will surely work to your detriment in the long run.

Don’t stop and start your SIP’s

Remember, we’re not out of the woods as yet. What we are seeing right now is nothing more than a euphoric, liquidity fuelled spurt in stock prices because the lockdown was lifted.

Though the worst may very well be behind us for now, stock-markets wise, a long and winding road towards economic rehabilitation lies ahead. As the world adjusts to the new normal, we’ll see plenty of volatility in the markets.

It’ll certainly be a few quarters before consumption returns to pre-COVID levels. In the interim, we may witness more measures to curtail the spread of the virus, which may hurt market sentiments.

Some businesses will flounder, while others will adapt and grow. In such a volatile scenario, the best thing you can do is to allow your SIP’s to continue dispassionately – a month in, month out.

Stopping and starting your SIP’s would be a big mistake. Just sit tight and let Rupee Cost Averaging work its magic.

Don’t time the market

With the number of variables and incoming data prints involved, it would be impossible to predict the short and medium-term direction of the markets during this time.

You may have one bullish month followed by a severely bearish month, followed by another surge. Towards the end of May, banking stocks rallied 10% in two days for no apparent reason! In times of such extreme volatility, any attempt at trading would most likely land you in a big soup.

Whatever you do, do not try to time the market; instead, follow a disciplined approach to investing, staggering investments into the markets using a well-planned approach wherever necessary.

Don’t invest unadvised

In choppy waters, the support of an astute Advisor can prove invaluable. In such times, even the most seasoned investors can fall prey to a host of behavioral biases that will work to their long-term detriment.

Your Financial Advisor can be the much-needed voice of reason that will help you make better investment decisions. Choosing to invest unadvised to pinch a few pennies would be a highly regrettable decision right now.

Don’t fly solo – instead, hand over the controls to a conflict-free, competent Financial Advisor who is acting in your long-term interest!

5 Financial Lessons from COVID 19

As the nation grapples with the devastating impact of COVID 19 and financial markets gyrate to the tune of incoming news flows, a number of valuable financial lessons come to the fore. Here are five important ones.

Adequate Health Insurance is a must

Many of us rely on our company-provided Mediclaim policies to fund our healthcare emergencies. What we fail to account for, though, is the fact that an unexpected job loss could leave our families without health insurance protection almost overnight.

Also, worth considering is the fact that COVID 19 treatment costs have run into several lakhs for many affected patients.

The crisis has certainly taught us the importance of having an optimal quantum of high-quality health insurance coverage in place, notwithstanding your company provided Mediclaim.

Timing the market is futile

When the NIFTY sank to sub-8000 levels in March and sentiment was at its lowest point, doomsday predictions were a dime a dozen. Investors made a collective beeline for the redemption button and exited equities.

However, markets have since staged a smart recovery, and are showing definitive signs of strength. The takeaway here is the well-worn fact that market timing is impossible, and so should therefore not be attempted.

The only way to create long term wealth from financial markets is to follow a contrarian approach by accumulating equities when fear is at its highest point and to sit through the rough rides thereafter.

An Emergency Fund is vital

If there’s one Financial lesson that the COVID-19 crisis has taught us, it’s the critical importance of building a savings pool that can be used to ride out a prolonged contingency.

An emergency fund is the most basic pillar of sound financial health. Make sure you’re putting away money consistently into a financial instrument that is low risk in nature and gives you the comfort of easy and immediate access to capital.

Follow the thumb rule of having 6 to 12 months of fixed monthly expenses stashed away at all times – you never know when you might need it, as emergencies don’t come announced.

Discipline makes a world of difference

The most effective antidote to the host of behavioral fallacies that plague our day to day investment decisions is to follow a disciplined approach.

In fact, this argument carries even more weight during volatile times such as these. Investing via SIP’s (Systematic Investment Plans) without giving a second thought to market levels or the unending stream of good and bad news flows that inundate our minds on a daily basis, can prove extremely effective.

In the long run, such automatic averaging would go a long way in ensuring fantastic portfolio returns. Stay disciplined.

Unadvised Investing can be injurious to your portfolio!

Needless to say, unadvised investors who went down the direct plan route in a hapless bid to save on investment costs have had a harrowing time of late.

Without the valuable support of a “coach” in the form of a qualified Financial Advisor, many of them have taken regrettable investment decisions in the past couple of months that will have long-term ramifications on their future wealth creation.

For best results, seek the support of an experienced and proven Financial Advisor who will be acting in your interest at all times. COVID or no COVID, flying solo can prove dangerous to your Financial Health!

13 Points to Remember Before Buying Health Insurance

Choosing the correct health insurance plan is an important decision for all of us. Not only is health a true wealth, it gives a sense of security and peace of mind for both you and your family.

It always assures us of the best chance to get well, just in case something goes wrong. Here are 13 points to consider before buying health insurance.

Buy health insurance early

The earlier you buy, the better for you because as you grow older you are likely to become less insurable. Some of the benefits that I see while buying health insurance at an early age are as follows:

No medical checkups.
Lower chances of rejection for buying a health insurance plan.
Coverage for all diseases.
Hassle-free policy renewal.

Sum assured

In simple terms, the sum assured is the maximum amount you get as coverage in a policy year. It’s the basis of all your claims.

Before you select your sum assured, consider the rising costs of hospitalization and treatment.

It’s better to go for a higher cover, but at the same time, it shouldn’t be so high that you have to go out of your way to pay the premium.

Co-pay and sub-limits

Insurance companies have introduced co-pay and sub-limits to prevent hospitals from billing them unreasonable room rents. In co-pay policies, you have to pay part of the expenses, regardless of the sum insured.

For instance, if there’s a 10% co-pay in a policy, the insurer will pay 90% of the expenses while you have to bear the balance. Besides, many treatments are capped by insurers to reduce hospital claims.

The system is called sub-limits. Choose a policy with fewer sub-limits. Many insurance companies have no capping on the room rent. Ideally, select a plan which has no co-payment or sub-limits.

Critical illness

Most comprehensive healthcare policies cover critical illness. It’s not required to go for another policy. It’s better to opt for a comprehensive plan and then top up insurance which doesn’t cost much. These two would be enough for most of the issues.

Family Floater

It’s always better to invest in a single plan which takes care of your family members including you, such as the Family Floater instead of taking the separate plans for each of the family members as the premium for multiple policies will be higher than the premium for a single policy.

Also, In Family Floater the full coverage, if required, can be utilized by a single member of the family.

Restore benefit

This feature will allow you to reinstate the basic sum assured, in case you have already exhausted the sum assured and the multiplier benefit within the policy year.

But market experts say that the benefit is unavailable on the same illness where the limit has been already exhausted.

No claims bonus

Insurance companies generally provide a no claims bonus to a customer if there are no claims against the policy in the preceding year.

Before buying a plan, check out the quantum of no claims bonus, which often ranges from 5% to as high as 100% of the Basic Sum Insured.

A high no claims bonus can cover you against medical inflation and you won’t have to increase your coverage every year.

Pre-existing, waiting period and exclusions

Pre-existing diseases are the ones you have at the time of buying the policy and most insurers have a waiting period for such ailments.

If you have one, your insurance company may not give you a cover against it while subscribing to the healthcare policy.

The pre-existing disease, depending upon the insurer, usually gets covered after at least a couple of years. Many insurers take four years in this regard. It’s also important to check the list of exclusions.

For instance, if you have diabetes at the time of taking the policy, kidney ailments may be excluded from the list if it’s caused due to diabetes. Don’t hide any pre-existing health issues when you buy a policy. It may greatly reduce your claims in case of hospitalization.

Annual free check-up

Many insurance companies provide a free health check-up to the subscriber. But it always comes at a price that is embedded in the premium. You may go for it only if you are keen to avail of the facility every year.

It’s also important to check whether a healthcare policy, which is renewed every year, covers you for the entire life because life expectancy is increasing, courtesy; improvement in medical technology.

While the majority of the popular policies give whole life coverage, there are a few that cover only till 75-80 years.

Maternity and daycare

Many recent policies now extend cover against day-care procedures in hospitals that don’t require an overnight stay.

Before buying such a policy, check out the number of procedures covered in the plan that doesn’t require overnight hospitalization. Besides, if you are planning a baby, ensure that the policy covers maternity expenses.

Most insurance companies don’t consider maternity as a medical emergency and if you have no plans for a baby, you shouldn’t look for it because the price is embedded in the premium.

Top-up plans

Rising medical costs call for large covers. However, not all can afford high premiums. This is where a top-up plan comes useful.

In a standard plan, your insurer pays up to the sum assured. But top-up plans don’t pay until your bill breaches a particular limit.

Air ambulance

This feature covers the expense for Air Ambulance transportation for emergency life-threatening health conditions which require immediate ambulance transportation to hospitals in India & abroad.

Many insurances cover air ambulance up to 10% of the sum assured while some offer up to 5 lacs with a maximum of 2.5 lakh per hospitalization.

Global coverage

Cover your medical expenses related to inpatient & daycare hospitalization incurred outside India, provided that the diagnosis is made in India. Few companies offer global cover for critical illness only whereas few offers for any planned medications.

It’s quite important to select the right coverage or else you will increase your premium. Remember a 4 inches pizza with more toppings will not help a family of 4. You need an 8 inches pizza either with more topping or less.

Now that you are aware of things that you need to keep in mind while buying health insurance, why wait? Call our success planners to get quotes from top insurers. You can easily compare plans and buy.

Here are 16 Additional Coverage for your Vehicle you never knew

Return to Invoice – The IDV shall be taken as the On Road Price which is defined as Manufacturers’ Selling Price of the vehicle+ Road Tax +Registration Charges as applicable for the class/make a model of the vehicle as supported by the invoice of original purchase issued to you by the insured and documents in support of the charges payable under the head Road Tax and Registration Charges.
Depreciation Waiver – In the case of an accident leading to a partial loss, there will be No depreciation charged on the cost of the parts to be necessarily replaced.
Daily Cash Allowance – Insurance Company will pay you a Daily Cash Allowance in case your vehicle is laid up in an authorized garage/ service station for repairs of accidental damages covered under the Policy and the vehicle is essentially required to be laid up for more than 3 days at the garage.
NCB Protection – In the event of Claim for (a) Accidental damage to the windshield by breakage (b) Theft of vehicle or theft of electronic /electrical/nonelectrical accessories (c) In case you go for repair of a rubber/plastic or fiber part damaged in an accident instead of replacement. Subject to no other claim for damage to the vehicle under the Policy, while determining the renewal premium these claims shall not be counted (taken as not happened) and NCB shall be protected
Loss of Driving Licence / Registration Certificate – In the case where the insured suffers a loss of Original Driving License or the Original Registration Certificate, the Insurance company will provide compensation of up to Rs 500 to obtain a duplicate License or RC.
Emergency Hotel or Transportation Expenses – Insurance company shall reimburse you the cost of expenses incurred for accommodation for an overnight stay and /or those for travel to your place of residence or nearest city on your itinerary. Necessarily incurred in the event of your vehicle meeting with an accident en-route and it is impossible to drive the insured vehicle due to an accident and the vehicle had to be towed or if the vehicle is stolen.
Electrical and Mechanical Breakdown Coverage – In event of an electrical breakdown due to ingress of floodwaters without the vehicle meeting with an accident Insurance company shall pay you to cost of necessary repairs subject to the same not being payable in manufacturer’s warranty
Key Replacement Clause – Covers the (a) Cost (locksmith cost) to replace the locks and keys if the vehicle is broken into or stolen and recovered (b) The labor charge for opening the car if you have lost the keys or (c) Cost of the replacing your car keys which are stolen or lost.
Loss of Personal Belongings Clause – Covers loss of personal belongings viz baggage, clothes, bag, etc belonging to you and your dependant family members from the car by breaking into the locked car by visible means or by any peril as insured under the Motor Vehicle Policy
Tyre Protection Cover – Damage to tyres and tubes are covered only if the vehicle has met with an accident resulting in damage to the tyres and/or tubes.
Engine Protection Cover – This add-on provides coverage towards damages or losses to the insured vehicle’s engine. The add-on compensates you for the replacement or repair of your car’s engine or parts.
Consumable Cover is an add on the insurance coverage that pays for the cost of consumables in Car Insurance required to be replaced or refilled in the event of an accident of your car.
Accidental Injury Compensation for Owner/Family/Driver – While traveling in the insured vehicle the Owner/Family/Driver is covered against the risks of assault or any other bodily injury leading to Death/Permanent total/Permanent Partial disability in any accident involving the vehicle.
Personal Accident Cover Owner/Driver – You are covered 24X7 for an amount of Rs 3 lacs/4 lacs/ 5 lacs/10 lacs against the risks of assault or any other bodily injury leading to Death/Permanent total disability in an accident when you are traveling in the insured car. This is in addition to the restricted Compulsory Personal Accident cover for Owner Driver.
Accidental Hospitalisation for Family – This is a special clause for reimbursement of inpatient hospitalization expenses incurred for accidental injuries suffered whilst traveling in the insured vehicle only. The cover is available as a single limit for all the named family members.
Road Side Assistance – help’s you in times where you need roadside assistance. Whether it’s a small mishap or a flat tyre, a 24×7 roadside assistance cover can help you in times of such troubles, without even accounting it as a claim.

Motor insurance plan is mandatory to protect your vehicle from financial burden in case of any damages. Be careful in choosing the right additional coverages for your vehicle.

3 Amazing Advantages to the Employer

The recent COVID-19 pandemic outbreak and the sky-high costs of treatment are huge stress on most of the business. Group Health Insurance for your employees can be a Saviour.

3 Amazing Advantages to the Employer

Motivated Employees: In today’s scenario, when Covid-19 treatment reached a great height, group health insurance is considered as an added benefit. By ensuring against higher hospitalization costs, employers can motivate their employees.
Helps in Retention of Employees: These days more and more companies have become employee-centric and group health insurance has become one of the most preferred benefits to attract and retain talented employees. The group policies also cover the family members of the employees, making the employees feel more attached to the organization.
Low Cost: Group health insurance policies can be bought at low cost to the employee, as it is like buying in bulk, gives discounts.

Corona Kavach policy is an indemnity plan where the hospital bill gets reimbursed. The coverage as well as the terms and conditions of the policy remain identical across companies.

Sum Insured of Rs 50,000 to Rs 5 lakhs, subject to age limits of one day to 65 years. The policy period can be three and a half months, six and a half months, or nine and a half months.

Why Should We Invest in US Stock Market?

The US stock market is home to some of the largest and robust companies with sturdy underlying fundamentals, who are poised to prosper despite the uncertain future.

Taking your current portfolio into account, an addition of US equities will add stability without sacrificing returns. Investing in global equities as an Indian gives you the opportunity to participate in the growth of global economies. Here are a few reasons why one should invest in US stocks:

Why Should We Invest in the US Stock Market?

Global Exposure – A majority of listed companies in the US are foreign companies that have penetrated the US market to take advantage of a large number of investors and to be where the money is. While being invested in US stocks, actual exposure to the US economy is relatively low. Purchasing stocks from the US market will have you not only be invested in the American market but also in international markets giving you access to the whole world.
Largest and Most Liquid Market – Market Capitalization refers to the total value of outstanding shares of a listed company that can be traded. The US is the topmost country in the world in terms of market capitalization as can be clearly seen in the below-given graph. The market capitalization of the US is nearly five times that of China and fifteen times that of India. The US market is also the most liquid market in the world with more than double trades in the stock exchange as compared with China.
Currency Exposure – When one invests in global stocks they are exposed heavily to currency exchange rate fluctuations. One must take precautions while investing in equities with volatile and unstable currency.In the last decade, the Indian Rupee has depreciated approximately 37% against the US dollar.
By taking this into consideration, we can see how an investor who has invested in US stocks would have seen their returns boosted by the depreciating rupee over the years. India’s economy in comparison to the US is more likely to remain a higher inflated economy, keeping the trend unchanged. Diversification and long term positioning will keep investors in the green and help them benefit from rupee depreciation.
FAANG – Simply put, the acronym FAANG represents five stocks which are Facebook, Amazon, Apple, Netflix, and Google. Traded on the NASDAQ, investors turn to technology companies when they are looking to invest in growth stocks and a large amount of media attention and investors’ portfolios are concentrated around FAANG.
The members of FAANG are so massive and profitable that they generate more than a significant amount of the Gross Domestic Product (GDP) in the US. They currently have a market capitalization of around US$ 3.1 trillion and they make up over 10% of the total value of the S&P 500.
Performance – Since 1990, the US markets have greatly outperformed the Indian markets. The Compounded Annual Growth Rate (CAGR) of the BSE 500 is 7.86% and the S&P 500 is 10.06%.

There is a multitude of opportunities in the US market and analysis shows that the time has come to consider this market to diversify your assets outside the country as well. The US is an economic superpower and its innovative nature offers a competitive edge to its investors. Several factors make the US a highly lucrative market.

In the long run, as an investor investing in US stocks helps with diversification in terms of geography as well as the ability to invest in large companies, the scale and size of which is unavailable locally.

Five Bad Habits That Are Really Good while Investing

Not on Time – This is one of the most common bad habits. But this bad habit can do wonders to your equity portfolio. One thing that even Warren Buffett doesn’t do is to try to time the stock market. A majority of investors, however, do just the opposite, something that financial planners have always been warning them to avoid, and thus lose their hard-earned money in the process.

So, you should never try to time the market. In fact, nobody has ever done this successfully and consistently over multiple business or stock market cycles. Catching the tops and bottoms is a myth.

No News – Staying updated with the latest NEWS is a very good habit but this could help you lose money in the stock market. Breaking news tends you take wrong financial decisions.

There is a lot of information/news flowing around in newspapers, Social Media, TV, Internet. This information/news is so well decorated for you to take instant action. News tends you to forget fundamentals and emphasis recent events.

Staying away from such breaking news can help you stick to the fundamentals and grow money with the stock market.

Lazy Action – When it comes to investing, people often say that the more active you are, the wealthier you can become. However, it acts in reverse when it comes to investment in the Stock Market!

So, if you are too active with your portfolio, you are likely to get fewer returns! Shockingly, laziness will help you to get more returns! Yes, you read that right! Notably, investors should choose this for long term investment.

And what is more, market variations will not hurt your investment gains. Invest in good Stock/Fund and forget is the best strategy.

Being Unfaithful is really a bad habit but this bad habit can lead you to make more money while investing.

People usually hold a Stock/Fund/Lic because that is very old or is gifted by their Parents or Grand Parents.

Investors lose money and opportunity when are emotionally attached to some stock/financial product that is inherited and doesn’t sell them even it is not making money.

A good return paying Stock/Product/Strategy will not always give a return. Being unfaithful with your investment & exiting will open new opportunities.

Do Your Own – Following your friends/family/acquaintances is a good habit that can often lead to wrong financial decisions.

The typical buyer’s decision is usually heavily influenced by the actions of friends/family/acquaintances.

Thus, if everybody around is investing in a particular stock/fund/asset-class/product the tendency for potential investors is to do the same.

But this strategy is bound to backfire in the long run. Stop following the herd and use your brains to do your own.

Like it or not, bad habits are bad for you — mentally, physically, emotionally, and even financially.

While some bad habits listed above are extremely good for your financial portfolio and you need not get rid of them.

7 steps to make Rs 1 crore in the quickest time

How does one become a Crorepati? We have all thought about this one question a lot. Is it really possible to have that number? The answer lies in the equity market, to be more specific in systematic investment plans (SIPs) of equity mutual funds.

7 steps to make Rs 1 crore in the quickest time

Make money, SIP by sip – A SIP is a financial planning tool offered by mutual funds that allow you to invest small amounts at regular intervals over a long period. It also allows one to use the power of compounding to generate big returns in a portfolio.
In the equity market, the general approach of investing is to time the market whereby one tries to buy a stock or an index at a certain level and book profit when it has run up significantly. This approach often leads to common mistakes all investors, who tend to buy high (caused by the exuberance of a bull market) and sell low (due to the hopelessness caused by a bear market).
Start early – Starting your SIP early is the first condition of becoming a crorepati. One needs to start early. This will help the investor use the power of compounding. Especially over a long period, the difference between starting to invest early versus starting late can make a significant difference to your wealth.
What’s the next step? Investors should first chalk out their long-term financial goals to identify how much mutual fund investment one needs to make every month.
Talk to the right guy The next step is to decide on the right fund house and fund. They will be looking after your money every single day till you redeem and, therefore, they are like the coach on who you want to entrust your life’s savings.
Mix it up – SIPs are not just about pouring all the money into the equity market. The mark of a great portfolio is the distribution of risk and diversification across asset classes. One important element in mutual fund investing is the split in asset allocation between equity and debt.
Become the gardener – SIP investing is not about putting in some money and forgetting it, the way Warren Buffett will have you do it. It is more like being a gardener, who looks after his plants almost every day just to ensure weeds are not cropping up. An investor must, therefore, monitor the performance of a SIP.
Taking home the crore – If you have reached this point, you did well. But just investing is not enough, you have to take home all that moolah too. There’s a systematic way to do that, too. Systematic withdrawal plans (SWP) can help you redeem your investment when you hit the retirement buzzer.

Whatever be the case, the investment objective must remain sacrosanct and the investment plan must be made to accomplish the goal within the given time horizon and within a prudent risk framework.