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  • The Two Behaviors That Can Lose Crores: Lessons from the Lost Billionaires

    “How did you go bankrupt?”“Two ways. Gradually, then suddenly.” – Ernest Hemingway, The Sun Also Rises Hello there, Let me tell you a story first. It’s about how the billionaires lost their money – crores of rupees in generational wealth. It also tells you that having the best stock, the best advisor, or the best…

  • What are shares and where do they come from?

    If you were ever asked by someone very new to investing “what is a share?”, you know how it goes – most analogies you can think of like splitting a pizza in 10 equal pieces among your friends, or dividing a shop into n equal pieces – all fall short, or end up confusing people.…

Insurance & Protection

  • 3 “MUST DO” Things Before Starting an SIP in Equity Mutual Funds

    You here about starting an SIP or Systematic Investment Plan in equity mutual funds almost everyday to for long term wealth creation. But in my opinion, there are three important things you must do before starting any equity SIP. These 3 steps when implemented ensure that your SIP money stays safe and increase your chance…

  • Who Should Buy a Term Insurance & How to Calculate the Cover Needed – Do not over-insure yourself

    Not everyone needs life insurance or a term plan. There are only two main situation in which you should buy a term plan: In simple words, ask yourself this question – “Will my family suffer badly money-wise if I disappear tomorrow?” If the answer that comes to your mind is yes, then you should consider…

Investment Products

  • A multi-asset mutual fund should not be your first investment. Here’s why…

    If you are just about to start your investing journey and you are considering a multi-asset allocation fund as your first investment, then let me stop you there because it could be a mistake. Let me tell you how. When you invest in a multi-asset allocation fund, the fund manager decides how much to put…

  • How not to use credit risk funds?: The double digit returns trap

    A debt fund giving 12–13% annualised returns, especially in a year when equities have been rough. That sounds like the obvious move – equity like returns with safety of bonds. That reasoning is exactly the trap. Two credit risk funds have been doing rounds on Reddit threads and Instagram reels lately: Aditya Birla Sun Life…

  • Ideal number of mutual fund schemes: The myths, and what really matters

    33 equity schemes. XIRR of 25.67% vs Nifty 500 at 22.14%. Alpha of 3.53%. That’s how my portfolio looked in September 2024. And 33 schemes was not an accident. It was a hypothesis. The (weak) hypothesis In 2021, I sat down and tried to think honestly about what I actually knew. All the data available…

Investing Maths

  • What is XIRR in Mutual Funds, How to Calculate XIRR, and When To Use It?

    Imagine this – you open an app like Groww, Coin, ETMoney etc. to check the performance of your mutual fund. Next to every scheme, there are two numbers – Total Returns or Absolute Returns and XIRR. For example, for a scheme, you might see absolute returns = 20%, and XIRR = 3.34%. And you start…

  • What is CAGR and Why Does It Matter?: Mutual Fund Basics

    “Create your financial plan assuming a CAGR of 12% over the long-term” – you might have heard this line at many places – financial planning decisions, investing in a mutual fund, TV interviews, ads, online forums like Reddit and so on. But if you ever felt confused by what CAGR really means, this article is…

Taxation & Other Things

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