Posts

smooth life

  Two days ago, one of my close friends called to convey his Deepavali greetings. During our casual conversation, he suddenly asked me to speak with his son, who was recently married, and handed the phone over to him. After exchanging festival wishes, his son asked me a very personal and unexpected question. He said, “Uncle, my father often talks about you and your family — how all of you live so harmoniously without any disputes. Is it really possible to maintain such a good relationship within a family? What is the secret behind your smooth family life? Please share some suggestions.” For a moment, I was taken aback by his question. It made me pause and reflect deeply. Am I truly a good husband? A good father? A good son to my parents? And a good son-in-law to my in-laws? His words made me realize how important it is to occasionally look inward and evaluate ourselves — not through our own eyes, but through how others perceive our relationships and conduct. It was a simple c...
Post a Comment
Read more

smart way to buy a car

  Why I Chose Not to Buy a Car on Loan – and Why You Might Consider the Same Many friends have asked me when I plan to buy a car. From the beginning, I've made it clear: I’m not against buying a car , but I prefer not to buy one using a loan. Here's why. Before rushing into a car loan, it's important to understand three key reasons why buying a car on credit may not be financially wise: 1. A Car is a Depreciating Asset Unlike property or investments, a car loses its value over time. The moment you drive it out of the showroom, its resale value drops—and continues to decline year after year. 2. Loans Bring an Extra Financial Burden When you take a car loan, you're not just paying for the car—you’re also paying interest. That’s money going out of your pocket without adding any value. 3. Insurance and Maintenance Costs Add Up Even after buying the car, ongoing costs like insurance, servicing, repairs, and fuel put a continuous strain on your finances—especially if ...
Post a Comment
Read more

Rule-72

  When investing in financial markets, a common question that often arises is: "How long will it take for my investment to double?" The Rule of 72 provides a simple and effective method for answering this question. The rule states that you can estimate the time it takes for your capital to double by dividing 72 by the annual rate of return (expressed as a percentage). How Does It Work? To use the Rule of 72, simply divide the number 72 by the rate of return you expect from your investment. The result will give you an approximate number of years it will take for your initial investment to double. Example 1: If you’re earning an 8% annual return on your investment, divide 72 by 8: 72 ÷ 8 = 9 years. So, at an 8% rate of return, your investment will double in approximately 9 years. Example 2: If your rate of return is 7.2%, divide 72 by 7.2: 72 ÷ 7.2 = 10 years. Therefore, at a 7.2% return, it will take about 10 years f...
Post a Comment
Read more

The Power of Mutual Funds and Compounding

  When compared to direct investments in shares, mutual funds offer a relatively safer and more diversified approach. Mutual funds are categorized based on market capitalization into three types: Large-Cap Funds : Invest in well-established companies with lower risk and steady returns. Mid-Cap Funds : Invest in medium-sized companies and carry moderate risk with the potential for higher returns. Small-Cap Funds : Invest in smaller, emerging companies and are high-risk but can offer significantly higher returns over the long term. Choosing the Right Fund Based on Risk Tolerance Your choice among large-cap, mid-cap, or small-cap funds should depend on your risk appetite and investment horizon . If you're aiming for long-term wealth and are comfortable with volatility, small-cap funds can deliver substantial returns — often averaging around 12% compounded annually from their inception. Additionally, Direct Growth Plans are generally better...
Post a Comment
Read more
Image
  In my last article, I spoke about shares and their profitability. To give you more background — I was actively involved in share trading until 2023. I started my journey as a retail investor, but over time, I transitioned into a full-time stock and options trader . However, due to some personal reasons, I decided to step away from active trading. Trading vs Investing: A Clear Difference It's important to understand that investing and trading are not the same . Investing is typically long-term, rooted in patience, and can yield significant returns over time. Trading, on the other hand, involves short-term speculation , high tension , and high risk . I was not an investor in the traditional sense — I was a trader . The Highs and Lows of Trading Trading — particularly options trading — can be highly profitable, but also extremely risky. In fact, I would go as far as to say that options trading without a strong foundation in market fundamentals is almost suicidal . Here’s a glimpse...
Post a Comment
Read more

From Saving to Investing: Building a Corpus for Life’s Major Goals

 In our previous article, we recommended saving at least 20% of your monthly salary to gradually build a corpus fund for important life goals such as housing, education, travel, and retirement . While this is a great starting point, let’s be realistic — saving alone will not be sufficient in the long run. With the rising cost of living and growing inflation, the amount required for quality education, healthcare, retirement, and property has increased significantly. In today’s financial climate, simply setting aside 20% of your income in a savings account or fixed deposit will not generate enough wealth to comfortably meet these major expenses. Why Saving Alone Isn't Enough Consider this: traditional bank savings or fixed deposits offer an average return of 6–7% per annum . When adjusted for inflation (which can range from 5–6%), the real return is negligible — or even negative. This means your money is not really growing in value, and over time, it loses purchasing power. To...
Post a Comment
Read more
  Friendship is one of the greatest treasures in life. It makes a person truly rich—not in material terms, but in joy, emotional support, and a sense of belonging. Without friends, life would lack the color and happiness that come from shared experiences and genuine connections. One day, one of my colleagues asked me, "How many friends do you have?" I smiled and replied, "It’s not possible to count." He then shared a personal story: after he met with an accident, he posted about it on social media. He has nearly 200 followers and friends online. Many of them sent kind messages and well wishes, but only 5 or 6 people visited him in person. That moment made him realize the difference between online connections and true, close friendships. This reminds me of a well-known theory by British anthropologist Robin Dunbar. According to his research, every individual can maintain stable relationships at varying levels: ·          5 to 10 people ...
Post a Comment
Read more