The modern day finance world is confusing.
Avoid these modern money mistakes.
And you will be ahead of 90% people.
[A thread...]
Avoid these modern money mistakes.
And you will be ahead of 90% people.
[A thread...]
[1] Automating your investing:
- Many firms: you spend, 99, we will round it off to 100.
- And, invest that 1Rs in some mutual fund or Gold.
- Well, there are two layers of commissions now (one from mutual fund, and one from the app).
- Many firms: you spend, 99, we will round it off to 100.
- And, invest that 1Rs in some mutual fund or Gold.
- Well, there are two layers of commissions now (one from mutual fund, and one from the app).
As an investor, your goal should be to save your commissions (as much as you can).
1% commission does not sound too much. But, if you invest for 40-50 years of your life, this will cut your portfolio by a lot!
1% commission does not sound too much. But, if you invest for 40-50 years of your life, this will cut your portfolio by a lot!
[2] REITS vs Real Estate:
- When you buy a Real Estate, you get a flat, land, etc.
- And, you get control over that property. You can turn that into a business/live on it.
- But, when you buy a REIT, you get a share in a firm.
- When you buy a Real Estate, you get a flat, land, etc.
- And, you get control over that property. You can turn that into a business/live on it.
- But, when you buy a REIT, you get a share in a firm.
You have 0 control over that property.
And, no visibility (what that REIT is buying on your behalf).
You could simply buy shares of a good firm. Historically, it has made more money.
And, no visibility (what that REIT is buying on your behalf).
You could simply buy shares of a good firm. Historically, it has made more money.
[3] Gold vs SGB (Sovereign Gold Bond):
- Gold (since 1000s of years) has been a hedge against risk.
- When there is a war, issues in economy, Gold typically does well.
- As people flock to a low risk asset ('gold').
- Gold (since 1000s of years) has been a hedge against risk.
- When there is a war, issues in economy, Gold typically does well.
- As people flock to a low risk asset ('gold').
SGB is a bond. i.e it is a promise that the government will pay you money.
You could simply buy a government bond. And, make more return than SGB.
You could simply buy a government bond. And, make more return than SGB.
[4] Buying insurance purely for tax saving:
- The primary objective of insurance was always to create a safety net.
- It is not an investment product (i.e something that grows your money).
- Or something that can help you offset taxes.
- The primary objective of insurance was always to create a safety net.
- It is not an investment product (i.e something that grows your money).
- Or something that can help you offset taxes.
When you have a safety net, you can take more calculated risk with the money you wish to grow.
I would highly recommend Ditto Insurance. I bought mine from them.
You can speak with an insurance expert for free: bit.ly
I would highly recommend Ditto Insurance. I bought mine from them.
You can speak with an insurance expert for free: bit.ly
[5] Not studying the numbers:
Example: 12% return game:
- You can't make risk free return.
- There is no harm in investing in such assets.
- But do understand that it comes with higher unit of risk.
Example: 12% return game:
- You can't make risk free return.
- There is no harm in investing in such assets.
- But do understand that it comes with higher unit of risk.
Same applies to picking up trading. Most trades lose money. In fact most traders don't even beat FD returns.
So play a game that you can win.
Similar to how you can't outsource your health. You can't outsource your wealth.
Learn about money. And, avoid modern traps!
So play a game that you can win.
Similar to how you can't outsource your health. You can't outsource your wealth.
Learn about money. And, avoid modern traps!
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