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Shruti Arora

I am a CERTIFIED FINANCIAL PLANNER & have worked at Banking and Non-banking Financial Companies.

The Dangers of Not Investing

So many people, in spite of knowing that they should invest their money for a better future, have not started their investment journey yet. What’s even more shocking are the reasons behind this delay. Usually, if someone has not started investing yet it is due to one of the following excuses:

  1. Procrastination
    “I don’t have time” or “I’m busy this weekend” or “I’m in no rush, what’s the hurry?”
    Or the classic “Idle money in my account is not that harmful, at least I’m saving some.”
  2. Timing the Market
    “Market is at an all time high, investing right now will be foolish, it’s better to wait for a more favorable time.”
  3. Fear of the Unknown
    “It’s a such a hassle! I’ll have to learn about taxation & compliance & I’ll have to research about all the different investment types. It’s so much work.”
  4. Risk Aversion
    “My uncle told me investing in stock market is like gambling. My mama didn’t raise no gambler!”

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Introducing Financial Planning Tools

My goal on this site is to provide unbiased, thorough and easy to understand financial knowledge to help improve your current money situation and achieve your goals comfortably.

But it all boils down to numbers in the end. How much do you have right now? How much do you want to accumulate in the next five years? No two people will have the same goals so there has to be a way to dynamically help everyone. Keeping this in mind I am happy to tell you that we have just launched financial planning calculators for you. With the help of these calculators you can easily evaluate where you stand financially and how to fulfill your dreams within your budget.

There are many different calculators available – loan calculator, SIP calculator, emergency fund calculator etc.
Here is a brief overview of what these calculators provide:

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How Many Mutual Funds Should You Invest In?

It’s worrying that so many new investors mistake duplication for diversification.

The most common question that new investors (or even existing investors) want an answer to is “How many mutual funds should I have in my portfolio?” The actual number is probably very different from what you think.

Before coming to the answer, let us understand the reason behind this confusion – Investors want to have a properly diversified portfolio. Diversification is the main objective here. Therefore it is important that we should address this diversification issue.

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Debunked #3: You Should Invest According To Your Age

In this post am going to debunk the myth that “age plays a central role in investment allocation”.

You must have heard the rule of thumb: “Your allocation in bonds should equal your age” or “Your equities allocation should equal 100 minus your age.”

Following the above rule of thumb without taking other parameters into consideration will be dead wrong. This simple advice can cause a lot of problems which will not be as simple to fix. The notion that investment is related to or linked to your age, is too generic to be useful for most investors.

“It’s not what you don’t know that gets you in trouble. It’s what you know for sure that just ain’t so.”

The basic theory behind this advice is based on what might be called the life-cycle theory of investing. It is believed that everyone goes through similar and predictable stages in their financial lives. Accumulating more assets instead of saving in early years, saving more in most productive (high earning) years of middle age, and finally spending their savings during retirement.

Do you see the problem with this theory? This theory assumes two things- first that each and every individual of a certain age acts in a similar way, & second that age is a good indicator of your risk profile. Nothing can be far from truth than the above assumptions. Read More

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7 Good Money Habits You Should Adopt

Good habits are the key to success and it’s true for your money too.

The power of a good habit can work wonders, you can easily attain financial freedom by positively channeling how you treat your money.

Forming good money habits is actually quite simple, it just takes a few small actions and changes and you are on the path of success. Discipline and deliberate actions will help you develop good money habits which will improve your financial life.

Let us find out what these smart money habits are: Read More

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