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Shruti Arora

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

Understanding Liquid Mutual Funds

Indians are by nature excellent savers, almost each and every one of us has at least one savings account in their name. We fall in love with our bank balance once it starts approaching a “nice looking” figure. While a big bank balance looks nice, do you know that you are actually losing your hard earned/saved money if a large amount of money is lying idle in your savings account? This is because the interest rates given by most savings account is around 3.5% to 4%, which is lower than the inflation rate. So instead of growing, your money actually loses its inherent value if kept in savings account.

Although Indians are good savers, they are poor investors. This is because they are so used to keeping their money in savings account and FD’s (another favorite of Indians), that they are only comfortable with vehicles which provide safety and easy accessibility of their money. They shy away from risky investment vehicles even if they provide high interest rates. They are happy with negligible returns as long as their money is secure and safe. It is because of this mindset that majority of Indians fall short of attaining their dream of great riches, in spite of the fact that they save regularly and religiously.

Do you know there is a type of mutual fund available which offers almost the same safety and accessibility of funds as savings account, but offers better interest rates (almost double compared to your regular savings account)?

Yes you read it right, they are called “Liquid FundsRead More

11 Tips For Building Your Savings From Zero

Saving regularly is the only key to ensure future financial security, but people come up with all sorts of excuses for not saving: I don’t have any surplus to save, My expenses are too high, I don’t know how and where to start etc.

Your ability to save money is not dependent on your earnings but your mindset. If you just change your attitude a bit and start seeing things from a new perspective, you will start finding ways to increase your savings corpus with your current income easily.

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Decoding the new Long Term Capital Gains Tax on Equities

Until financial year 2017-18, Long Term Capital Gain (LTCG) tax on equity or equity oriented mutual funds was Nil, i.e. if investors sold their shares or equity oriented mutual fund units after holding them for more than a year, they paid zero LTCG tax. All the gains (no matter the amount) were theirs to keep without fear of the taxman.

However, in this year’s budget, the government has changed the rules and has introduced an LTCG tax of 10% (without indexation) on gains made above 1,00,000 per annum, starting from April 1st 2018.

To understand the implication of this new LTCG tax, you need to understand some key points and features: Read More

4 Milestones To Reach Before You Start Investing

Everyone wants to be rich and wealthy, and the best way to earn more money is to let it work for you by investing it properly. Add to the fact that nowadays one can start investing with as little as ₹500 in mutual funds, everyone wanting higher returns is ready to jump into this world. But is it the right time to start your investment journey?

To get the most out of your investment, its important that you should reach a few essential financial milestones before starting your investment journey. Diving into investing without a proper foundation is risky and foolish. Take care of the following financial to-do list before you start investing: Read More

6 Ways To Get Out of Bad Spending Habits

Impulse buying, going over-budget, showing off, buying everything that’s on sale are all signs of bad spending. When such a spending pattern turns into a habit it causes problems.

Bad spending habits have a huge impact on your financial well being. They are a blow to your budget & can increase your debt. They can also be very difficult to overcome. Marketers spend billions of dollars every year on packaging, promotions, advertising, conversion optimisation, consumer behaviour research & subliminal messaging – all to make sure you buy more & more.

All this psychological manipulation can sometimes feel overwhelming. You buy things you don’t need, wasting money that could have been better utilised elsewhere. But a few smart strategies can help. Let’s get rid of these bad spending habits with the help of the following tips, so that you can bring your financial life back on track:

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