Moneywise

“What I and my wife started is - involve our daughter in all kinds of small planning. Let’s say, planning a vacation. We would involve her in packing bags, and emergency requirements, all within a budget. Not only did she get a sense of participation, but over a period of time, she started aligning herself to more budget timelines. These are the kind of small processes you can use to make your children more financially aware, in a more joyful manner...

(An investor’s) the first allocation should be towards large-cap investing. The top 100 companies in the country can be termed as a large-cap segment. Generally, when you are in a down-cycle, or the overall market is weak due to weak macros, geopolitical tensions, or some liquidity crisis, most of the money tends to stick with the top 100 companies, because that is where...the risks are lower...

“You should diversify your investment so that you are protected in case of any adverse circumstances, any adverse performance of those specific schemes in which you have invested. You reduce the risk of something going wrong...Mutual funds are underrated as far as diversification strategy is concerned because (when) you invest in one mutual fund scheme, you are automatically diversifying across (several) underlying securities held by that mutual fund scheme...

“AI has the power to personalize information. At any instance where you are making a wrong investment decision, maybe because of the emotions that (can) overpower your decision, AI will come into effect and tell you - ‘hey, this is not the right time for this decision...

“Women, I would say, are already very good managers inherently…I feel women must now understand that it is time to add one more super skill - being financially sound. Women are also generally very good, disciplined investors. They will eventually do good for themselves and their families if they take an active part in managing their own money.”

Welcome to the Women’s Day special on The Moneywise Podcast...

Money is a resource. That’s how I look at it. Whatever we make from our job/profession is a resource. But this resource may not be enough (for) future goals like your child’s education or your retirement goals. This is the reason we need to deploy our money properly. Making money is one thing, but keeping money and growing wealth is not easy....

“Companies go through cycles, sectors go through cycles, markets go through cycles. It’s important for us to understand that the reason we call it a cycle is because things go up and things come down. 

Identifying where we are in the cycle, and how to approach the cycle, is the answer to what kind of allocation one should have for growth or value, as the case may be...

My one advice to every young person would be "Start investing as early as possible to understand the power of compounding". 99% of the people on earth can’t fathom the true power of compounding. Everyone has heard and knows the formula but few people truly understand the depth of this calculation. 

No wonder Albert Einstein says, "Compound Interest is the greatest mathematical discovery ever made...

“We found that large-cap funds have given a long-term average return of 13.5% between 2010 and 2021, mid-cap…around 19%, and small-cap…around 17.5%.

However, different market caps perform differently in each period…and every year, the winner keeps changing.”    In this episode of the Moneywise Podcast, Mr...

“Most often, it’s our behavior that can go bad rather than the investment itself. If we allow fear to dominate and we sell out every time the market falls, our long-term goal - the reason we were investing in the first place - will never be achieved...