Droplet Wealth

 “When you want something, all the universe conspires in helping you to achieve it.” — Paulo Coelho, The Alchemist And that's absolutely true. It was a big big day for all of us at Droplet Wealth Advisors ! We were rejoicing like a kid who craved for an ice cream and got one after a long ask! All big things starts small, indeed, very small and that's how Droplet had it's start as well, the birth of Droplet happened in a tea shop over a very casual talk. When we started in Nov 2017, All we had was passion and dream. Today we are a family of 80+ clients managing ₹4 crore AUM in Equity/Debt + ₹10cr of Health and medical insurance.  After four long years of hard work we got an opportunity to conduct a financial planning session for women in a MNC! We gave our best and the feedback was great. It is our dream to take Droplet Wealth forward, reach as many as possible and eventually create a 100 Crorepathis.  Our Investors awareness program this weekend was a Big step towards this

We informed our readers last week that Stock market won't make you rich in any way. Now, let's put another Truth on the Table  -  Stock market wont make you rich but  over time it will make you wealthy! Before we proceed lets understand what Wealth is and what being Wealthy means. For that, o nce more, we will turn our attention to Mr. Housel and see how he defines "Being Wealthy" -  "..and being wealthy is having the freedom to choose not to spend money" Lets decipher this one by one, when being rich means having source of Income and spending it to show to people around us, Being Wealthy too means that we should have a regular source of income but not under undue pressure to spend it off to show others that you are Rich!  Further lets look at some of the Characters of Wealthy people - Wealthy people have incomes only as much as Rich do, sometimes they earn less than Rich do but they focus on saving  % of Income by living below their means and buying appreci

  As the Markets bleed day in and day out, this is a good time to say the truth. And the Truth is -  Stock market wont make you Rich...  Hey! Hold on! Then why the hell have you guys been asking us to take all the risks of volatility and invest in Stock Markets. Weren't we better buying life insurance policies and "believing" that our future is safe. If you think so, then that's where the bias is! When you talk of life insurance you just want to be "safe". But If it is stock markets, you become greedy and want to become "rich" while the matter of fact is neither life insurance policies make your future safe nor do stock markets make you rich. But lets stick to "stock markets and making you rich" part for now.  At this conjecture, we want to draw your attention to this fascinating explanation of "Rich"  by Morgan Housel - " being rich as having a high current income.."  So rich means having a high income. Anybody who

 Long back, we had written a blog  about how mutual fund works and highlighted that a certain fund had made a return of 29% and uncannily poked greed of our readers by telling that the fund multiplied their money 49 times in just over 2 decades meaning 1 lac would could have become 49 lacs in 20 years. Here's the snippet from that blog -    There is no doubt that the Fund has made such wonderfully high returns. But what we did not drive people's attention to, made us write this blog. A 29% CAGR is Okay! But who will handle the Drawdowns? Before anything, let us tell you what a Drawdown is? It is just a fancy word for the fall in one's Investment value. On its way to making 49 lacs out of 1 lac, the Fund's value had fallen multiple times as shown below  We can see that there have been multiple times when the total loss from peak was more 10 lacs. But today, the total value of investment is still more than 62 lacs. The important lesson to note here is when you