Droplet Wealth

We were worried as financial advisers about the budget. Of course the Union Budget because if the budget was perceived to the be good then the markets would rally and our investors will not get discounts on their Investments. Discounts are always good, Who knows it better than you guys! The fact is good business shall always thrive irrespective of the budget and when we choose to invest in equities we invest in businesses that will do well in future. Note that we have used the word "Perceived". Again most of the govt policies being good or bad are perceptions of the people. A good businessman would identify each of them as an opportunity. A classic example is Titan which when was forced to import Gold due to "Govt Policies", it started Tanisq and today Tanisq is one of the largest contributor to Titan's Profits.  So now lets look at the Budget from the view it would affect us.  1. As a (Citizen) Owner of the Country and  2. As a (investor) Owner of the Comp...

We just put up a whats app status and One of the replies inspired us to make that into a blog.  Of course, like with all things @ Droplet, this one is not related to Superficial things like Budget/macro economics. So if you want to know our feedback on this year's budget, here it is -  ---N-----O-------C-----O-------M------M--------E---------N---------T-------S--- It is that. Because, in our fiefdom of Personal Finance, such things do not matter. Well then, let us use this opportune time to turn your attention to a more important budget, that is your  P ersonal budget .  Below are a few simple things that you should deliver on if you are want to make your country (ie., Family) Rich, Prosperous & Wealthy.  1. Earnings - Make sure you have an active Income and work to increase that income by 10% every year. Improve you skill sets, shift jobs, start a part time venture, do anything (legal) and try to increase your income by 10% year on ...

In our previous blog , we gave an example where the assumed gentlemen had taken an Insurance of 1 crore. It is natural that most of would think why such an H U G E amount of insurance? Because most of us think of Insurance as "sum that will be paid to you by LIC on Maturity" and hence think such huge amount is only for ultra-rich people. Through this blog, we would like to clarify on this erroneous thinking. Also, let our readers know how much they should cover themselves with?  The Maths  -  This is how the average financial scorecard of Middle class looks like  - Part A - Sum of all the loans that we have comes to about 50 lacs.  Part B - If we assume that "with no loans" & "an Own house", Rs 25k monthly is fair enough to maintain and run life on good standard of living. If we want this income for the next 20 Years (time taken for your kid to grow and contribute to expenses.), then we need to make a one-time investment of 60 lacs...

There are a set of genuine standard questions shot at us from people whoever we have met so far -  Will my capital be safe? Will I seriously make money? How do you say I will make money if I stay invested for a long period? My money in a fixed deposit or LIC is always safe or at least my capital is protected.   Mutual funds are risky. So... WILL I LOSE ALL MY MONEY? This clearly indicates how fearful people are towards equity-related products. We are so tired of answering them with all the possible answers to ensure that they understand it better. Yet, the fear has not moved away. So we thought of writing a blog with an object of making everyone know what will happen to his or her money and whether MF is risky or not! Point 1 - Never put your money anywhere for a period of 20 to 25 years with the intention of protecting your capital alone.  Point 2 - By doing so, you are forcing your money to lose its value.  Point 3 - You have inve...

Earlier, we wrote a blog  about investing 30K and earning an income of 50K every month. Most of them might have thought that they need such a huge amount to start investing. Nothing so! At Droplet, our wish is to be all-inclusive and that constant endeavor has resulted in this blog.  I think it is relatively safe to assume that an average middle-class earner can save 5K monthly. Now next we are trying to secure this Middle-class earner's future. In the Financial world, the future is always and always 15 years after . Hence we will plan with 15 years in our mind -  Droplet Team advises that a saver should split his investments into 2 parts one. One for Security and another for Savings.  Part One - Security-   As long as you are alive your family will live in your shade. But, God forbid, Something happens to you? Who would the family lean on? That's why Droplet recommends that the breadwinner's 1t "Investment" should be in " protecting his life...

We have seen 4 of them, A IT Company, A Paint Company, A Electronics company, A Bank.What is next? Droplets said let's get into your kitchens. Kitchen? Is wealth there too? Wealth says I'm there too as long as you want to create me. How magnanimous? Recently, there was a book published about how this company became a 6,500 Crore company. Imagine our selves just holding .1% of this company. How much is that going to be? Well, that will be a cool sum of 6.5 Crores. That is the power of equities and Power of Compounding .  What company is that? As usual, there is a clue in there.  A Small History of the Company -  It was incorporated as a private limited company on October 22, 1955, in Madras  It is known for its innovative marketing strategy, be it distributing pamphlet from a helicopter in the fifties or introducing the exchange scheme Became a deemed public company on June 15th, 1988. (Meaning available for public investment) Announces land...

This is the time of the year when fortunate of us would be running to save taxes us 80C. Fortunate because we don't have a home loan and hence we don't "Save Taxes" under 80C.  We will soon have our smartphones throwing up adds like  - " Save 46,500 in Taxes this year " blah blah... not only that we will also our Dad's/Mom's/Uncle's friends who will call up to say that we can a buy a "Money Back Guaranteed Plan" to  save taxes and insurance our life and get "smart" guaranteed returns on our investment and plan our retirements and oh my what and all they will not tell you until you s**k up..  This year Droplet is going to try to make it different and of course we need your Patience and Attention so that we can help you.  Read our Blog  here  and enlighten yourself.  For any financial Planning queries, Please contact Droplet Advisory @861 017 2018/824 836 9621 or write an email to us at dropletadvisory@gmail.com ...