Droplet Wealth

A lot of us know mutual funds invest in Stock Markets. Stock markets aka  Equities aka   share markets aka companies. So a simple thought that comes to our mind, why not invest in shares by ourselves. The self-realization that we are smart than others props this thought to the next level and we commit. If not this then the greed of becoming Wealthy soon props this thought. If not now, then at some point it will. So you are caught and our job as advisors is to help you escape. Let us caution you - The very purpose of this post is not to Frighten you from Stock Markets but to frighten those who think stock market is a place to become filthy rich over night by investing based on a random tip. Read on. We have for now kept the legends who take personal loans and invest in the stock market away. We are only talking about individuals passionate about investing and want to make serious wealth by Investing in Stock Markets. By serious, we mean a number no less than a few...

A lot of us might be thinking about making part payments against our home loans. We suggest you look at the below table of savings before you take any such decisions -  For those not adept with numbers/tables, lets us clarify in simple sentences.  1. If we prepay 1 lac of our home loan at the beginning of each year for 5 years. Our Total "Interest Savings" come to about INR 5 lacs for a period of 15 years. 2. If instead of prepaying the home loan, we choose to invest the same in an equity mutual fund, then a fund returning 12.5% per annum, would help us create a corpus of 20 lacs. 3. If instead of prepaying the home loan, we choose to invest the same in an equity mutual fund, then a fund returning 10% per annum, would help us create a corpus of 15 lacs. Before we complete - here are the few reasons why r ecommend delaying the Pre-Payment of the home loan - 1. The Prepayment can be used to create your retirement corpus. 2. Locking up your savings...

Everything is associated with Risk. Even NPS does. What matters the most is how long you stay invested. We read an interesting article about NPS and thought of sharing it with our readers. Read on -  Pension funds have marginal exposure to the distressed firm - Many debt funds with the mandate to invest in corporate debt securities have been left saddled with bonds issued by the indebted IL&FS and Essel group companies, resulting in a sharp erosion in their net asset values (NAVs).  While the exposure of mutual funds has been making headlines, the holdings of other investment vehicles have been largely been under the radar. A  BusinessLine  analysis shows that pension funds under the National Pension Scheme (NPS) and Atal Pension Yojana also hold these stressed assets, albeit to a smaller extent.  Scheme-C of the National Pension Scheme invests primarily in the fixed income securities issued by corporates. The portfolios of the ‘Scheme-C’ from the tier...

Now, those of you who read the title and thought you already knew this and hence you are right, you are wrong. Those of you who think the title is wrong, you are still wrong. So what is right then? You have come this far, so read on...   We were meeting one of our clients and they were really excited about getting their financial planning in place. With usual questions of what would happen to their money in case the Markets fall among others, the meeting went well. We thought we did a good job of enlightening this couple. Just then the bomb dropped- the bomb being a Question -  "What if I suddenly want to take my money out?"  All the enlightenment down the drain it went...  The first time investors, please note that in case you are investing in markets thinking that you will be rich overnight. Forget it, cos If you were that lucky, You would have been already married to Isha! But you are only as lucky as reading this blog ;)  Below is the check...

                                          Droplet is 365 days old, Yes with this New Year we will be “ONE” year old. Happy Birthday, Droplet! We would like to thank all our clients & readers for supporting our small start-up. The idea of starting up a financial advisory service was never there until we realized there is serious lack of financial literacy among people and we wanted to take this opportunity and make people understand the significance of Starting Early, Financial Planning, Asset Allocation and more importantly  differentiate insurance & investments . That’s how Droplet was born.                       When we started, we never anticipated we will get such a significant response from people. But, We are, least to say, humbled and bow down to your support and interest that each of you has sh...

Very soon Google & Facebook's artificial intelligence-equipped robots will throw ads that will show you can save taxes up to Rs 46,500 on investment of 1.50 lacs under 80C. The second amount of the first sentence is enough for middle-class families to forget about tax saving forever. So for those not convinced about tax saving, let Droplet tell you a few important things about Tax Savings -  1. It helps you achieve a better rate of return irrespective of the instrument. (Ask us how you will be surprised to know the answer) 2. It inculcates the habit of savings.  3. It helps in retirement planning. (Oh! Seriously)  Ok, what we intend to inform our readers is -  1. Are they really eligible for Rs 46,500 savings on Tax 2. How much should they optimally invest to save Taxes under 80C.  Droplets has taken the example of 3 Salary profiles here and explained how much each of them can claim under 80C and what would be there Tax savings -  ...

Disclaimer - This blog has nothing to do with the below book. But it has got everything to do with "Rich Dad & Poor Dad". We all want to be rich but hardly 1% actually make it there. At Droplet our endeavor is to make every person investing with us to be Rich. Because, believe us, becoming rich is not that tough, it's very simple and boring. But most of us blame it on our Parents for not giving us the kind of launchpad (Like inheritance, Degree from Fancy college, things, etc.,) to become rich. Include those of you who say "Avanukku enna, avanga Appa sambachu-vechu irukkaaru..."  Before we proceed to say anything we want to bring to you 2 real stories from our beloved place ie., the Stock Market.  Of course one of the companies is Rich Dad's and Another is Poor Dad's. Below is the Sales that these companies have recorded in the last 10 Years.    As you can see the 1st company had started with huge sales figures and gradually...

              So this is one question everybody will have on their mind?  Do Mutual Funds actually make money? After all, they are related to stock markets. So they are ideally risky and so much risky that people lose 100% of the money, Right?  Warren Buffet Says - "Risk comes from not knowing what you're doing"  Next time somebody says stock markets are risky tell them what Buffet says. More importantly, share with them this blog. That is, of course, after once you have read it yourself. Alright, Equities or their proxy, that is Mutual Funds are risky but one can negate the risk by staying longer in the game. Please go to google and search the return any equity mutual funds for more than any 8 year period, you will yourself know. Repeat the exercise for any 3 year period, You will  yourself  know.  We have been researching about Mutual funds for almost 18 months now and we thought it will be useful for our rea...

Since day one, we have met over and above 150+ clients who have approached us for financial planning and investments needs. Interestingly, almost 60% of people have answered at the end of our discussion as below- 1.       “I’m interested in investing but have some other commitments so let’s do it later point in time"    or 2.       " Let me try investing little now for a couple of years and then will kick start my investments based on the returns we see in these invested years”                          It appears that people have not given a serious thought about asset allocation & diversification. Even today, real estate and gold are the only asset class in one’s wealth. People never think equity as an asset class. To them, equity is just buying today selling tomorrow and becoming filthy rich overnight. If you think like th...

                           Being an Indian, I wanted to extract the maximum juice out of my Netflix trial account. I had just completed watching Narcos, All the 3 seasons, 30 Episodes, all done within few weeks amidst a hectic work schedule. Having seen blood and gore, I wanted to wind up my Netfilx experience with something nice and that ended me in watching "Arjun Reddy"                 I had heard of the movie but only as Taboo. Well, let me tell you something, Time justifies a lot of taboos, Time - one hell of a thing it is. The 1st kissing scene, the Director had just nailed it. Money's worth returned.  -------Break-------- I wondered who the director was.  I "Wikipedia-d"  Being a Bhaniya, naturally, my eyes caught this  -  Oh my God! In just about 2 months, an investment of about 4 crores turned out to be 51 cr...