Droplet Wealth

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...

              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...

Sagacious - I first read this in a newspaper article. The word stood out and stick on to my "Cockroach Brain" Sagacious Decision - I used this in a mail, I was trolled, readers were awed. Anyways, the word stood out.  Well we happened to come across a Sagacious Investor. Why sagacious? Because he is young yet he has got his financial stuff all sorted out which is very rare to see in today's youth. We thought that what better thing than to get our readers a peep into his thinking and Ideas.  The Chap's name is Pramod. He hails from a middle class family, born and bought up in Hosur, Tamil Nadu. His Father runs a Groceries Store and Mom is house wife. He has elder brother who works with a reputed IT company.  Pramod's Interview follows -  Tell us Pramod - What made you invest in equities?                 I started my career in 2012, I joined a reputed organization right aft...

Like every other middle class youth, we too had the dream of becoming rich as early as possible. Not just rich, but filthy rich. We were looking for that Aladdin's magical lamp so that our wishes are fulfilled without overnight. We were desperately looking for this Aladdin lamp for years together to mint money and become filthy rich. Our search ended in late 2009, when we learned about equity markets after half reading about the fascinating success stories of Warren Buffet (WB), Rakesh Jhunjhunwala (RJ) and other stalwarts of stock markets like every other individual, I thought stock market is the only place to make money faster. Invested thousands of rupees without any proper knowledge and was waiting for it to turn into crores. In the initial years (2009 - 2013), We chased penny stocks (stocks that are priced less than 10 or 20), thinking it is the cheapest available ones and will for sure make us filthy rich in couple of years. Back then, We were buying Karuthuri Gol...

A IT company, A Paint Company, A Bank and what now? Look around your house, You will find one. Above the Air conditioner that conditions the temperature of your room, near that LED TV, may be next to the refrigerator... That Saucer plate like thing gadget that guards your electrical appliances from the shocks by stabilizing the power supply..  Please guess what I am talking about! Okay, Here is another clue -  Oh yeah! The Stabilizer and today's Wealth Creator is  V-Guard Industries. I myself did not know so much about this company until my Ex-Manager popped up this name. This is his Ex-company. Ex-Manager's Ex-Company, Weird ?! ? Aaargh!   A Look into the history of V-Guard -  Started in 1977, when Kochouseph Chittilappilly set out to build a brand in the Indian electric and electronic goods industry Started with a small manufacturing unit for voltage stabilizers, a capital of Rs.100,000 and two employees the company now has over 5...