Droplet Wealth

              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...

Each time, We approach someone to invest in Equities (read Mutual Funds), they are inherently worried about the loss. Questions like - What if I don't even get back the Money I have invested? Will be I become Super-Duper Rich.? One extreme to another! Alas, I wish, sometimes, we used less of our thinking ability. We wondered how should we answer these question. That's when the Indian-ess in us came to our rescue. If we notice, in our country, most of the times, we do something because our Neighbour does it, Or our friend does or our Cousin does it or somebody did it.. So we said let us bring to our reader stories of fellow Investors who made some serious wealth (Read hundreds of Crores) by investing. Mr. Anil Kumar Goel - Before anything - Oh yeah! He is Chennaite :) No Idea about Stock Markets - Anil was born and bought up in Punjab. He came to Chennai on the insistence of his Grand Father to help his Steel Business. Having come to support his Grand Fat...

                                          In the earlier blog , we saw that share price of a company is the function of the Profits that the company makes and the no of equity shares it has. Lower Equity shares and higher profits would mean a very high share price (MRF, EIcher Motors) and vice versa.  As simple as it can get.  Now we will see why the share price goes up and down putting its holders on a roller coaster, a ride that not many are adept handling.   As said earlier, If a company is earning 10 per share and an investor is ready to pay 10 times its earnings ( i.e.,) then the share price will work out to be 100. But World and life is not so simple and as are markets. Life, world and markets are all built on hopes. Hope that tomorrow will be better than today, hope that one's view of things will be win over other's view of same thing. Lets look at ho...

Most of us give a serious thought to physical fitness only when we cross the 60% of life milestone or when we are forced to be FIT post a medical diagnosis. For instance, I have seen many people who does not care about anything and live a junk lifestyle and one fine day when the unfortunate event occurs such as diagnosis of diabetics or any other, only then their blood, veins, heart and brain starts thinking about having a better and healthy lifestyle. The significance of physical fitness comes first as one grows older, as one cannot ignore it to lead a healthier life. So is the financial fitness. We pay attention only when there is a need, be it health or wealth. A typical Indian life cycle is all-simple. Learn, earn and retire. It all starts from the day you are born, your parents decides what you wanted to become. You get your graduation completed, have a job, get married, and then you want to buy a home as early as possible on EMI. In between, we never ever think whethe...