Droplet Wealth

           Of course, we want to bring some fascinating information and deliver the same to you every weekend. So that you read it, love it, read it again, get inspired and get ready for a hectic working week ahead. But how much ever polite the Doctor might be, if the medicine is bitter then bitter it shall taste! Alright so what is all this about?  Last week was eventful but in un-wish-able way. We wanted to do this blog but not with the way, we are doing. The week that went by bought some news that made me sit and think about it. More so to reflect that as a blog for our readers.  1. Tuesday Morning I had 7 missed calls from the same number. One of my close friends called me to inform demise of Another Friend's mother. 2. Wednesday afternoon I got a message of a certain acquaintance passing away. This gentleman had some influence in my life, he gave me critical advice to me at difficult times in life, they have he...

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...

You need money to make money. Alternatively, you need a disruptive idea to make money for yourself and others. Not everyone would become an entrepreneur like Steve Jobs, Gates or Zuckerberg and hence let us say one needs money to make money. That is the critical resource more than anything is for those who aspire to retire and follow your passion or live a decent life post retirement. This is the reason why we say make your money work for you the moment you start earning!                 A millennial approached us for investment with an expectation of 15% risk free returns. We said, there is risk associated with it and you should invest quite long time (5 to 7 years) and should be OK to adjust for a year or two in case of any uncertainty. And we asked, do you have any savings? NO. Any loans? YES. End of the conversation the millennial said, will get back. After a month the millennial called us and said I'm not ready to take r...

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...

                                          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...

                       Nothing gives you more joy than doing you what you love to do. The joy increases many-fold when people follow up on you to do the most lovable thing you do! You feel special. Last week, We missed to publish our blog. That's when we realized that "Silence is louder than noise". This time our silence was returned by noise of our beloved readers asking - " Where is this week's blog? Did you forget to it share with me? " When the noise is made by readers that counts upwards of 10,000, the Love is "heart-deafening", we should tell you. Before I move on, thanks to everyone of the 10,000 readers for following us and supporting our "Droplet" like small venture.  More than this, there are couple of friends who ping us to check whether the blog is up for the week and few go an extra mile by providing unbiased view of the blog, You guys are fantastic!  Whats up for this week then -  Sticking...

The Price of 1 share of MRF is Rs 76,650 The Price of 1 Share of Eicher Motors is Rs 27,000 The Price of 1 share of  Maruti Suzuki is Rs 9,300 The Price of  1 share of TVS Srichakra is Rs 3031 The Price of 1 Share of Colgate is Rs 1100  The Price of 1 share of State Bank of India is Rs 260  What does all this mean?  As indicated by Share Price alone  Does it mean that MRF is costly and Maruti is cheaper?  Does this mean that State Bank of India is smaller than Maruti?                          The share price is face of the share market. Share price is the first thing that anybody who comes to stock markets sees first. This person may not know anything about the Stock markets, He -may not know Market Capitalization, may not know Gross Profit Margins, may not know bottom line, may not know top line but he will know the Price of most of these shares.  ...

                                           In the two episodes of Wealth Creators so far we have seen how a IT behemoth made huge wealth even for novices like us. Then we followed it up with a Paint company that gave humongous   returns to its investors. This week again we will look at a similar business that is so common and famous yet made gargantuan wealth for its investors. Just to not bore you with numbers all the time and to flaunt our vocabulary, lets now look at the return that these companies have made in English! Yes in English!  But before we go on and get to know what the company is, let us 1st reveal a secret about great companies, It is their promoters. The success or the failure of the companies is highly tied to its promoters. Promoters are generally the Owners of the business and also often times the majority stake holders. Promoter...