Droplet Wealth

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...

SURRENDER YOUR CREDIT CARD. Period.  We can go about talking and talking about financial Independence, but if you have not surrendered your credit card, we would still be only talking.  For financial planning and investment related queries, write to us at  dropletadvisory@gmail.com  or call us at  9962399924  /  9551373455 .  

    Click here to read the article in Tamil                                     Karma is a boomerang, we are sure we have to repay for the lie that the title of this blog is. But don't they also say - "Dharamam Thalai kaakkam" Lets hope when Karma boomerangs, our Duty will save our heads.  Now that we have told the title of the blog is a lie, Let's now try and make it true, Why let Karma boomerang in the first place?                                    If you have followed us, you would realize that we are obsessed with just 2 things - "Savings" & "Compounding". We will make it rhetoric until we are sure each of our readers has understood it clearly. That's "Dharma" performed. Alright then!  1. Savings - A quick check of  candidates a ged 4 0+ tell us that most of...

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...

                       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...

                                  We are here to help your money make more money. But can money make more money all by itself? No, It can never, the world never runs on auto mode, you need somebody to run it all the time. So who is going to make your money work harder so that it makes you more money? It is, of course you!   So today we are going to teach you a very simple and very easy way to make a 18% return on your money.  But before that lets understand what a 18% return on money would do your wealth.  Basically you are paying yourself 13 months salary in a 12 month year, good to have extra month salary without actually "working" for it right?  If you are wondering that next we will ask you to invest in equities, no we are not! Remember we told very simple & easy? Equities are not so simple/easy, there are labors of pain you have to go through before equities mak...

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...