Droplet Wealth

        So we promised we will suggest a different (better) way of Direct equity investing in our previous blog . Here we are with our simple thoughts. Read on Build your Capital  1. Give yourself an 8 year time period. Well, the obvious question then would be "Don't stock markets make people rich in quick time?" Not really. One would have "made" the money in one year but by staying invested for decades. 2. In that 8 year period build your capital by saving in products that are exposed to stock markets. aka Equity Mutual funds. 3. Why Equity Funds and not something else? That is because, this will give the experience of "Market Volatility" + compound your capital at a better rate.  That's only about capital. So how about the knowledge?  Built your Knowledge 4. During this 8 year period, Start reading books relating to investing.  5. Based on what you read, Pick the Stocks and make a note of the reasons for your buying ...

Read this interesting  article last week and thought of sharing it with all our readers. A client shared this story with us: It started at the grocery store. Every time we were shopping, my older son, then eight years old, would bug me to buy him a certain cereal he’d seen advertised on morning TV. The same thing would happen when we passed a toy store. He’d beg me for highly advertised action figures.  I realized it was time to teach him about how businesses work and decided that the stock market might be a fun way to do that.  We started small. I told him he could buy the stock of any company he wanted—so long as he paid with his allowance or with money received as a gift. I’d match his funds.   Of course, he was drawn to companies he could relate to: computer stocks, Manchester United, and the like. When we ate in a restaurant he liked, he started asking if it had stock, and if so, how we could invest.  Our stock market game not only t...

Click here to read the article in Tamil   Start early.  Be it be health or wealth start early. It does not matter whether you run a full marathon or talk a small walk around the park. Starting early only matters. Likewise, start saving right away, Even Rs 500 is Okay. Avoid excessive calories & fat for a peaceful healthy life. Likewise, avoid debt. Understand the importance of compounding in life. Have a long-term mind set. Be consistent in whatever you do. Let it be gyming, Saving or investing. Only then you will achieve your desired results. Everything in life would take time. You have to believe in the process. Six packs do not appear in a month and neither does wealth. Continue the process and it would happen for sure. Have a plan in place and measure the progress at regular intervals. So you will understand where you are and what needs to be done to reach the destination on time. Understand the significance of diversification. You don't eat the same ...

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...

    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...

                Investing is simple but not easy. Meaning, anyone can step into a broking firm open a demat account and start investing. However, in reality not all those who have a demat account or someone professionally qualified have succeed dramatically in the equities market. If knowledge is the only required criteria then all the chartered accountants & finance professionals would have been millionaires and minting money on their investments.                When asked about investments & knowledge, Warren Buffet candidly replied – “If book knowledge made great investors, then the librarians would be all rich”. Ideally, it is the behavior, which differentiates successful investor from the rest of the world.                               ...

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...

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...

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...