Droplet Wealth

We wish a very Happy & wealthy New year to all our blog readers! We have been blogging for a couple of months now. We are so glad that our blog has reached over 1500 readers in aggregate. Our ultimate intention through this blog is to inculcate the importance of financial planning and giving you advice securing your financial Today, Tomorrow and forever.  Being advisors in the field of finance, it is not possible we avoid numbers. Like 365 days divided in 12 months and 12 months making a year, one of which has just ended and a new one started. Imagine if we did not have these numbers - 30 Days, 54 Weeks, 12 Months - how can we turnover a page in life and say to ourselves- Oh Yeah! Let me start fresh now that a new year has begun.  Numbers are boring no doubt but if one needs to be financially secure and independent, then one has to pay due attention to the numbers that govern one's life. Like How much has my income increased over the past year?...

Click here to read the article in Tamil On this fine Saturday, Dharam my Investment Partner, and myself were attending a training on various financials products! Along with us there were other participants mostly aged 45+ and it was obvious that their best days were past them. An Interesting subject and students past their prime makes a peculiar combination and while we were still getting a feel of this peculiar-ness, Lunch was announced.   A gentle man aged 50 along with couple of others followed us. It seemed they were still juveniles of Capital market and we were happy for them attending this training.  Fortunately, Dharam & I had immense interest towards equities in our early twenties and we did gain precious knowledge about equities. Though there were many failures in the initial days, we did learn a lot and have been successfully investing of late; it has been almost 7 years now and we have quite a good portfolio and aiming to use our knowledge to our cli...

                                Click here to Read in Tamil We are both excited and nervous to share the fact that many of our readers have come back to us asking about Equity Investment through Mutual funds. Excited because our readers are getting involved and being informed about this wonderful instrument of saving. Nervous if we will be able to deliver the knowledge in best digestible way.  We are going to educate how the Mutual Funds (MFs) work in terms of returns they earn. Because there are linked to markets, the returns that MFs give is not a straight line like below - But like an graph below, where the returns go up and down all the time. More like this –                                   If you see both the charts end at 150 but one is simple-straight line while the other is with ups...

        Initially we thought of coming up with a write-up which is close to our heart anytime. But fortunately we did learn a lot and got to know a few interesting things about Provident Funds (popularly known as PFs) So we decided to postpone the actual blog and wrote this one, as this will help readers to correlate with the next one! So, this week let us look at what Provident Funds are all about!         Provident Funds are two types Employee Provident Fund (EPF) & Public Provident Fund (PPF). Both Employee Provident Fund and Public Provident Fund are long term investment tools which helps you secure your retirement days. Before you invest in either EPF or PPF, it is important you know about these plans. EPF Vs PPF – EPF alias Employee Provident Fund is automatic savings option for Salaried employees where the employee and employer both contribute 12% each of the employee’s basic salary (Employers contribution of 12% is furt...

Caution - Request readers to consider this write up seriously if they don't want to feel bad looking at their march month Salary statements.              Being one of them, I believe that the salaried class are one of the most affected by the tax system of this country. I say so purely on basis of  tax paid-benefits accrued "Trade off". One thing is we dont "pay" tax, Govt snatches it from us. We basically pay taxes on everything we consume, you name them - Milk, basic groceries like Rice, wheat, dals etc., Bike,Car, clothes, food, entertainment, shit (corporation tax). On top of all this Tax, The government does not allow the Salaried man to declare his Income and pay tax on it as is the case with Professionals (though we pay Professional tax -  credits to PC sir) but simply asks the employer to deduct it from our pay and pass it on them directly. So "Unfair" & "Undemocratic" ! You never ask us, thats not democracy! Having paid the ...

It was a rainy afternoon and I was peeping through a large window and enjoying the scenery of rains, waiting for the lift to take us closer to earth from these bundles of Elixir that clouds are. I work on the 12 floor (closer to heaven) and join my friends on the ground floor for meals. Still lost in Rains, I did not pay heed to the conversation of colleagues next to me until a gentle-man aged in his early forties stepped in and was discussing about opting for NPS (National pension scheme) very seriously, Since this rainy day was the last day if one had to do so. He was desperate to apply for NPS since he believed it will take care of his retirement life. He continued saying, I’m not sure whether the present generation kids will take care of us & so it is a must to opt for NPS as it will secure our life with steady income post retirement. Until then, I did not consider that I too will be old someday and will be resigned to the same fate this gentlemen predicted Intrigued if NP...

Recently friends of mine were discussing the rush @ global brand Apparel store because of the discount that they were offering to the customers. A certain 50% discount made sure that people rushed to the store and the store ran out of inventory within a week. I was imagining if "a common need" product is sold@ 50% discount, wont the rush be larger.  Hence i decided to post it here. The common commodity that I'm talking about is a "Sontha Veedu" (own house) we all crave to buy. Sometimes i have seen people buying a house without having a plan for it and feel so burdened by the EMIs they have to pay especially in the initial years where their earning capacity is still limited and the interest outgo is high.  Alright, let me get to the Story or to say correctly "Maths" of the Story!  Lets assume the Average cost of apartment is 40 lacs. So a prospective Buyer has to first have a down payment of 15% ie., ~5 lacs in hand. Then further he will go f...