Droplet Wealth

          The Markets continue to wobble. Option traders are still making money. Note we told money and not Wealth. As usual we continue to remain focussed and bring to you the final part of Man made mis-doings of Markets. The Internet Bubble – It happened in the year 2000 across the globe main culprit being the US. The dotcom bubble occurred in the late 1990s and was characterized by a rapid rise in equity markets fueled by investments in Internet-based companies. During the dotcom bubble, the value of equity markets grew exponentially, with the technology-dominated NASDAQ index rising from under 1,000 to more than 5,000 between 1995 and 2000. The 1990s was a period of rapid technological advancement in many areas, but it was the commercialization of the Internet that led to the greatest expansion of capital growth the country had ever seen. This sparked all the young budding entrepreneurs to start their own internet related services to profit from t...

     Markets have for now bounced off the lows it fell to last week.  Let's, just as in other things in life, keep focused on our objective that is to educate our readers about greed,  the gain it was supposed to bring and the eventual pain it has bought!  Greed. Gain. Pain  - Series II The UK Rail Mania –                                    It happened in the year 1850 at England. England’s economy was growing exponentially and it was backed by it’s new means of transportation – the railways. George Hudson, In mid-1830’s entered the railways business, aggressively expanding the operations and connecting various towns and cities. With growing economy, railways gained momentum and Hudson company had 30% market share in the rail lines and was generating positive cash from operations. This triggered many others to start their own railway companies as the proced...

We all live in a world of instant gratification. With the prevailing technological disruption, we were able to buy everything and anything in an instant click and it is delivered at our doorstep without any pain or work from our side. Similarly, we want everything to happen in minutes, hours or days including wealth creation. We are living the 2 minutes noodles life. However, we forget that Life is all about being patient and sailing through the vicissitudes that comes along the way. In today’s blog, let us see some of the economic bubbles and peoples greed to become rich overnight and how it put people off the course of wealth creation for the rest of their life. The Tulip Bubble – It happened in the year 1637 (1630-1637) at Holland. After gaining independence from Spain, Holland was economically growing well led by technological advancement. Then came the weapon of mass destruction, the Dutch were introduced to the Tulip flowers. When the economy flourish, there comes...

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...