Droplet Wealth

 In one of the Whatsapp groups, a member had shared a forward. An image that had all the crises world has faced in last 2 decades and the footnote on the image went on to say that Mr. Market is above all and has overcome all the challenges and given good returns and that we should "Invest" no matter what.    We agree with the image and the footnote albeit with a pinch of salt. Mr. Market does not move in a linear, upward curve. Mr. Market puts the prospective Investor to test - With its mighty volatility,  With its boring consolidation,  By doubling the Investment in couple of months, making you feel greedy and  By giving you a false sense of "Financial Nirvana"  before throwing you to the ground and burying you once for all!  Yes, indeed, Mr. Market is above all. Some of you might feel that we are exaggerating. True, may be! But What are alarm bells if they don't ring louder than the impending danger? Exaggerating suits if it has awaken...

                    We always ask our investors to stay invested for longer term if they choose Equity as an Investment option. In today's blog, lets look at the Importance of Staying long and the risks of trying to make quick returns. Before moving on, Let us introduce you to an concept called the "Rolling Returns"                 Rolling Returns is the average return that an Investor would make in standard time Intervals (like 6 months, 1 years, 3 years. ) from Point A to Point B. Rolling returns take several such blocks of 3, 5 or 10-year periods at various intervals and see how the fund has performed over that period which makes this return more indicative of the actual performance of the fund. Due to different periods, the return consistency of the fund over the period can be analyzed as it considers both upside and downside market trends. Now lets begin with the 1st set of data, Here we ...

                                           We have been going around telling everybody that at Droplet Wealth, our wish is to make at least 100 people Crorepathis. Interestingly, we found that a lot of people believe that this is something beyond their achievable corpus, something that is unrealistic        On the contrary, we believe that this is a very small number and also needs to treated merely as the  1st step towards Financial Freedom or healthy retirement.  In this blog, we will try to give this One crore a perspective from Indian equity market point of view. Why Equity? Because we believe this is the easiest and safest way to reach there!                                Below is the table of top 3 Companies of India and their total worth.      ...

           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...

I am sure most of the people would get an increment now or would have got it already. We thought that this is the right time to talk about "Top Ups" in Investments. Top Up means increasing your investment by a certain % at regular interval. For Example Increasing investment by 10% once a year.  Below is a table that the shows the additional wealth you can generate by increasing your Investment regularly.  By only increasing the investment by 10%, one can increase the saving by 25%. If we continue to do the same for 15 years, then we can generate 50% more wealth!  This is a random example that we have took just to show how powerful an idea top up is. So let me give a more specific example by taking our own case. I got my 1st job 12 years ago and a back of hand calculation tells me that my earnings have grown at ~20% per annum. If I had been wise back then, I would have saved around 30% of my income and Increased it by 20% every year, in line with my increments/promoti...

In Tip#1, We saw what we should not do in the name of tax saving. Today we will see the 1st thing we should do for tax saving. In a recent survey it was found that people go financially broke or fall in debt trap primarily for two reasons - 1. Wedding 2. Health disease. Today we are going to talk about 2nd point and how tax saving is related to it.  Like we said earlier, a lot of people are obsessed with Section 80C. People have their obsession, we have ours and it is Health is Wealth . Honestly, In today's world, it is impossible to be healthy, If Diabetes does not catch you, some Heart disease will catch you, If Heart does not then some cancer will, the list will go on... But seldom can we find a person who is 40 plus but all healthy.  The Proverb -"Health is Wealth" might be cliché but the context has changed. In the sense that almost all ailments today have treatments and can be cured if diagnosed and treated properly. But these treatments cost us our life savings...

  A Wiseman once said - "Haste Makes Waste" Its that time of the year when people go helter-skelter to save taxes. Most of the time because of poor planning, people end up "buying" products that hardly help them save taxes or avoid helping them build savings corpus. In this blog, we thought we would bring to fore some grave mistakes that People do in the name of "Saving Taxes"  Horror#1   - Buying Traditional Insurance Policies In our small life as Financial Planners we have not come across a person in 30% tax bracket who has bought a LIC policy to save tax. That is because they already bought a 15 year policy when they were in 20% tax bracket. Now google "Charges paid on Insurance", you will understand that there are multiple charges that sum up to almost 20% of Premium amount like Document charges, Morbidity Charges, GST, Etc.,  To save 20% Income tax, People end up paying 20% in other form. So where did you save tax? So buyers of I...