Finacular - Personal Finance & Wealth Management

Finacular - Personal Finance & Wealth Management Finacular is a Tech Platform focusing on long term wealth creation and financial independence. It he

Why I no longer invest in PPF? Ever since I started earning 8 years back, I have continued to diligently invest in PPF S...
21/05/2021

Why I no longer invest in PPF?

Ever since I started earning 8 years back, I have continued to diligently invest in PPF Savings account. That’s what I had seen my parents do and the 80C tax benefits are quite lucrative as well.

However, PPF Interest rates have been declining for a long term now. It no longer generates double digit or high single digit returns which it used to earlier. As the Indian economy grows, the interest rates are likely to go down even further.

Inflation on the other hand continues to be around 5-7% 😖

When the interest rates dropped to 7.1% last year, I stopped parking my savings in PPF. I realized if I am locking my money for 15 years, I might as well invest in ELSS funds rather than PPF.

In the long run, I definitely hope to achieve higher than 8-9% returns on a good ELSS fund and will be able to build a bigger corpus while enjoy 80C benefits 💰.

Another benefit is that the lock-in is just 3 years as compared to 15 years in PPF.

***********************

One of the best savings instruments which worked for our previous generation might no longer work for us. It might not even help beat inflation.



Sanchit Garg

27/04/2021

We often track the net-worth of Billionaires with keen interest.
But do we know what is our own net worth?
How much have our assets grown over last year?

16/04/2021

An analysis of annualized returns from different asset classes over 5-year periods. It is quite evident that equities have consistently generated higher returns than any other asset class. Also, in most of the cases, the returns are in double digits.

*************************
Time to start thinking about increasing your exposure to equities?
*************************

Finacular helps identify the best mutual funds with the potential to generate the highest returns over the next 5 years.

We have started rolling out the platform to those who have signed up for beta access. Sign up today to get an invite.

Journeys of founders of Billion Dollar Indian Start-ups.------------------------------Last week saw a lot of Indian star...
13/04/2021

Journeys of founders of Billion Dollar Indian Start-ups.

------------------------------

Last week saw a lot of Indian startups getting funded at billion dollar valuations. Many people pointed out that all of them are heavily into losses and still getting billion dollar valuations.

While that may be true, however, the founders of these companies have been working hard from a very long time before they are able to reach these levels and investors often put money in the team and future potential of start-ups.

*******************************
Behind what seems overnight success, a lot of hard work, failures, and sacrifices are involved.
*******************************

13/04/2021

Basic principles for investing in stock markets:

It takes time:

- If your goal is to generate wealth from stocks, you need to think long term (at least 8-10 years ++).

- Even the biggest and most exceptional investors we know of have generated wealth from stocks only over a period of time.

Compounding:

- Long-term investing leads to compounding which creates wealth.
100 compounded at 25% per annum becomes (125, 156, 195, 244, 305, 381, 477, 596, 745, 931) over a period of 10 years. It is 10 times returns in 10 years!

- Please do observe how the numbers change in the last 2 years. 70% gains are made in the last 30% of time period.

Portfolio Planning:

- You need to make a proper portfolio of all your assets (debt, equity, real estate if any, etc.) and then take decisions to allocate a certain portion in a basket of 15–20 exceptional stocks.

- If you are only 10% invested in equities, then no matter what, you wealth can only grow by so much.

Its not a casino:

Finally, do not get lured by media articles and News shows and avoid chasing multi-baggers/ penny stocks in the search for quick gains.
Doing so is no less than a gamble where 95% of the time you will lose. Your odds are much better in a casino!

Equity markets by their very nature are volatile. When you try to invest for short time periods, you often get caught up...
11/03/2021

Equity markets by their very nature are volatile. When you try to invest for short time periods, you often get caught up in these volatilities. Generally, people end up buying when markets are rising and sell when markets are falling.

An analysis of 1-year periods over the last 41 years shows that in 11 such periods you would have ended with negative returns. Assuming you invested in January and sold in January the next year.

However, when you increase your horizon to 5 years, the probability of ending up with negative returns reduces drastically. In fact, over the last 37 such 5-year periods, only twice you would have ended with negative returns. Over 65% of the times, you would have made double-digit returns in the equity market.

Another benefit of investing for the long term is reduction in deviation of returns. Over a 1-year horizon, the markets have returned anywhere from -50% to more than 100%. However, if you are investing in high quality companies and have a longer horizon, you can be almost assured of double-digit returns compounded annually.

With short term trading, you not only pay higher brokerages and taxes but the probability of losing your hard-earned money also increases.

Performance of different assets over 5-year time periods. Clearly equities have consistently generated much higher retur...
21/01/2021

Performance of different assets over 5-year time periods.
Clearly equities have consistently generated much higher returns than any other asset class.

The takeaway is simple: It is futile trying to make predictions for short time periods. Have a longer horizon and invest in Equities of extremely good companies to consistently generate outsized returns.

When there are hundreds of funds which are rated 5-star, how useful are these ratings?Moreover, all these rankings are b...
19/01/2021

When there are hundreds of funds which are rated 5-star, how useful are these ratings?

Moreover, all these rankings are based solely on past performance and keep changing every few months. Surely a retail investor is not expected to buy & sell every few months.

Finacular looks at the investment philosophies of the fund manager and underlying portfolios of a mutual fund scheme to identify schemes which could generate potentially higher returns 5 years from now.

Read more about our research methodology here: https://finacular.in/our-research-methodology/

Always be sceptical before trusting stock recommendations and tips given on TV channels / Newspapers. All get-rich-quick...
17/01/2021

Always be sceptical before trusting stock recommendations and tips given on TV channels / Newspapers. All get-rich-quick tactics do more harm than good.

There are a lot of operators and stock manipulators present who are trying to fill their own coffers at the cost of gullible retail investors. Recently SEBI caught a so-called “renowned market expert” who used to artificially inflate stock prices by running his own TV show and giving recommendations on a prominent business news channel.

Address

Gurugram

Website

Alerts

Be the first to know and let us send you an email when Finacular - Personal Finance & Wealth Management posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to Finacular - Personal Finance & Wealth Management:

Shortcuts

Share

Category