The most immediate benefit of a fixed income is its contribution to effective budgeting. With a predictable paycheck, Gen Z can allocate funds for essential expenses like rent, utilities, groceries, and transportation. This allows them to plan their spending more effectively, ensuring they can meet their basic needs without living paycheck to paycheck. Additionally, knowing …
What is Portfolio Diversification? Portfolio diversification is a crucial concept in finance, epitomised by the adage “Don’t Put All Your Eggs in One Basket.” This principle underscores the importance of spreading investments across various asset classes to mitigate risk. By diversifying across equities, commodities, currencies, and bonds, investors can shield themselves from unforeseen market movements, …
Investment is one such goal that makes the journey of life interesting. Investment is an asset acquired with the goal of generating income or appreciation. Appreciation increases in value over a period of time. Investment is made to create future wealth. When a child is born, learning is gradual. Recognition with senses, reciprocation with gestures, …
Holi, the festival of colours, is not just a time for fun and merry-making but also offers valuable financial lessons that can be applied in our everyday lives. As we celebrate Holi, let’s take a closer look at some of the financial lessons we can learn from this vibrant festival. Budgeting and planning ahead Just …
Q. I am Ranjan. I want to harvest tax loss for my investments. How does tax-loss harvesting work? How can it help minimise my tax outgo? What are the risks? Tax-loss harvesting is a strategy used to minimise tax liability by selling investments that have declined or are declining in value. When an investment is …
Walter Schloss gained invaluable experience while working directly with Graham at Graham-Newman Corp. in the 1950s. During this time, he absorbed Graham’s principles of value investing, laying the groundwork for his successful approach. In 1955, Schloss initiated his investment partnership, initially managing funds for family and friends. Remaining steadfast in his commitment to value investing, …
Various investment strategies may be considered for the current year, but the suitability of each depends significantly on individual financial goals, risk tolerance, and approach to investing. As an illustration, instead of solely concentrating on growth and momentum, some individuals may opt for value investing. A prudent initial approach could involve favouring stocks with robust …
Most experts believe that the key to financial planning is diversification based on your risk profile as well as the duration you want to remain invested for. Diversification is one of the most important techniques in financial planning and investment. It is basically not putting all your eggs in one basket and hence aims to …
So, before you choose the mutual fund that is “right” for you, it is imperative to give careful consideration to a number of factors such as investment goals, risk tolerance, performance history, and expert management, among others. “Investing in mutual funds is a great way to grow your wealth. However, with so many options available today, …
Alternative investments can play a crucial role in enhancing portfolio resilience. These investments offer unique benefits that can help investors navigate market volatility and achieve better risk-adjusted returns. Here’s how alternative investments can enhance portfolio resilience: Portfolio Diversification: Diversification is the key component of alternative investments’ contribution to portfolio resilience. Equities and bonds, two common …