Paise ki Pathshala

Financial Diary

Short Blogs to read on personal finance...
Mutual Fund

How long does one need to stay invested in a Mutual Fund?

One of the most important considerations before choosing an investment avenue is the expected “time horizon”, i.e. time in days, months or years that an investor intends to stay invested. All investments should ideally result from a financial or investment plan. Such plans usually indicate how long it would take for a financial objective to...
Read More
Mutual Fund

Various types of mutual funds

Various types of Mutual Fund schemes exist to cater to different needs of different people. Largely there are three types mutual funds. Equity or Growth Funds These invest predominantly in equities i.e. shares of companies The primary objective is wealth creation or capital appreciation. Examples: 1. “Large Cap” funds which invest predominantly in companies that...
Read More
Mutual Funds

Do Mutual Funds invest only in stocks?

There are many types of Mutual Funds meant for the varying investment needs of people. Some investors want high returns that only stocks can deliver. Such investors can invest in Equity Mutual Funds which are among the best long-term investment options available for achieving such objectives.But these Mutual Funds have the risk of higher volatility...
Read More
Mutual Funds

In Mutual Funds, money doesn’t get locked up. It gets invested!

⏳When investing in Mutual Funds, one of the most common questions is, ‘Does my money get locked up?’  In a Mutual Fund scheme, the money is Invested and not Locked, and the money always stays yours. It is simply being managed by a professional fund manager.  Your money is always easily accessible. 💸 The structure of a Mutual Fund ensures that...
Read More
Wealthy vs. Rich

Difference Between RICH and WEALTHY

Most people think that being rich and being wealthy are the same thing. But there is a difference between the two. The rich have lots of money but the wealthy don’t worry about money. Rich might have lots of money but also might have lots of expenses that keep them up at night. This could...
Read More
Rich Person

Want to be Rich? It’s about Assets vs Liabilities.

Most people don’t understand that when it comes to being rich, it’s not about how much money you make, it’s about how much money you keep. Most people struggle financially because they don’t know the difference between an asset and a liability. Partly this is because schools don’t teach people what an asset and liability...
Read More
Risk Management

Can you avoid the risk?

The question is – can you avoid the risk of an accident while traveling. No, you can not. But you can certainly ‘Manage the Risk’ Similarly, in investment, one needs to manage the risk by solid Risk Management principles. However, we need to understand one more ‘Very Important’ principle of investing. This principle says that...
Read More
Risk while investing

Risks While Investing

Our investments are constantly exposed to some or the other risk at every point in time. Let’s understand them one by one. Credit Risk: Whenever you invest in Debt type of investment, you should check the credit score or Credit rating of the institution or the instrument where you are investing your money. As there...
Read More
Asset Allocation

Age of the person and Asset Allocation:

The basic principle behind age-based asset allocation is that your exposure to portfolio risk needs to reduce with age. As a person grows old he is willing to take the lesser risk. Hence a person approaching his retirement may wish to invest in Assets having lower risk and assets having higher liquidity. This way he...
Read More
1 2 3