Debt problems?
There is only ONE reason why people get into debt. Living beyond their means. Make no mistake there is just one reason. However when people get into debt, and when they come to me, they justify on...
View ArticleMarket Stabilisation Scheme…
Ever wondered what is Market Stabilisation Scheme? In 2002-4 the Rupee started strengthening. This was because of the amount of foreign currency that came into India for being invested. This put a lot...
View ArticleInvest in Indiainfoline debentures?
Indiainfoline Investment is coming out with a debenture of 5 years duration – at an attractive rate of 11.9%p.a. The short question is ‘Should you invest in these debentures?’ Well the Shriram group...
View ArticleUS downgrade: what impact?
The US being downgraded from AAA to AA+ is being touted as a huge and big event impacting the world economy. It is exactly like a cancer patient in ICU dying. Yes if he is a relative, the eyes do get...
View ArticleGilt (Guilt) is Risky!
When all of us feel that there is no risk, risk happens. Like all of us were sure that the markets will go from 21000 to 25000 it went to 9000. Market is a great humiliator -and exactly when you feel...
View ArticleGilt is like gold!
Which is the highest rated debt paper in the world? Well it is AAA. However a country does not get its debt paper rated. When I ask my class ‘why does a country not get its debt rated?’ I normally...
View ArticleHow safe are government securities?
Stupid question? Well let us attempt an answer first…then decide whether the question is stupid…. The full repayment of principal and interest is guaranteed by the government, so there is no way how...
View ArticleWhat is a Negotiated Market?
Some debt market basics….largely meant for the MBA (finance) students: What is a Negotiated Market? deals that have been done by negotiation, executed -but REPORTED on the trading system – for approval...
View ArticleBanking is a profitable business, and simple too!
From times immemorial banking has been a fantastic business. Ask the Marwaris and the Chettiars. It is a simple business too. Borrow money at 3%p.a. lend it at 6%p.a. and keep the 3% margins. If I am...
View ArticleInterest rate cycle!
When interest rates go up, you know one thing for sure – it will come down also. Now inflation figures are likely to be a little lower (base effect), and there will be pressure on RBI to cut rates. In...
View ArticleTerrible losses in Gilt!!
“Let us get the basics right, Subra, if you want to be safe, you should invest in gilt. Equities, equity mutual funds, etc. are for the rich people who read your blog NOT FOR middle class people like...
View ArticleChina is a Kleptocracy
Here is an article about China…..I was getting some sadistic pleasure in doing a small change in the article….and would love it if people DISAGREED with me. I see kids in our office (qualified...
View ArticleDebts and Bills that we pay…and that we do not
If we have a debt (or a bill) we normally pay it on time, right? Hey no. Not always do we like to pay our debt or bills. We pay our bills only on the following conditions: 1. We acknowledge it as a...
View ArticleDebts and bills that we pay..part 2
We saw what kind of bills and debts we pay…in the part 1. So first is we need to acknowledge it as a debt Second there has to be a cost of not paying the debt. Which means we pay a debt (which we...
View ArticleIn Bonds we trust…
Which is the safest country to invest? USA Which is the safest instrument to invest in? Bonds So the safest investment in the safest country has to be the US Gilts, right? Re-think. Re Rethink again....
View ArticleDebt fund vs Fixed deposits
What are the options that a person has when he/ she chooses to invest in a debt instrument? Well the choices are: 1. Bank fixed deposits: requires very little explanation. 2. Company fixed deposits...
View ArticleShould I invest in a debt fund or bank fixed deposit?
Sometime back I decided to write about something which I have been advocating for years. How will you like it if I can postpone your tax payment from the year 2014 to 2034? You will love it right?...
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Borrowing is NEGATIVE compounding….
Most writers of personal finance have spent half their lives talking about the virtues of compounding, well, at least I have. So not compounding your money is bad. That is done and dusted. What can...
View ArticleSavers: wiped out by Central Governments…
Let me start with a caveat. I do not benefit at all if you invest in equities. Or if you buy real estate. Or if you keep your money in banks or LIC. I am indifferent to what you actually do. Why should...
View ArticleUnderstanding Bond Funds..series…
I have been receiving queries about investing in fixed income securities. Not sure whether it is an indication that Indians are pulling out of equity markets (read the article on Bloomberg about this)...
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