Archive for the ‘Mukesh Dedhia's published articles’ Category
Cheers to a New Year and another chance for us to get it right!!!!
January 4th, 2010
Mukesh Dedhia
In the outcome of back-to-back holidays, eventful family gatherings & year-end celebrations & generally, too much food, there emerges the New Year’s Day & along with New Year comes the renowned NEW YEAR RESOLUTION! I am sure many people can’t wait until they can attempt to make a new start, reverse all the wrong doings and become a better person.
Every year millions, if not billions of people make new years resolutions, something they plan to do in the New Year and hopefully stick at forever!!!! It’s common practice for people to evaluate their lives at this point, and to consider what they can do to make the coming year their best yet. Why shouldn’t one apply that same thinking to his investments esp. in stock markets?
CREATE WEALTH THROUGH SINGLE PREMIUM ULIPS
December 7th, 2009
Mukesh Dedhia
You don’t have to win a lottery or inherit a fortune from a distant relative to become wealthy. The latest scientific evidence suggests that you can do it all by yourself, without inside connections, vast business experience, or even luck! There is no such thing as an inherited tendency toward success or wealth. In fact, average and wealthy people seem to be remarkably similar.
Money does indeed change everything: Financial challenges mount exponentially as you add more digits to your bottom line. The list of responsibilities is almost endless. Well, some people will doubt & think that being financially free seems to be an impossible dream to attain. - Never ever doubt about yourself! - To have financial freedom is not impossible and is within your reach if you possess the fundamental understanding of how wealth is created and accumulated.
The trap we call”Ponzi”
October 26th, 2009
admin
What is a Ponzi scheme?
A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned.Ponzi scheme usually in order to entice new investors, provide short-term returns that are either abnormally high or unusually consistent. The system is destined to collapse because the earnings, if any, are less than the payments.
Give Your Equity Investments A Smoother Ride
August 11th, 2009
Mukesh Dedhia
When one talks of the highest return giving security- the answer is equities. But on second thoughts the risk factor crops in. You fear the risk associated with equities & rather find yourself contented with the fact that your money grows at 8% p.a. in debt market instead of having a chance of earning exceptionally high returns in equities. But what if you get a product wherein the returns are very near to actual equity returns & the risk associated is much lower. In short what if the product falls in Low Risk-High Return Category?
There we understood that proper asset allocation is imperative for building a strong portfolio. By doing investments through IPS route one can earn better returns by diversifying his/her risk.
Importance of discipline in investing!!!!
July 16th, 2009
Mukesh Dedhia
How often do you churn your investment portfolio? On what basis do you do that? On the basis of market sentiment, right? As & when you feel the bull is running you just close your eyes & run after it & then when the bear phase comes you just hide yourself completely getting out of the markets. I am sure most of you would have increased your exposure indiscriminately to equities at around 18, 000 to 21, 000 levels & then would have feared & not invested anything at 8, 000 levels. (Only if you would have done the reverse I would have not had to post an article on it.)
So, how & when should one invest? The answer is by following a disciplined format which should be laid out in an INVESTMENT POLICY STATEMENT (IPS). This is an important written document that clearly defines your objectives and constraints over a relevant, explicitly stated time horizon. The IPS is the linkage between you, the financial planner, and your portfolio.
How Much Risk Should You Take?
June 24th, 2009
Mukesh Dedhia
Do bumps in Sensex send you into sweats, or to the trading room floor? An understanding of your risk tolerance is an important step in managing a healthy portfolio. Most investor’s I’ve encountered concentrate solely on investment returns and ignore investment risk. Because the level of investment risk primarily determines investment returns, we need to apply a more rational approach to determining the appropriate level of investment risk in our investment portfolios.
THE WAY OF THE WORLD IS MEETING PEOPLE THROUGH OTHER PEOPLE
June 8th, 2009
Mukesh Dedhia
Most business owners at some stage find themselves faced with what I call a growth dilemma. They don’t know whether to grow their business or not. If you don’t want to grow a world class business, don’t worry; you probably are in a big majority! 85% of small businesses want their business to fit in with their goals of having a good, well-balanced life. The other 15% ones are growth-oriented business builders. But to grow a business one either has to cut the costs, increase productivity, expand his operations etc. Expanding operations is comparatively easier and effective. Networking falls under the purview of it.
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New attempt to fill looming pension…
June 5th, 2009
Mukesh DedhiaI have always stressed on the issue that Retirement Planning is a must in the context of personal Financial Planning. Thankfully the fruits of long term financial planning, which have been available only in the organized sector, will now be available to the unorganized sector, the self employed as well as all others who don’t come under the ambit of any pension system. In a reform long overdue, the Pension Fund Regulatory & Development Authority (PFRDA) has finally put into motion the New Pension System (NPS).
EARN FROM YOUR HOME AFTER RETIREMENT
March 23rd, 2009
Mukesh DedhiaUntil recently, residential property could either be used for accommodation or as a source of rental income. From 2007, homeowners got a chance to have their cake and eat it too. The Reverse Mortgage Scheme introduced by the National Housing Bank allowed senior citizens (those over 60 years of age) to monetise their property to meet their expenses.
It has been observed that senior citizens, because of their old age, become dependants on their sons and relatives. In the organized sector, there is a provision for pension also. However, there are some sectors where there is no provision for pension. At the same time, the pension amount is so meager that it is hardly sufficient to meet their medical treatment and contribution to the education and marriage of their grandchildren. As a result, they are treated as burden by their sons and relatives. The senior citizens, in the absence of regular income, are not able to play their social obligations effectively.
This is where reverse mortgage can be of great value.
IN FINANCE, INTEREST SHOULD ONLY MEAN COMPOUND INTEREST
March 12th, 2009
Mukesh DedhiaInterest is interest, right? Well actually, no, it isn’t. There’s a BIG difference between simple and compound interest.
As an investor it is high time you understand the difference between simple & compound interest.
Simple interest is where the amount of interest generated each term is constant, based on only the starting amount.
Compound interest is where the amount of interest generated each term increases because it is based on both the starting amount and previously earned interest.