FinVise India

  Most retail investors keep their savings primarily in traditional fixed income investments like Bank Fixed Deposits, Government Small Savings Schemes etc. With the RBI hiking repo rates to 6.25%, the interest rates of Bank FDs and Government Small Savings Schemes have also gone up. However, investors may get higher and more tax efficient returns by investing in debt mutual funds in the current interest rate environment. Why debt funds have the potential to give higher returns? Let us compare a bank FD with a corporate bond. Suppose a 5 year Bank FD is giving 7% interest rate per annum. A company issuing a 5 year NCD, will have to pay higher interest rate or coupon compared to Bank FD. If the company does not pay higher interest rate than bank FD, why will you invest in the NCD? The issuer is paying you higher interest rate because you are taking the risk. In general, the interest rate of a  risk free investment  will be only slightly higher than the inflation rate. A ma...

  Peer-to-peer (P2P) investing, also known as P2P lending, is a form of alternative investment where individuals can lend money directly to other individuals or businesses, bypassing traditional financial intermediaries such as banks. This allows investors to potentially earn higher returns on their investments, as they are able to cut out the middlemen and invest directly in borrowers. Some of the pros of P2P investing include: High returns: P2P investors can earn returns that are higher than traditional investments such as bonds or savings accounts. This is because borrowers are willing to pay higher interest rates to access capital without going through traditional banking channels. Diversification: P2P platforms allow investors to spread their money across a large number of borrowers, which helps to diversify the risk and potentially increase returns. Accessibility: P2P platforms allow individuals to invest in a wide range of assets, regardless of their net worth or in...

  Investing can be a powerful tool for building wealth over time, but it's not without risk and it's not the easiest way to get rich. In order to make the most of your investments and maximize your chances of success, it's important to have a clear investment strategy and to understand the different types of assets and investment vehicles available to you. One key aspect of investing is diversification. Diversification means spreading your investments across different types of assets and different sectors, to spread out your risk and minimize the impact of any one investment on your overall portfolio. This can include a mix of stocks, bonds, real estate, and alternative investments. It's also important to diversify across different geographic regions and industries to further minimize your risk. Another important aspect of investing is to have a long-term perspective. Investing is not a get-rich-quick scheme, it's a way to grow your wealth over time. It's import...

  Paying off debt early can be a challenging task, but it is definitely worth it in the long run. Here are a few tips to help you get started on your journey to becoming debt-free: Make a budget: In order to pay off debt early, it is essential to have a clear understanding of your income and expenses. This will help you to see where your money is going and where you can cut back. You can use a budgeting app or spreadsheet to track your income and expenses, or you can simply write everything down in a notebook. Be sure to include all of your fixed expenses, such as rent or mortgage payments, utilities, and insurance, as well as your variable expenses, such as groceries, entertainment, and transportation. Once you have a budget in place, you can start to look for ways to cut back on your expenses and redirect that money towards paying off your debt. Prioritize your debts: Once you have a budget in place, you can start to prioritize your debts. The best way to do this is to lis...

  Financial freedom is the state of having enough wealth to live comfortably without having to work for a living. It means having the ability to choose how you spend your time, without being constrained by the need to earn a certain income. In other words, financial freedom is the ability to have enough money saved and invested to cover all of your living expenses without having to work a traditional job. The goal of financial freedom is to have enough passive income, such as rental income, dividends, or interest, to cover your living expenses, so you don't have to rely on earned income to pay the bills. Financial freedom is not only about having enough money to live on, but also about having the flexibility and independence to live the life you want. Here are some steps you can take to start working towards financial freedom: Create a budget: To create a budget, first, make a list of all of your income sources, including your salary, rental income, and any other sources of income...

  Personal finance is a complex topic that encompasses a wide range of subjects, including budgeting, saving, investing, credit management, and tax planning, among others. While these topics are all important for individuals to understand in order to make informed financial decisions, they can be difficult to teach in a way that is both accessible and relevant to students. One reason why personal finance may not be appropriate for schools is that it is a highly personal and individualized subject. Everyone's financial situation is unique, and what works for one person may not work for another. For example, a student who is planning to go to college may have very different financial needs and goals than a student who is planning to enter the workforce immediately after graduation. This can make it difficult to create a curriculum that is relevant to all students. Another reason why personal finance may not be appropriate for schools is that it requires specialized knowledge and expe...

Reviewing your investment portfolio is an important step in ensuring that your investments are aligned with your financial goals and that they are performing well. Here are some steps you can take to review your portfolio: 1.  Assess your current portfolio:  Review your current investments and determine their performance, diversification, and alignment with your investment goals. This can be done by looking at the returns on your investments over different time periods, such as the past year or the past five years. It's also a good idea to review the diversification of your portfolio and make sure that your investments are spread out across different asset classes, sectors, and geographies to reduce risk. You should also check the alignment of your investments with your investment goals. 2.  Set investment goals:  Clearly define your investment goals and objectives, such as retirement planning, saving for a down payment on a house, or generating income. Your investme...

  Being financially literate means, you have an understanding in few core areas: •       Budgeting and setting financial goals •       Handling emergencies like job loss, accident, hospitalization, death, etc. •       Paying bills and saving money •       Basics of loans (personal, debt, mortgages, etc.) •       Credit cards and credit scores •       How investing works, pension plans, mutual funds, the stock market, etc. Financial literacy is not something you will magically know either. Majority of schools are not teaching personal finances to students. Parents and family may be misinformed or lack a deeper knowledge that children cannot learn from. What should one do? Unless you take some economics courses within your education path, becoming financially literate is on YOU. Yes, you can blame the education system, your parents, you...

  Financial literacy is the education and understanding of various financial areas including topics related to managing personal finance, money, and investing. This topic focuses on the ability to manage personal finance matters in an efficient manner, and it includes the knowledge of making appropriate decisions about personal finance such as investing, insurance, real estate, paying for college, budgeting, retirement, and tax planning. It is the possession of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources. In India, Financial Literacy has still not become a priority like in other developed nations. Lack of basic financial knowledge results in poor investments and financial decisions. That’s why most people invest in short-term plans and physical assets to accomplish their personal goals which give lesser benefits and do not help in the economic development of the country.  According to a global su...

  The psychology of money refers to the ways in which people think about, relate to, and use money. It encompasses a wide range of topics, including the emotional and behavioral aspects of financial decision-making, the cultural and societal factors that influence our relationship with money, and the cognitive biases and heuristics that shape our financial behavior. One key aspect of the psychology of money is the way that it can elicit strong emotions, such as happiness, anxiety, and guilt. For example, people often feel a sense of accomplishment when they save enough money to make a large purchase, while they may feel anxiety when they are in debt or struggling to make ends meet. These emotions can have a significant impact on financial decision-making, and can sometimes lead people to make choices that are not in their best interests. Another important aspect of the psychology of money is the role that social influences and cultural factors play in shaping our relationship w...

  An emergency fund is a set amount of money that you set aside specifically for unexpected expenses or emergencies. Having an emergency fund can provide financial stability and peace of mind, especially in times of uncertainty or crisis. One of the main benefits of an emergency fund is that it can help you avoid going into debt. If you don't have an emergency fund and an unexpected expense arises, you may be forced to charge it to a credit card or take out a loan, which can be financially detrimental in the long run. Credit card debt and loans often have high interest rates, which can make it difficult to pay off the balance in a timely manner. By having an emergency fund, you can pay for unexpected expenses with cash, rather than accruing more debt. An emergency fund can also help you weather financial storms. Unexpected expenses, such as car repairs or medical bills, can be stressful and disruptive to your finances. If you have an emergency fund, you won't have to worry abou...