Non-Convertible Debentures (NCDs) are fixed income products with a specific tenure and stipulated rate of interest income. It is issued by companies to raise long term funds through public issue without reducing the equity stake as these debentures cannot be converted. On maturity the principal amount along with accumulated interest is paid to the [...]
Independence, by definition, is the ability to live by your own terms and conditions, take your own decisions and control your life the way you want. While there are many factors that can make this happen, financial independence is definitely paramount. What financial independence really means is that you don’t have to solely rely [...]
Assets are widely known as anything that has value and return generating potential. It represents value of ownership. Investment asset can usually be of two types: Financial assets and Physical assets. Even though they seem similar, they are very different from each other based on their features and characteristics. Financial Assets It refers to [...]
If business owners are the drivers of the economy, then salaried employees are the engine that gives striking horsepower to move the country forward. Yet, often busy with day-to-day pursuits, they neglect their own financial needs and delay tax planning. When it comes to tax saving most people consider only those products that come [...]
Anchoring is a concept in behavioral finance where a person's decision making ability is anchored in some past event. For example an investor today stays shy of investing because his mind is anchored in the 2008 stock market crash. He cannot think beyond. Thinking Man suggests that in investments our decisions should be always [...]
“Naïve” means “inexperienced” in particular tasks assigned, even while taking important decisions of investments. There are instances in pasts wherein, investors use ‘naïve’ rules of thumb for portfolio construction due to lack of better information. One such rule is known as the ‘1/n’ approach, where investors allocate equally to the range of available asset [...]
