Tuesday, May 30, 2017


Today is 31st May...
No Tobacco Day
Do not want to give Gyan on how Smoking affects your Body but I WILL definitely give you gyaan on how Smoking affects your Wealth!!

Spending ₹3500 per month on cigarettes? 
Invest instead and get a return of ₹2.42 crore in 30 years. (See image)
Quit Smoking and Start Investing!

The easiest thing to do is to say SMOKING IS INJURIOUS TO HEALTH. 
but to ensure that the individual dosent smoke is the most challenging task. 
Like wise We all know by staying invested and investing  regularly you create wealth but how many people have ran the race so far. 
It's difficult if you try to do it on your own.especially when a huge corpus is built .Market is like an ECG graph which will make even the most wisest investor look like a foolish one. 
Even doctors consult their colleagues when they are sick.

Smoking will kill you earlier definitely
Trading (Speculating) will kill you definitely 
But SIPing will not only help you live peacefully but also help you live with pride with RICHNESS. 

Think Smart

Quit smoking
& Start investing!!!

Friday, May 12, 2017

WHY LIQUID FUNDS? & When to use them??


See the above video

I have always advocated that EVERY investor regardless of his Financial Stature should mandatorily have a Liquid Fund in his portfolio. This fund could be for his Emergency, for his Day to day expenses, anything that is needed at a short notice.

Liquid fund as the name suggest invest in money market instruments, treasury bills, etc which have a residual maturity of less than 91 days.
They do not have Exit Load

Liquid funds give much higher returns than your Savings Bank account without compromising on the safety and liquidty of your investment.
Liquid funds have no exit loads
Redemptions happens in an instant!!

Redemptions can be done fully or partially at any point of time. In fact, some Fund Houses give you the option of redeeming INSTANTLY. Yes...You get the liquid money in your SB account in less than 30 mins!!!!

Image result for why liquid funds

Just because Liquid funds are safe, do not make the mistake of investing in Liquid funds if your time horizon is pretty long. Take the advise of a Mutual Fund Distributor who will guide you.

Also read http://www.goodfundsadvisor.in/2016/07/reliance-anytime-money-card-atm-card.html

1. Your salary till your next EMI due
2. Bonus till you spend/plan it
3. Sales proceeds of your flat till you invest in new one
4. Funds created for your child's education /marriage till you use it
5. LumSum amount lying in your bank account which you may be required any time
6. A Funds lying ideal for long weekend
Why you should invest in liquid fund?
1. No locking period
2. Historically return 7.50% to8.50% p.a as against 4% in saving account or 0% in current account
3. Online access
4. Minimum Rs. 5000 maximum no limit
Illustration :
Rs. 1 Cr kept for one day will earn Rs. 2200 per day,  which mean on weekends you will earn Rs. 2,28,000 (salary of one person). 

Please Consult your Financial Advisor before investing. 

Srikanth Matrubai


Suppose you get your Salary/Rent on the 1st of every month.
It is unusal for you to have your entire months expenses on the 1st itself. The expenses will be staggered and spread throughout the month.
Mobile bill on 5th
School Fees on 10th
Credit Card on 15th
EMI on 20th
Monthly SIP on 25th

Image result for why liquid funds
Till these expenses come up, you tend to lock your money in Bank wherein you are getting 4% (yes, some banks do offer 6% for Saving Bank Account, but these rates come with lots of conditions like balance of more than 1 lakh)
So, when I consider 4%, you are better off investing in Liquid Funds where returns match 1 year Fixed Deposits. Right now, even the underperforming liquid funds have been giving 8%, which is DOUBLE the rate of Saving Bank Deposit.
Another Advantage of investing in Liquid Funds instead of keeping in SB account is that Liquid Funds are in true sense “liquid” that is, you get your money within 24 hours and whats more some AMCs also offer ATM Card for your investment which you can use to withdraw money anywhere, anytime.
Theoretically speaking Liquid Funds are not Capital Safe but Liquid Funds invest in Money Markets, Short Term Corporate Deposits and Treasury and hence very liquid and very safe as all these instruments have very low risk and enjoy high liquidity. 

  1. The Average returns of Liquid Funds has always beaten SB Account Interest by a minimum of 1%
  2. True, Dividend on Liquid Funds are taxed at 28.3% but Interest on SB interest is added to your overall Income and is taxed as per Tax Slabs.
  3. Interest on Liquid Funds is paid out on Daily basis where Interest on SB Account is paid on Quarterly basis.
  4. There is no charges by AMCs if minimum balance in Liquid Fund goes below the prescribed minimum balance, whereas Banks charge anywhere between Rs.50 to Rs.1000.
So, if you an investor who comes under High Tax Bracket of 30%, you are advised to go for Dividend option wherein your Capital Gains is nullified and if you are in Lower Tax Bracket, you can go for Growth option and take the advantage of Indexation to reduce your Tax Outgo.

Prudent financial planning says that an investor should have some Contingency fund to face any Emergency situation in Life. So, keep cash at home and the balance should be divided in SB Account and Liquid Fund depending on your requirements.
I normally advise investors to keep 1/3rd of Contingency Fund in Liquid Funds.
After all, an 8% return with 1 day Liquidity is always much better than a 4% in SB Account!
Caveat : Do not use Liquid funds for Investment use them purely for parking your Temporary money.

I would recommend Short Term Debt Fund and Dynamic bond, especially those with lower duration if you are sure that you do not need this money for 2 years atleast
Low risk  and short time horizon investors should look at Accrual funds.

Also visit http:/http://goodinsuranceadvisor.blogspot.in/

Monday, May 8, 2017

Timing the Market?? Think again

Side effects of timing the market

Total trading days on sensex till date 8548

*If remain invested all days : Return 15.94%*

Missed best 10 days : 12.79%
Missed best 20 days : 10.64%
Missed best 30 days  :  8.79%
Missed best 50 days  :  5.63%
Missed best 70 days  :  2.80%

  Investor makes money by being in the market then timing the market..

Do not wait for the market to go "down"

Invest via the time tested SIP WAY!!!

Sip evens out the volatility in the Market

"In 30 years in this business, I do not know anybody who knows anybody who has done it successfully and consistently. Indeed, my impression is that trying to do market timing is likely, not only not add value to your investment program, but to be counterproductive."-John Bogle


 Do not stop your SIPs during times when market comes down. 

Keep continuing your SIP. You get allocated max units when market comes down. 

Which, in turn, gives you the highest return when market goes up, which it eventually does.

I love this poem on SIP

Systematic Investment Planning

She (SIP) teaches me discipline

She teaches me to have patience๐Ÿ‘Œ๐Ÿ‘Œ๐Ÿ‘Œ

With no worry of timing the market

With no worry of market fluctuations

We started young with a disciplined approach

To investment and growth

And at fixed intervals we surely meet

To check on the goals we have targeted on the sheet

Our alliance is mutual and we spend quality time

Together we plan to achieve our goals on time

She not only gives wings to my dreams and aspirations

But helps me lessen worries about my trials and tribulations

She teaches me the power of compounding

As little drops of water make the mighty ocean

Small or big, whatever my contribution be

Our friendship comes without any hassles

Easy to maintain and loving in nature

She is a blessing in disguise

My Systematic Investment Plan (SIP) - truthful and wise

Thanks to
Poet FB ANIL Kumar
DEHRADUN for the poem

Sunday, May 7, 2017


The average budget for an Indian wedding ceremony in the middle class is estimated to be around Rs.30 lakh. (source: HT July 2015)
This estimate in 5 years time period will cross Rs. 60 lacs.

For the upper middle class and rich class, these estimate would run in Crores.

So, start investing for your Beloved child's marriage NOW!!
If you want to accumulate GOLD for your child's marriage...

Instead of gold bonds, start SIP in balanced funds to buy gold at the time of marriage of your child.

It is beneficial as the gold rates are expected to go down and the balanced funds has a potential to deliver good tax free returns.

Watch the video


Monday, May 1, 2017


The retirement should be looked from 2 health points.
1. Financial health
2. Physical health

Interestingly people now a days put too much attention on 1 & care less about 2.
In my personal opinion, one should care more for Physical health. The reason is simple. The cost of medication 'll deteriorate your financial health also & the impact 'll be huge

Also watch