Thursday, April 26, 2018


 Matrubai's Musings!!!

People tend to think small...
They should THINK BIG
Having a SIP of 1000 monthly is passé

5000, 10000 is the basic minimum one should look at starting

Even someone who has just started to earn...should not have any difficulty in starting a sip of at least 3000 if not 5000

Suppose you have a sip of say 1000 for 3 years...
just look at increasing the amount to 2000 and for 2 more years...
You will understand the difference

Let’s see with an illustration......that will make it much more clear to you..

In 3 years, the Rs.1000 sip even at a good 15% returns, could go up to a max of Rs.44,000

But, if I do 2000 sip for 5 years (2 more years), the value could go up to Rs.1,74,000

Look at the HUGE HUGE jump

Straight up from 44000 to 1,74,000

Does that mean starting with 1000 sip is bad?
Where will the lower income person invest then?
No...not at all....
In fact, they are in much more dire need of growing rich
But, just go check the reality
If they have taken a loan, and suppose they are paying a Monthly interest of say 1000 and due to some circumstances, if they have to again take a loan....they somehow manage to increase the monthly payment of interest from 1000 to 2000 but if the same is required for Creating Wealth and
you tell them to increase the savings from 1000 to 2000, get all sorts of excuses

Take the case of a Increase in Salary  or Rent received.....
I always say that you need to save at least 30% of your INCREASES in income be it salary, rent or even business income.....but how many actually do it??
If a person has started a sip 2 years back with 10000 ....very rarely you find him coming back and salary/rent/income has increased....let me increase my SIP input
But, for his non-essential expenses...he is ready to spend the increase
He is ready to upgrade from his
5000 Micromax to 8000 Lenovo to 12000 Redmi 

year after year but SIP
he will not!
Arre Baad me karenge.....(Let me do later......let me first ENJOY the mentality)
Not understanding that TAKING IT EASY could well make life HARD later.

Its human tendency
its human mentality
Human Beings are attuned to Enjoy the PRESENT and do not want delayed gratification.

After all,
Aaj enjoy kar

But, they dont know that it is this very small sacrifice that will help them in future

They all are big fans of Kishore kumar song



Whenever any increase comes in income, the 1st thought is....where will i spend this??
On a new mobile, on a New Jewellery, on a New Trip but very rarely on
Where will I invest the EXTRA??
And thats why

We are all victims of the bane called “instant gratification”, a moment of impulsive decision making, often financial that leads to feel happy for a very short period.

It is only by creating a disciplined and consistent pattern of investing that we can expect for our money to multiply many fold.
The BIGGEST reason why you should increase is INFLATION.
I have already talked about this many times in this website.

You cannot be a CROREPATI if you keep spending your income like a CROREPATI even before you become one!!

Becoming a CROREPATI is more about HOW MUCH YOU SAVE AND INVEST THAT MONEY than on how much you spend.
We all have heard stories of frugal habits of Multi-Millionaires like Warren Buffet, Azim Premji, Bill Gates.
You dont need to be stingy or starve yourself but you do need to INCREASE your investments like the way your Annual Income increases.

Like any other behavioral habit, if investing is not practiced well, the outcome may not be what we expect.

Saving money for the future is one of the great habits of wealthy people. The rich is getting richer because of the way they spend their money. They have successful habits of controlling their expenses in order to grow their wealth. ... If you want to achieve your financial goal the most important step is to save first.

We need to get into the WEALTHY mindset....
Only then we can become wealthy

Cater to your NEEDS is important not your WANTS.
You need to distinguish the difference between the two.
Investing for unseen future is definitely not a very attractive propotion but your OLD AGE will thank you for what you have done.
Think about it!!

Srikanth Matrubai

Also visit http:/http://

Wednesday, April 18, 2018


Year after year I keep writing articles on Avoiding "INVESTMENT" in Gold...(doing it for 6 years on the trot).

Some investors keep coming back to me Sir, I want to INVEST in Gold....
Me : Why?

Investor : Sir, Akshay Tritiya hai & I need for my daughter's wedding in about 10 years time and the cycle repeats...

You are going to see lot of advertisement in the coming days to buy GOLD on the auspicious day of Akshaya Tritiya which is on 18th April 2018. Look at what happened, if you bought Gold on this auspicious day in the past, hoping that your wealth will grow. 
Let me share 2 charts

May-08 11726 10.50%
May-13 26890 3.40%
Apr-17 29620 7.10%
Apr-18 32200 5.33%

Hope this chart helps you to stay away from considering GOLD as an investment!

The same time Sensex has generated better and consistent returns, still many think that it is not good investment!!!

It is time to respond practically rather than emotionally.

My humble submission to everyone is never buying gold as an investment, buy gold as an ornament which you constantly wear. Do not start any gold investment even if you have girl child. Gold is important for the marriage, but it does not mean that we should invest only in gold!

Last, but not the least investment have no emotions, so whenever you invest do not show emotions. Gold and Real estate investments are more out of emotions which is proven now

Having GOLD as a portfolio allocation is a MUST but buying it for HUGE RETURNS is a strick NO-NO. 
The Biggest problem with Gold is that it never produces interest, no dividend, no rent, nothing
Its Growth entirely depends on belief that some other person will buy this Gold for MORE in future. 
And a yes gold also depends on FEAR.
What if there is a World War? something of sort where there is a crisis, a panic...
If you still want to buy Gold for long term, be smart and consider investing in Government Sovering Bonds as these will be backed by Govt and you will get the added advantage of Additonal Interest (albeit very low)

Gold Prices do tend to soften after Akshay Tritiya and Wedding Season in May.
there is absolutely no technical or fundamental reason to buy GOLD on Akshaya Tritiya.
If you research our Scriptures well, there too it is clear that Akshaya Tritiya is only meant for engaging in some GOOD DEEDS and not just worshipping Goddess Mahalakshmi.

The GOLD CRAZE was created by our friends in Jewellery Business. 

Gold is not an investment. Gold is an allocation in Indian Households. Continue buying gold in SIP for a specific purpose & allocation.

Your wealth grow as per the potential of the asset you invest.

If you are worried that gold’s supply would get exhausted soon, fear not!

About 10 billion tonnes – 10,000 million tonnes (yes, you read it right) of gold is estimated to be held in the oceans of the world. An economically viable model of extraction is being explored.

Necessity is the mother of invention. If gold prices continue to rise and if the demand would only increase, who knows, a technological innovation can happen in extracting gold from ocean.

10mn tones under the sea is eye opener. Same happened with oil; eventually people dug under the sea after land sources were well discovered and prices kept climbing- oil came from sea!

Its the Multi Stage Fracking Technology that changed equation for oil. 
Offshore was there, but the shale gas was the real gamechanger.

And Crude Oil was never the same again. 

so, maybe maybe some day going forward something in technology breakthrough could just help us in laying our hands on that 10 billion tonnes of Gold lying in Oceans. 
and Like Crude Oil..the price of Gold is bound to go down...
Waiting for that day!!!!!!!!

The diamond conglomerate De Beers has been mining diamonds from shallow waters off southwest Africa since the 1960s, so harvesting diamonds from deeper water is a possibility.



Also visit my TELEGRAM channel and join today.....its FREE  http:/http://

Special thanks to Padmanabhan for inputs

Thursday, April 5, 2018

HOW SRIKANTH MATRUBAI rebulit an NRI's trust in Mutual Funds

Cafe Mutual carried an article on one of many success stories





Back in August 2008, Srikanth Matrubai had written a blog on why investors should not worry about the market fall. The blog recommended that investors to top up their SIPs in equity funds. In response, Matrubai got an email from a reader venting his frustration at the market crash.

Vinod (name changed), who wrote the email, was working in Hong Kong at the time. He vowed he would never invest in equity mutual funds again. Matrubai recalls, “We exchanged a lot of emails back then. In one such communication, I requested him to share his portfolio with me. I was shocked to see that he had exposure to several infrastructure funds. He suffered a loss of 35% in absolute terms during the 2008 market crash.”

Matrubai kept up his communication with Vinod through emails for the next two months. “I sent him a few portfolios of my existing clients to make him see the significance of asset allocation and rebalancing the portfolio. I had recommended my clients to shift 

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