Mutual Funds | wealthymatters

The Interesting Case Of Sadashiv Phene

September 19, 2013 Leave a comment

wealthymatters

Yes I do have my monthly SIPs and I do have a mutual fund portfolio,but long term readers know I lean towards investments where I have a greater degree of control and in general I like to keep things simple and predictable.And I like to invest directly into an asset rather than buy derived products.To me,mutual funds are savings products or places to park cash till better investments turn up.

Today I came across the story of Sadashiv Phene. Here is a gentleman who has built up a respectable net-worth on the basis of mutual funds.Do read the links below.I guarantee you ,you will not waste your time.

I enjoyed reading his story because it opened my mind to new possibilities. Read more of this post

Filed under Entrepreneurship, Paper Assets, Tool Kit Tagged with investing in mutual funds, mutual fund advisor, mutual fund distributorship, Mutual Funds, postaday, Sadashiv Phene

Savitri Jindal’s Assets

August 26, 2012 6 Comments

wealthymatters.com Have you ever wondered about the assets of the really wealthy?Personally I have always been interested in knowing just where wealthy people have their money.My take is that wealthy people didn’t get that way or don’t stay that way without knowing a thing or two about keeping and growing their money safely.That is why I was interested when I came across her statement, given before the returning officer, while filing her nomination papers in 2009 for the Haryana Legislative Assembly elections.

Savitri Jindal is India’s richest woman. She is the widow of the late O.P.Jindal.In her statement given before the returning officer,Savitri Jindal states that she has moveable property worth Rs 17.75 crore and immovable property worth Rs 25.94 crore.I think it’s interesting to see how much of her money she has in a liquid form.Compare this to our asset allocation.Most of us are bound to have most of our money stuck in our houses.A house is a necessity, but it makes sense to acquire one’s fortune and then splurge on fancy houses rather than try to become wealthy by sinking money in our homes.

Savitri Jindal does not own a car.I think this lady shows us women a way out of owning a depreciating asset-claim you don’t drive.Having a car at one’s disposal is good but owning it might not be so wise wealth-wise.Keep the luxury car purchases for after you reach the stage of acquiring luxury homes. Read more of this post

Filed under Theory, Tool Kit Tagged with agricultural land, art, asset allocation, assets, bank deposits, cars as investments, cash, depreciating asset, Gold, Gold Jewellery, gold ornaments, immovable property, India's richest woman, Investing In Gold, Investing in Gold Jewellery, investing in homes, investing in silver, life insurance policy, Luxury Cars, moveable property, Mutual Funds, O.P.Jindal, postaday, real estate, Savitri Jindal, shares, Silver, silver utensils, Urban Estate Hisar

It’s Impossible Not To Be A Millionaire

June 4, 2012 7 Comments

In this post I will tell you the strange story of Curt Degerman.His story will show you how it is impossible not to become a millionaire.

Curt lived in the Swedish coastal town of Skellefteå.He was born in 1948.As a child he was very clever and had a bright future but dropped out of school in his late teens after a personal crisis.He never completed school, married, nor had a family of his own.He chose to live an alternative way of life and largely kept to himself.

Curt Degerman was called “Burk-Curt” (‘Tin-Can Curt’) by the residents of Skellefteå.For forty years Curt was a solitary figure seen cycling around the town in his blue anorak and ragged trousers.He spent his days touring the recycling bins of the town on his old bicycle and rummaging through them, collecting bottles and cans .Curt transported the bottles and cans he found by stuffing them into bags tied between the handlebars of his bicycle.He sold the tins and bottles to shopkeepers and a recycling plant. Read more of this post

Filed under Paper Assets, Precious Metals, Theory, Tool Kit Tagged with bank savings, Curt Degerman, Dagens Industri, estate, gold bars, income from recycling, kronor, Millionaire, Mutual Funds, postaday, recycling, Skellefteå

Balanced Mutual Funds

January 18, 2012 2 Comments

wealthymatters.com

Balanced funds are mutual funds that invest in both equities and debt instruments.They normally keep their equity component in the range of 60%-75% and the rest in debt products or cash.Some balanced mutual funds are considered to be more aggressive in that they have a larger equity component.For example, HDFC Prudence keeps its equity allocation around 75% in most of the cases and rest 25% in debt or cash. However,others like Reliance Regular Savings Balanced are considered less aggressive and have a lower equity component around 60-65% .

From the taxman’s point of view, any mutual fund which has equity component more than 65% is considered as an “Equity Fund” and so long term capital gains from sale of balanced mutual fund units too are exempted from tax after one year just like in the case of pure equity mutual funds . Read more of this post

Filed under Paper Assets, Theory Tagged with asset allocation, balanced fund, debt, equities, equity funds, HDFC Prudence, HDFC top 200, long term capital gains tax exempt, long term investment, lump sum investment, Mutual Funds, postaday, rebalancing portfolio, Reliance Regular Savings Balanced, SIP

Should You Buy Close-Ended Mutual Funds?

July 18, 2011 Leave a comment

If you ever hear a spiel that goes something like this:Staying invested in the market for the long term ,through various cycles ensures that investors get rich.Unfortunately at the first sign of trouble most mutual investors run.Then the fund house has redemption problems and long term investors like you pay for the weakness of these short term investors.But if you go for XYZ scheme,there is a lock-in of n years so no matter what happens investors can’t flee easily,so ABC wise fund manager can work his magic and give you extraordinary returns.And BTW this fund is now floating its NFO.If you delay you can’t benefit from this good scheme for n more years-Be skeptical.Very skeptical.This salesperson might just stick you into a dud investment you can’t exit easily. Read more of this post