Navigating Different Money Habits in a Relationship

Because money habits can be ingrained in our personalities, differences around money management causes a lot of stress in many relationships. So what do you do if your spending styles are divergent? Identify your spending habits – Most relationships would typically have one partner that is a saver and another that is a spender. That’sContinue reading “Navigating Different Money Habits in a Relationship”

How a Mutual Fund Works

The mechanics is quite simple, money is pooled by investors into an account and then invested in instruments such as stocks and bonds, real estate on behalf of all the investors in the fund. Structure – The management of a typical mutual fund would involve different organisations, such that there are multiple layers of securityContinue reading “How a Mutual Fund Works”

Common Types of Mutual Funds

All mutual funds aren’t created equally, there are mutual funds for different asset classes and there are blended ones too. Here we share the common types of mutual funds: Money Market Fund – These are the most popular ones and they invest in short-term fixed income securities – Treasury bills, commercial paper, and certificates ofContinue reading “Common Types of Mutual Funds”

Benefits of Investing in a Collective Investment Scheme

When you invest via a collective investment scheme, you are entitle to a pro-rata share of the profits and losses, risk and rewards that accrue to the securities in that pool. So what are the benefits Experienced professionals manage your money Low cost of entry, compared to direct investment. Can get your money back promptly.Continue reading “Benefits of Investing in a Collective Investment Scheme”

Resist the urge to sell out too quickly

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch If you are investing in the stock market, one thing you must know is that there’s always going to be a decline at some point. The exact time itContinue reading “Resist the urge to sell out too quickly”

Don’t try to time the market

“Let’s say it clearly: No one knows where the market is going-experts or novices, soothsayers or astrologers. That’s the simple truth.” – Fortune  With all the education we have today and real-time access to financial news, trying to time the market would seem like a brilliant thing to do and you’d expect to make aContinue reading “Don’t try to time the market”

Invest in things you understand

“Never invest in a business you cannot understand” – Warren Buffett You would imagine that the common sense to do is to invest in things you understand and can probably explain clearly to a fifth grader, unfortunately, it so happens that every day, many people are putting their money into things they do not understand.Continue reading “Invest in things you understand”

Managing your money with the 50/20/30 budget

The 50/20/30 budget, is a proportional guideline for allocating your paycheque. It’s in essence, a system of personal budgeting for keeping your spending in alignment with your savings goals. Typically, the budgeting process requires you to keep receipts and track every single expenditure. Now, that can be a real drag. And I don’t even think,Continue reading “Managing your money with the 50/20/30 budget”

‘100 minus your age’ Asset Allocation Rule

Whenever I get the chance to speak with a lot of young people about investing, I always find out they are holding too much cash either in their savings account or in treasury bills. A 2014 UBS survey, reports that millennials held only 28% of their portfolio in stocks and the rest in cash andContinue reading “‘100 minus your age’ Asset Allocation Rule”