Kavitha Menon's Blog

Our Prospective client was a confident man. He was confident and optimistic. He had walked in to our office to inquire about our Portfolio Management Scheme and wanted to know the returns given by us in the last three months. He said that he would compare the same with the returns given by his existing PMS Manager and then decide whether to stay put, or switch to our scheme. After comparing, he happily informed me that his current scheme has performed far better in the last three months and he would not switch right now.The client was not a prospect after all .Out of curiosity I wanted to know for how long had he been invested in the scheme and what were his returns. You may think that he was joking, but our man was dead pan serious. He had invested over three years back and in the ensuing three years his fund manager had given him only his capital back! He was sitting on a 50 % loss till three months ago and it was only due to 'restructuring' of the portfolio that his fund ma

Every person on a 9 to 5 naukri dreams of being an entrepreneur . There is so much more glamor in being you own boss , of working flexi hours and making all the money that you believe you deserve. Sadly very few will make the transition from employee to employer.Responsibilities and fear of losing the comforts one is so accustomed to , do not permit the vast majority of aspiring entrepreneurs to take that big leap . What if there was a way by which you could keep your job and yet create wealth like an entrepreneur does ? . It is surprisingly simple . Read on.. Robert Kiyoski in his book Rich Dad Poor Dad tells us the secret of growing rich . Rule one in his book is about understanding assets and liability and building assets . An asset is something that brings in money into your pocket while a liability is anything that takes it out. The Rich acquire assets while the middle class acquire liabilities, but assume they are assets . By buying assets the Rich make money

Decisions by the central bank of our country effects us directly as investors as well as borrowers of money. It is important to know what RBI action on various fronts does to your financial situation. To aid its primary goals of controlling inflation, the RBI uses several measures. Let's understand what each of these measures are and how they impact you. REPO and Reverse REPO - Banks are in the business of borrowing and lending and often need very short term funds to meet their liquidity requirements. Let's take an example of a bank that needs to borrow money for day. Our bank may be holding on to securities that don't mature in a day. Instead of selling securities in the market it can instead sell the same to the RBI, get funds to meet its short term requirement and then buy the same securities back from the RBI. This is called the REPO - short for repurchase agreement and the bank pays to RBI a rate of interest for the funds used. The REPO rate is thus the very short term