# Wisdom Investments > Technical Analysis gives you powerful insights on profitable technical patterns and strategies supported by statistical analysis of markets. Public Ghost content for AI and LLM tooling. This file includes a bounded export of public pages first, then recent public posts. Append `.md` to any post or page URL to get the content in Markdown (for example, `/example-post.md`). ## Pages ### Our Services URL: https://wisdominvestments.in/services/ Last updated: 2026-08-11T10:56:33.000Z ## OUR SERVICES ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service3-1000x695-1.jpg) ## [Learn Technical Analysis](https://wisdominvestments.in/learn-technical-analysis/) ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/slide-1-e1613112126172.jpg) ## [Learn Fundamental Analysis](https://wisdominvestments.in/learn-fundamental-analysis/) ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service1-1000x695-1.jpg) ## [Technical Analysis Tool](https://wisdominvestments.in/technical-analysis-tool/) ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service4-1000x695-1.jpg) ## [Personal Investments Software](https://wisdominvestments.in/personal-investments-software/) ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2021/02/Mutual-Funds.jpg) ## [Mutual Fund Advisor](https://wisdominvestments.in/mutual-fund-advisor/) ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service6-1000x695-1.jpg) ## [Financial Planning ](https://wisdominvestments.in/financial-planning/) ### About Us URL: https://wisdominvestments.in/about-us/ Last updated: 2026-08-11T10:56:29.000Z ## ABOUT US ## About Wisdom Investments We have a reputation built on helping successful individuals achieve their financial planning and investment goals. Wisdom Investments is an Illinois Registered Investment Advisor. We are fiduciaries who are legally and ethically responsible for putting your interests ahead of all others. Wisdom Investments is a privately owned, independent financial planning company. We are not a broker. We are not compensated by third party companies to provide Investment advice. In addition to providing Comprehensive Financial Planning advice, we provide a full range of services including, but not limited to, Retirement Planning, Investment Planning, College Planning, Estate Planning, Insurance Planning, and Tax Planning. ## What You Should Expect From Wisdom Investments Helping you adhere to your values is our highest priority. Once your values are understood, we are able to develop plans and strategies to help you achieve your financial goals. We will never design plans or strategies that do not align with your values. Determining your financial goals and prioritization of those goals allows us to help you design a roadmap which will allow you to navigate the many decisions and alternatives necessary to achieve those goals. You will always have a dedicated point of contact at Wisdom Investments who knows you by name and provides advice based on your unique financial picture. No two clients are alike and not every client will need the same service that Wisdom Investments provides. For your additional comfort and security, your accounts are always held at well-known, secure institutions specializing in asset custody, and your portfolio is accessible to you at any time. [ OUR SERVICES -> ](https://wisdominvestments.in/services/) ## We are here to help! Complete the information below and we will contact you... Your name Your email Subject Your message ## How we Work For You We determine what’s most important to you, so that you can make educated decisions about your financial options. ## Who We Are We are Fiduciary financial planners. We provide advice for a fee, so that you can receive the most objective advice possible. ## How to Work With Us While many of our clients are wealthy, not everyone needs to be a millionaire to work with a financial planner. Contact us today for your complimentary review. ### Contact Us URL: https://wisdominvestments.in/contact-us/ Last updated: 2026-08-11T10:56:29.000Z ## CONTACT US Thank you for trying to reach us. Do you have an inquiry, question, comment, or submission? Please feel free to contact us anytime. We love to read them. Please leave your info and we will get back to you as soon as possible. ## We are here to help! Complete the information below and we will contact you... Your name Your email Subject Your message ## Our Address : - [ Trimurti Complex, Office no. 203, 2nd Floor, Near Shantinagar Society & Salve Garden, Kondhwa Budruk, Pune, Maharashtra - 411048 ](https://goo.gl/maps/EnBFyhboWMKpkPQe8) - [ +91 20796 20181 ](tel:+912079620181) - [ +91 88306 65582 ](https://wa.me/8830665582) - [ wisdominvestments@protonmail.com ](mailto:wisdominvestments@protonmail.com) - Mon-Fri : 10 am to 6 pm. - Please call to schedule an appointment outside of listed business hours. ### Privacy Policy URL: https://wisdominvestments.in/privacy-policy/ Last updated: 2026-08-11T10:40:49.000Z ## PRIVACY POLICY This privacy policy sets out how Wisdom Investments uses and protects any information that you share when you use this website. Invest well is committed to ensuring that your privacy is protected at all times. Should we ask you to provide certain information by which you can be identified when using this website, you can be assured that it will only be used in accordance with this privacy statement. Wisdom Investments may change this policy from time to time by updating this page. This policy is effective from June 1, 2018\. Wisdom Investments understands that our relationship is strongly built on trust and faith. In the course of using the information on this website or availing the services, Wisdom Investments may become privy to the personal information of its customer including information that is of confidential nature. Wisdom Investments is strictly committed to protecting the privacy of its Customer and has taken reasonable measures to protect the confidentiality of the customer information and its transmission through World Wide Web. However, it shall not be liable in any manner for disclosure of the confidential information in accordance with this Privacy Commitment or in terms of the agreement if any with the Customer or by reasons beyond its control. We may however be required to disclose your personal information to Government, Judicial bodies, and our Regulators or to any person to whom the Firm is under an obligation to make disclosure under the requirements of any law binding on the Firm or any of its branches if required. Hyperlink Policy for user Any hyperlink to other Internet sites is at the customer’s own risk. The contents of which and the accuracy of opinions expressed are not verified, monitored, or endorsed by Wisdom Investments, in any way or manner. Wisdom Investments is not responsible for the setup of any hyperlink from a third-party website to Wisdom Investments. #### **What we collect** ##### **We may collect the following information:** - Name and contact details - Personal information, including date of birth, Aadhaar Number, and Permanent Account Number (PAN) - Demographic information such as gender and income - Other information that can help us improve our services ##### ##### **What we do with the information we gather** - To conduct Know-Your-Customer registration as required by SEBI and/or other regulatory bodies - To perform compliance checks and keep/maintain internal records - To use the information to improve our products and services - To periodically send emails to your registered email address about your investments, or other information which we think you may find interesting. - You will be free to unsubscribe from our mailing list at any time if you do not wish to receive such emails from us. From time-to-time, we may also use your information to contact you via phone or email for market research purposes. - We will not sell, distribute or lease your personal information to third parties unless we are required to share such information under the terms and conditions of the products and services you avail, or we are required to do so by law. ##### ##### **Security** We are committed to ensuring that your information is secure. In order to prevent unauthorized access or disclosure, we have put in place suitable physical, electronic, and managerial procedures to safeguard and secure the information we collect online. ##### **Links to other websites** Our website may contain links to other websites of interest. However, once you have used these links to leave our site, you should note that we do not have any control over such third-party websites. Therefore, we cannot be responsible for the protection and privacy of any information which you provide whilst visiting such sites. You should exercise caution and look at the privacy statement applicable to the website in question. ##### **Controlling your personal information** If you believe that any of your information with us is incorrect or incomplete, please email us as soon as possible. We will promptly correct any information found to be incorrect. ##### **Security certificates** Wisdom Investments is an online financial services company. We fully recognize and understand the security implications of being a service provider with whom people trust their money. There are many safeguards we adopt in this regard – some of these are technical, and some are structural. ##### **When it comes to data security, our goal is to ensure that:** - Your data is stored safely and securely – passwords are one-way encrypted before being stored in the database for high security. - All communication with you, or with mutual fund companies and other service providers – is encrypted using the highest standards. - Your data is not shared with anyone unless you have explicitly requested us to do so to fulfill a transaction request. - To ensure that we achieve these goals, we have a variety of certifications/trust verifications in place for our firm, both from technical and legal/operational perspectives. All our communications are encrypted by 256-bit encryption, and our data is hosted with top-tier hosting service providers. Also, our data is continuously backed up to ensure continuity of operations. ### Home Page URL: https://wisdominvestments.in/home-page/ Last updated: 2026-09-05T12:50:56.000Z - ## Learn Technical Analysis Technical Analysis gives you powerful insights on profitable technical patterns and strategies supported by statistical analysis of markets. [LEARN MORE](https://wisdominvestments.in/learn-technical-analysis/) ![Learn Technical Analysis](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/03/Learn-Technical-Analysis.jpg) - ## Learn Fundamental Analysis Learn the fundamentals of investment finance and the implementation of key asset-pricing models and firm-valuation techniques in real-world situations. [LEARN MORE](https://wisdominvestments.in/learn-fundamental-analysis/) ![Learn Fundamental Analysis](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service6-1000x695-1.jpg) - ## Technical Analysis Tool An overview of how charting and screening tools are used to study price action — what they measure, and what they cannot tell you. [LEARN MORE](https://wisdominvestments.in/technical-analysis-tool/) ![Technical Analysis Tool](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service1-1000x695-1.jpg) - ## Personal Investments Software Start Managing Your Own Stock Portfolio With Personal Investments Software / Accounting Software. Track your Dividends. Effortless Setup. Save Time and Money. No More Data Entry. [CONTACT US](https://wisdominvestments.in/personal-investments-software/) ![Personal Investments Software](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service4-1000x695-1.jpg) # How Does Wisdom Investments Help You? ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2021/03/ezgif.com-gif-maker.gif) ### START WITH THE BASICS Plain-language explainers on how markets, asset classes and common investment products actually work — so the jargon is familiar before you ever have to act on it. ### UNDERSTANDING RISK What risk actually means in practice — volatility, drawdowns and time horizon — explained with worked examples rather than promises about outcomes. ### HOW PLANNING WORKS An overview of how goal-based planning and systematic investing are structured, so the mechanics make sense when you read about them elsewhere. ### KEEP LEARNING Notes, articles and study material published regularly. Everything here is general information for learning — it is not advice and not a recommendation to buy or sell anything. ## Join Our Free Telegram Channel ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2021/03/ezgif.com-gif-maker.gif) - Follow general market updates and study notes - Daily posts explaining investing concepts [Join With Us](https://t.me/wisdominvestments) ## What We Cover ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2021/03/ezgif.com-gif-maker.gif) ## [Learn Technical Analysis ](https://wisdominvestments.in/contact-us/) Technical Analysis gives you powerful insights on profitable technical patterns and strategies supported by statistical analysis of markets. ## [Learn Fundamental Analysis](https://wisdominvestments.in/contact-us/) Learn the fundamentals of investment finance and the implementation of key asset-pricing models and firm-valuation techniques in real-world situations. ## [Technical Analysis Tool ](https://wisdominvestments.in/contact-us/) An overview of how charting and screening tools are used to study price action, and what they can and cannot tell you. ## [Personal Investments Software](https://wisdominvestments.in/contact-us/) Start Managing Your Own Stock Portfolio With Personal Investments Software / Accounting Software. Track your Dividends. Effortless Setup. Save Time and Money. No More Data Entry. ## Our Blog ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2021/03/ezgif.com-gif-maker.gif) [](https://wisdominvestments.in/cost-of-delay-in-investing/) ![Cost of Delay in Investing](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/03/cost-of-delay-while-investing.jpg) ## [Cost of Delay in Investing](https://wisdominvestments.in/cost-of-delay-in-investing/ "Cost of Delay in Investing") There is no such thing as perfect timing... [Read More...](https://wisdominvestments.in/cost-of-delay-in-investing/) March 30, 2026 [](https://wisdominvestments.in/familiarity-bias-your-comfort-zone-can-be-a-dangerous-place/) ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/04/Equity-Mutual-Funds-have-delivered-better-returns-than-other-Asset-Classes-1.jpg) ## [Familiarity Bias: Your Comfort Zone can be](https://wisdominvestments.in/familiarity-bias-your-comfort-zone-can-be-a-dangerous-place/ "Familiarity Bias: Your Comfort Zone can be a Dangerous Place") In our day-to-day life, we find many people... [Read More...](https://wisdominvestments.in/familiarity-bias-your-comfort-zone-can-be-a-dangerous-place/) March 28, 2026 [](https://wisdominvestments.in/waste-not-want-not/) ![Waste Not, Want Not](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/04/Waste-Not-Want-Not-1.jpg) ## [Waste Not, Want Not](https://wisdominvestments.in/waste-not-want-not/ "Waste Not, Want Not") I don’t know about you, but I’m always... [Read More...](https://wisdominvestments.in/waste-not-want-not/) March 26, 2026 [](https://wisdominvestments.in/where-are-you-on-the-richie-rich-scale/) ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/04/Where-are-you-on-the-Richie-Rich-Scale.jpg) ## [Where are you on the Richie Rich](https://wisdominvestments.in/where-are-you-on-the-richie-rich-scale/ "Where are you on the Richie Rich Scale?") I met a college friend after a long... [Read More...](https://wisdominvestments.in/where-are-you-on-the-richie-rich-scale/) March 24, 2026 [View All Posts](https://wisdominvestments.in/blog/) ## What Clients Say ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2021/03/ezgif.com-gif-maker.gif) - P![](https://lh3.googleusercontent.com/a-/ALV-UjW0gzSfm_9hxQCEBB_Bj2ULPK9bmqrWzZFROG-Tv9QuNIcSv)Praanav T Patel2 years ago Had an Amazing experience at Wisdom Investments. The owner - Mr. Tejas Patel is quite a humble and transparent person and also he has helped me to a great extent in my investment journey. - A![](https://lh3.googleusercontent.com/a-/ALV-UjWe45u99IktDPNQmZOAzQqm5xeQAXCVUKopBmj83h3zAZ_fc)Ajay Patel3 years ago Tejas has Great Clarity and Deep Knowledge about Investments, Markets. Be it Equity, Crypto, MF, SIP etc. Highly Recommended. Wisdom Investment is full of Wisdom. - A![](https://lh3.googleusercontent.com/a-/ALV-UjWRPJ5IOwGp-1XzR3LBMhqR4-sFdnGCqo4fxh0fKM_ntZqto)Amit Mandalia3 years ago This is Amit Mandalia. We have taken basic course from Tejas Patel of how to invest in stock Market. We were amazed by his knowledge and study abt share market and how to invest in it. He had shown us some incredable tools and sites which will help study more about it. Thanks alot for the course. [Read all reviews on Google](https://maps.app.goo.gl/U4fouT23z34ikMYC6) ### Technical Analysis Tool URL: https://wisdominvestments.in/technical-analysis-tool/ Last updated: 2026-08-11T10:56:33.000Z ## Technical Analysis Tool ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service1-1000x695-1.jpg) Best Trading Tool for Indian Stock Market. Its Most Accurate System with 98% Accuracy. Investors and traders use trading tool for its automated trading capabilities and systems. [ GET STARTED ](https://wisdominvestments.in/contact-us/) ## About Technical Analysis Tool : Technical analysis tools are software applications or platforms used by traders and investors to analyze price patterns and trends in financial markets. These tools use historical price data and various mathematical and statistical calculations to identify potential trading opportunities and make informed investment decisions. **Here are some commonly used technical analysis tools:** - Moving Averages: Moving averages are used to smooth out price data and identify trends. Common types of moving averages include simple moving averages (SMA), exponential moving averages (EMA), and weighted moving averages (WMA). Traders use moving averages to identify trend direction, potential support and resistance levels, and to generate buy or sell signals. - Trendlines: Trendlines are drawn on price charts to identify trend directions and potential trend reversals. Trendlines can be used to identify support and resistance levels, as well as to spot chart patterns such as triangles, flags, and channels. - Chart Patterns: Chart patterns are formed by price movements and can provide insights into future price movements. Some commonly used chart patterns include head and shoulders, double tops and bottoms, and cup and handle patterns. These patterns can help traders identify potential trend reversals or continuation patterns. - Oscillators: Oscillators are technical indicators that oscillate between a range and can help traders identify overbought or oversold conditions in the market. Examples of oscillators include the relative strength index (RSI), stochastic oscillator, and the MACD (Moving Average Convergence Divergence) indicator. - Fibonacci Tools: Fibonacci tools are based on the Fibonacci sequence and ratios and are used to identify potential support and resistance levels in the market. Examples of Fibonacci tools include Fibonacci retracement levels, Fibonacci extensions, and Fibonacci fans. - Candlestick Patterns: Candlestick patterns are formed by the arrangement of candlesticks on a price chart and can provide insights into potential trend reversals or continuation patterns. Examples of candlestick patterns include doji, hammer, and engulfing patterns. - Volume Analysis: Volume analysis involves studying the volume of trades in a security to understand the strength of price movements. Volume indicators such as volume bars, on-balance volume (OBV), and volume profile can provide insights into buying or selling pressure in the market. - Backtesting and Automated Trading: Some technical analysis tools offer backtesting and automated trading capabilities. Backtesting allows traders to test their trading strategies using historical price data to evaluate their effectiveness. Automated trading allows traders to execute trades automatically based on predefined rules and parameters. It’s important to note that technical analysis tools are not foolproof and should be used in conjunction with other forms of analysis and risk management techniques. They are just tools that provide insights into potential market movements, and traders should exercise caution and make informed decisions based on their own research and analysis. ### Personal Investments Software URL: https://wisdominvestments.in/personal-investments-software/ Last updated: 2026-08-11T10:56:32.000Z ## Personal Investments Software ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service4-1000x695-1.jpg) Start Managing Your Own Stock Portfolio With Personal Investments Software / Accounting Software. Track your Dividends. Effortless Setup. Save Time and Money. No More Data Entry. [ GET STARTED ](https://wisdominvestments.in/contact-us/) ## About Personal Investments Software : Personal investment software is a type of financial software that is designed to help individuals manage their personal investments. These software tools typically provide features such as portfolio tracking, investment analysis, performance reporting, and goal setting. They can also assist with tracking investments in different asset classes, such as stocks, bonds, mutual funds, and real estate. **Here are some key features that you may find in personal investment software:** - Portfolio tracking : This feature allows you to track the performance of your investments in real-time, including details such as current value, gains/losses, and historical performance. - Investment analysis : Personal investment software may offer tools for analyzing individual investments, such as stocks or mutual funds. These tools can provide information on factors like historical performance, risk assessment, and valuation metrics. - Performance reporting : This feature helps you generate reports on your investment performance, including metrics like overall returns, asset allocation, and benchmark comparisons. - Goal setting : Some personal investment software includes goal-setting features, which allow you to set financial goals, such as saving for retirement, buying a house, or paying for education. The software can help you track your progress towards these goals and make adjustments as needed. - Tax planning : Certain personal investment software may also offer tax planning tools, which can help you optimize your investments for tax efficiency and provide tax reporting features. - Diversification analysis : Personal investment software may provide insights on the diversification of your investment portfolio, helping you assess the balance of your investments across different asset classes, sectors, or regions. - Research and news : Some personal investment software includes research and news features that provide up-to-date information on investments, markets, and financial news that can help you make informed investment decisions. It’s important to note that personal investment software is not a substitute for professional financial advice. It’s always wise to consult with a qualified financial advisor before making any investment decisions. Additionally, be sure to research and select reputable and secure software from reputable sources to protect your personal and financial information. ### Learn Fundamental Analysis URL: https://wisdominvestments.in/learn-fundamental-analysis/ Last updated: 2026-08-11T10:56:31.000Z ## Learn Fundamental Analysis ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/slide-1-1024x682.jpg) Learn the fundamentals of investment finance and the implementation of key asset-pricing models and firm-valuation techniques in real-world situations. ## Skills you will learn - Understanding how stock markets work - Essentials of successful investments - Building a strong portfolio and reducing financial risks [ GET STARTED ](https://wisdominvestments.in/contact-us/) ## About Fundamental Analysis : Fundamental analysis is a method used in finance and investing to evaluate the intrinsic value of a security, such as a stock, bond, or commodity, by analyzing the underlying factors that can affect its price. It involves examining a company’s financial statements, economic conditions, industry trends, and other qualitative and quantitative factors to determine whether an investment is overvalued or undervalued. The main goal of fundamental analysis is to assess the intrinsic value of an investment and make investment decisions based on that value. It is often used by long-term investors who aim to hold investments for an extended period of time and take into account the potential for growth and income generation. **Some key components of fundamental analysis include :** - Financial statements analysis : This involves examining a company's financial statements, such as its income statement, balance sheet, and cash flow statement, to assess its financial health, profitability, liquidity, and solvency. - Company earnings and growth prospects : Fundamental analysts analyze a company's historical and projected earnings, revenue growth, and other financial metrics to evaluate its growth prospects and potential for generating future profits. - Industry and market analysis : Assessing the overall industry and market conditions in which a company operates is important in fundamental analysis. Factors such as market size, competition, regulatory environment, and technological changes can impact a company's performance. - Management evaluation : Fundamental analysts also assess a company's management team, their experience, track record, and strategic decisions to determine the company's ability to execute its business plan effectively. - Economic and macroeconomic analysis : Understanding broader economic trends, such as interest rates, inflation, GDP growth, and geopolitical events, can provide insights into the overall economic environment and its potential impact on the investment. - Valuation analysis : Fundamental analysts use various valuation techniques, such as price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, discounted cash flow (DCF) analysis, and other valuation metrics, to assess whether a security is overvalued, undervalued, or fairly valued. Fundamental analysis is used by investors to make informed investment decisions and to assess the intrinsic value of a security. It is often used in conjunction with other forms of analysis, such as technical analysis and sentiment analysis, to develop a comprehensive investment strategy. However, it is important to note that fundamental analysis is not foolproof and has its limitations, as it relies on assumptions and estimates that may not always be accurate. Investors should also consider their risk tolerance, investment goals, and other factors before making investment decisions based on fundamental analysis. ### Learn Technical Analysis URL: https://wisdominvestments.in/learn-technical-analysis/ Last updated: 2026-08-11T10:56:32.000Z ## Learn Technical Analysis ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service3-1000x695-1.jpg) Technical Analysis gives you powerful insights on profitable technical patterns and strategies supported by statistical analysis of markets. ## Skills you will learn - Know the basics of Trend Trading - Understanding Indicators in Technical Analysis - Identifying Chart Patterns with Technical Analysis [ GET STARTED ](https://wisdominvestments.in/contact-us/) ## About Technical Analysis : Technical analysis is a method used in financial markets, such as stocks, currencies, commodities, and cryptocurrencies, to study historical price data and identify patterns, trends, and signals that can help traders make informed trading decisions. **Here are some key concepts and techniques used in technical analysis:** - Price Charts : Technical analysts use price charts to visualize historical price data in various formats, such as line charts, bar charts, and candlestick charts. These charts show the price movement over time and can help identify patterns and trends. - Trend Analysis : Technical analysts study trends, which are the direction in which prices are moving over time. They look for patterns such as uptrends (higher highs and higher lows) or downtrends (lower highs and lower lows) to determine the overall direction of the market. - Support and Resistance Levels : Support levels are price levels where historically the price has tended to stay above, while resistance levels are price levels where the price has tended to stay below. Technical analysts use support and resistance levels to identify potential buying or selling opportunities. - Technical Indicators : These are mathematical calculations based on historical price data that help traders identify potential market trends or reversals. Examples of technical indicators include moving averages, RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), and Bollinger Bands. - Chart Patterns : Technical analysts look for recurring patterns in price charts, such as head and shoulders, triangles, flags, and cup and handle patterns, which can indicate potential trend reversals or continuation patterns. - Volume Analysis : Volume is the number of shares or contracts traded in a security. Technical analysts use volume to confirm price movements. Higher volume during price increases may indicate a stronger trend, while lower volume during price decreases may suggest a weakening trend. - Risk Management : Technical analysts also consider risk management principles, such as setting stop-loss orders, which are predetermined levels at which traders would exit a trade to limit their potential losses. - Timeframes : Technical analysis can be applied to different timeframes, such as intraday, daily, weekly, or monthly charts, depending on the trader's trading style and time horizon. It’s important to note that technical analysis is not foolproof and is just one of the many tools that traders use to make trading decisions. It’s essential to combine technical analysis with other forms of analysis, such as fundamental analysis and risk management, to make informed trading decisions. Additionally, it’s crucial to understand that past price data and patterns may not always predict future price movements accurately, and trading involves risks. Proper education, practice, and risk management are essential for anyone interested in using technical analysis for trading. ### Mutual Fund Advisor URL: https://wisdominvestments.in/mutual-fund-advisor/ Last updated: 2026-08-11T10:56:32.000Z ## Mutual Fund Advisor ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2021/02/Mutual-Funds.jpg) Learn what are mutual funds, how do they work, and different types of mutual funds. Know its potential benefits, how to start and things to know before you start investing. [ GET STARTED ](https://wisdominvestments.in/contact-us/) ## About Mutual Fund : **What is a mutual fund?** A mutual fund is a type of investment vehicle that pools money from multiple investors and uses that money to invest in a diversified portfolio of stocks, bonds, or other securities. The mutual fund is managed by a professional investment manager who makes investment decisions on behalf of the investors. **How do mutual funds work?** Investors buy shares of a mutual fund, and the value of those shares changes based on the performance of the underlying securities in the fund’s portfolio. When you invest in a mutual fund, you effectively own a portion of the fund’s assets, and your investment grows or declines based on the performance of those assets. ## About Mutual Fund Advisor : Hello! As a Mutual Fund Advisor, I can provide you with information and guidance on investing in mutual funds. Mutual funds are investment vehicles that pool money from multiple investors and invest in a diversified portfolio of stocks, bonds, or other securities. As a Mutual Fund Advisor, I can help you understand the following aspects of mutual fund investing : - Investment objectives : I can help you understand the various types of mutual funds and their investment objectives, such as growth, income, or balanced funds. I can also help you determine which type of fund may be suitable for your investment goals, risk tolerance, and time horizon. - Fund performance : I can provide you with information on a mutual fund's historical performance, including its returns, risks, and expenses. I can help you evaluate a fund's performance relative to its benchmark and peer group, and provide insights on the fund's track record. - Risk assessment : I can assist you in assessing the risks associated with investing in mutual funds, including market risk, credit risk, and liquidity risk. I can also help you understand the concept of diversification and how it can mitigate risk in a mutual fund portfolio. - Fees and expenses : I can help you understand the various fees and expenses associated with investing in mutual funds, such as management fees, sales loads, and other costs. I can help you evaluate the impact of these fees on your investment returns and choose funds with cost-effective options. - Portfolio construction : I can assist you in constructing a diversified mutual fund portfolio that aligns with your investment goals and risk tolerance. I can help you understand the importance of asset allocation, diversification, and rebalancing in building a well-rounded portfolio. - Investment strategies : I can provide you with information on different investment strategies used by mutual funds, such as value investing, growth investing, and income investing. I can help you understand the risks and potential rewards associated with these strategies and how they fit into your overall investment plan. - Regulatory compliance : I can help you understand the regulatory framework governing mutual funds, including the Securities and Exchange Commission (SEC) regulations, prospectus requirements, and other legal and compliance considerations. As a Mutual Fund Advisor, I can provide you with information, guidance, and recommendations to help you make informed investment decisions based on your unique financial situation, goals, and risk tolerance. However, please note that as an AI language model, I do not provide personalized investment advice, and my responses should not be considered as a substitute for professional financial advice. It’s always important to consult with a qualified financial advisor or conduct your own research before making any investment decisions. ### Financial Planning URL: https://wisdominvestments.in/financial-planning/ Last updated: 2026-08-11T10:56:30.000Z ## Financial Planning ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2020/12/service6-1000x695-1.jpg) We take a holistic approach to financial planning. We believe that every financial plan should consist of a full review of your entire financial picture. [ GET STARTED ](https://wisdominvestments.in/contact-us/) ## About Financial Planning : Financial planning is the process of setting and managing personal or business financial goals and creating a plan to achieve those goals. It involves evaluating one’s current financial situation, understanding their financial goals, and developing strategies and tactics to achieve those goals within a defined timeframe. **Financial planning typically includes several key components, including :** - Budgeting : Creating a budget that outlines income, expenses, and savings can help individuals or businesses better understand their cash flow and make informed decisions about spending and saving. - Investment planning : Developing an investment strategy that aligns with one's financial goals and risk tolerance, and diversifying investments to manage risk and potentially earn a return on investment. - Insurance planning : Evaluating insurance needs, including life insurance, health insurance, disability insurance, and property and casualty insurance, to protect against financial risks and uncertainties. - Education planning : Planning for education expenses, such as saving for college tuition or other educational costs, for oneself, children, or other dependents. - Retirement planning : Planning for retirement by estimating future expenses, projecting retirement income, and developing a strategy to accumulate sufficient funds to maintain one's desired lifestyle during retirement. - Tax planning : Managing tax liabilities through strategies such as tax deductions, credits, and deferrals, to optimize tax efficiency and minimize tax burden. - Estate planning : Creating a plan for the distribution of assets and wealth after death, including wills, trusts, and other legal documents, to ensure that one's assets are distributed according to their wishes and to minimize taxes and other costs. - Debt management : Developing a strategy to manage debt effectively, including paying off high-interest debts, consolidating debts, and managing credit card balances and loans. - Risk management : Evaluating and managing risks associated with financial decisions, such as market risks, interest rate risks, inflation risks, and other factors that may impact one's financial plan. - Emergency fund planning : Setting aside funds for unforeseen expenses, such as medical emergencies or job loss, to provide a financial safety net and avoid dipping into investments or going into debt. Financial planning is an ongoing process that requires periodic review and adjustments as one’s financial situation and goals evolve over time. Working with a qualified financial planner or advisor can provide guidance and expertise to help individuals or businesses develop and implement a comprehensive financial plan tailored to their specific needs and objectives. ### Terms and Conditions URL: https://wisdominvestments.in/terms-and-conditions/ Last updated: 2026-08-11T10:40:49.000Z ## TERMS & CONDITIONS Welcome to our website. If you continue to browse and use this website, you are agreeing to comply with and be bound by the following terms and conditions of use, which together with our ‘Privacy Policy’, govern Wisdom Investments’ relationship with you. The term “Wisdom Investments” (or “us”/“we”/”our”) refers to the owner of the website. 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[Wisdom Investments](https://wisdominvestments.in/) or any of its employees are in no way liable for the use of the information by you when making any decision, or investing or trading through any investment vehicles, or group, or associate companies of [Wisdom Investments](https://wisdominvestments.in/), or any other third party which may be engaged in offering these services. ## Posts ### Cost of Delay in Investing URL: https://wisdominvestments.in/cost-of-delay-in-investing/ Last updated: 2026-03-30T06:30:17.000Z There is no such thing as perfect timing or perfect decision making – only hindsight can determine whether or not you’ve made the ‘right call’. Today, it is easier than ever to become lost in indecision. Well let’s keep it simple – 1. Invest in Debt Mutual Funds for short term goals upto 2-3 years. 2. Equity Mutual Funds for long term goals like Retirement, Child’s Education etc. ### Familiarity Bias: Your Comfort Zone can be a Dangerous Place URL: https://wisdominvestments.in/familiarity-bias-your-comfort-zone-can-be-a-dangerous-place/ Last updated: 2026-03-28T06:30:24.000Z In our day-to-day life, we find many people who will only buy a specific brand of clothes, go to the same store each time or take the same route to reach the store. These are examples of familiarity bias in our routine life. The familiarity bias is very commonly observed in investing, too. *Raj, an IT professional, steered clear of equity investment for the first decade after he started earning. Instead, he invested in what he considered tried and tested “safe” investments like PPF and fixed deposits. “I had always seen my parents rely on these options, so I followed suit. I thought mutual funds were riskier, so I stayed away from them”.* **Familiarity bias is like being at a party where it’s easier to chat with friends than mingle with strangers** — but it can lead to sub-optimal diversification as investors stick to familiar ‘go to’ assets, rather than exploring the entire universe of options. **How to Overcome the Familiarity Bias?** The most important step in overcoming the familiarity bias is to accept that familiar is not necessarily safe. For most of us, investing isn’t a full-time job. We don’t have time to understand the pros and cons of every possible investment. As a result, when making investment decisions, we try to make things simpler for ourselves by gravitating towards what’s familiar. For example, we may only invest in companies with brands that we recognize or in companies our family or friends invest in. **Sometimes the comfort zone can be a dangerous place.** For example, if you invest only in familiar instruments like fixed deposits, gold or real estate, and not diversify. Since you are not spreading your risk by investing in different avenues, a downturn in that asset class will bring down your entire portfolio. Also if you have chosen a class that gives low returns, you will run short of funds for a particular goal. Benjamin Graham in ‘The Intelligent Investor’ has rightly said that the investor’s chief problem and his worst enemy is likely to be himself. *All too often, people deviate from rational behaviour due to behavioural biases. A rational decision, however, is made by taking all available information into account and weighing benefits and costs.* ### Waste Not, Want Not URL: https://wisdominvestments.in/waste-not-want-not/ Last updated: 2026-03-26T06:30:07.000Z I don’t know about you, but I’m always looking for ways that I can save a little money. A few bucks here and there can really add up—which means I can afford a vacation or a thing I’ve been wanting to buy for a while. Whatever your money goals are, saving a bit at a time is easier than you think. It just takes a little sacrifice—let’s call it a mini-sacrifice—and you can save big. **Dinner with Friends** You meet your friends for dinner once every week. The dinner costs you Rs 1,000\. Every month, this amounts to Rs 4,000\. If you replace one of these dinner trips with cooking at home and invest the remaining, it will compound to Rs 2.6 lakhs ten years down the line. **Movie Night** A movie at a PVR or any multiplex costs approximately Rs 300\. For a family of four, that’s Rs 1,200 per movie. Two movies per month cost Rs 2,400\. Have one movie night at home which will cost approximately Rs 500\. That’s Rs 700 in savings, that will eventually compound to Rs 1.8 lakhs in ten year time. **An Uncertain future** Some folks frown on frugality. They equate it with being “cheap”. Others are unwilling to make sacrifices today when the future is so uncertain. They’re not willing to “live like that” when they could get hit by a bus tomorrow. I think this is crazy for a couple of reason: First, spending is not the same as happiness. Second, most of us are likely to live a long time. Which would you rather do? A. *Prepare for a long life by saving and investing, but then die tomorrow.* Or B. *Spend money you don’t have now, and then be unable to afford what you need when you’re older.* Don’t confuse frugality with depriving yourself. ***When we restrict our spending on the unimportant, we’re able to indulge ourselves on the things that matter most in our lives.*** Finally would like to leave you with a famous quote “*Do not save what is left after spending, but spend what is left after saving.”* ### Where are you on the Richie Rich Scale? URL: https://wisdominvestments.in/where-are-you-on-the-richie-rich-scale/ Last updated: 2026-03-24T06:30:04.000Z I met a college friend after a long time. After reminiscing about canteen, professors and the college beauty queen, I started complaining about my crappy job and how I would love to retire in ten years. Yeah, said Aditya. That’s the trend these days. FIRE: Financial Independence, Retire Early. Makes sense, I said. If I could do that. Then I could pursue my farming hobby full time. Everyone wants to retire early, but am I ready? Am I rich enough? Learn this financial planning tool to know for sure. First of all, let’s ask ourselves how much money is enough? How much do I need to have to call myself rich? Practically speaking, being very rich actually means that the amount of savings you have is more than sufficient to ensure that your lifestyle of choice is assured and there is little risk to that. Please note, the phrase is ‘lifestyle of choice’ and not ‘extravagant lifestyle’. Assuming your annual expenses equal 10 lakh. The amount of savings required is directly linked to your yearly expenditure. One needs a minimum of 25 times your annual expenses (2.5 cr) to lead a comfortable retirement. It is very important to note that when we say savings we are talking about liquid financial assets. Not illiquid business assets, gold or real estate which may or may not yield fruits. To be more specific, assets which beat inflation because your expenses will double every 12 years. Calculate for yourself. Where you are currently on the Richie Rich Scale? ### Year End Bonus – Should you plan a vacation to Thailand? URL: https://wisdominvestments.in/year-end-bonus-should-you-plan-a-vacation-to-thailand/ Last updated: 2026-03-22T06:30:45.000Z Aditya was busy in office, when he received an SMS 📲 You have received a credit in your account. He thoroughly rereads and his face lights up🤩 He has received his bonus amount. All of a sudden, that vacation to Thailand seems possible or how about that big screen TV. **Bonus money feels different from our salary.** Since our salary comes regularly every month, we’ve already mentally allocated it for living expenses. Rent, food, and entertainment all come out of your paycheck. **Your bonus, on the other hand, feels like a windfall🎰—fun and exciting. And unfortunately, easy to spend.** However, our bonus can be effectively used to manage our financial well-being. The following are a few tips on how to fruitfully utilize your bonus money. 1. **Emergency Funds for a rainy day**☀🌂⛈☔ – It is essential to keep some funds aside for unforeseen circumstances. No one can predict the future and emergencies can come up anytime. Build up an emergency fund equivalent to 6 months of your salary. 2. **Clear your loan** – The very thought of debt is a cause of stress for almost everyone. The ones with no tax benefits and higher interest rates go first. It makes sense to clear off high cost loans like credit card payments or a personal loan. We can also use our bonuses to pre-pay part of our home loans. 3. **Buy health cover for your family**👨‍⚕👨‍👩‍👧‍👦 – Secure your family’s wellbeing if you don’t already have health cover. It is a good time to review your family’s insurance cover and buy more if you feel the existing one is inadequate. 4. **Make a long term investment**📆♟👨🏼‍🦳 – Start SIPs in an equity scheme through a liquid fund. Park your money in a liquid fund rather than your savings bank account then start an STP: systematic transfer plan into an equity fund. With the funds out of your bank account, you’re less likely to blow them away. 5. **Reward yourself**❣🛫🏖🍹 – Pampering yourself with your bonus money is not a bad idea at all. Spending isn’t evil but try not to go overboard. Set aside about 25% for a vacation or a special treat for yourself. A rupee is a rupee, 🤑 whether it comes from your salary or bonus. Invest strategically so you can splurge when you want! ### Don’t wait to buy stocks, Buy stocks and wait URL: https://wisdominvestments.in/dont-wait-to-buy-stocks-buy-stocks-and-wait/ Last updated: 2026-03-20T06:30:42.000Z **Warren Buffet** “Someone’s sitting in the shade today because someone planted a tree a long time ago.” The best time to invest is several years ago. The second-best time is now. The sooner you get in the better. Don’t wait to buy stocks. Buy stocks and wait. The earlier you start, the better off you will be in the future. Warren Buffett planted his tree a long time ago. He bought his first stock at age 11 and he regrets that he didn’t start earlier! Even a small investment of Rs. 5000 every month in Mutual funds will give you Rs 75 lakhs in 20 years and 3 crore in 30 years. ### Investments worthy of a Mother URL: https://wisdominvestments.in/investments-worthy-of-a-mother/ Last updated: 2026-03-18T06:30:30.000Z I was looking for Mother’s day gift options online and Google was giving ideas like flowers, jewellery, coffee mugs and cushions that read **World’s Best Mother** or **Love you Mom** and many others. My friend suggested: how about a sumptuous lunch at a restaurant? Or better, you cook a meal for her and later you can take her to a spa. But we do this year after year. How about something different: 1.Gifting a **health cover** to your mother assures her of the best medical care when needed without any strain on her finances. 1. Starting a **fund to realize her dream**: Has your mother cherished a secret desire to travel to Switzerland, on an international cruise ship, any other such dream. Help her achieve her dream. 2. Most likely, her savings are “invested” in fixed deposits or post office schemes. Given the plunging rates of small saving schemes and their tax inefficiency, help her open a mutual fund account and invest in **hybrid funds which will be a mix of debt and equity**. Debt will lend stability and equity will offer good returns. 3. Women are fond of having gold jewellery and gold accessories. However, gold does not provide recurring returns or interest income. Better options are **Sovereign Gold Bonds, Gold ETFs and E-gold** as they can provide regular interest income, safety and have no making charges. This year, **let’s give Mom something of Lasting Value, just like her love for us.** ### Return of Premium Insurance Policy: a Godsend or a Ploy URL: https://wisdominvestments.in/return-of-premium-insurance-policy-a-godsend-or-a-ploy/ Last updated: 2026-03-16T06:30:44.000Z Ranveer, Deepika and their two kids are living a comfortable life. Deepika has taken a break in her career to take care of the kids and Ranveer is working in a multinational company. A typical Indian family with a home and a car loan. Ranveer is doing very well in his career, however he has a niggling fear – if something were to happen to him, what will happen to his family, how will they pay off the loan? So he is thinking of buying insurance. His advisor suggested that he buys a term insurance of 2 crore which will cost only 14k every year and will cover him till the age of 65\. Unfortunately or fortunately if Ranveer lives beyond 65 then he will not get anything from the policy. **Ranveer** – I’m paying premium for 35 years and will not get anything in return if I’m alive. I’ll be happy that I’m alive but is there any option where I’ll get some money if I survive? **Advisor** – Yes there is an option – Return of Premium (RoP), where you will get the entire premium back if you survive. However a cover of 2 crore will cost you Rs. 40k. **Ranveer** – Well that sounds like a better option, at least I’ll get back the premium paid for 35 years. A term plan, which pays in case of death of the insured but returns the full premium if the policyholder survives the policy term. Sounds like free insurance, right? **Truth be told: If it seems too good to be true, it probably is.** Return of Premium option – Premium paid will be 14 lakh (Yearly premium – 40k for 35 years), you will get back 14 lakh minus GST. Plain Vanilla Term Insurance – Premium paid will be 5 lakh and Ranveer can invest the remaining 26k. Even a modest return of 8% will give him 48 lakh Vs 14 lakh in the return of premium option. **Return of Premium – A trap for those who always thought paying premium for a Term Policy was a waste.** ### How to make your Home Loan Interest-Free 2 URL: https://wisdominvestments.in/how-to-make-your-home-loan-interest-free-2/ Last updated: 2026-03-14T06:30:45.000Z Last time we discussed how Ajay and Neha had taken a home loan of 50 lakh and paid EMI of 45k monthly for 20 years. They also started an SIP of 5k for the same tenure. After 20 years they had paid off the principal amount of 50 lakh, plus interest of 58 lakh, a total of 1.08 crore. The SIP of 5k gave them close to 58 lakh in 20 years, equal to the amount they had paid as interest over the years on their home loan. Now some of you have asked – **What if they would have paid that surplus of 5k towards their home loan instead of starting an SIP?** Well, in this case, they would have paid off the home loan in 15.5 years. After the loan had been paid off, they started to invest 45k plus 5k for the remaining 4.5 years which gives an amount of close to 37 lakh (assuming 13% CAGR). Since the home loan was paid off in 15.5 years, they will not get the tax benefit under Sec 24 on the interest component for the remaining 4.5 years which comes to 87k (20% tax bracket) and 1.31 lakh (30% tax bracket). So the net benefit would be close to 36 lakh (37 lakh – 87k) against 58 lakh. Counter argument – some people may not be comfortable with a large housing loan and to reduce their stress, they may want to get rid of the loan burden at the earliest. In that case paying off the home loan would be the best option. **From the personal finance point of view, One should only consider prepaying their home loan if current investments or opportunity cost fetches a lower return than the actual (after tax effect) interest burden.** ### How to make your Home Loan Interest-Free URL: https://wisdominvestments.in/how-to-make-your-home-loan-interest-free/ Last updated: 2026-03-12T06:30:17.000Z ![How to make your Home Loan Interest-Free](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/04/interest-free-home-loan-1.jpg) Ajay and Neha were relieved, the home loan which they had taken 20 years ago was finally over. They had taken a 50 lakh loan at an interest rate of 9% and the EMI worked out to 45k monthly whereas they had budgeted for 50k so they decided to invest the difference – 5k. Every month they paid 50k, and over these 20 years had paid the Principal amount of Rs. 50 lakh plus interest of Rs. 58 lakh, a total of 1.08 cr. When they went to the bank to collect the original documents and NOC from the bank, they were in for a pleasant surprise. At the time of disbursement of the loan, the monthly investment of 5k which they had started in a Mutual fund, is now worth close to 58 lakhs, which is the amount of interest paid on the loan. **Would you also like to make your Home Loan Interest-free?** Simple. Start an SIP which automatically deducts 0.1% of the home loan amount on the same day as that of your home loan. You won’t even notice it, but will be elated when you receive the big fat paycheck at the end of 20 years. **Increase the SIP amount to 0.2% of loan amount and you will get back the Principal and Interest amount.** ### How to Save Tax by Investing in Family Member’s Name URL: https://wisdominvestments.in/how-to-save-tax-by-investing-in-family-members-name/ Last updated: 2026-03-10T06:30:50.000Z Mr Sharma, a marketing professional, recently got a bonus of 5 lakhs and invests it in fixed deposits in his wife’s and daughter’s names. Mrs Sharma is a homemaker and her daughter has recently started working. She earns less than 2.5 lakhs annually and is not liable to pay any taxes. Mr Sharma is in the 30% tax slab. Can the family save on taxes on the interest earned from these deposits? The interest earned by Mr Sharma’s wife will be clubbed with his income and taxed according to his income slab. The interest earned by the daughter, however, will not be taxed. **CLUBBING OF INCOME** Any transfer of assets to close relatives (parent, spouse, sibling, lineal ascendant/descendant) is not taxed. Many people use this rule to transfer assets to others who are either in a lower tax bracket or do not pay tax at all and save tax on income from these assets. Any income from investments made or assets purchased in the name of close relatives (spouse, minor child or daughter-in-law) is clubbed with the income of the person making the investment and taxed accordingly. This applies to all types of investments such as mutual funds, fixed deposits, property etc. *So, if a person opens a fixed deposit in his wife or minor child’s name, the interest earned will be clubbed with his income. Also, if a person buys a property in the name of his wife, who has not contributed any money, the rental income will be clubbed with his income.* **Is there a solution?** 1. **Invest money in your parents’ names:** To save tax, you can gift a certain amount of money to your parents if they are in a lower tax slab than you. This amount will not attract any gift tax. You can invest in your parent’s name with this amount. Since they are in a lower tax slab, the tax to be paid on the profit or interest will be less than what you would have had to pay if you would have invested the same amount in your own name. 2. **Save tax through MAJOR children:** All your adult children are as solid as a rock to help you save income tax. Investment made by major children out of the gift received by you will be taxed as per the tax slab of your children. 3. **Investing money in the name of your spouse does not help: INITIALLY\*** Assume you provide money to your spouse who is not working. That money is invested by the spouse and an income is generated from this gift. The income that arises from this investment can be clubbed to your income. However, if your spouse reinvests the income portion and earns further income then that income may not be clubbed with your taxable income. Say you gift your wife 25 lakhs which is invested and earns a profit of 2 lakhs. This 2 lakhs will be clubbed with your income. The good news is when this 2 lakhs is reinvested and earns further profit, then this profit is not clubbed with your taxable income. To summarize, you will not be taxed when you: 1. Gift to Parents 2. Gift to Major Child You will be taxed when you: 1. Gift to spouse 2. Gift to minor child 3. Gift to son’s wife ### Why aren’t we half as patient with Equity as we are with Real Estate? URL: https://wisdominvestments.in/why-arent-we-half-as-patient-with-equity-as-we-are-with-real-estate/ Last updated: 2026-03-08T06:30:47.000Z I was talking to my mom about our house in Pune. My elders had bought the flat for 1 lakh in 1978 and today it is worth 1 crore. 💯times growth in 40 years. Wow, that’s FANTASTIC! 🤩🥳 I’m sure you have heard such success stories from your relatives and neighbors. Let us dig deeper to figure out the actual return I made. When I calculated, it comes to 11.81%. I came across an article in last week’s newspaper: Sensex: Indian stock market index, celebrated its 40th birthday on 1 April 2019\. Actually launched on 2 January 1986, the base date was 1979, for simplicity sake, the value of the index was 100 in 1979. Forty years later, the value of the index is near 39,000\. The simple average annual return is around 16%, if we include the dividends paid over the years, it would be close to 56,000, a return of around 17%. Now the difference between the rate at which the value of my house appreciated:12% and the Sensex return: 17% is not much: only 5%. However, 1 lakh invested on 1 April 1979 in Sensex would now be worth 5.6 crore! Long story short: 1. We are patient with our Real Estate investments, let us look at Equity/Mutual Funds with the same long term perspective. 2. Let us put more eggs in the basket(s) which give higher return: Asset Allocation is the key.(As of today, majority of India’s savings are in Real Estate and Fixed Deposits). ### Say No to Endowment Plans URL: https://wisdominvestments.in/say-no-to-endowment-plans/ Last updated: 2026-03-06T06:30:30.000Z Endowment plans (LIC Policies) are very popular in India. Knowingly or unknowingly, most people end up buying this type of policy. They appear to be simple, transparent and highly beneficial. They are insurance cum investment products. However it is not recommended as they offer a sub-optimal combination of insurance and investment. **Then why are they so popular?** 1. A lot of us buy insurance in haste and that too for the sole purpose of saving tax and they do so without fully understanding the products. 2. Often the advisor is a neighbour, or a friend or, even worse, a relative😇. It’s kind of difficult to turn them down. 3. Many people see insurance as a useless expense and hence they think it’s better to just buy a product that will give some return as well. **Example** Pay yearly premium of 36k (3k a month) for 16 years and then after 25 years you will receive 19.60 lakh plus you get life insurance worth 10 lakh Wow I’ll receive nearly 20 lakh for a premium of 5.6 lakh, that’s fantastic, maybe I’ll go for a World tour✈🗽 or maybe it will take care of my child’s education📚.. However wait a moment.. A life cover of 10 lakh is grossly inadequate. And what is the return on your investment? It is only 5.6% and such policies give return in the range of 5 to 6% only. These policies neither provide adequate insurance, nor are a good investment solution. **So what are the alternatives?** It is always better to keep insurance and investment separate. **Insurance** – If your family is financially dependent on you👨‍👩‍👧‍👦, buy a term insurance which is at least 20 times your annual income. If you earn 10 lakh, buy a cover of at least 1.5 to 2 cr. 1 cr policy for a 30 year old will cost only Rs. 8000/- a year. **Investment** – Put the remaining money Rs. 28k in well-diversified mutual funds. ### Think Big Picture! URL: https://wisdominvestments.in/think-big-picture/ Last updated: 2026-03-04T06:30:54.000Z We are living in a world that is changing dynamically. Reading the summary has replaced reading a book. Crash diets have replaced exercises. In today’s age of instant gratification, a few investors may be upset that their SIP has not grown enough in a year. Though the world is changing dynamically, a day is still made up of 24 hrs, a year of 365 days. Hitting the gym today will not make us fit by tomorrow. Reading a page of a book today will not make us wise by tomorrow. Investing today will not make us rich by tomorrow. But when given time, thanks to rupee cost averaging and compounding effect, SIP helps in amassing wealth. Someone who started investing Rs.10k from Jan’ 07 to Dec’ 11, would have invested 6 lakh and it’s value would be 6.9 lakh: a return of only 5.5%. Kotak or YES Bank savings account would have given better returns. **However if the SIP was continued till Dec’ 15, the amount invested would have been 10.8 lakh and it’s value would be 23.1 lakh: a staggering return of 16.2%.** ### The Most Efficient Way to Save Tax URL: https://wisdominvestments.in/the-most-efficient-way-to-save-tax/ Last updated: 2026-03-02T06:30:29.000Z Most of us have a tendency to wait until the last moment to start making tax saving investments, and more often than not, we end up making the wrong decision. The key here is to begin investing at the start of the financial year and change the notion of tax saving into tax planning creating a strategy to help you maximise your tax savings together with wealth creation. But with so many options, how does one choose the right one? There is no single answer. And that is simply because everyone’s goals are different and so are their risk appetites. However what’s important is to keep in mind that such investments are not just to save tax, but also to build wealth and beat inflation over the long term! Equity linked savings scheme (ELSS) is one such avenue that provides both tax saving benefits and a relatively higher growth potential over time. Save upto Rs. 46,800 in tax and lock in period of only 3 years ### Timing The Market URL: https://wisdominvestments.in/timing-the-market/ Last updated: 2026-02-28T06:30:23.000Z “Markets look expensive. I’ll start investing once the markets correct.” “Let the 2019 election results be announced, then I’ll take a call” “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 had invested 10k in 1990 and stayed invested, you would have earned compounded annual returns of 13.56%, 10k would be equivalent to 3.17 lakhs. The return drops drastically if you missed the 10, 20, 30 and 40 best days. Mutual funds can help you fulfil your your long term financial aspirations, provided you are willing to stay the course and not sell in panic during market downturns. ### The REAL returns from Fixed Deposits URL: https://wisdominvestments.in/the-real-returns-from-fixed-deposits/ Last updated: 2026-02-26T06:30:38.000Z **Why do you invest in Fixed Deposits?** “FDs are safe” “FDs give guaranteed returns” “Even if bank shuts down, I’ll get back my money” **Now let’s focus on the facts** 1. Real rate of return given by Fixed Deposits from 2001 to 2017 is ONLY 12% compared to 173% given by Nifty. 2. If you are earning more than 5 lakh a year, interest earned on FD will be taxed at 20% and if earning more than 10 lakh, interest earned will be taxed at 30%. Mutual funds taxed at only 10%. 3. Whether you have invested 10 lakhs or 50 lakhs in FDs and the bank shuts down, maximum amount you will get back is only 1 lakh. ### Why Your Savings Rates Matters More Than Your Returns? URL: https://wisdominvestments.in/why-your-savings-rates-matters-more-than-your-returns/ Last updated: 2026-02-24T06:30:44.000Z In my early twenties, I invested 20,000/- into four specific stocks. I would check the price of each stock daily, sometimes numerous times in a day. When the price went up, I was happy high and when it went down I was low. Back then I had the feeling I was doing a great job of keeping track of my minuscule investments. The big thing I missed on was that I didn’t invest enough for the gains to actually make an impact to my finances. Let’s suppose I earned a 20% returns on my stocks in one year, that amounts to 4,000/-. Though the ROI is significant, the amount is not life changing. Looking at the big picture, 4,000/- is a negligible amount. So what’s the point of it all? The point is the amount invested matters more than earning a phenomenal return over an average return. It feels fantastic to earn double digit returns but on a very small portion of your total wealth, it is not going to make you rich. ## Your Savings Rate Is Important At the beginning of your investment journey, how much of your earnings you save has a considerable impact on how soon you will achieve your financial objectives. How do we calculate your savings rate? We divide your total savings (funds put into savings and investment accounts) by your total income (if you are salaried, then your take home). For example, if your annual income was 20 Lakhs and you saved 6 lakhs this past year then your savings rate is 30%. What difference does it make? Let’s say you invest 1 lakh annually at an average rate of return of 10%. To build a corpus of 1 crore it will take you 24 years. What is worth noting is that to earn your first 10 Lakhs (10% of your total corpus) it will take you 6.58 years, approximately 27% of your total duration to 1 crore. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/12/how-long-it-takes-to-earn-1-crore-1.jpg) source: www.ThePrudentInvestor.in You’re saving the exact same amount every year, but *your past savings are working hard to increase your net worth more at a faster rate every year.* This is the power of compounding. #### Observe this astonishing statistic: To go from 0 to 10 lakhs, it takes 6.58 years but to go from 60 lakhs to 1 crore take less time than that; it takes 4.67 years. This just goes to show how immensely potent compound interest is once you’ve saved 20-30 Lakhs. *Once you pass a certain limit, your savings work harder than you do.* It’s like rolling a snowball from the top of a hill. Time and a high savings rate are your leverage and fulcrum. When you’re just beginning to invest, the amount you save has a far greater impact than your rate of return. Compound interest requires time to grow. Towards the beginning, there isn’t enough money invested for the returns to seem to matter. It takes a good 8 years for the returns to surpass savings in contributing to net worth. When you not only save but invest your money, it earns money of its own. The money earned earns money all but itself. Over time, this becomes an exponential escalation of wealth. Once your returns are enough to pay for your expenses and leave enough returns invested annually to match inflation, you can gleefully retire. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/12/savings-versus-returns.jpg) source: www.ThePrudentInvestor.in In the first year, you earned only 10K as returns. Your intial savings of 1 lakh contributed 9% of your overall growth. But in the 8th year, investment returns surpass savings as the largest contributor to your wealth. As you embark your financial journey, you will find out that the first 10 Lakhs can take the longest to accumulate. Of course, hiking your savings rate helps significantly, enabling you to achieve your objectives sooner. As Charlie Munger said: > “The first $100,000 is a b\*tch, but you gotta do it.” ## When Do Percentages Actually Matter Many clients and friends try to create a Michael Schumacher portfolio with the objective of delivering fantastic, outperforming returns. They might invest in Bitcoin or research tediously to find complex algorithms to outperform the market by a few percent. Or worse, they might try the impossible; to time the market. What we didn’t realize as beginners was that initially the amount invested was so small, the rate of return didn’t make a world of a difference. My 20% returns on my 20,000/- investment back in the day earned me only 4,000/-. The magic was that I learnt to save a large portion of my earnings and invest it which has paid me handsomely today. I was naïve to believe that my returns were going to make me rich that early. In the initial stages, your wealth creation will come from accumulation. That is, your savings and not your returns. But that will change. After a decade or so, the tortoise of investment returns beats the hare of savings. A 10% return on 10 Lakhs is 1 Lakh. A 10% return on 50 Lakhs is 5 Lakhs. A 10% return on 1 crore is 10 Lakhs. ## Focus on Income In The Beginning My nephew recently asked me for investment advice and I told him the same thing I tell my investors. Make your investments automatic and; Utilize your intelligence and effort to increase your income since that is what will count initially. #### An analogy I like to use is building a fire. Most of your life you gather firewood. It’s not useful by itself, but it has potential. You keep gathering. You keep saving in big and small ways. You do this until one day you cross that critical threshold and decide to start a fire. #### Your fire starts small. Your returns exceed your savings but by a small margin. You keep throwing more logs on the fire and it burns brighter. This pace continues, and so do you. You keep at it day by day, night by night until you have a roaring blaze. Then you leap into financial freedom. Build your fire. ### Why Investing Lump Sum Is Better Than STP URL: https://wisdominvestments.in/why-investing-lump-sum-is-better-than-stp/ Last updated: 2026-02-22T06:30:42.000Z Anisha just inherited 50 Lakhs from her Grandma. She’s a smart young woman and she knows she should invest this money for a brighter future. But the question is how? Should she invest the entire 50 Lakhs in the market right now? Or should she put it in a liquid fund and do STPs (systematic transfer plans) into equity funds? Which will give her higher returns? And what if the market were to crash shortly after she invested? She would never forgive herself for shrinking such hard-earned money? It’s at this point that one faces a dilemma when investing. When faced with this decision, many investors prefer to spread the investment out. So that instead of buying at a single price, the level at which they invest in the market is averaged out. This kind of investment approach is known as “rupee-cost averaging”. But it can come with a cost. ## Packing In Protection The idea of rupee-cost averaging is to provide some protection against the possibility of the market dropping sharply soon after the money is invested. As no one wants to mistakenly buy at the top of the market. Instead of the entire investment suffering this loss, only the invested portion does. The rest, in theory, is then invested at lower prices. In this way, rupee-cost averaging can work well in a falling market. ***The problem is: markets tend to go up more often than they go down.*** So with rupee-cost averaging you’re more often likely to buy when prices are rising rather than decreasing; an inefficient strategy. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/12/teal-ud0bo-rising-vs-falling-months-1.png) ## Skewed allocation Another downside to rupee-cost averaging is that it will change the asset allocation of your existing portfolio until the new amount is completely invested. That is, any extra cash you hold could alter your overall mix of investments and make it different from what you planned originally. For example, say you have a portfolio that’s 70% shares and 30% bonds. Now imagine receiving a lump sum that’s equal to this portfolio. Your new portfolio will be split into 35% stocks, 15% bonds, 50% cash. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/12/original-and-new-portfolio-pie-charts.png) This is a very different allocation and is highly unlikely to align with your goals. This is averse to tried and tested investment principles. Given the immense research showing the importance of asset allocation to investment results, this could lessen your chances of investment success. Cash earns a paltry return and will drag down your portfolio’s total return. And if the cash doesn’t get fully invested (possibly because you forgot about it or got panicky by a market decline) this cash drag can persist forever, leading to permanently lower returns. ## Better than nothing So, is rupee-cost averaging useless? To be honest, no. It can be a perfectly valid strategy because it can hedge against regret You might get lucky with your timings too. > "No one likes the idea of investing a significant sum of money, only to see the market drop immediately afterward. For some, this fear of regret leaves them paralyzed. They wait until they feel confident about the market. Which may never happen. *For these investors, rupee-cost averaging may be a way to overcome that paralysis and at least invest something."* This insurance against regret comes at a cost. Usually, rupee-cost averaging will lead to lower long-term returns, implying investors would have been better off investing their funds lump sum. But if you’re scared of a market downfall, rupee-cost averaging might at least provide you with protection against regret: especially if the alternative is not investing at all. ## Should I invest this money immediately or overtime? We understand the fear many investors may have around investing their money. There is a lot at stake. Lakhs, maybe Crores of Rupees. What if the market crashes right after you invest? Wouldn’t it be better to average-in over time (rupee-cost averaging/RCA) to smooth out any unlucky timing on your part? The main reason Lump Sum outperforms RCA is because most markets generally rise over time. Because of this positive long-term trend, RCA typically buys at higher average prices than Lump Sum. In those occasional situations where RCA outperforms Lump Sum (in falling markets), it is very hard to stick to RCA. ***So, the times when RCA has the largest advantage are also when it is the toughest for investors to stick to their plan.*** The STP or lumpsum debate is actually one of market timing. Doing an STP indirectly assumes that you can time a market high; it is the only scenario that justifies doing an STP over a lump sum. If you don’t think you can time market highs, then do not STP. Why is STP an outcome of market timing? You see, STP will only work when the average NAV over the next 12 months is lower than today’s NAV so that you can buy at a lower average price over the year than today. An STP investor is making a complex claim that the NAV will be on average lower over the next 12 months while he/she is purchasing units after which it will go up. ***Lumpsum makes no market timing assumptions. It is the simpler option.*** ## In God we trust, All others must bring data We ran a simple backtest to see what the historical data suggests. We started with HDFC Top 100 Mutual Fund data going back to 2003\. Over the past 18 years, the market has made a new all-time high in 63 months. In each of those months we set up two investments: 1, Investment in a liquid fund and then STP into HDFC Top 100 over one year. 2, Invest in HDFC Top 100. After one year we see which investment did better. Of the 63 instances when we set up the STP vs Lumpsum race, the Lumpsum investment outperformed 57 percent of the time. More importantly, investing in a lump sum would have returned an average of 10.64 percent, while one year STP returned on average 9.11 percent after one year. What happens if you decide to run SIPs/STPs instead of lumpsum? You lose out on the following: - Instead of deploying the entire amount (into equity and thereby compounding), you are deploying in installments. So, you are losing time and starving yourself of the power of compounding like it can with lumpsum. - You will have your funds sitting in your bank account until completely deployed or have them in a liquid fund with STP and paying tax on such switches throughout the STP period. ## What Should I do? We can’t foresee the future. We cannot know in advance whether lump-sum investing or rupee cost averaging will lead to higher yields. > "In investing, it is crucial to understand the limitations of our knowledge. Don’t get swayed by investment news which makes market predictions. As Warren Buffett says, a stock market prediction tells us more about the person predicting than it does the future." Even if we knew where the market would stand a year from now, we still wouldn’t know whether lump-sum investing or rupee cost averaging would lead to a better result. Why? Because the outcome would depend on ***how the market performed during the year.*** If it fell and then rose, rupee cost averaging would take advantage of the lower prices. If it rose and then fell, lump-sum investing would lock in the lower price at the beginning of the year. ## Avoiding Losses Favors Rupee Cost Averaging Some investors are more concerned about losing money than about maximizing returns. ***If your concern is the preservation of assets, rupee cost averaging might be the better approach.*** ## Consider Your Risk Tolerance When it comes to investing, our emotions can cause us trouble. This applies both when we get scared or excited. Either can lead us astray. The aforementioned study highlights this fact: If the investor is mainly concerned with minimizing downside risk and potentially feeling regret (resulting from lump-sum investing immediately before a market downturn), then RCA may be useful. Of course, any emotionally based concerns should be carefully weighed against the lower long-run returns of cash compared with stocks and bonds and the fact that delaying investment is a form of market-timing (something few investors succeed at). If an investor goes all in with a lump sum investment and the market falls, it impacts them negatively for years. To prevent this outcome, rupee cost averaging may be the better approach. However you choose to invest a windfall, it’s important to think about the emotional side of investing as well, not just the math. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/12/mike-tyson.jpg) ## Follow a Plan One should always have an investment plan. If you decide to rupee cost average, make a plan, write it down and stick to it. For example, you may decide to rupee cost average over a year. You’re going to take one-12th of your funds and invest it monthly. Make sure you write it down and stick to it no matter what. Sticking to a plan assists us in sidestepping market timing. No one knows how the market will perform in the future. So it’s critical to commit to a plan. We should do the same with our asset allocation plan and our approach to rebalancing. ## Don’t forget the tax implication of STP A significant consideration is the tax implication of an STP. When you invest in a liquid fund and switch funds into an equity fund, then each switch will be treated as a redemption of the liquid fund. Since liquid funds are non-equity funds they will be classified as Short Term Capital Gains for up to 3 years and will be taxed at your peak rate of tax. Even beyond 3 years, gains are still taxed at 20% after considering indexation. This will certainly impact net returns. #### When deciding between investing all your money now (lump sum) or over time (rupee cost averaging), it is usually better to invest it now. Generally, the sooner you deploy your capital, the better off you will be. We say “generally” because the only time when you are better off by doing RCA is when averaging into a falling market. However, it is precisely when the market is falling that you will be the ***least*** enthusiastic to keep buying. It is tough to fight off these emotions, which is why the times when it is best to RCA, most investors are unable to stick to the strategy. If you are still uncomfortable investing your lump sum today, the problem may be that you’re investing in a portfolio that is too risky for you. Consider placing this money in a more conservative portfolio now and moving on with life. Say you want to be invested in 100% stocks (but you are worried about a market crash) it would be better to put it in now into an 80/20 stock/bond portfolio instead of rupee-cost averaging into an all-stock portfolio over time. #### Delaying investment is a form of market timing, something very few investors succeed at. ### How Can We Nudge Ourselves To Save More URL: https://wisdominvestments.in/how-can-we-nudge-ourselves-to-save-more/ Last updated: 2026-02-20T06:30:41.000Z Would you commit to eating a healthier diet if the diet started next week and not today? Researchers at Leeds University Business School say yes, you would. They asked people what they would prefer to snack on at a meeting that would take place in 7 days: a chocolate bar or a banana. 74% of the participants chose a banana. On the day of the meeting, they were given the choice again. When facing immediate gratification, 70% of the subjects chose chocolate. The solution? Have the participants order their snack—to commit to their decision—7 days in advance. This is the insight Benartzi and Thaler used in “Save More Tomorrow.” Don’t ask people to save more today; ask them to agree today to save more tomorrow. It works. When it’s time to decide whether to spend or save our money, it’s a battle between what we should do and what we want to do. Simply put, it’s much easier to spend than it is to save. The problem is the way our minds work. We’re designed to respond to the immediate threats and gratifications of a simpler and more dangerous world. ### Why Only The Intention To Save Is Not Enough While we may intend to save more, several obstacles tend to come in our way. First of all, people often consider losses to be far more important than gains; this tendency is known as the loss-aversion bias. When people have to lower spending to increase retirement savings, this is perceived as a loss, as it implies a decrease in take-home (spending) money. If people have to cut spending, they have to change their habits, which requires self-control. This can be difficult. ***In an experiment with monkeys, the first group is given an apple and they’re very happy. The second group is given two and one is subsequently taken away, so they now have one, and they’re very unhappy. The problem is loss aversion: something that upsets humans and monkeys alike.*** How does this relate to savings? People think of savings as a loss – if I save money today, how will I afford to buy another mobile? > “Self-control is not a problem of the future. It is only a problem now, when the chocolate is next to us.” \~ **SHLOMO BENARTZI** Brain imaging shows that we use the same parts of our brains to think about our future selves that we use to think about strangers. If we are so separated from our future, how can we be taught to care? If the problem is our brains, how can we trick our brains into better financial behavior? Let’s look at some of the biases that get in our way. ### Short-term thinking We spend a lot of time and energy dwelling on the near future, and very little of it on the distant future. Many of us spend more time choosing a restaurant for dinner than investment planning. How can we alter this nearsighted behavior? People have to imagine what their lives will be like in the distant future in order to care about it today. During retirement planning, the characteristic approach is to present 30-year financial projections. This is analytical, not emotional. ***Behavioral studies have shown a more effective technique which is somewhat odd: Show them pictures of themselves, modified to look like how they will be when they’re older.*** ### Immediate gratification It’s not that we don’t want to save—or exercise or eat healthy foods. ***It’s just that in the decision-making moment, we seek immediate gratification. Pleasure now trumps pleasure later.*** For example, given the option of going on a diet three months later, many people will agree. But tonight, at dinner, that dessert looks inviting. Another factor is procrastination. When it comes to unpleasant tasks (such as spending cuts to put away money for retirement) people tend to procrastinate. So many people want to save more, but never get around to doing it. Procrastination and inertia lead to what is called the status-quo bias: the tendency of people to stick to the current state, regardless of the best or rational choice. Most financial advice involves saving more today, but everyone knows how difficult this is. A tight budget, extravagant spending habits, or unexpected bills can make saving more for the future tough. ## The Secret to Saving More for Retirement ### Make a commitment to increase your savings We tend to value minor, instant rewards higher than larger, future rewards. This can cause us to spend on vacations or shopping sprees, instead of saving it for our bigger future goals, like retirement. This is called present bias. The objective is that making a commitment will hold people accountable and help them avoid engaging in this bias. Hyperbolic discounting refers to the tendency for people to increasingly choose a smaller-sooner reward over a larger-later reward as the delay occurs sooner rather than later in time. If you get increments in your job every June, you can decide ***today*** to use your increments to save more for the future. This way, people will not experience a loss in pay, but rather a decrease in future gains. By avoiding feelings of loss, it becomes easier for people to accept increases in pension contribution. ### Technology and automation help nudge us to better personal savings “Pay yourself first” is famous advice from the famous investor Warren Buffet. The idea is to take a portion of your salary and save it before you spend the rest. Loss aversion makes this hard to implement. Just as “opt-in” works for Netflix subscription, automating your personal savings can help you encourage sound financial behavior without thinking about it. If you don’t make savings automatic, your chances of retiring with an adequate corpus are as good as a banana being my snack this afternoon. ### Reluctance to change Academic studies and real-world data repeatedly show that we are reluctant to change things. Behavioral economists call this “status-quo bias.” It’s easy to let things be and difficult to make a change. Change needs thinking, decision-making and action. Marketers know and use this by looking for ways to set the default to “yes.” They know the power of moving from opt-in to opt-out—as in the power of a subscription where each new month of service is automatically delivered, rather than each new month requiring a new purchase. > "Consider the difference in organ donation rates between two similar European countries, Germany and Austria. In Germany, which uses an opt-in system, only 12% of citizens gave consent, whereas in Austria which uses an opt-out system, nearly everyone (99%) did." Another human savings failure is inertia: People seldom increase their savings rate over time. Even if they get a raise, employees rarely increase their retirement savings. Hence it is a good idea to opt for Top up SIP. ### SIP versus Top Up SIP Say you start off your SIP investment with ₹10,000 on a monthly basis and increase the amount of investment by 10% every year via SIP top-up feature. What is the surplus you are likely to generate over different periods of time? Assuming returns of 12% ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/sip-vs-top-up-sip.png) To conclude, cognitive biases like present bias, hyperbolic discounting, and loss aversion may prevent us from engaging in making the best financial choices. The strategies below can help us overcome these biases: - **Picture your future self** – imagining yourself in the future will help control present bias and envision the long term benefits. - **Make financial goals explicit** – committing to save will only increase your chances. - **Automate as much as you can** – just like automatic opt-in programs skyrocketed pension savings, automizing your savings will yield results without you even thinking about it. ### Is Everyone Making Money Except You? URL: https://wisdominvestments.in/is-everyone-making-money-except-you/ Last updated: 2026-02-18T06:30:10.000Z Have you ever skipped dinner with your friends without a second thought, only to find out it turned into drinks, and bar hopping, and a house party, and supposedly, “the best night ever”? And the day after, you’re looking at pictures and hearing stories and mentally kicking yourself. No one can attend every event. Sometimes, there’s something you really want to go to, but responsibilities get in the way. Maybe you have to work late, or you’re obliged to go to a relative’s family function the same day your friend decides to throw the house party of the year. Either way, fear of missing out – known as “FOMO” – affects all of us sometimes. It’s described as feeling anxious that something thrilling or fascinating is occurring elsewhere. Social media can really amplify this anxiety when one sees posts and images about the fantastic time their friends are having without them. This feeling can be quite overwhelming. ### What Has FOMO Got To Do With Investing? There are two kinds of fear with investing: 1. The Fear of Missing Out (FOMO) 2. The Fear of Being In In March 2020, there was the gnawing fear of being in risky assets as they were getting thrashed. That fear of being in soon transformed into the fear of missing out as the markets have boomed back. **Being disciplined is toughest at market peaks and troughs.** Towards the trough, fear is overpowering. Concerns that the market will drop further, along with seeing your portfolio plunge in value, make holding or purchasing more units very challenging. However, investing near market peaks is another challenge, as greed takes over. You kick yourself for not investing before the markets boomed. You want to acquire these hot investments to benefit from further returns but are concerned that you have missed the run-up. Seeing others profit from a great rally might make you feel compelled to participate in the gains, even though your brain is telling you that the major returns have already passed you. ### Our Current Situation > "A story goes that Joseph Patrick “Joe” Kennedy sold out of the stock market right before the 1929 crash after hearing stock tips from his shoeshine boy. Tips from a primitive investor signaled to him that the market was inflamed and ready to bust." Regardless of whether this story is true, it makes a valuable point; when it appears everyone is talking about how much they are making in the market and exchanging stock tips like recipes, the market is likely puffed up. There is a price you pay to profit from something. Valuation metrics can help determine how much that gain from the market can be. Below is a table on price earnings (PE) and price to book value (P/BV) ratios at various index levels (highs and lows) for the Nifty 50 index. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/valuations-at-highs-and-lows-1.png) ### Demat Account Openings An optimistic capital market also leads to a high number of demat account openings. There was a sharp increase in demat account openings in 2017-18, which stagnated as markets corrected. But in 2020-21, there was a three-fold rise in demat account openings notwithstanding the Covid situation against the average for the previous three years. This is an indication of upbeat market sentiment. ### Are You Saying The Market Is Going To Crash? Do factors like the run-up in the market, high PE ratios, and stories of retail investors plowing into the market indicate that a crash is impending? No. While bear markets are unavoidable, it is not possible to predict the peak reliably. The next bear market might start tomorrow or years from now. Anyone who says they know when we are at the peak is only speculating. One investing cliche is that the market often continues its course longer than expected on both the upside and the downside. ### What To Do? Most people have at least once been preoccupied with the idea that someone, somewhere, is richer, or is living a more exhilarating life. It’s not easy to hear of others making hundreds of percent returns rather quickly with investments you missed. FOMO can be overpowering. But there is something you can do about it. Instead of joining the herd, rebalance your portfolio by profit booking from your high achievers and investing in value stocks, international stocks, and non-correlated assets that have been laggards. > "Don’t follow the crowd or the investment trend of the day. Look at the big picture and stand by your investment objectives. Successful investors ignore the noise and remain focused on their long-term goals. This isn’t as exciting as day-trading or cryptocurrencies, but history shows you’ll be better off." Both in investing and life, capitalizing on every opportunity is just not possible. Many times, we think about all the hypothetical returns we missed out on, which boils our blood. It may lead us to chase the “next big thing” in investing with potentially disastrous results. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/financial-fomo.jpg) ### The Cure To FOMO FOMO is a primal predisposition. It’s in-built from birth. Though impossible to experience absolutely no FOMO, there are solutions to keep it in check and prevent it from impacting your investing choices. #### Setup A Play Account Set aside about 5% of your total portfolio for “play”. You may buy any speculative stocks, cryptocurrencies, etc you want to pursue for the exhilaration of it. Separate it from your primary portfolio which you treat with sanctity. #### Relish Feeling Out Of The Loop There are great things happening out there and sometimes you’re not a party to it. Accept that sometimes there’s nothing you can do about it. We always need to make choices. Come to terms with the fact that you can’t say Yes to everything. JOMO is the acronym for the Joy of Missing Out coined by Anil Dash, CEO of Glitch. It means enjoying what you’re doing in each moment without worrying about what everyone else is doing. #### Easy Money It’s easy to see how celebrities and influencers touting crypto schemes and giveaways make it. Which makes it tempting to imagine that one great score on Bitcoin or stocks could wipe out a student loan, help start a business, or make a down payment on a house. **Temperament is everything.** But nobody wants to work on it, because it’s hard work and it’s difficult to measure progress. In the short term, it’s unrewarding and unsatisfying, because *self-discipline usually involves watching other people party and saying, I’m not going to take part.* #### Take A Long-term View For the majority of investors, achieving their goals will take a matter of years. Wealth creation happens steadily over time, rarely overnight. **Resist the urge to panic at bad news or pursue the latest craze. Focus patiently on your long-term strategy and avoid making decisions based on FOMO.** ### Final Word FOMO is a tumultous emotion. This applies in investing and in life. It is a feeling that can lead to all kinds of mistakes, be it investing, your career, relationships, or budgeting. The good news is there is something you can do about it if you recognize it. Avoid FOMO when investing by adhering to a fundamental strategy, conducting meticulous research, and walking away from an option when the need arises. This can significantly increase your returns. ### You Don’t Need To Shoot For The Stars URL: https://wisdominvestments.in/you-dont-need-to-shoot-for-the-stars/ Last updated: 2026-02-16T06:30:45.000Z *Many people think that the key to getting rich is making a lot of money. Let’s find out.* Grace Groner was orphaned at 12 and was raised by kind neighbors. She later lived in a tiny one-bedroom cottage. She shopped at second-hand sales, loved to walk everywhere, and worked for most of her life as a secretary. So it was surprising to her alma mater, Lake Forest College, to learn that upon her death she left a gift of $7.2 million to the institution to start a scholarship program. In 1935, at age 25, she got a job as a secretary at Abbott Pharmaceuticals. In her first year at Abbott, she bought three shares of Abbott stock for $180\. After 75 years of stock splits and dividend reinvestments, she died with over 100,000 shares of Abbott stock. ### Just Lay a Brick The phrase “Rome wasn’t built in a day” is typically used to remind someone of the time needed to accomplish something great. It does take time — sometimes years — to master a skill, craft, or habit. Though it’s good to keep your dreams in perspective, it’s also vital to remember that: ### Rome wasn’t built in a day, but they were laying bricks every hour. The problem is that it can be really easy to overestimate the importance of building your Roman empire and underestimate the importance of laying another brick. *It’s just another brick. How much of a difference does it make? More important to focus on the dream of Rome. Right?* > "Actually Rome is just the result, the bricks are the system. The system is greater than the goal. Focusing on your habits is more important than worrying about your outcomes." We all seek investment performance that is above average, but how do we achieve that? In October 1990, Howard Marks discussed the formula of a major mid-West pension plan which delivered returns over fourteen years that had been way ahead of the S&P 500\. The director shared what he considered the key: “We have never had a year below the 47th percentile over that period or, until 1990, above the 27th percentile. As a result, we are in the fourth percentile for the fourteen-year period as a whole. **What the pension fund’s record tells me is that, in investments, if you can avoid losers (and losing years), the winners will take care of themselves.”** The best foundation for above-average long-term performance is the absence of disasters. In the long run, seeking relative performance which is just a little bit above average consistently – with protection against poor absolute results in tough times – will yield higher returns than **“trying to hit sixes.”** ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/good-enough-is-perfect.jpg) ### We Only Need To Cross The Finish Line Investing isn’t about achieving perfectionism. Our ultimate goal isn’t to be the best or to finish first. Our goal is just to finish. A participation trophy is good enough. That’s where good enough comes into play. All we need is an investing strategy that is good enough to get us to the finish line. The idea that investing only requires us to do good enough is difficult to digest. We have been taught our entire lives that it’s not just about being good enough – it’s about being the best. And if not being the best overall, at least being the best we can be. Here is the funny thing about investing. You don’t have to be the best. You don’t even have to be the best that you can be. You just have to be decidedly average. ### How Can We Implement This With Our Investments? **1.) A simple plan, executed over a long period of time, usually beats a complicated plan, that is modified constantly.** Although Grace held just one stock. What matters is that she diligently stuck with the plan over many decades. **2.) Grace held onto her stock through 13 recessions, and many other corrections, wars and difficult economic times, that may have shaken out many more sophisticated investors.** She did not trade her stock, try to time the market, sell it after a year of bad earnings or get scared by negative market experts. She looked at the big picture so time richly rewarded her. There’s no surer way to mess up your investment returns than to freak out when things are looking bad. No one can predict the future. Markets will rise and fall. If you freak out when things look bad, you’ll inevitably miss the climbs that come later. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/good-enough-investing-chart-1.png) If you knew the future, you could sell before these drops, then buy back at the bottom. But you don’t know the future. **3.)** **Investing from an early age can make a huge difference in eventual results.** If Grace had invested $180 in 1945 instead of 1935, she would have left behind $1.7 million, instead of $7.2 million. Time is a powerful leveraging tool. We can’t predict what will happen in the short term. But we can safely assume that if companies keep growing and innovating, the markets will deliver in the long term. **4.)** **Invest As Much As You Can.** This may be the most important thing you can control. Many investors think about rates of return. What they can do to get the highest rate of return on their investments. > "But doubling a small amount of money is still a small amount of money. To get to the finish line, we ultimately have to brute force save as much money as we can so that our returns actually amount to something." Good enough investing is what we’re looking to do. Pick a reasonable asset allocation and stick to it. How many investors can stay the course over decades? **The investor’s prime challenge is to fight the urge to de-risk in a bear market and add risk in a bull market. Many will win this battle; some will win the war. Will you?** ### Always Ask Why URL: https://wisdominvestments.in/always-ask-why/ Last updated: 2026-02-14T06:30:08.000Z When a new post commander arrived at an Army base, he was surprised to see a couple of his soldiers standing guard over an empty bench. It seemed odd for soldiers to do this, so he asked a sergeant who had been on base for a few years why the bench was being guarded. “I don’t know why,” the sergeant said, “but I’ve heard we’ve had men assigned to that bench for the past 35 years.” The post commander dug through personnel files and found the name of the man who was in charge 35 years ago. He gave him a call. “I’m the new post commander, and I have a question for you,” he said. “Why is that bench so heavily guarded?” The old retiree was shocked. “You mean the paint still isn’t dry?” ### Times Change And Sometimes Advice Becomes Antiquated It’s a blessing to have family members that love and care for you. They give great advice (both asked and not asked for) and offer a listening ear through thick and thin. From car problems to family recipes, there’s always someone in the family to go to. When it comes to personal finance, however, t*hings get a bit “iffy.”* Some financial advice is good, some of it lacks context and important caveats, while some advice isn’t so great. Let’s look at common pieces of advice and discuss why they aren’t the best. ### Renting Is Throwing Money Away “You need to buy a house ASAP before housing becomes even more expensive! Real estate prices only go up, so don’t delay in purchasing a house.” Probably the most common financial advice with the rationale that you are contributing to someone else building their property instead of contributing to building your own. ### What To Do? In your 20s and 30s don’t be in a hurry to buy a house. Renting gives you immense flexibility over buying a house, which often brings along a huge debt. People’s needs change over years, but a self-owned house doesn’t. Selling/buying a house is also an ordeal in itself, as the valuation is vague and often not matched by the market. ### Insurance Products Are Investment Options It is crucial to understand that insurance and investing have completely different goals. Parents who relied on traditional insurance plans to achieve financial goals pass the learning on to their children. Not only do traditional plans give very low returns, but they also provide insufficient coverage. Many people have had a LIC policy even before they started working. Overenthusiastic parents start the policy and pass on the premium baton a few years later. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/traditional-plans-highlight-large-maturity-values.jpg) ### What To Do Instead If your goal is to build wealth, you’re better off buying term insurance and investing the difference in mutual funds. ### The Stock Market Is A Gamble After the market corrected last March, many pointed out that the past 5-year FD and PF returns beat those of Mutual funds. So one should stay wary of the stock market. While volatility may frighten those closer to retirement, there are many reasons to stay optimistic. Especially if you have a long investing timeline ahead. Although the media fixates on stock market swings, history shows an upward trajectory. Over the past three decades, there have been some big drops but the numbers still move upward. If you don’t invest, you could miss out on many years of compounded growth. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/nifty-50-since-inception.png) ### What To Do? **Buy every month come what may.** In a simple SIP, y**ou will inevitably buy equities at BAD prices some of the time. You will also certainly buy equities at GREAT prices some of the time.** The returns from buying equities at GREAT prices compensate (usually overcompensate) for the lower returns obtained from phases where you bought at BAD prices earning you **decent returns over the long run!** ### Invest In Fixed Deposits Most people consider fixed deposit the most convenient and safe investment option. FDs give a fixed and stable return and most people prefer ‘guaranteed returns’ over ‘risky returns’. Money in a bank account is safe and bank deposits also have good liquidity. You can withdraw money anytime you want post-maturity. While investing in FDs is convenient and safe, it is certainly a poor choice for long-term investment due to its low return. ### Why Not To Invest In FDs For The Long term 1. **Taxation:** The interest earned on FDs is fully taxable, unlike savings account which offers tax exemption on interest earned up to Rs 10,000 per year. The tax on FDs is deducted at source. If you fall in the 30% income tax slab, 30% of the interest earned on FD will be deducted 2. **Inflation:** **The current inflation rate is 5%.**Unless you are earning higher returns than this, you are losing purchasing power. ### What to do? If you want regular income, debt funds are still better than bank FDs due to the long term tax efficiency. You can withdraw from your corpus or set up automatic withdrawals. ### Buy Gold Gold is a go-to investment for us Indians. Many families usually buy small quantities of physical gold for their child’s wedding. But is this a wise choice? If one buys jewellery years before the event, the design could be old-fashioned. If one buys bars or coins, there will be storage costs. ### What to do? Gold ETFs or mutual funds are an ideal route to investing in gold. They allow you to capture the full price movement. They are liquid, have transparency in pricing and involve lower costs. Buying, storing and selling physical gold is inconvenient, unsafe, and expensive. ### Create your own plan Even if your parents are financially adept, it helps to design your own financial plan. Blindly taking anyone’s advice is a bad idea. Ask yourself: ‘What is it I’m looking for, and how do I want to get there? What do I want to do with my life? Money exists to serve that purpose. If you’ve made mistakes, the good news is you can usually fix them. ### Employ The Brightest Minds In The World And Become Rich URL: https://wisdominvestments.in/employ-the-brightest-minds-in-the-world-and-become-rich/ Last updated: 2026-02-12T06:30:57.000Z If you run a business, you know how difficult it is to find committed staff. It’s so hard to even get someone to carry out minor plumbing or electrical repairs. Committed employees are hard to find. That said, Let me tell you something remarkable. > "I have some of the most brilliant minds in the world today working for me." And my role as an owner is mostly passive. I have never met any of them. I have never even spoken to any of my employees. It will probably astonish you to hear their names because you definitely know some of them. They are contemporary leaders like Elon Musk, Sundar Pichai, Mukesh Ambani and Uday Kotak. ## How? Easy. ### I buy equity mutual funds. What are you getting when you purchase equity? You’re acquiring a small part of a company. And there is a lot that comes with that. When you invest, you’re becoming a part owner of some of the best companies’: · Real estate and other physical assets · Human resources · Profits (reflected in stock price increases and dividends distributed) ### And if I own a part of Reliance Industries, I’ve employed Mukesh Ambani to work for me. I expect him to manage the energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles businesses. Mukesh Ambani is an intelligent man who works extremely hard. I would never want his job. Actually, I don’t want any job anymore. However, investing allows me to profit from the prowess, hard work and intelligence of the best CEOs. Earlier on, I purchased specific shares like Bajaj Finance, Zomato, Nykaa, Oyo Rooms. With that, I hired Sanjiv Bajaj, Deepinder Goyal, Falguni Nayar, and Ritesh Agarwal. I believe you have heard these names, yes? At present, I acquire equity mutual funds which innately manage my employees. The fund manager automatically promotes and demotes by increasing or decreasing stake in different companies. Since the fund manager drives a team of analysts who research to determine the best stocks to fit the fund’s strategy, if one of my employees outperforms their peers, the fund manager expands my share of their enterprise. If the reverse takes place, the fund manager reduces the portion. ### I love the straightforwardness of how this works. I don’t have to focus on the daily executive choices of Sanjiv Bajaj or Mukesh Ambani. For this well-organized, transparent, ultra-productive management, I pay the Asset Management Company a nominal fee. This is well worth it. Before writing this post, I spent the morning trekking with family and friends. I also played with my three and a half year old daughter. The personal quality time I spent with my daughter will help her grow smarter, strengthen the bond between us and leave me with a beautiful memory for later years. This is how I want to spend my life. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/indian-family-trekking-1024x576-1.jpg) ### Financial Independence, Retire Early. Lovely, isn’t it? The job I would not like to do is to plan Jio’s 5G coverage for 1000 cities or worry about why Bajaj Finserv’s third-quarter profits declined 2.63% when revenue increased 10%. Thank you, Mukesh Ambani and Sanjiv Bajaj for handling that. It gives me immense contentment knowing that some of the best CEOs today are working for me. I get to chase my dreams and they finance it. They’re slogging away in their offices while I practice Yoga this evening. I’m living the dream life! There are benefits to separating your work from your finances. When we invest our money, we are putting it to work. ### The great thing about money working for us is that it can do it 24\*7\. It can grow exponentially not just in single digits through annual appraisals. As mere mortals, we simply can’t work that hard. When our money is working for us, it frees up the time to do the work and activities that give us true joy. ### Move Up The Wealth Ladder URL: https://wisdominvestments.in/move-up-the-wealth-ladder/ Last updated: 2026-02-10T06:30:04.000Z We’re fascinated by the net worth of ultra-HNIs like celebrities, business tycoons, politicians, and sports heroes. But even for the “aam aadmi,” knowing our own net worth can be very useful for us. Do you want to assess your personal financial balance sheet? And use that to decide future spending? If you won 10,000/- in a lottery, would that change your life? What if you won 20 lakhs? How about 5 crores? Your answer is based on your age, family situation, and your current net worth. More importantly though, how your spending and investing patterns will change after a lottery win of this value says a lot about your present economic status. Let’s explore 6 levels of wealth: **Level 1\. Salary to Salary:** It’s the third week of the month and you run out of cash. **Level 2\. Grocery freedom:** Grocery prices don’t impact your finances. **Level 3\. Eating out freedom:** When eating out, you don’t use the menu prices to decide what to eat. **Level 4\. Holiday freedom:** You fly first class, stay in five-star hotels, and travel as often as you want. **Level 5\. Property freedom:** You can afford your dream home. **Level 6\. Charity freedom:** You can donate enough to transform many lives. When you think about wealth in levels, you realize that certain amounts of money may not make a huge difference. For the average person in level two above, an extra 10 lakhs probably won’t bump them up to level three. Honestly, 10 lakhs aren’t enough to free someone from thinking about day-to-day living expenses for the rest of their life. But the same 10 lakhs given to the average person at level one may push them to level two. It is difficult to put an exact rupee value on each of the above wealth levels due to differences in cost of living, individual mindsets, number of dependents, etc. Let’s say two friends, Avyaan and Mahima, have decided to buy themselves the latest iPhones. They have to choose between the iPhone 13 Pro (priced at 1.5 lakhs) and the iPhone 13 (priced at 1 lakh). Avyaan’s is at level 3 of our hierarchy above so he feels the pinch of 50,000/- and purchases the iPhone 13. Mahima, on the other hand, is at level 4 of the wealth ladder and doesn’t find it worthwhile to save 50,000/-. So she opts for the iPhone 13 Pro. The marginal impact of a single decision at each level of wealth is dependent on the net worth of the individual. ### Wealth grows in steps, not in a steady slope ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/wealth-ladder-1.jpg) Most people in the same level of wealth consume in a similar way. A level 3 person doesn’t fly by private plane. They only fly first class if they get lucky and get upgraded. A level 1 person rarely flies. ### Spend within your means to ascend the wealth ladder At level 2, if you book a holiday to Switzerland without considering the costs then you won’t make progress in the wealth hierarchy. Until you have enough to spend extravagantly at your current level, you have to be disciplined about your spending at that level. Do this and you are very likely to move up the wealth staircase. For example, though today I might opt for a nice restaurant when eating out, I will still move my schedule around to find the absolute cheapest deals for holiday travels. Last year I booked a family holiday in Goa way before Diwali because it was so much cheaper than in peak travel season. Because I spend as per my level; I enjoy my life while growing my wealth. Some people might recommend not increasing your consumption as your net worth grows. I disagree. Moderate lifestyle creep can make life deeply satisfying. So, there is more to life than saving money. ### Within your allocated budget, live the best you can. ### Why You Shouldn’t Panic Due To Market Volatility URL: https://wisdominvestments.in/why-you-shouldnt-panic-due-to-market-volatility/ Last updated: 2026-02-08T06:30:18.000Z The war in Ukraine has introduced uncertainty to a stock market that’s already had a shaky start to the year. Panic-selling for long-term investors almost always ends poorly. Investors who kept their wits during the 2008 financial crisis ended up not only recouping their losses but also earning excellent returns as well. In addition to market nuances, investors have to bear and overcome the Great Investment Paradox: Returns are almost always positive in the long term but anything and everything can go wrong in the short term. Because given enough time, there’s nothing that the stock market hasn’t overcome. ### Pop Quiz The BSE Sensex is down 11.38% from its January 17th closing high of 61,308.91 points. If asked, we are sure you can come up with logical reasons to explain this market downturn. Reasons like: - The Russia – Ukraine conflict. - The price of Brent crude oil crossing $100 per barrel (after more than 7 years) - The expectation that the US Federal Reserve Bank will hike interest rates. - FIIs selling Indian stocks. > "Here’s a more difficult exercise: What was the story behind the 14% drawdowns in 2018, the 16% drawdown in 2015, the 26% drawdown in 2011, or the 29% drawdown in 2006 when we were in the middle of one of the best bull runs of our life?" If you’re like me, then you probably found it difficult to remember exactly what caused the stock market to fall during each one of these years. The objective of this question is not to imply that the factors causing investors and the markets to lose confidence during those time periods weren’t substantial. Instead, the point being made is that market downturns, corrections and even bear markets occur regularly. And very often, they’re so transitory that the influences presumed to be driving those market downturns prove to be insignificant. So much so, that we hardly remember them. ### The Ever Elusive Siren: Timing The Market ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/volatility-chart.png) Daily Returns from 1st January 1990 to 31st March 2021 Source: Internal Calculations based on data from www.besindia.com As visible in the chart above, if you stayed invested in equity from 1st January 1990 to 31st March 2021, you would have earned a compounded annual return of 14.18%. However, if you tried to time the market, you risked missing out on some of the top grossing days. If you missed the 10 best days, your returns would fall to 10.54%. That would further drop to 7.83% if you missed the 20 best days. > "When you exit the market at a low, not only do you cement your losses but also stand to lose out on the rally that follows." ### Downturns Can Be Opportunities Our research shows that **the worst days are often followed by the high appreciation days, that too, often within two weeks.** For example, a 12.98% market drop on March 23, 2020 was followed by an 8.76% market gain on April 7, 2020. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/miss-the-worst-days-miss-the-best-days-1-1024x571-1.png) Many of us are aware of the investment ideal to buy low and sell high. Market downturns and corrections can provide a window of opportunity to invest in high-quality funds at lower valuations. Very valid concern: The market could fall further. The fact of the matter is, no one can foresee the future. The markets may rebound from here or they may not. What historical evidence shows us is that your return prospects will improve as your investment duration increases. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/volatility-chart-2-1.png) Source: FundsIndia Research as on 31 December 2021. As we can see in the chart above, for an investment duration of 5 years or more, the instances of negative returns are 0% for the Nifty 50 TRI since 30 June 1999. ### Reviewing Your Portfolio Regardless of market movements, long-term investors are better off not looking at their portfolios too often for the same reason that dieters shouldn’t weigh themselves hourly. Like the stock market, it’s typical for your weight to vary throughout the day as you consume and expel food and water. Weighing yourself every hour can mess with your emotions and impact your thinking. You may start to indulge or restrict depending on the scale readings and lose sight of the big picture. Repeatedly checking your portfolio can create a similar effect and is therefore a bad idea. ### Would Have, Should Have, Could Have Don’t think in ways that cause regret. For example,“I should have sold some funds a few months ago” or “I should have seen this coming.” No one can predict the future. Brooding on actions we didn’t take or should have taken is counterproductive. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/keep-calm-and-stay-invested-1.jpg) ### The Crux Of The Matter Anything can happen at any time causing the stock market to fall. A fourth Covid wave could be worse, supply chain disruptions could persist, tighter monetary policy may not be well received, inflation might not cool down any time soon, the Russia-Ukraine conflict might expand… The market could also drop for no apparent reason. If you’re not able to stomach short-term volatility or if your portfolio can’t handle short-term unrealized losses, then investing in the stock market might not be for you. If you’re unable to digest volatility in the short run or if your portfolio can’t bear short-term unrealized losses, then investing in equity may not be the right choice for you. **Being able to financially and temperamentally withstand these short term shocks is the cornerstone to long term wealth.** ### Making Your Financial Plan Indestructible URL: https://wisdominvestments.in/making-your-financial-plan-indestructible/ Last updated: 2026-02-06T06:30:24.000Z SENSEX has delivered a compound annual growth rate of 15.72% between March 1979 (its inception) and March 2021\. This is approximately 8% higher than the average inflation rate during that period. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/returns-across-categories.png) So should we invest all our savings in equity? Certainly not. Equity markets don’t rise in a linear fashion. A wide variety of national and international events drive the market in the short run. In the long term, however, returns usually align with the growth of our economy. As seen in the chart below, markets have delivered positive returns in some years and negative in others. Despite the volatility in the short term, equity as an asset class has outperformed others over the long term. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/equity-returns-nifty-50-1024x378-1.png) Only if you can weather short term volatility, will you be able to remain invested in the long term. How can you stay invested for the long term to benefit from equity returns? ### Survival The ability to stick around for a long time without being forced to give up makes the biggest difference. This should be the cornerstone of your strategy; whether in investing, in your career or in your business. Compounding delivers impressive results only after you give your equity investments time to grow for years and years. ### Be Financially Unbreakable Being “financially unbreakable” is a more desirable objective than “chasing maximum returns”. If I’m unbreakable I am more likely to bag the biggest returns, because I’ll be able to hold on long enough for compounding to work wonders. Everyone wants to invest during a bull market. They want to own assets that appreciate big time. Say debt funds or FDs earn 5% and stocks generate 12% annual returns. That 7% gap will persistently nag at you. > "If debt funds or fixed income products prevent you from having to sell your stocks during a bear market, they are priceless. Because preventing one desperate, ill-timed equity sale, can boost your lifetime returns more than picking a handful of big-time winners." Avoid extremes. Never go all in or all out. Both are highly risky behaviour usually accompanied by poor research and impulsiveness, leading to erratic outcomes. It’s one thing to say, “drat, I don’t think I can handle a portfolio of 80% equity, I’ll dial it back to 60%.” It’s an entirely different matter to say, “I can’t handle the volatility. I’m going to liquidate until things settle down.” One person is going to make it through the ups and the downs and the other person isn’t. Let’s look at a solution to this problem: EPF. ### Employee Provident Fund EPF is a mandatory government scheme in which retirement benefits are accumulated. The interest rate on the EPF is declared annually. It is currently 8.1%, a nice fat chunk of a return given the current interest rate scenario. ### Why Contribute Towards EPF **Your money is safe.** The EPF scheme comes with a sovereign guarantee. So there is zero risk of default. **EPF is tax exempt at all levels – at the time of investment, on interest accrued and at the time of redemption.** First, Section 80C of the Income Tax Act allows investments in EPF to be deducted up to a maximum of Rs. 1,50,000\. Second, the interest earned is tax-free. Third, proceeds on withdrawal are tax-free as well. This makes its returns higher than the post tax returns of bank deposits or other small savings schemes. **Your EPF corpus cannot be used by ourts to repay your loans.** For loan defaulters, banks use an attachment order by the court to claim assets such as land, shares and mutual funds to repay. Once assets are attached they can’t be used or sold. The Govt of India has placed the Provident Fund under special legal protection so it can’t be attached by any Indian court. ### EPF Interest Rate Down To 8.1%, Should I Invest? Even after the rate cut, the EPF interest rate is higher than what comparable fixed income instruments offer. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/fixed-income-options-in-blue-shade-1024x460-1.png) As seen in the table above, EPF offers the highest returns among government provided Fixed Income options. So if you aren’t exhausting the 2.5 lakh limit then you may want to invest further through the Voluntary Provident Fund. ### Voluntary Provident Fund VPF is an extension of the Employees’ Provident Fund (EPF). Only individuals who have an active EPF account and regularly contribute towards EPF can invest in VPF. VPF is voluntary and is over and above EPF which is statutory. An employee can contribute the entire **basic** component of their salary to VPF. **From 1st April 2021, interest on contributions more than Rs 2.5 lakh per annum will be taxed.** For investors in high tax brackets, this lowers post-tax returns. For instance, a person earning a monthly basic pay of Rs 100,000 (Rs 12 lakh a year) will contribute Rs 120,000 a year to the EPF. He can additionally contribute up to Rs 1,30,000 in the EPF account by putting Rs 10000 every month via the VPF. Before bingeing on VPF, remember that contributions exceeding Rs 2.5 lakhs will be taxed yielding post tax returns of 5.57% (assuming a tax bracket of 30%). In this case it is advisable to invest any additional contribution in PPF. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/11/post-tax-returns.png) While VPF is only for salaried employees, PPF is for both salaried and non-salaried individuals. Unlike other post office schemes however, the interest rates in EPF and PPF are not locked at the prevailing interest rates for the entire tenure of the scheme. So if the government were to cut rates anytime soon, the new rates will apply to your entire PPF balance. Individuals who come in the higher income bracket can invest in both VPF and PPF to avail tax-free interest to a certain extent. Investing in safer, sovereign guaranteed products providing decent returns helps the investor to stomach the volatility equity presents in the short term. This increases the likelihood of the investor staying for the long haul and reaping the double digit returns equity delivers in the long term. Securing a strong defence allows you to attempt a strong offence. Once you know that the foundation is in place, you’re free to take bolder risks. ### Grab Last Year’s Price Today! URL: https://wisdominvestments.in/grab-last-years-price-today/ Last updated: 2026-02-04T06:30:30.000Z Almost everyone I speak to wishes they had begun investing earlier on in life. If only you had been investing ten to fifteen thousand rupees monthly when you got your first job, you’d be well on your way to a fat retirement nest egg. Meanwhile, when there is a market correction taking place, these very same people tell me; > “Should I still be investing while the market is going down? Why don’t I wait a bit until the market starts picking up to invest?” ### Let’s review this mindset. When the market falls, you have a magic wand that allows you to buy at last year’s prices. How awesome is that! Like me, if you invested last year as well, the good news is: We’re still in the accumulation stage of our investment tenure. All our new investments are at yesteryear’s prices. Let’s remember that the market always bounces back. Thing is, we don’t know when that will happen. *Over the course of your investment timeline, the decisions that you make today or tomorrow, or next week will not matter as much as what you do when everyone else around you is going crazy (less than 1% of the time).* Maybe the bottom line is to breathe and relax. In five years, will you even remember these choppy couple of months? What did you do in March 2020? Today, are you going to stay the course and invest consistently? Or wait for the market to start picking up to invest? Let us know in the comments below. ### How To Retire In 15 Years URL: https://wisdominvestments.in/how-to-retire-in-15-years/ Last updated: 2026-02-02T06:30:10.000Z Another horrible commute.🚗🚙 A highly unpleasant interaction with a know-it-all😏 colleague. A manager that seems to pile on more work every day – and yet isn’t nearly so generous with the recognition🙌. And the work itself. What (hopefully) seemed exciting early📆 on has now completely lost its luster😮‍💨. The question is: How can I enjoy a fulfilling life as I leave my job behind? Your savings rate is the percent of your take-home💳💲💸 you’re investing🏦 long-term**. Say you have no savings currently and you start investing 45% of your take-home; you’ll have enough to retire in a little more than 15 years!⁣⁣😲** ⁣⁣ This is assuming your investments💰 grow at 10% annually. (Historically Nifty 50📈 has grown at about 13.4% annually). ⁣ ⁣⁣ The retirement multiple I use is 30 times your annual spending. Annual spending is everything other than your savings. So, when you increase⬆️ your savings rate, it helps in two ways: By increasing🔼 investing and reducing🔻 spending!⁣⁣ Undoubtedly, 10% compounded🌱🌳 over 15 years📆 will be highly fruitful🥭. ### But with shorter time⏳ frames like 5 or 10 years, it’s the savings rate that works the magic. As we increase the percentage of our income we invest, we buy years of financial💰 freedom🆓 in the future. I’m not suggesting we stop enjoying🍹 our lives. We just choose how to. There are many things I spend extravagantly on: Holidaying at the Taj Holiday Village, Goa🏖️ Adding to my sneaker collection👟 There are also plenty of things I hardly spend any money on. Owning a fancy car🏎️ Wearing an expensive watch⌚ Why? Because these are just not part o**f my rich💎 life.** Maybe they are for you and that’s great.👍🏽 ### What is your current savings rate? Could you hike⬆️ it by 5 or 10 percent if it meant being financially independent years sooner?🧐 ### Make friends with volatility to make money in uncertain URL: https://wisdominvestments.in/make-friends-with-volatility-to-make-money-in-uncertain/ Last updated: 2026-02-01T06:30:58.000Z Ajay started an SIP in January 2008 of Rs. 10000 every month, by March 2009 he had invested Rs. 1.4 lakh, however the value of his investment was less than 1 lakh. What would you do if you were staring at a loss? Unfortunately most investors stop their investments and lose the opportunity of making double digit returns. ### What is Wealth? URL: https://wisdominvestments.in/what-is-wealth/ Last updated: 2025-12-30T06:30:36.000Z Wealth is in what others don’t see: **Mutual funds, bank and demat accounts.** Loans are what others see: **Huge house, luxury car and social media photos of expensive travels.** ### Don’t put all your eggs in one basket, or so it seems… URL: https://wisdominvestments.in/dont-put-all-your-eggs-in-one-basket-or-so-it-seems/ Last updated: 2025-12-28T06:30:46.000Z Ram : I want to start an SIP of Rs. 10k in five different mutual funds of Rs.2k each. Shyam : Why five funds? Ram : As Warren Buffet says.. Never put all your eggs in one basket. Shyam : That’s true but in other sense. Here the basket is Asset Class meaning Gold, Real estate, Equity and Bank FD. Tell me your home loan and salary details. Ram : My salary is 1 lakh and my EMI is Rs. 50k. I took a 52 lakh loan for a 75 lakh home, 3 years ago. Shyam : And what are your current monthly expenses? Ram : 30k and now I can invest 10k as my car loan EMI is over. Shyam : So you are paying EMI of 50k (House) + 10k (car) = 60k. And now you want to start an SIP instead of EMI. But have you checked, how much % of your salary goes towards your home loan after taking care of your monthly expenses of 30k? Ram : Around 70% Shyam : That’s my worry, you are putting all your eggs in one basket (Real Estate – Home) Ram : But I’m also saving on taxes. Shyam : Oh..saving on taxes? Only 2 lakh interest on home loan (30% tax bracket – Rs. 60k is saved in a year) Ram : Yes. Shyam : But have you considered the cost of interest on your home loan. Your EMI is 50k for 20 years. Meaning 50 x 12 x 20 = 1.2 crore against yr loan of Rs. 52 lakh. 1.2 crore – 52 lakh = 68 lakh interest for 20 years almost 3.4 lakh interest per annum for saving tax of 60k per annum. Your loss is 3.4 lakh – 60k = 2.8 lakh per annum. (Interest) Ram : OMG. 😱😱 Really? Nobody told me about this. Shyam: And yes.. If you invest that 50k per month in SIP for 20 years @ 12% CAGR, you will get around 5 cr. Ram : 😟😢😰 Oh..why did I purchase a second house? Ram : What about the 22 lakh down payment? Shyam : 2 cr after 20 years. Ram : Meaning 7 cr total.. 😱😱 Oh.. Don’t tell me. My 75 lakh home after 20 years will not give me 7 cr. 😰😰 **Do the maths before you invest**! ### Have your Investments Beaten Inflation? URL: https://wisdominvestments.in/have-your-investments-beaten-inflation/ Last updated: 2025-12-26T06:30:29.000Z Its imperative that returns from your investments beat inflation. Let’s take a closer look at different asset classes and their historical inflation adjusted performance. PF have given inflation adjusted return of 2.26% CAGR in the last 15 years. ![Have your Investments Beaten Inflation?](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/03/has-gold-beaten-inflation.jpg) Indians love investing in Gold, however returns have been patchy. Buying jewellery is not considered as an investment. ![Have your Investments Beaten Inflation?](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/03/has-equity-beaten-inflation-318x1024-1.jpg) Equity has delivered the best inflation adjusted returns of around 10% in the last 15 years. Are you ready to take the 15 year challenge. ### Why do I need an Emergency Fund? URL: https://wisdominvestments.in/why-do-i-need-an-emergency-fund/ Last updated: 2025-12-24T06:30:58.000Z A New Year is the perfect time to make resolutions for the year and one of the few initial steps in the Financial Planning process involves taking care of unforeseen risks. Create an Emergency Fund In today’s uncertain job market, a lay-off can lead to months of umemployment. A serious illness or disability due to accident can also hamper one’s ability to earn for a prolonged period. When life throws nasty surprises your way, have a Plan B ready. In the absence of an emergency fund, one may have to either borrow from friends, relatives or take a personal loan and service it by paying interest. How much should I save for a rainy day? One should be keeping at least 3-6 months of their expenses as their emergency fund. Also choose an appropriate investment option like money in Saving’s account or a Liquid Fund. Remember returns are not important here. What is more critical is that the money should be easily accessible at short notice. Cheers to a New Year and another chance for us to get it right. ### Increase your SIP amount by only 10% and get 5 Crore more! URL: https://wisdominvestments.in/increase-your-sip-amount-by-only-10-and-get-5-crore-more/ Last updated: 2025-12-22T06:30:19.000Z Already investing through SIP, that’s fantastic. Here comes SIP Top-Up. Every year when your income increases, increase your SIP amount only by 10% and get 5 crore more! ### Got a lump-sum to invest in equity? Use STPs to reduce risk URL: https://wisdominvestments.in/got-a-lump-sum-to-invest-in-equity-use-stps-to-reduce-risk/ Last updated: 2025-12-20T06:30:00.000Z I’ve 5 lakhs with me, how should I invest? Worried about elections, Trade (Trump) wars or Market is volatile? The solution is rather simple, SIPs close cousin – STP – Systematic Transfer Plan, a method to stagger investments into equity funds over a period of time. Ram has received 1.2 lakhs as annual bonus and he wants to invest in equity but does not want to time the market. What can he do? He can invest in a fixed income instrument (e.g. Liquid fund) and transfer 10k every month to an equity mutual fund scheme. By doing this, he gets triple benefit 1. Generating higher returns in liquid fund than that of a savings account. 2. Smooth transition in Asset Allocation. 3. Getting the benefit of SIP (rupee cost averaging). ![Got a lump-sum to invest in equity? Use STPs to reduce risk](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/03/stps-to-reduce-risk.jpg) ### Save Smartly for your Little Genius URL: https://wisdominvestments.in/save-smartly-for-your-little-genius/ Last updated: 2025-12-18T06:30:45.000Z If you are an Indian parent, ‘dilemma’ is probably your middle name. When you aren’t in a fix over how to impart the right values, you’re possibly fretting over how to build up the corpus for his education and wedding. Right from pre-school to their post-graduation studies the costs are ever increasing year on year. And if your child opts for international studies, the costs skyrocket with tuition, accommodation, travel and other expenditure. So how can you account for all these? Simple start investing in a Systematic Investment Plan now! A small investment of 8k will help you accumulate 50 lakhs in 17 years. Don’t let finances get in the way of your child’s dream! ### Mutual Fund versus Fixed Deposit URL: https://wisdominvestments.in/mutual-fund-versus-fixed-deposit/ Last updated: 2025-12-16T06:30:51.000Z Imagine you are moving at 10 km per hour 🚗and your friend is moving at 11 km per hour🚙. After 6 minutes they are only 100 m (1/10th of 1km) apart which is not very significant. You can literally see👀 each other. After an hour you are 1 km apart. You can no longer see each other but still you aren’t all that far from each other. If you wish you can meet each other easily☕. But after 10 hours you are 10 km apart and after 100 hours you are 100 km apart✈. Now you are in two different cities. It’s too far to meet each other. Perhaps you have to speak over phone📱. Likewise investing in a fixed deposit of 6% per annum or investing in a mutual fund of 10-15% per annum does not make a huge difference when invested for a period of 1 or 2 years📆. However, if you were to invest for a period of 10 years to 15 years, the 4-9% difference becomes nearly 100-200%🙀. Equity mutual fund is a more appropriate asset to invest in than a Fixed Deposit. ### Which Financial Instrument should one use to Save on Taxes? URL: https://wisdominvestments.in/which-financial-instrument-should-one-use-to-save-on-taxes/ Last updated: 2025-12-14T06:30:34.000Z Around Dec – Jan every year, you get an email from your HR about submitting the investment proofs for the financial year which sends all of us into a bit of panic. Your colleague advises you to invest in ELSS, your bank manager says an insurance policy is a better idea. Your parents will suggest to go with the time tested PPF. Or should you go with Ulips or Bank FDs? **Where should you invest to save taxes?** Let’s look at the last 5 years returns 1. Public Provident Fund – 8%, money locked in for 15 years. 2. Ulips – around 10.5%, 5 years lock in period. 3. Tax Saving Bank FDs – 8%, 5 years lock in period. 4. NSC – 8%, 5 years lock in period. 5. Tax Saving Mutual Fund (ELSS) – 16.5%, 3 years lock in period. The worst performing ELSS fund has also given 11% return. **Tax Savings Bhi!** **Tarakki Bhi!!** ### Saving Versus Investing URL: https://wisdominvestments.in/saving-versus-investing/ Last updated: 2025-12-12T06:30:31.000Z Is there really a difference between Saving and Investing? Most of us think that Saving and Investing are the same thing, however they are as different as chalk and cheese. Tarun puts money aside on a regular basis. He spend less than he earns and he deposits the rest in the bank. This is Saving. Arun goes a step further. He puts aside a fixed amount every month in Mutual funds. This is Investing. Money kept in a safety vault though safe does not generate adequate returns to beat inflation. Money invested in products like stocks, mutual funds etc. is subject to risk but has the potential to grow over time. The aim of any investment is to beat inflation. If your current monthly expenses are Rs. 50k, in 10 years you will require around Rs. 1 lakh to maintain the same lifestyle. India’s household savings rate is around 30%, but the point is how wise are we as investors? ### Starting Early is the COMPLETE Battle Won URL: https://wisdominvestments.in/starting-early-is-the-complete-battle-won/ Last updated: 2025-12-10T06:30:21.000Z It’s said the early bird gets the worm. This adage is best suited to the world of investing where – the earlier you do your retirement planning the greater will be your return on investment. Take the case of Suresh and Ramesh, both of the same age. Suresh starts investing 5k per month from his 25th birthday and continues to invest the same till he turns 32 and stops further investment. Ramesh begins at the age of 32 and invests the same amount – 5k. However he knows he has begun late, so keeps investing till he turns 60. Despite doing so, he accumulates only 1.2 cr i.e. 32 lakh less than Suresh! Suresh invests only 4.2 lakh over 7 years and gets back 1.52 cr. Ramesh invests 16.8 lakh over 28 years and gets back only 1.2 cr. Feel you have missed the bus? Start investing today instead of five or ten years down the line and increase your investment by 5-10% every year. ### Rule of 72 URL: https://wisdominvestments.in/rule-of-72/ Last updated: 2025-12-08T06:30:09.000Z **In how much time will my money double..??** By using it, you get to know in how much will it take to double your money. Suppose you invest in Fixed Deposit that offers 8% rate of return. You have to just divide 72 by 8\. You get to know that your money will double in 9 years. In case of Mutual Fund, average return is around 12%, if you divide 72 by 12, the answer is 6, which means your money will double in 6 years. Money makes money. And the money that money makes, makes money. ### Enjoy Tax Exemption on your 10 lakh earnings URL: https://wisdominvestments.in/enjoy-tax-exemption-on-your-10-lakh-earnings/ Last updated: 2025-12-06T06:30:45.000Z ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/04/enjoy-tax-exemption-on-your-10-lacs-earnings.jpg) It is said that there are only two things certain in life: **Death and Taxes**. Well this no longer stands true. At least in case of taxes, **it is possible for someone earning up to 10 lakhs to be exempt from paying taxes.** ## So how can one avail of this benefit? To understand this better, first let’s understand the income tax slabs for individuals.Last year Aman’s net taxable income was 5 lakh, so the tax payable comes to Rs. 12,500/-. However, this year someone with a similar salary will be eligible for a tax rebate of Rs. 12,500/- which effectively means this person will not pay income tax. ### How does one ensure that the net taxable income stays within the magic ✨ figure of Rs. 5 lakh? 1\. The most widely used option to save income tax is section 80C – Eligible investments include contributions to **Provident Fund, ELSS mutual funds, tax saving FDs, NPS,** and a few other options. An individual can reduce up to Rs. 1.5 lakh from their taxable income. For example, if your gross total income is Rs 7.5 lakh and you have claimed a deduction of Rs 1.5 lakh under Section 80C, your taxable income becomes Rs 6 lakh. 2\. **Have a home loan** – Homeowners can claim a deduction of up to Rs 2 lakh on their home loan interest. 3\. **NPS** – If you are a salaried individual and have already exhausted the₹ 1.5 lakh Section 80C income tax benefit, the NPS could help you with additional tax savings. Investment of up to ₹ 50,000 in the National Pension Scheme qualifies for additional tax deduction. 4\. **Insurance** – A must in your financial portfolio, the government encourages everyone to buy medical 💉insurance and allows you to avail tax deductions on it. An individual can claim a deduction of up to Rs 25,000 for the insurance of self, spouse, and dependent children. An additional deduction for the insurance of parents is available to the extent of Rs 25,000 if they are less than 60 years of age, or Rs 50,000 if your parents are aged above 60. ### Conclusion – Someone with a gross total income of 8 to 9 lakh can effective reduce the taxable income to Rs. 5 lakh to be exempt from paying taxes. ### You Can Afford Anything, But Not Everything URL: https://wisdominvestments.in/you-can-afford-anything-but-not-everything/ Last updated: 2025-12-04T06:30:48.000Z Recently I came across two extreme real-life stories: **A. Can Collecting Millionaire** Curt Degerman spent his life strolling through a small coastal town in Sweden on an old bicycle. He searched recycling bins for cans and bottles, which he sold to a recycling plant. No loans. No debt. Minuscule expenses. When he died, his estate was estimated at an eye-popping $1.4 million (close to 10 cr). **B. Tennis champion Boris Becker declared bankrupt** To a generation of tennis fans, he will always be ‘Boom Boom’ Becker, the explosive young German who was the youngest player to win the men’s singles championship. Winner of six Grand Slam titles, was once estimated to be worth upwards of £100 million, was declared bankrupt in 2017. **What can we take away from these two stories?** *Many people think that the key to getting rich is making a lot of money.* But look at movie stars and athletes who have made endless amounts of money and are dirt-poor. At the prime of their careers they might be making 10-15 million dollars a year, and by the time they are 45 years old and they’re broke. You could be driving a Mercedes and own a huge apartment in the best area in town. But you could also be heavily in debt. You may be earning a lot of money, but your lifestyle could be so extravagant that your finances would be fragile. The idea behind **Afford Anything** is that each time you buy an item – a smartphone, clothes, TV, car – you’re making a tradeoff. You’re stating that you’d rather have this smartphone instead of something else. Please don’t misunderstand me – clothes and electronics are great things to spend money on, **IF that’s what you truly want**. But some people are unaware that every purchase they make is a tradeoff against something else, like traveling to Paris or investing in your business or retiring early. **The key to “affording anything” is spending money in a way that reflects your priorities.** If your top goal is to cultivate your outer beauty, go for it! Buy the clothes and the makeup. There’s nothing wrong with that. *How rich you are is determined by how much money you have, not by what you own*. What you own is how much you’ve given away to others! ### A Guaranteed Income Plan or A GUARANTEED TRAP!!! URL: https://wisdominvestments.in/a-guaranteed-income-plan-or-a-guaranteed-trap/ Last updated: 2025-12-02T06:30:08.000Z A friend recently got a call from HDFC about a new investment cum insurance plan – HDFC Sanchay Guaranteed Income Plan. Pay a premium of Rs 1 lakh for 12 years and the policy will pay a guaranteed income of Rs 2.25 lakhs from the end of the 14th year (they could have also said from the start of 15th year) for 12 years. The telecaller continues – Sir the return is more than 9%, plus you get term cover of 12 lakh and the best part is that the returns are guaranteed. Fantastic! I’ll pay only 12 lakh and get 27 lakh in return. What more can one ask for in an investment. Well, like they say – the devil 😈 is always in the detail. The so called 9% GUARANTEED INCOME may appear enticing for you to jump with joy. But when you actually calculate the return on investment then you will realise that it is not more than 6%. So should you invest in HDFC Life Sanchay Plus or similar products? If you are looking at wealth creation, this is clearly not the right product. For a long term investment, 6% per annum is definitely not something worth settling for. A Provident Fund or Fixed Deposit will fetch you much higher returns. You may argue that the PF/FD interest rates keeps changing. However, 6% is still rather low. You can expect much higher returns in equity funds too. If you are looking to add to your life cover☂, again a 12 lakh cover will not do much for your insurance portfolio. Conclusion – It is more advisable to invest in a diversified portfolio depending upon one’s risk profile. Systematic withdrawal from a MF portfolio is a good option. A Guaranteed Income Plan or A GUARANTEED TRAP!! ### Credit Score – Your Financial Reputation URL: https://wisdominvestments.in/credit-score-your-financial-reputation/ Last updated: 2025-11-30T06:30:43.000Z After months of house hunting, Ajay and Priyanka found their dream house. They confidently approached their bank for a home loan as both of them are earning well. But they are in for an unpleasant surprise: the bank rejects their loan request as Ajay has a poor credit score. **Credit Score – What on earth is that?** Ever thought of owning a house or a car or buying an expensive electronic product on EMI? If the answer to any of these is yes, then you might have also thought of availing a loan or getting a credit card to meet your financing needs. A credit score is essentially a three digit number derived from an analysis of your credit files. In other words, your credit score is a reflection of your creditworthiness so the score is a parameter to determine the likelihood of you repaying a debt, in full. **Why is it important?** Besides your age, income and other factors, the credit score is another important criterion that will determine your eligibility for a loan or a credit card. **A score of 750 or above is considered to be good.** You are entitled to the following, if you have a good Credit Score: 1. Easy credit from lenders 2. Quick approval of loans 3. Loans at lower rates interest Since 2017, some lenders have been offering lower interest rates to people with higher credit scores. A reduction of just 1% on the interest rate on a 15 year home loan could mean paying one year less of EMIs! In the near future, your Credit Score could impact your employment prospects as well. **How to improve your Credit Score?** For starters, make timely payments a habit. Ensure you pay all EMIs and credit card bills on time. The next important point is to know your credit limits. Limiting credit utilization to 30% of the total credit limit helps build your credit profile. Maintaining a balance of secured (such as home and car loans) and unsecured loans (personal loans and credit cards) is viewed positively as well. **How can you check your credit score? Are Credit Reports available for free?** In India, credit scores are generated by credit bureaus. Get free access to your credit score and report through any of the four credit bureaus: 1. Transunion CIBIL 2. Equifax 3. Experian 4. CRIF Highmark Note – *A complimentary credit report may be obtained for free once annually from every credit reporting agency.* Given the importance your credit score and report hold in your life, it’s hugely important to monitor them regularly. Ensuring the accuracy of the financial reputation you have built with years of effort is crucial – it will affect your ability to access credit in the future, and at what cost. For now, it’s free to check your score and report, why don’t you? ### Money in your Savings Account is not an Investment URL: https://wisdominvestments.in/money-in-your-savings-account-is-not-an-investment/ Last updated: 2025-11-28T06:30:38.000Z Overcome Loss Aversion – Do you keep your money idling in bank accounts, assuming it safe??? Value of Rs. 1 lakh in Savings Account in 2007, earning 4% per year is equivalent to Rs. 69k in 2017. The value of Rs. 1 lakh lying in a savings account since Sep’ 2007 would be Rs. 1.48 lakh today, but it should have grown to Rs. 2.43 lakh only to match inflation. ### Debt Funds Versus Fixed Deposits URL: https://wisdominvestments.in/debt-funds-versus-fixed-deposits/ Last updated: 2025-11-26T06:30:25.000Z **Short term goals –** 1. I require money after 3 to 6 months. 2. Buy a Car in 1 year. 3. Foreign Vacation.. Solution – Debt Mutual funds give better post tax returns than fixed deposit... ### How to fund your child’s foreign education URL: https://wisdominvestments.in/how-to-fund-your-childs-foreign-education/ Last updated: 2025-11-24T06:30:09.000Z Planning to send your child abroad for studies? This is how much it will cost.. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/03/cost-of-child-s-foreign-education-1024x1002-1.jpg) This is how you can easily fund your child’s education.. ### Do you need a Health Insurance Policy? URL: https://wisdominvestments.in/do-you-need-a-health-insurance-policy/ Last updated: 2025-11-22T06:30:16.000Z Even before one starts investing towards one’s goals, getting adequate health insurance cover for self and your family is of paramount importance. Yes EVEN BEFORE you invest in Mutual Funds😊 At the moment, you might be in the pink of health and find no need for health insurance. - But it also covers injuries due to accident. - And many illnesses (dengue, malaria, food poisoning) can strike even healthy people. Also, your employer cover is just not sufficient With the exponential increase in healthcare costs of late, employer cover will not be sufficient. And quitting your job will leave you without insurance. Icing on the cake You can claim a tax deduction of up to 25k and for parents up to 50k. To give you a rough idea, A 10 lakh cover for a 35 year old will cost only 8k. ### Why you should diversify? URL: https://wisdominvestments.in/why-you-should-diversify/ Last updated: 2025-11-20T06:30:53.000Z 1947 – 1 Dollar = 1 Rupee 1991 – 1 Dollar = 22 Rupees 2010 – 1 Dollar = 45 Rupees 2018 – 1 Dollar = 70 Rupees How can you benefit from this??? By investing 5 – 10 percent of your investment in International Mutual funds.. ### Gain from the Power of Compounding URL: https://wisdominvestments.in/gain-from-the-power-of-compounding/ Last updated: 2025-11-18T06:30:45.000Z Compounding is a disciplined investor’s best friend. Compounding interest is critical to investment growth because it is paying Interest on Interest. Mr. Joshi and Mr. Das have invested similar amount, however one makes Rs. 1.05 cr Vs 40 lakh earned by the other. ### 7 small steps that can help you save lakhs in 10 years URL: https://wisdominvestments.in/7-small-steps-that-can-help-you-save-lakhs-in-10-years/ Last updated: 2025-11-16T06:30:19.000Z **1.) It’s never too late to save** Cutting down on caffeine is good for your health and wallet. **2.) Junk the junk** Ditch just one junk meal a week to make a noticeable difference to your financial health. **3.) Weekday movie nights** Weekday movie outings are light on the pocket and provide a crowd-free experience. **4.) Eat in more** Cutting down on eating out at fine dining restaurants will enhance your long-term corpus significantly. **5.) Guzzle less fuel** Leaving the car at home once in a while and taking public transport makes money sense. **6.) Be energy efficient** Despite higher initial costs, switching to energy efficient air conditioners has long-term benefits. **7.) Reduce gadget greed** Switching mobiles or other gadgets frequently is a fad and resisting it has its rewards. The small tweaks add up to an impressive corpus: Rs 21 lakh. ### The 8th Wonder of the World: Compound Interest URL: https://wisdominvestments.in/the-8th-wonder-of-the-world-compound-interest/ Last updated: 2025-11-14T06:30:52.000Z Compound interest is the eighth wonder of the world. He who understands it, earns it… he who doesn’t pays it. If a 25 year old starts investing Rs. 20,000 a month, he can build a corpus of Rs. 10.9 crore in 35 years at 12% return. If he starts investing at 35, then to build the same corpus he will have to increase the investment nearly three times. ### The Magic of SIPs URL: https://wisdominvestments.in/the-magic-of-sips/ Last updated: 2025-11-12T06:30:04.000Z Dhanteras marks the first day of Diwali. It is one of the most auspicious times (Muhurats) to buy gold. This is when millions of Indians buy gold, either to wear or as a form of investment. Since 2000, Abhishek has been buying 10 grams of gold every year on Dhanteras. This year is no different. Over the past two decades, he has accumulated 200 grams of gold. Abhishek is very happy with the appreciation of the yellow metal which is currently selling for about 38,000/- for 10 grams of 24 carat. “I’ve invested 3.7 lakhs which is currently worth 7.6 lakhs. My average cost of buying 10 grams over these years is Rs 18,500.” Abhishek’s wife Aishwarya, also bought gold every year. She, however, invested a fixed amount of Rs 18,500 every year. So she has also invested 3.7 lakh in gold but accumulated 345 grams of gold over the past two decades. The current value of her investment is 13.1 lakhs. ## How did Aishwarya accumulate so much more Gold than Abhishek? *Aishwarya invested a fixed amount of money every year, irrespective of the price of Gold.* There were times when Gold was available for 5,000 or 10,000, when she accumulated more gold. When gold was available for 30,000, she got less. So this Dhanteras, if the price of Gold is 38k for 10 grams, she will invest 18.5k and accumulate about 5 grams of gold. This is nothing but Rupee Cost Averaging which ensures that you buy more when prices are low and less when prices are high. By investing on a fixed schedule, you avoid the complex or even impossible task of trying to figure out exactly the best time to invest. Sadly, most investors end up doing just the opposite. They start buying when the prices are rising and suddenly redeem upon a slump. Ultimately, their average cost of investing increases and returns fall. ## Can Aishwarya’s investing philosophy be replicated while investing in the stock market? Yes. Rupee Cost Averaging is the SIP Advantage; One of the major reasons to invest in the stock market via SIPS instead of in a lump sum. Since like the price of gold, the purchase price of various funds also fluctuates. ## Why should you SIP? #### SIPs impart financial discipline to your life. Many people have the mentality that they should invest only after they have saved a sizeable amount. This can delay the investment for a long time. SIPs are so effective because you can get started fairly easily with a small amount of money, and invest consistently over time which enables us to achieve our financial goals. #### SIPs take the emotional factor out of investment decisions which can really serve you well. It helps you to invest regularly without wrestling with the current index level or the market mood. If you decide to manually invest a specific amount every month, you need to find the time to do it. When you do, you might be worried about market conditions and consider postponing your investments. Or invest more if the market sentiment is optimistic. SIPs put an end to all these predicaments. The money is invested effortlessly. #### If you’re worried that the market is too expensive while fretting about missing out on market gains, here’s a smart investing strategy. Rupee Cost Averaging, which you can avail through Systematic Investment Plans. ### ACTUALLY achieve your financial goals! URL: https://wisdominvestments.in/actually-achieve-your-financial-goals/ Last updated: 2025-11-10T06:30:34.000Z Rahul started an SIP of Rs 10,000 a month in 2010, which was 20% of his income. He is still investing the same amount in 2019, which in only 5% of his income. He is very impressed by the returns he has generated, but the important question is will it help him achieve his goals and make a meaningful difference in his life? Like Rahul, for most people earning an income, they can usually afford to increase their SIP amount by 5 to 10% yearly, since their income also increases every year. This slight annual increment in SIP would SIGNIFICANTLY payoff come the day you need the money and redeem. **The point is: For an investment to meet your financial goals, just a high rate of return is not enough. It should be able to reach the actual amount that will help you move towards your goals.** For most people who equate savings to fixed deposits, it is natural and intelligent to try something new like equity with a small initial investment. *However, there is little benefit in trying it out for a decade. If this is a better investment avenue, then as Nike says: Just do it.* **One good rule of thumb is the 50:30:20 rule. Spend half your earnings on your NEEDS, 30% on your WANTS and 20% on your financial GOALS.** ### Why Asset Allocation is so Important URL: https://wisdominvestments.in/why-asset-allocation-is-so-important/ Last updated: 2025-11-08T06:30:04.000Z Imagine you have a time machine or crystal ball with which you could look into the past or future: you could make perfect predictions and invest accordingly. *If it was the start of 2019, I would know that Trump is going to escalate trade war with China, so I would buy as much Gold as possible. Or if I’m in 2014, I know Mr. Modi is going to come to power, hence I’ll invest a lot of money in mutual funds.* Since we don’t yet have such powers in place, we have another option: **Asset Allocation!** Asset allocation is an investment strategy of mixing non-correlating assets together to hopefully find an optimal balance of risk and return based on an investor’s profile. It dictates how much of your wealth you place in broad asset classes like equity, fixed income (e.g. FDs, PF), Gold and Real Estate. To give a very simple example: Have you ever noticed a shop keeper selling seemingly unrelated products – such as umbrellas and sunglasses? Initially, that may seem odd. After all, when would a person buy both items at the same time? Probably never – and that’s the point. Shop keeper knows that when it’s raining, it’s easier to sell umbrellas but harder to sell sunglasses. And when it’s sunny, the reverse is true. By selling both items- in other words, by diversifying his product lines – he is reducing the risk of not selling on any given day. Generally, everyone wants to invest in the asset class which delivers the highest returns, but the best asset classes keep changing, some years it is equity, sometimes gold, sometimes debt. Also, not everyone has the stomach to bear the losses. Looking for the highest returns is not always the wisest choice. Okay so if I were to invest some money in Google, some in Facebook and remaining in Microsoft, that would be good diversification right? Not really. A portfolio made up of only technology stocks is not diverse enough. A portfolio made up of only those stocks is in serious jeopardy the next time a tech crash rears its ugly head. You become truly diversified, when you own entirely different asset classes, because they are even less correlated with one another. e.g. Gold usually runs in the opposite direction to equities. So if equities are going up gold prices tend to go down and vice versa. **So what should my Asset Allocation be?** Asset allocation will be different for every investor. It is arrived at based on an investors age, lifestyle, goals and risk-taking appetite. Know Thyself: The first step is actually to know what kind of investor you are. Are you someone who is comfortable with taking risk or are you risk averse? Depending on the risk level you are at, start investing. *A 35-year old who has to take care of two children will think about asset allocation differently than a 35-year old with no family.* Historically, equity has offered superior returns in the long run. However, a multi-asset approach tends to deliver smoother returns(less volatility). And asset allocation is not a one time event, it requires periodic evaluation. But that’s a discussion for another day. ![](https://wisdominvestments.in/content/images/wisdominvestments-in/wp-content/uploads/2022/04/why-asset-allocation-is-so-important-chart-1024x522-1.jpg) ### 61% regret starting late in saving for their child’s education URL: https://wisdominvestments.in/61-regret-starting-late-in-saving-for-their-childs-education/ Last updated: 2025-11-06T06:30:12.000Z Many of us dream of sending our children abroad for foreign education. Studying in a foreign university was once a dream of only the uber intelligent or the super-rich. But now the majority aspire for a foreign degree. And for good reason too. The supply of quality education in India is outstripped by demand. The cut-off percentage for some of the coveted courses in top colleges has hit 99%. The acceptance rate in Indian colleges offering quality education is below 2 %. This has forced many to look for education overseas. **How much does it cost?** Studying abroad can be prohibitively expensive. If you plan to send your child abroad, keep a target of at least Rs. 50 lakh for a 3-year course. In 10 years, the present cost of 50 lakh would have risen to Rs. 1.07 cr. An eight-figure amount may seem daunting right now, but is achievable with disciplined investing. **Easy for early birds** The goal is easily achievable for early starters. The SIP required will not be prohibitively high. Equity funds should be the preferred investment class if you have more than 7 years before the goal. **Options for late starters** The ideal strategy would be to start any SIP along with lump sum investments. **Hopefully, you do not become part of the 61% who regret starting late in saving for their child’s education.** ### How to Save on Long Term Capital Gains Tax URL: https://wisdominvestments.in/how-to-save-on-long-term-capital-gains-tax/ Last updated: 2025-11-04T06:30:32.000Z Previously, the long-term capital gains (LTCG) made on sale of equity shares and Equity Mutual Funds were completely tax-free in your hands. However, the amendment made in the union budget 2018 has changed the tax treatment of LTCG on sale of listed equity shares and equity funds. Beginning from 1 April 2018, LTCG made in excess of Rs 1 lakh will be taxed at the rate of 10% The key point is gains made in excess of Rs 1 lakh. **How can you take benefit of this 1 lakh limit?** Example Investment Amt – 1 lakh Purchase Price (NAV) – Rs. 50 Units allotted – 2000 units After 1 year Suppose NAV has increased to Rs. 60 Current Value – 60 \* 2000 = 1.2 lakh Profit – 20k (Current Value – Purchase Price) Sell this fund and again reinvest this money. **This way the profit of 20k is tax free.** **Discipline is critical. If you redeem but don’t reinvest, the purpose of long term investing is defeated.** Last day to utilize this benefit of Rs. 1 lakh is Friday, 29 March 2019, please let me know if you have any queries. ### Do Politics and Elections really affect the Equity Market? URL: https://wisdominvestments.in/do-politics-and-elections-really-affect-the-equity-market/ Last updated: 2025-11-02T06:30:50.000Z Lok Sabha elections start next month. It can be quite easy for investors to get carried away in predicting a possible outcome, and its impact on capital markets. It is widely believed that election results, politics and market returns go hand-in-hand. **However, in the long run, it is only earnings growth that drives share market returns.** There will definitely be more short-term volatility due to this mega event as observed historically, but on a long-term basis, it is nothing more than noise. If we analyze past instances, BSE Sensex fell 11% on May 17, 2004, due to surprise defeat of incumbent NDA government; on May 19, 2009, never seen before event in the history of the Indian Capital market happened when Sensex jumped 17% due to thumping victory of UPA; and in May 2014 (when NDA formed a majority gov’t at Center) Sensex rallied 25% one year prior to NDA win. **However, a deeper look suggests that subsequent share market returns were a reversal from the immediate perception of the electoral outcome.** After the single day fall in 2004, for the next 3 years, Sensex delivered a whopping 47 percent CAGR returns. In 2009, similar move occurred but in opposite direction; after euphoric 17% single-day rise, for the next 3 years, Sensex delivered an underwhelming 4% CAGR returns. Even after 2014 elections, Sensex subsequently delivered only 8 percent CAGR returns for next 3 years.