Understanding Self-Serving Bias & Why You Need To Take Responsibility How many times have you boosted your talent when things went right and luck when things did not go as planned? Most of us have done this multiple times and we are likely to do it few more times as well. And this behaviour in the field of behavioural financeis called as self-serving bias. Simply put, self-serving bias is the tendency to credit good outcomes to our skills and talents and unfavourable outcomes to fate and luck. Overconfidence and misattribution of causes are the two parts of self-serving bias. Examples of self-serving bias can be found in our day-to-day life. For e.g., a job applicant after being rejected can attribute it to the personal preference of the interviewer. Also, he may attribute his selection in the next interview to his qualifications and skills . In the investing world, we tend to attribute good performances of our investments to our investment skills and negative returns to the broade...

Combination of EMI and SIP can save you lot of money What if your Home loan tenure is reduced without increasing EMI , even if the interest rate remains the same? Sounds interesting? Read it. In year 2010, I bought the flat into the Ahmedabad for which I took the home loan of Rs 48 Lacs from one bank. At that time the interest rates were around 10.5%. So I decided to take the loan for the maximum tenure available, i.e. 20 years as I could afford the EMI of Rs. 47922/-. The bank RM came to my office for completing the paperwork. While filling the forms he asked me about the tenure which I would like to go for. I told him to go for maximum tenure i.e. 20 years. Bank’s RM told me, “Sir maximum limit is not 20 years it is 25 years”. According to my calculation I was ready for paying  Rs 47992/, an EMI amount for 20 years of tenure considering 10.5% interest and Loan of Rs 48 Lacs. So if I chose to go for 25 year, EMI would be lesser. I tried to do the exact calculation and ended up wi...

The Rise of Sachet-Sized SIPs: Making Mutual Fund Investments Accessible to All Introduction Investing in mutual funds has long been perceived as a strategy reserved for those with significant disposable income. However, with the recent push by the Securities and Exchange Board of India (SEBI) , investing in mutual funds has become more accessible than ever. The introduction of sachet-sized SIPs , allowing investors to start with as little as ₹250 , marks a revolutionary step in democratizing wealth creation. What Are Sachet-Sized SIPs? Sachet-sized SIPs refer to the new regulatory proposal that enables investors to begin their mutual fund journey with a minimal amount. Traditionally, SIPs (Systematic Investment Plans) required a minimum investment of ₹500 to ₹1,000 per month, making it slightly out of reach for lower-income groups. With the introduction of ₹250 SIPs , even individuals with limited savings can now participate in the stock market and build long-term wealth. Why Thi...

Introduction Managing money wisely is the key to financial freedom. Whether you want to grow your savings, invest smartly, or plan for retirement, mastering personal finance is essential. This guide will help you understand budgeting, investing, and avoiding financial pitfalls to build long-term wealth. 1. Understanding Personal Finance Before diving into investment strategies, it's crucial to understand the basics of personal finance. It includes: Income Management: Understanding different income sources and optimizing them. Expense Tracking: Knowing where your money goes to avoid unnecessary spending. Savings & Investments: Creating a balance between saving for emergencies and investing for future growth. A well-planned financial strategy ensures stability and helps achieve financial goals. 2. Smart Budgeting Techniques Budgeting is the foundation of financial success. Here are some effective methods: 50/30/20 Rule: 50% for essentials (rent, bills, groceries). 30% for li...

How Inflation Impacts Your Investments and How Mutual Funds Can Help Imagine having a basket of goods that costs you ₹1,000 today. Fast forward five years, and suddenly the same basket costs ₹1,250. That increase in price is inflation — the gradual rise in the cost of goods and services over time. While inflation is a normal part of economic growth, it can have a significant impact on your finances if not addressed properly. If you are not earning enough on your investments to keep pace with inflation, the value of your money effectively decreases. In this blog, we'll explore how inflation impacts your investments and how mutual funds can be a powerful tool in combating its effects. What is Inflation and Why Does It Matter? Inflation is the rate at which the prices of goods and services increase over time, leading to a decline in purchasing power. In simple terms, inflation means that the money you have today will buy you less in the future. For example, if inflation is at 5%,...