AVFINPAL- Your Financial Pal

It is an obvious blissful and great feeling to know you have a big amount in your bank. If required you can easily go to your nearest ATM and get your money with minuets. However, no matter good it feels, it is not a financially smart decision to keep a large amount of money lying in your bank account.  There are two issues and no matter how simple they may seem to be but most have been a victim to these. May to it knowingly and few may fall for these unknowingly.  So what could possibly go wrong in keeping money in the bank? Well the first and the common issue is -  "No Real Returns" Even if its feels good to have money resting in your bank account, it isn't a good investment move. Most of the saving bank accounts offer you a return of around 3 - 5 percent. Currently, inflation is ranging around 5-7 percent and if you consider these to factors. You are not only actually earning anything but you are losing the value of your money.  In this case,...

How do you envisage your retired life? Relaxing at some exotic location, following all your dreams and passion which you once left behind to make a better living. On the flip side, it can be horrifying where you are dependent on your kids, living a life where you have to think twice even before spending on the basic necessities. Well, I am sure no one wants to works a major part of the existence just to survive for the rest of their lives. We all wish for a lavish and relaxed post-retirement life. But do we all even do something for it? Even if many of us do think of it. We lack the proper direction. Well, the best way to fulfill all your post-retirement goals is to start saving for it from today itself. In fact not just save you need to start Investing for it. Obviously, what's the fun of seeing your money resting in a savings account, while you are working your soul off. Its time you put your money at work too. In this article, we will be comparing various investment avenues ava...

Lately one of the clients asked me to switch his portfolio from equity dominancy to debt. Though his reaction was obvious as the equity market has been hyperactive recently. Though after good discussion it was concluded that the client wasn't much comfortable with the fluctuation of the equity market. Hence, his portfolio allocation has to be rebalanced as per his risk appetite. What was more important here was to get the client's expectation right regarding the debt fund and risk associated with them. Most of the time investors come with the notion that debt funds are risk-free and it becomes important to clear this could of at the very beginning that nothing in the market is risk-free. Every asset class carries some risk along with it and as an investor one should be clear about the risk and return profile of the asset class. So in this article let us look at the key risk associated with the debt funds. 1. Credit risk in Debt Funds:   One of the most obvious but ...

To facilitate transparency and efficiency in the economic reforms the government along with its various undertakings and departments is continuously striving to carry the most adequate policies. These policies and reforms prove that the government is keen to boost the economy and make India a big name in the global economies. Every change in policy by the government has a direct or indirect impact on your personal finances. Recently the government has brought some major changes that can have major impact on you. Here, is a list of things that have changed from 1st October 2019. 1. External benchmarking of loans: As per the circular dated 24th September 2019 issue by the RBI, all the floating rate loans to be sanctioned by the banks including public sector banks on or after 1st October 2019 has to be linked to an external benchmark. The loans that prima- facia to be linked are- personal loans, housing loans, and vehicle loans. Before 1st October 2019, the banks use to charg...

Lately with an increase in investor awareness programs, access to the apps that allow an easy of investing and all the information available on various platforms. The number of people entering or willing to explore more and more investing avenues is increasing with multifold year on year.  One of the most common and best available avenues for the new and no nothing investor are a mutual fund. The mutual fund industry has grown rapidly in the last decades due to its ease of access and various other benefits. Also, the "Mutual Fund Sahi Hai" campaign has boosted the interest of novice investors.  In this article, we will be know all about mutual what. How it works and what are its advantages and disadvantages? Wikipedia defines mutual fund as-  "A professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature. Mutual funds have advantages and disadvantages c...

Dalal Street which was bleeding red since past few months finally got some rejuvenation on Friday. The Finance minister Nirmala Sitharaman gave a sigh of relief to the corporates and retail investors from tax regime in the fourth round of a series of measures that the government has announced in the past few months. The tax relief which is addressed as the bonanza to domestic business and manufacturing firms makes the tax rate to be the lowest in Southeast Asia. In response to these tax relief, all the major indices registered a decade's highest upward movement in a day. BSE Sensex showed a really of over 2,200 points and Nifty showed a 5% growth to settle at 11,274. The mid-cap index rose to 6.5 % and small-cap showed an upward movement of 4%. Still wondering what made the market flooded?  In this article, we will be looking at the key takeaways from the changes made in the tax regime. 1. Reduction of basic corporate tax: The FM reduced the basic rate of the income ...

The very basic of investing and understanding a business is to understand the finances of the company. The finances and monetary positions of the company are the backbones of any decision when it comes to investing or understanding the company.  Though there is no set pattern when it comes to filtering the information from the financials of the company and the type of filtering depends upon the style, need and size of the information. required. In this article, we will be sharing the basic you should always look for while picking up a company for investing.   1. Net Income In terms of overall profitability, the net income is the obvious starting point when analyzing a financial statement. This bottom-line amount on a company's income statement is an excellent indicator of profitability because it puts a value on the amount a company takes in, once all costs of production, depreciation, tax, interest and other expenses have been deducted. 2. Operating Profit Ma...