Let’s start a Positive #MeToo for Investing

Have you invested your Savings? #MeToo

Have you invested for the Long Term? #MeToo

Have you done your Asset Allocation? #MeToo

Have you invested in Equities? #MeToo

Have you invested via Mutual Funds? #MeToo

Have you started an SIP? #MeToo

Have you consulted a Financial Planner for all of this? #MeToo

And if any of the above replies are in the negative

God will help you!





Loss Aversion Biases

I find that some people are married longer to their stocks than their spouses. 😂😅😛

This is nothing but loss aversion bias.

People generally are reluctant to book their losses and keep holding the stocks in the hope to recover their cost price. And worse, few even average out the falling knives.

For an Investor, it is very important to accept the mistakes, learn from them and to move on.

It is far better to pay premium for excellence than to enjoy discount for average.

Kaustubh Deole

Instant Gratification (तुरंत संतुष्टि)

Instant gratification is one of the most brutal enemy of an investor.

People always look for instant solutions to their problems. Everything cannot happen instantly like 2 minute Maggie Noodles.

Let’s take an example of Indian economy, the dynamics are entirely different. Imagine, a fully loaded 60 wagons goods train. Now to start and take this train to 50 kmph would take plenty of time. Similarly the case would be the same while stopping it.

Our economy is also like this locomotive. Any decision taken will take 2-8 quarters to play out. So one needs to wait patiently.

Too much of data, information these days is proving harmful to investor’s wealth and health.

Instead focus on what matters and have Faith and Patienceश्रद्धा एवं सबुरी.

Kaustubh Deole

Equity Survey Poll


How much Capital Gains from Equity (Mutual Funds, Stocks) is Exempt; if held for more than 1 year from 2018-19?

Your personal data is secured.


Compounding needs time

You can’t build your body overnight. Time has to spent through compounding.

Through the power of compounding, a small amount of money over time can grow into a substantial sum.

Compounding is an investor’s best friend.

Investments can increase in value over time – and the longer the time frame, the greater the value. This is achieved through returns that are earned, but not spent.

When the return is reinvested, you earn a return on the return and a return on that return and so on.

Therefore it is important to start saving early in order to benefit from the power of compounding returns.

Kaustubh Deole

When you are Greedy!

When does a person feel greedy?This emotion can arise due to rising markets. Greed is the opposite emotion to fear. It is the emotion which wins over fear and promotes over-confidence. With the rising markets, investors become greedy and hold on for longer positions, or often make random trades, which they are not supposed to do in their investing system.

This emotion can arise due to rising markets. Greed is the opposite emotion to fear. It is the emotion which wins over fear and promotes over-confidence. With the rising markets, investors become greedy and hold on for longer positions, or often make random trades, which they are not supposed to do in their investing system.

So, it is the emotional control that is the key component, an investor must exhibit while investing. True success depends on this psychological strength of the investor. Greed has to be dealt with to maintain your focus and not to get swept away by illusions.

Kaustubh Deole

Financial Freedom

Financial Freedom means having zero tie-ins to anything financial. It includes your income, debt and expenses, lifestyle. It is of little matter how people perceive the meaning differently. Rather, it is more crucial to understand how to act based on your financial situation.

Loan Free
Being debt-free should not be confused with being financially well off. If you are only debt free, you still have to work in order to pay for your basic expenses and taxes. In order to achieve financial freedom, the first thing we have to ask ourselves is what does it take to be debt free?

Income & Expenses

Assume you purchased a car without any loans required, it does not imply you are financially debt free.

There are other factors to take account of like servicing & other maintenance costs, fuel costs, repairs etc. Moreover, this is just a car. Think of other factors also. Your expenses must be well managed to achieve this goal.

If expense is greater than income, you are far from being free from anything.

Financial Assets

Financial assets are financial tools that will generate annual cash flow for you. These assets can be pension, shares, bonds and mutual funds. You can get dividends from shares, receive regular payments from your bonds or mutual funds.

For retired individuals, they can enjoy the benefits of EPF, PPF, PMVVY(Pradhan Mantri Vaya Vandana Yojana)


It’s easy to sell a story of being financially free. You may have heard several discussion or lectures on the importance of generating ‘passive income’ and ‘self generating money’ tools.

Feel good stories sell the best and people buy into this.

Investments and savings are good, but as with most things in life, they come with risks like inflation.

In great books, being financially free does not equate to wealth accumulation but rather your lifestyle.

Live within your means, plan for the future and consider the role of inflation while calculating financial freedom. We might be of help.

Use the Magic word & be Rich

Today, every single product is positioned as need based solution. Can you deny the need to save for child’s education, self retirement, safeguard family’s health & build wealth in long term? It is difficult to see the advantages of any investment when approached by a good salesman.

The world has evolved to a global state & so do any company or salesman. I would rather term them all as HAWKERS. They position the product so well that customers fall for sales pitch & buy it.

Game plan of HAWKERS: IF you have child, you require Child Plan. If you have family, you must have medical insurance. You also need Retirement Plan.

Result: You buy costly child Ulips & guaranteed plans, complex medical policies, inflexible pension plans. They push you to diversify across Stocks, gold, property, bonds, bank FD, PPF & other complex options. If you can’t afford a new home, bigger car, or foreign holiday, they will get you to leverage on future income.

You take a home loan, a car loan, a personal loan & you also collect few credit cards in bargain. This is sure shot recipe for financial worries. Use the magic word to safeguard your finances against such perils, make you rich & protect you from friends offering free advice, wealth managers, money quacks, banks, insurance companies, bank relationship managers, insurance agents who are trying to sell you something or other.

Magic word: No, Nahi, Nako, Na, Venda, Nahim, Illa, Illai.

NO’ is a very powerful word. Use it ruthlessly. Say ‘NO’ to the relative who wants to sell you an endowment insurance policy. Turn down bank executive who is pushing a pension plan. Refuse the offer of free add-on card from Credit Card Company. Don’t agree to buy child plan that costs a bomb.

Action Plan: Keep your financial life as simple as possible.

  • One term insurance plan to cover your life risk.
  • SIP’s in 4-5 well chosen diversified equity funds & debt.
  • A simple no frills medical insurance for your family.

Kaustubh Deole