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Age-based asset allocation Here, you must invest in risky assets or non-risky assets; basically, the allocation is done based on your age. For example, suppose you are 30 years old. You must invest 70%, i.e., 100 - 30, in a riskier asset such as equity, while the balance 30% is invested in diversified low-risk instruments such as bonds, bullion, REITs, etc. The rule of 100 - age asset allocation strategy is laid out just to make your financial planning seem easier to analyse.
Indians are travelling a lot! A news report from Moneycontrol said, and I quote, "From $11 million in 2014-15, Indians are spending over 1 billion dollars a month on foreign travel today." Seeing an opportunity here, the Union government, in its budget 2023, has increased the TCS on remittances for booking overseas travel packages from earlier 5% to now 20%. But that's not slowing any of us down. Revenge travel or not, Indians are travelling a lot.
Will the Financial Crisis Hit Our Deposits? With all the banks toppling around like house of cards, should we be worried about our deposits? Well, there's something called "deposit insurance." It's a form of insurance cover for your deposits if in case the bank runs out of money. In India, deposit insurance is secured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Ray Dalio warns of systemic risks after the SVB collapse! Ray Dalio says the SVB case has raised concerns about potential systemic risks. Here, systemic risks are in regards to the global financial system's collapse. Something we saw during the Great Recession of 2008. Sir Dalio addressed the current crisis as "the canary in the coal mine" for the financial system, which means an early indication of potential danger or failure.
Is There A YES Bank Shares Mass Selling Coming?!? On March 20th, 2020, the RBI put restrictions on investors who had invested in the bank post-major crash that took place in the same year. RBI then initiated a 3-year lock-in period for these shares. That lock-in period will end on March 13th, 2023. And, thus, over 140 crores of equity shares will be available for sale. That's almost 1 share for every Indian population. So, there'll be a massive sale of Yes Bank shares,
Safest short-term investment The T-Bill The Indian government offers a variety of debt obligations; amongst them, the T-bill is the one with the shortest maturity. Treasury bills are money market instruments issued by the RBI. Usually issued in three tenors, i.e., the 91-day, the 192-day, and the 364-day ones. You can invest in a Treasury bill via a demat account such as Zerodha or Uptox. T-bills are considered safe because they are a short-term debt obligation.
In Equity Investing, to some extent, the weightage matters. For example, if your good investment gave a 100% ROI but the allocation was just 1%, the impact on your entire portfolio is just 2%. On the other hand, if your bad investment is down by 50% but the allocation is 10%, the impact on your portfolio is 5%. So, cutting down the losers while adding onto the winners is the wisest choice. Because the weight each stock carries is as important as the performance it provides.