DIYInvestorGuide

Here is an attempt to present a complex subject (Personal Finance Management in simplest way without compromising on the core of the subject matter. Vast subject condensed to 4 Steps and further represented in one-page picture. Step-1: Create Emergency Fund  and Get Insurance Covers Creating an Emergency Reserve Fund of at least your 3 months Salary / Income is your First Objective, as soon you start earning. Thereafter, it needs to maintained at that level in line with increase in your income. It needs to be recouped as soon as possible, when it gets used up. The reason why you should ever touch this money for spending is strictly  an Emergency Situation (Ex: Medical Emergency, Loss of Job etc). This emergency Fund may be parked in a instrument that is quickly liquidatable; Investing in Bank Fixed Deposits and Mutu Fund Liquid Funds is most appropriate. Insurance is a next sub-step; A well rounded Insurance covers against untimely death (Term Insurance), Ac...

Who and when should one invest / consider investing in Equity Shares directly than investing in Equity Mutual Funds? Investing in Equity Mutual Funds for all Long Term Goals is the simplest and the easiest way. Some argue, investing in Equity as an asset class and not necessarily Equity Mutual Funds for Long Term Goals. However, that may be suitable only for the those who wish invest with dedication, on time and knowledge to learn and master Direct Equity Investing. If you are one of those who is willing to dedicate to patient & continuous learning, research & analysis, you may look for Direct Investing in Equity Shares. Be a long term investor and not a trader. Learn to create a focused portfolio of select few high quality   stocks, that you expect to be multi-baggers (increase in value multi-fold) over long term. As this is difficult task and involves far higher risk than Investing in Equity Mutual Funds, don’t use it for funding your regular / time bound goals. Don’...

I have tried to think, several tens of times to understand why attitude of the people towards Financial Advisors is different from almost all other professionals / experts? Why the dilemma whether D-I-Y or seek expert help will never come anywhere but Financial Advice. If I simply consider all other 'advice' based experts - Doctors, Auditors, Lawyers, Architects etc, there is one fundamental and easy to notice fact. Clients go to them seeking their advice but Financial Advisors go to clients. In other words these services can be put as 'Pull' and 'Push' services. I've seen they remain so beyond timelines, geographies and scale (how big the advisor is). After all their elders have never sought advice on money matters but still achieved 'so much' in their life. They are wrong, we (money professionals) know it; they don't understand or care it. We professionals know that their elders have underachieved against what their money was potential of ...

Before understanding what is 'deserving' DIY 'Investor' first let's understand what it DIY means (Well I know you know abbreviation of D-I-Y and certainly don't mean to ask literal meaning of it!). D o- I t- Y ourself is a thing that is practiced everyday, in everything we do. Doing something ourselves doesn't mean we do it perfectly the way it can be best done. We know, we don't want everything to be done the best all the time. When we do something ourselves, we are not expecting the result to be matching the professional quality. From preparing Pizza or a sambar for Idly to fixing a leaking water tap to minor electrical / mechanical repair in an equipment...we all do it to some extent and we know our limit, to what extent and what quality we can handle those things. Even some daily accounting or some first aid medication or simple legal drafting. None of us seek a cook for our daily cooking, a mechanic to fix a rattling part in the car / bike, a...