Go for index funds that are traded on exchanges

Expense Account, Mint

Markets are up about 30% over the past six weeks.Will this stock rally last? Should you buy now?

One view says that post-election, the markets will crash. However, if the Congress manages a stable coalition, they will soar.

Some experts believe that this is a dead cat bounce—a bear market rally that will shatter soon. Others say that the great Indian 20-year bull run is now open. The chief of India’s markets regulator, however, cautions against irrational exuberance.

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Nudging yourself to clear financial clutter

Expense Account, Mint

As I sit surrounded by mounds of paper, with laptop humming to one side and the fan off, dog and kid out of the room, I bemoan my fate.

Most women I know don’t suffer the chore of paying utility bills, planning, executing, managing investments and paying taxes. But be foolish enough to enrol in a financial planning course, get on national TV and radio to advise the world on managing money and you find yourself holding the baby, managing not just your own but assorted family, friends and other life forms as well. And loath as I am to pass up an opportunity to write about a financial experience, here’s what happened.

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The standards solution for home mortgages

Expense Account, Mint

What if a kilogram was a variable? Or a kilometre? How’d you react if the vendor was free to decide what a kg would measure today? The vendor could then choose to give you five mangoes a kg when he bought mangoes at Rs25 a kg, he could define a kilogram such that you got just four when the price he faced went up to Rs30 a kg. And if prices fell to Rs10 a kg, he had the power to define the kilogram at five mangoes a kg.

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The fly in the loo and the economics of saving

Expense Account, Mint

Imagine that you are the manager of a school cafeteria. The school offers a wide range of food and beverages. Suppose research shows that no matter what is at the top of the list, the top three items get ordered more than the rest on the menu. If the manager writes out “grilled chicken whole grain sandwiches” at No. 1 “cheese hamburger with fries” at No. 10, more kids will choose the healthier option.

Now, would you, as the manager of the cafeteria and a responsible parent yourself, leave the choice of the first three items to a random selection or take a conscious decision to put the three healthiest options first and then fill the rest of the menu with all others also on the list?

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