Of investments & preponed flights

Expense Account, Mint

When is a good time to invest?” This question comes in the league table of the top five questions around personal money decisions, the others being how much to invest, am I saving enough, what should I invest in and am I doing OK? Though it sounds generic, the question is about stock market-linked investing—either directly or through mutual funds (MFs)—and the person asking is worried about markets falling.

For such a tiny question, the subtext that I read is quite large. When I see this question, I know that the person is looking at a large lump sum investment, I know that he has all his money sitting in a savings deposit or fixed deposits and I know that he secretly also owns some dud penny stocks bought on tips over the years.

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Do what governments do: use inflation to reduce your loan

Expense Account, Mint

So you read the headlines on Tuesday about the hike in the home loan rates and are wondering what to do: prepay that home loan or let it run on and allow investments to continue. I call it the classic “prepay or invest” fork in the road that the urban mass affluent investors face. There is enough money built up that can be used to make a significant dent in the home loan, but that would mean redeeming funds or selling stock (assuming that the money is not busy losing its shirt in a savings deposit), but should you do it?

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A level playing field–after a year?

Expense Account, Mint

While we were used to the mutual fund industry complaining about its regulator, soft voices against the regulator are surfacing in the life insurance industry as well—and they sound very surprised. The funds were used to a tough regulator, but the insurance industry is a bit open-mouthed by the sudden turnaround in a “friendly” regulator to one that not only goes ahead with tough regulation, but follows that up by taking out television and newspaper advertisements asking policyholders to complain against insurance companies. The playing field, as far as complaining about the regulator is concerned, is fast getting levelled.

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