Ahirjoy's Blog

  This is the second part of the blog “A Layman’s guide to Investment” which I started last week. When we do investing, many of us hardly give any consideration how our asset allocation should change with changing time and this is not a wise approach. So, in this blog I am trying to set few simple guidelines which you may consider, 1.        Age 25-30:      Start investing at the earliest and increase your savings and investment as much as possible. This is usually the time when you have less family obligations and thus you can take maximum risks. Also, if you are salaried employee, try to increase your investment in Voluntary PF.   a.        Equity/MF Exposure:     50-60% b.        Fixed Assed Exposure:   20-30% c.        Other Assets:                   10-15%                    Create  separate buckets for important goals in life – like marriage, children’s higher education, buying home/car, holiday and retirement etc. The biggest mistake one can make is to

      This blog is written considering people who have elementary knowledge on personal finance but enthusiastic about starting fresh towards the rewarding journey of investment. They should try to follow below simple steps to begin with, 1.        First analyze your income and expenses thoroughly, not only your big-ticket expenses like EMI, but even minute details like laundry expenses which will give you realistic picture how well   are you managing your income and expenditure.   2.        Create an emergency fund which should be no less than 3 months’ of your monthly income. This will act as a primary cushion for unemployment or unavoidable circumstances.   3.        Buy Family floater plan for you and your dependents even if you have an insurance from your company. This will be very helpful when you are out of job or even for buying individual coverage at a later stage of life.   4.        Buy a term insurance plan for your dependent to protect your family f

Consolidation of Public Sector Banks – Will it serve any purpose? Yes, definitely. The suggestion of consolidation among PSBs has quite old history. Narasimham Committee Report in 1991 (NC-I), recommended a three tier banking structure in India through establishment of three large banks with international presence, eight to ten national banks and a large number of regional and local banks. Narasimham Committee Report in 1998 (NC-II) also reiterated the recommendations on NC-I.   Few strong arguments for Consolidation can be given below: 1. Indian banking sector is highly fragmented . PSBs mostly competing with each other as they have same business model, products and segments. Herfindahl-Hirschmann Index (HHI)1 for Indian banking sector stands at 545.2, reflecting low levels of concentration. It will also enable geographical diversification, increase in market share and penetration to new markets, and help promote international acceptance and recognition.   2. Need f