WealthBasket.co provides Investment Advisory Services to Individuals & Corporates.
Sunday, 11 November 2012
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Wednesday, 15 August 2012
Monday, 13 August 2012
Dynamic Bond Funds
The last eight Quarters we have witnessed a considerable rise in Interest rates in
the country which was primarily to curb inflation.With Inflation coming under
better control the next few Quarters are expected to see a fall in Interest Rates being
offered .As it shows an inverse proposition to Bond Yields,Bond Funds are expected
to perform better giving a probable return of 12% or more.
Wealthbasket.co recommends to its investors actively managed Dynamic Bond Funds
where a proactive call is taken on Interest Rate Scenario. When the Interest rates are
expected to fall in the near future long tenure Debt papers would be accumulated
where the fund would be positioned at the shorter end of the curve with expectations
of a rising interest rate scenario.
If we consider FMP's (Fixed Maturity Plans) they have to invest for a specific period
and lock in the Interest Rate thus any maturity modification is ruled out.Short term
Funds have a maturity of 6 months to 2 years and Income funds have a maturity of
4 years plus.Dynamic Bond Funds fill the gap between the above two categories
by not having a fixed maturity period and the maturity period can be changed
hence taking advantage of rising or falling Interest rate scenarios.Movement of
Funds between short term papers like CP's and CD's or to long term papers such as
Corporate Bonds and Governament Securities is possible.
Dynamic Bond Funds are ideal for Investors during this high volatile market
conditions and a scenario of changing Interest rates where a better return than
conventional Fixed Deposits is expected .
Wealthbasket.co
Thursday, 9 August 2012
Financial Planning
We at wealthbasket.co assist you to
build,implement,monitor and achieve your Financial Goals systematically
with ease after conducting a thorough Risk profiling.Financial
Planning is important because it helps you to understand your life goals
which involves money such as buying a home or car, investing, saving,
retirement planning. By understanding the financial planning process,
it gives you a greater sense of financial security especially in this
uncertain economic downturn.
Steps of Financial Planning Process
Financial Planning Process
Where you are :
Evaluating your current financial situation by compiling personal cash flow statement to estimate your personal net worth. The simple formula is:
Your income(salary, bonus, investment income) – Your expenses(tax, outstanding credit card payment, personal loan) = Personal net worth
If your personal net worth is positive, congratulations to you as you are on the way to achieve financial freedom. However, if the result is negative, please sit down and review again your financial plan properly. Trying to develop good financial planning habits such as learning money saving tips to get you out from the valley of debt. Please be honest to yourself while evaluating your personal net worth as it’s really important to develop your long-term financial goals.
Set Goals :
By now you should able to develop some financial goals after knowing your personal net worth. Most people have a few goals, some short term and others long term. For example, “I want to retire earlier at age 45 with a personal net worth of Rs.5 Crores.” It’s fine to have a few goals but you need to prioritize which goal to achieve first before moving to the second goal. If you are uncertain of which goal to achieve first, kindly consult with a financial planner who can help you to discover your own values and make it easier for you to prioritize the goals.
Financial Plans :
Draft a financial plan with details of plans and strategies on how to achieve your goals. Please be specific on your plans and strategies, Let’s take an example below:
Plan – Buying a house in 3 years from now.
Strategy – save money
Do you see what’s the major problem with the above strategy? By mentioning save money only is a failure strategy, you need to mention how much money you’re going to save every day, week, monthly and also identify how you going to achieve it. All these details will help a lot in your financial planning process.
Take Action :
Actions speak louder than words. It’s useless if you do not take action to achieve your planned financial goals. I assume that you have decided the best plan for your goals and what you need to do now is to implement plans and strategies. It needs your perseverance and discipline to manage financial plans. You can always seek for assistance from financial planner to reach your life goals.
Monitor Progress :
This is the last and most important step in financial planning process. You should monitor your progress as time goes by to see if any changes need to be made in order to achieve you primary financial goal – Financial Freedom.
 |
Financial planning is the long-term process of wisely managing your finances to achieve your goals and dreams, while at the same time negotiating the financial barriers that inevitably arise in every stage of life. Remember, financial planning is a process, not a product. |
Steps of Financial Planning Process
Financial Planning Process
Where you are :
Evaluating your current financial situation by compiling personal cash flow statement to estimate your personal net worth. The simple formula is:
Your income(salary, bonus, investment income) – Your expenses(tax, outstanding credit card payment, personal loan) = Personal net worth
If your personal net worth is positive, congratulations to you as you are on the way to achieve financial freedom. However, if the result is negative, please sit down and review again your financial plan properly. Trying to develop good financial planning habits such as learning money saving tips to get you out from the valley of debt. Please be honest to yourself while evaluating your personal net worth as it’s really important to develop your long-term financial goals.
Set Goals :
By now you should able to develop some financial goals after knowing your personal net worth. Most people have a few goals, some short term and others long term. For example, “I want to retire earlier at age 45 with a personal net worth of Rs.5 Crores.” It’s fine to have a few goals but you need to prioritize which goal to achieve first before moving to the second goal. If you are uncertain of which goal to achieve first, kindly consult with a financial planner who can help you to discover your own values and make it easier for you to prioritize the goals.
Financial Plans :
Draft a financial plan with details of plans and strategies on how to achieve your goals. Please be specific on your plans and strategies, Let’s take an example below:
Plan – Buying a house in 3 years from now.
Strategy – save money
Do you see what’s the major problem with the above strategy? By mentioning save money only is a failure strategy, you need to mention how much money you’re going to save every day, week, monthly and also identify how you going to achieve it. All these details will help a lot in your financial planning process.
Take Action :
Actions speak louder than words. It’s useless if you do not take action to achieve your planned financial goals. I assume that you have decided the best plan for your goals and what you need to do now is to implement plans and strategies. It needs your perseverance and discipline to manage financial plans. You can always seek for assistance from financial planner to reach your life goals.
Monitor Progress :
This is the last and most important step in financial planning process. You should monitor your progress as time goes by to see if any changes need to be made in order to achieve you primary financial goal – Financial Freedom.
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