Archive for November 13, 2007

The ‘I’in investment

Publication: The Times Of India Mumbai; Date: Nov 20, 2007;    Section: Your Money;   Page: 40

Your role in planning your money doesn’t end with becoming a bank’s ‘gold’ client. Only you know your goals, liquidity needs, and risk profileLIFE has been good to Ravi Subramanian, 39, and his wife Meena, 37. They are flying high in their careers, they have a charming daughter, a lovely home, and no liabilities. Money is not in short supply in the Subramanians’ lives, but there’s just one little problem: it needs to be managed rather differently to meet the family’s goals.

Familiarity does not Equal Safety

Publication: The Times Of India Mumbai; Date:2007 Nov 13; Section:Your Money; Page Number: 40
Just because you understand how a particular investing option works, that doesn’t mean it’s the best place to park your money
People often confuse familiarity with safety. This is evident in many choices we make in life—especially in investing decisions. Senior citizens generally prefer fixed deposits (FDs), because they are familiar with how they work, and sometimes put nearly their entire savings in FDs and bonds. Similarly, many people equate insurance with LIC, and even when they opt for private insurers, their focus is always on investment-oriented insurance policies. This is because, until private insurance companies appeared on the scene, LIC did not have a single term plan. So people are far more familiar with investment-oriented insurance plans.