Sometimes good wine and good advice feels better as you age. I almost wish that I knew at 29 what I knew about money at 40. But I guess everything has a set time to appear in your life.
A friend introduced me to Mutual Funds. Before that I was too busy losing money buying penny stocks and hoping that they will be the key for a house and a brand new car.
Another friend introduced me to investing directly in Mutual funds. He was persuasive and he literally dragged me to the AMCs office to convert all my regular mutual funds into Direct plans.
Because direct plans are cheaper by as much as 0.7 percent. And that is direct savings to you. You are buying exactly the same scheme just that part of your money is not going as commissions to mutual fund distributors. So your overall costs are low. In the words of famous money Manager Jack Bogle”Don’t let the miracle of long-term compounding of returns be overwhelmed by the tyranny of long-term compounding of costs.”. In my words- Go Direct.
When I ask around very few people know about Mutual funds. Even those who advise people on Mutual funds have very little knowledge of direct plans and their benefits or they don’t want to share. And some people like me are too lazy to spend half a day to convert their plans into direct ones.
Very soon I will be launching a venture to help people make better personal financial decisions. Timely and fair advise and not the one that is biased can help one achieve personal financial freedom. I have friends who have money back insurance policies because some gullible agent sold them because of hefty incentives. People I know have low insurance cover or hefty credit card bills.
Yes to term insurance and no over due payments on credit cards. This is simple rupee. Coming soon.